MISSISSIPPI LEGISLATURE

2018 Regular Session

To: Highways and Transportation; Finance

By: Senator(s) Kirby

Senate Bill 2846

AN ACT ENTITLED THE "MISSISSIPPI TRANSPORTATION INVESTMENT ACT OF 2018"; TO PROVIDE THAT EACH OF THE THREE MISSISSIPPI TRANSPORTATION DISTRICTS SHALL BE A SPECIAL TRANSPORTATION IMPROVEMENT DISTRICT FOR THE PURPOSE OF AUTHORIZING CERTAIN TAXES TO BE IMPOSED ON A LOCAL OPTION BASIS TO BE USED TO FUND HIGHWAY REPAIR, RENOVATION AND MAINTENANCE WITHIN THE DISTRICTS; TO PROVIDE FOR THE CREATION OF THE DISTRICTS; TO PROVIDE FOR A NORTHERN DISTRICT TRANSPORTATION PLANNING COUNCIL, A CENTRAL DISTRICT TRANSPORTATION PLANNING COUNCIL AND A SOUTHERN DISTRICT TRANSPORTATION PLANNING COUNCIL TO DEVELOP PRIORITIES FOR STATE HIGHWAY REPAIR, RENOVATION AND MAINTENANCE IN EACH OF THE THREE DISTRICTS TO BE PUBLISHED BY THE MISSISSIPPI TRANSPORTATION COMMISSION; TO PROVIDE FOR A REFERENDUM BY THE ELECTORS RESIDING WITHIN EACH SPECIAL TRANSPORTATION DISTRICT; TO AUTHORIZE AND PROVIDE FOR A SPECIAL DISTRICT TRANSPORTATION MOTOR FUEL EXCISE TAX, MOTOR FUELS TAX REGISTRATION FEE FOR ELECTRIC-DRIVE, HYBRID-DRIVE AND HYDROGEN-DRIVE MOTOR VEHICLES AND A NEW TIRE FEE TO BE IMPOSED IN ANY SPECIAL TRANSPORTATION DISTRICT WHICH APPROVES THE REFERENDUM; TO PROVIDE FOR THE DEPOSIT OF THE PROCEEDS OF SUCH TAXES INTO THE TRANSPORTATION DISTRICT INFRASTRUCTURE REPAIR, RENOVATION AND MAINTENANCE FUND TO BE USED EXCLUSIVELY FOR APPROVED REPAIR, RENOVATION AND MAINTENANCE PROJECTS WITHIN THE DISTRICT; APPLICABLE ONLY IN TRANSPORTATION DISTRICTS WHICH HAVE APPROVED THE IMPOSITION PURSUANT TO REFERENDUM, TO AMEND SECTION 27-55-11, MISSISSIPPI CODE OF 1972, TO INCREASE THE RATE OF THE GASOLINE EXCISE TAX AND TO AMEND SECTION 27-55-519, MISSISSIPPI CODE OF 1972, TO INCREASE THE RATE OF THE SPECIAL FUEL EXCISE TAX IMPOSED ON DIESEL FUEL; TO REQUIRE THE REVENUE COLLECTED FROM SUCH TAX TO BE DEPOSITED INTO THE TRANSPORTATION DISTRICT INFRASTRUCTURE REPAIR, RENOVATION AND MAINTENANCE FUND; APPLICABLE ONLY IN TRANSPORTATION DISTRICTS WHICH HAVE APPROVED THE IMPOSITION PURSUANT TO REFERENDUM, TO AMEND SECTION 27-5-101, MISSISSIPPI CODE OF 1972, TO REVISE THE DISTRIBUTION OF GASOLINE AND UNDYED DIESEL FUEL TAX REVENUE TO PROVIDE THAT 10% OF THE INCREASE IN GASOLINE AND UNDYED DIESEL FUEL TAX REVENUE SHALL BE DEPOSITED INTO THE "COUNTY ROAD ASSISTANCE PROGRAM FUND" AND TO PROVIDE THAT A CERTAIN SUM SHALL BE DEPOSITED INTO THE "MISSISSIPPI HIGHWAY-RAILROAD GRADE CROSSING SAFETY ACCOUNT"; APPLICABLE ONLY IN TRANSPORTATION DISTRICTS WHICH HAVE APPROVED THE IMPOSITION PURSUANT TO REFERENDUM, TO AMEND SECTION 27-19-43, MISSISSIPPI CODE OF 1972, TO ASSESS A MOTOR FUELS TAX REGISTRATION FEE FOR ELECTRIC-DRIVE MOTOR VEHICLES, HYBRID-DRIVE MOTOR VEHICLES AND HYDROGEN-DRIVE MOTOR VEHICLES, TO PROVIDE THE FEE AMOUNTS, TO CLARIFY THE CIRCUMSTANCES AND MANNER IN WHICH THE FEES SHALL BE PAID, TO MAKE THE FEES A PREREQUISITE TO LICENSING AND REGISTRATION, TO APPORTION THE FEE REVENUE, AND TO DEFINE TERMS; TO AMEND SECTION 27-19-99, MISSISSIPPI CODE OF 1972, TO PROVIDE FOR THE DISTRIBUTION OF THE PROCEEDS OF THE FEES TO THE TRANSPORTATION DISTRICT INFRASTRUCTURE REPAIR, RENOVATION AND MAINTENANCE FUND; TO PROVIDE FOR THE IMPOSITION OF NEW TIRE FEES FOR SUCH PURPOSES; TO ESTABLISH THE TRANSPORTATION DISTRICT INFRASTRUCTURE REPAIR, RENOVATION AND MAINTENANCE FUND IN THE STATE TREASURY; TO CREATE THE COUNTY ROAD ASSISTANCE PROGRAM TO BE ADMINISTERED BY THE STATE AID ENGINEER; TO PROVIDE CERTAIN POWERS AND DUTIES TO THE STATE AID ENGINEER IN ADMINISTERING THE COUNTY ROAD ASSISTANCE PROGRAM; TO AMEND SECTION 57-43-15, MISSISSIPPI CODE OF 1972, TO CONFORM THE MISSISSIPPI HIGHWAY-RAILROAD GRADE CROSSING SAFETY ACCOUNT PROGRAM TO THE PROVISIONS OF THIS ACT; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. This act shall be known and may be cited as the "Mississippi Transportation Investment Act of 2018."

SECTION 2. (1) The Legislature intends through the creation of three (3) special transportation districts to enable the citizens within each district to decide in an election whether to authorize the imposition of the following special district transportation taxes to fund the transportation projects on an investment list developed by the Mississippi Transportation Commission:

(a) An increased excise tax on gasoline and diesel as authorized in Sections 3 and 4 of this act.

(b) A motor fuels tax annual registration fee for electric-drive motor vehicles, hybrid-drive motor vehicles and hydrogen-drive motor vehicles as authorized in Sections 6 and 7 of this act.

(2) There are created within this state three (3) special transportation districts. The geographical boundary of each special transportation district shall correspond with and shall be coterminous with the geographical boundary of the applicable region of the three (3) Mississippi Transportation Commissioner Districts provided in Section 65-1-3, Mississippi Code of 1972. When the imposition of the special district transportation taxes is authorized according to the procedures provided in this section within a special transportation district, subject to the requirement of referendum approval and the other requirements of this act, the special transportation taxes shall be imposed within the special transportation district for a period of ten (10) years which tax shall be known as the special district transportation improvement tax.

(3) The Mississippi Transportation Commission shall develop and prepare a ten-year strategic statewide transportation plan for each of the three (3) Mississippi transportation districts based upon the recommendation of the three (3) District Transportation Planning Councils as provided in this subsection (3). This plan shall be developed prior to January 1, 2019, and shall include pavement preservation, maintenance, reconstruction, bridge replacement and railroad crossing upgrade priorities.

(a) The membership of the Northern District Transportation Planning Council shall be as follows:

(i) The Transportation Commissioner for the Northern District who shall serve as chairman;

(ii) The Executive Director of the Northeast Mississippi Planning and Development District;

(iii) The Executive Director of the North Delta Planning and Development District;

(iv) The Executive Director of the Three Rivers Planning and Development District;

(v) The Executive Director of the North Central Planning and Development District;

(vi) One (1) member appointed by the Governor who is a resident of the Northern Transportation District;

(vii) One (1) member appointed by the Lieutenant Governor who is a resident of the Northern Transportation District; and

(viii) One (1) member appointed by the Speaker of the House who is a resident of the Northern Transportation District.

(b) The membership of the Central District Transportation Planning Council shall be as follows:

(i) The Transportation Commissioner for the Central District who shall serve as chairman;

(ii) The Executive Director of the Central Mississippi Planning and Development District;

(iii) The Executive Director of the South Delta Planning and Development District;

(iv) The Executive Director of the Golden Triangle Planning and Development District;

(v) The Executive Director of the East Central Planning and Development District;

(vi) One (1) member appointed by the Governor who is a resident of the Central Transportation District;

(vii) One (1) member appointed by the Lieutenant Governor who is a resident of the Central Transportation District; and

(viii) One (1) member appointed by the Speaker of the House who is a resident of the Central Transportation District.

(i) The Transportation Commissioner for the Southern District who shall serve as chairman;

(ii) The Executive Director of the Southwest Mississippi Planning and Development District;

(iii) The Executive Director of the Southern Mississippi Planning and Development District;

(iv) One (1) member appointed by the Governor who is a resident of the Southern Transportation District;

(v) One (1) member appointed by the Lieutenant Governor who is a resident of the Southern Transportation District; and

(vi) One (1) member appointed by the Speaker of the House who is a resident of the Southern Transportation District.

(d) The administrative and clerical support for each of the three (3) District Transportation Planning Councils shall be provided by the Mississippi Department of Transportation. Each of the three (3) councils shall meet upon the call of the chairman as soon as practicable after July 1, 2018, and organize for business. Each of the three (3) councils shall develop and prepare in written form an investment list of transportation projects and programs within each special transportation district across the state. The approved investment list for each district shall include:

(i) The specific transportation projects to be funded;

(ii) The anticipated schedule of such projects;

(iii) The approximate cost of such projects; and

(iv) The estimated amount of net proceeds to be raised by the special district transportation taxes authorized pursuant to referendum.

The criteria for each improvement list shall include performance goals, allocation of investments in alignment with performance and execution of projects. In developing the approved investment list, each council shall hold public hearings as necessary and receive comment from (i) the board of supervisors of each county located wholly or partially within the respective district, (ii) the governing authority of each municipality located wholly or partially within the respective district, and (iii) any member of the Mississippi Legislature whose district is located wholly or partially within the respective district. Each council may prepare draft investment list prepared by an executive committee and may vote on amendments that meet the district's investment criteria. Upon consideration of all offered amendments each council shall vote as to the approval of the amended draft list, requiring a majority vote of the representatives present at the council meeting. The approved investment for each of the three (3) districts shall be provided to the Executive Director of the Mississippi Department of Transportation on or before October 15, 2018.

(e) The State Economist shall develop an estimate of the proceeds of the special district transportation taxes for each special transportation district using financial data supplied by the Mississippi Department of Revenue. Such estimate shall include reasonable ranges of anticipated growth, if any.

(4) (a) Simultaneously with the director's delivery of the approved investment list in accordance with subsection (3) of this section, the Secretary of State shall deliver a notice to the election commissioners of each county within the respective special transportation districts. Upon receipt of the notice, the election commissioners shall issue the call for an election for the purpose of submitting the question of the imposition of the special transportation tax to the voters within each special transportation district. The election shall be held on the first Tuesday after the first Monday in November 2019 at the same time and manner as statewide general elections are held. The election commissioners shall issue the call and shall conduct the election in the manner authorized by law. The election shall be held on the date of the general statewide election in 2019. The election commissioners shall cause the date and purpose of the election to be published once a week for four (4) weeks immediately preceding the date of the election in the newspaper published in their respective counties.

(b) The ballot submitting the question of the levy of the special district transportation taxes authorized by this act to the voters within each special transportation district shall have written or printed thereon the following:

( ) YES ( ) NO

Shall ________ County's transportation system and the transportation network in this region and the state be improved by providing for the following special district transportation taxes for the purpose of transportation projects and programs for a period of ten (10) years?

An increased excise tax on gasoline and diesel;

A motor fuels tax annual registration fee for electric-drive motor vehicles, hybrid-drive motor vehicles and hydrogen-drive motor vehicles;

A highway maintenance tire fee upon the sale of each new tire at wholesale.

All persons desiring to vote in favor of levying the transportation taxes shall vote 'Yes' and all persons opposed to levying the tax shall vote 'No.' If more than one-half (1/2) of the votes cast throughout the entire special transportation district are in favor of levying the taxes, then the taxes shall be levied as provided in this act; otherwise the taxes shall not be levied and the question of levying the tax shall not again be submitted to the voters of the special transportation district until after twenty-four (24) months immediately following the month in which the election was held. Each election commissioner shall hold and conduct the election under the same rules and regulations as govern special elections. Each election commissioner shall canvass the returns from his or her county, declare the result of the election in that county, and certify the result to the Secretary of State. The Secretary of State shall compile the results from each county in the special transportation district, declare the result of the election in the special transportation district, and certify the result to the governing authority of each local government, the State Transportation Commissioner for the special transportation district and the Commissioner of Revenue. The expense of the election in each county within each special transportation district shall be paid from funds of each county.

(c) If the imposition of the special district transportation taxes is approved at the special election, the collection of such taxes shall begin on the first day of the next succeeding calendar quarter beginning more than eighty (80) days after the date of the election. With respect to services which are regularly billed on a monthly basis, however, the taxes shall become effective with respect to and the taxes shall apply to services billed on or after the effective date specified.

(d) The taxes shall cease to be imposed on the earliest of the following dates:

(i) On the final day of the ten-year period of time specified for the imposition of the tax; or

(ii) As of the end of the calendar quarter during which the Commissioner of Revenue determines that the tax has raised revenues sufficient to provide to the special transportation district net proceeds equal to or greater than the amount specified as the estimated amount of net proceeds to be raised by the special district transportation taxes.

(e) Following the expiration of the special district transportation taxes under this act, or following a special election in which voters in a special transportation district rejected the imposition of the taxes, and upon the adoption of resolutions by the governing bodies of a majority of counties within a special transportation district, an election may be held for the imposition of taxes under this act in the same manner as provided in this act for the initial imposition of such taxes. Such subsequent election shall be held on the date of a statewide general election. The development of the investment list for such special transportation district shall follow the procedure established in this section with the years adjusted appropriately, and such schedule shall be posted on a website developed by the State Transportation Commission and the Commissioner of Revenue to be used exclusively for matters related to the special district transportation taxes within thirty (30) days of the Commissioner of Revenue's receipt of notice from the final county governing body required to adopt a resolution.

(5) A tax levied pursuant to this act shall be exclusively administered and collected by the Department of Revenue for the use and benefit of the special transportation district imposing the taxes. Such administration and collection shall be accomplished in the same manner and subject to the same applicable provisions, procedures, and penalties as other taxes.

(6) The proceeds of the taxes collected by the Department of Revenue in each special transportation district under this act shall be disbursed as soon as practicable after collection to the State Treasurer to be maintained in a trust fund and administered by the Treasurer on behalf of the special transportation district imposing the taxes. Such proceeds for each special transportation district shall be kept separate from other funds for state highway construction and shall not in any manner be commingled with other funds of the State Treasury.

(7) The proceeds received from the taxes authorized by this act shall be used within the special transportation district receiving proceeds of the taxes exclusively for the projects on the approved investment list for such district as provided in this section. The State Transportation Commission shall be responsible for the proper application of the proceeds received from the taxes authorized by this act for the approved investment list for each special transportation district. The commission shall delegate the management of the budget, schedule, execution and delivery of the projects contained in the approved investment list as necessary.

(8) Upon entering into contracts, the Mississippi Department of Transportation shall request the State Treasurer to dispense funds, which request shall include certification of the completion of the project or project element for which funds are requested. Payment shall be made promptly upon approval by the Mississippi Department of Transportation, and such payments shall not require any other official action by the State Transportation Commission. The use of funds so dispensed shall be subject to review and audit by the Mississippi Department of Transportation. The Department of Transportation shall consult with the State Treasurer on at least a quarterly basis regarding the progress and performance in the execution, schedule, and delivery of projects on the approved investment list.

(9) The Mississippi Transportation Commission, with the concurrence of the State Bond Commission, is authorized to incur debt, including bonds, notes or other evidences of indebtedness, for the purpose of paying the costs of highway repair and maintenance, reconstruction, bridge replacement and railroad crossing upgrade outlined in the approved investment list for that specific transportation district as provided in subsection (3) of this section. Any bonds or notes issued to pay such costs shall be secured by the proceeds of the increased excise tax on gasoline and diesel and the alternate fuel annual registration fee and new tire fee authorized for that specific transportation district pursuant to referendum as provided in Sections 2, 3, 4, 5, 6 and 7 of this act and shall be general obligations of the State of Mississippi.

(10) The Mississippi Department of Transportation shall maintain or cause to be maintained an adequate recordkeeping system for each project funded by a special district transportation tax. An annual audit shall be paid for by each special transportation district and conducted by an independent auditing firm as selected by the State Transportation Commission. Such audit shall include a schedule which shows for each such project the original estimated cost, the current estimated cost if it is not the original estimated cost, amounts expended in prior years, and amounts expended in the current year. Such audit shall verify and test expenditures sufficient to provide assurances that the schedule is fairly presented in relation to the financial statements. The audit report on the financial statements shall include an opinion, or disclaimer of opinion, as to whether the schedule is presented fairly in all material respects in relation to the financial statements taken as a whole.

(11) Not later than December 15 of each year, the Mississippi Department of Transportation shall publish, on its website a simple, nontechnical report which shows for each project in the investment list approved by the director the original estimated cost, the current estimated cost if it is not the original estimated cost, amounts expended in prior years, and amounts expended in the current year with respect to each such project. The report shall also include a statement of what corrective action the Mississippi Department of Transportation intends to implement with respect to each project which is underfunded or behind schedule and a statement of any surplus funds which have not been expended for a project.

(12) The Commissioner of Revenue shall have the power and authority to promulgate such rules and regulations as shall be necessary for the effective and efficient administration and enforcement of the collection of the special district transportation taxes authorized by this act.

SECTION 3. Section 27-55-11, Mississippi Code of 1972, is amended as follows:

[This section shall be applicable in any special Transportation District in the state which has approved the imposition of highway improvement taxes pursuant to referendum authorized in Section 2 of this act.]

27-55-11. Any person in business as a distributor of gasoline or who acts as a distributor of gasoline, as defined in this article, shall pay for the privilege of engaging in such business or acting as such distributor an excise tax equal to * * *~~Eighteen Cents (18¢)~~ Twenty Cents (20¢) per gallon until the date specified in Section 65-39-35, and * * * Sixteen Cents (16¢) per gallon thereafter, on all gasoline and blend stock stored, sold, distributed, manufactured, refined, distilled, blended or compounded in this state or received in this state for sale, use on the highways, storage, distribution, or for any purpose. On January 1, 2020, and January 1 of every fourth year thereafter, the excise tax provided in this section shall be increased by a percentage amount equal to the cumulative United States inflation rate for the previous four (4) calendar years as certified by the Executive Director of the Mississippi Department of Revenue. The United States inflation rate for a calendar year shall be the Consumer Price Index for the calendar year for all urban consumers as calculated by the Bureau of Labor Statistics of the United States Department of Labor.

Any person in business as a distributor of aviation gasoline, or who acts as a distributor of aviation gasoline, shall pay for the privilege of engaging in such business or acting as such distributor an excise tax equal to Six and Four-tenths Cents (6.4¢) per gallon on all aviation gasoline stored, sold, distributed, manufactured, refined, distilled, blended or compounded in this state or received in this state for sale, storage, distribution or for any purpose.

The excise taxes collected under this section shall be paid and distributed in accordance with Section 27-5-101.

The tax herein imposed and assessed shall be collected and paid to the State of Mississippi but once in respect to any gasoline. The basis for determining the tax liability shall be the correct invoiced gallons, adjusted to sixty (60) degrees Fahrenheit at the refinery or point of origin of shipment when such shipment is made by tank car or by motor carrier. The point of origin of shipment of gasoline transported into this state by pipelines shall be deemed to be that point in this state where such gasoline is withdrawn from the pipeline for storage or distribution, and adjustment to sixty (60) degrees Fahrenheit shall there be made. The basis for determining the tax liability on gasoline shipped into this state in barge cargoes and by pipeline shall be the actual number of gallons adjusted to sixty (60) degrees Fahrenheit unloaded into storage tanks or other containers in this state, such gallonage to be determined by measurement and/or gauge of storage tank or tanks or by any other method authorized by the * * *~~commission~~ department. The tank or tanks into which barge cargoes of gasoline are discharged, or into which gasoline transported by pipeline is discharged, shall have correct gauge tables listing capacity, such gauge tables to be prepared by some recognized calibrating agency and to be approved by the * * *~~commission~~ department.

The tax levied herein shall accrue at the time gasoline is withdrawn from a refinery in this state except when withdrawal is by pipeline, barge, ship or vessel. The refiner shall pay to the * * *~~commission~~ department the tax levied herein when gasoline is sold or delivered to persons who do not hold gasoline distributor permits. The refiner shall report to the * * *~~commission~~ department all sales and deliveries of gasoline to bonded distributors of gasoline. The bonded distributor of gasoline who purchases, receives or acquires gasoline from a refinery in this state shall report such gasoline and pay the tax levied herein.

Gasoline imported by common carrier shall be deemed to be received by the distributor of gasoline, and the tax levied herein shall accrue, when the car or tank truck containing such gasoline is unloaded by the carrier.

With respect to distributors or other persons who bring, ship, have transported, or have brought into this state gasoline by means other than through a common carrier, the tax accrues and the tax liability attaches on the distributor or other person for each gallon of gasoline brought into the state at the time when and at the point where such gasoline is brought into the state.

The tax levied herein shall accrue on blend stock at the time it is blended with gasoline. The blender shall pay to the * * *~~commission~~ department the tax levied herein when blend stock is sold or delivered to persons who do not hold gasoline distributor permits. The blender shall report to the * * *~~commission~~ department all sales and deliveries of blend stock to bonded distributors of gasoline. The bonded distributor of gasoline who purchases, receives or acquires blend stock from a blender in this state shall report blend stock and pay the tax levied herein.

SECTION 4. Section 27-55-519, Mississippi Code of 1972, is amended as follows:

27-55-519. (1) Any person engaged in business as a distributor of special fuel or who acts as a distributor of special fuel, as defined in this article, shall pay for the privilege of engaging in such business or acting as such distributor an excise tax on all special fuel stored, used, sold, distributed, manufactured, refined, distilled, blended or compounded in this state or received in this state for sale, storage, distribution or for any purpose, adjusted to sixty (60) degrees Fahrenheit.

The excise tax shall become due and payable when:

(a) Special fuel is withdrawn from storage at a refinery, marine or pipeline terminal, except when withdrawal is by barge or pipeline.

(b) Special fuel imported by a common carrier is unloaded by that carrier unless the special fuel is unloaded directly into the storage tanks of a refinery, marine or pipeline terminal.

(c) Special fuel imported by any person other than a common carrier enters the State of Mississippi unless the special fuel is unloaded directly into the storage tanks of a refinery, marine or pipeline terminal.

(d) Special fuel is blended in this state unless such blending occurs in a refinery, marine or pipeline terminal.

(e) Special fuel is acquired tax free.

(2) The special fuel excise tax shall be as follows:

(a) * * *~~Eighteen Cents (18¢)~~ Twenty Cents (20¢) per gallon on undyed diesel fuel until the date specified in Section 65-39-35 and * * * Sixteen and Four-tenths Cents (16.4¢) per gallon thereafter;

(b) Five and Three-fourths Cents (5.75¢) per gallon on all special fuel except undyed diesel fuel and special fuel used as fuels in aircraft; and

On January 1, 2020, and January 1 of every fourth year thereafter, the excise tax provided in this section shall be increased by a percentage amount equal to the cumulative United States inflation rate for the previous four (4) calendar years as certified by the Executive Director of the Mississippi Department of Revenue. The United States inflation rate for a calendar year shall be the Consumer Price Index for the calendar year for all urban consumers as calculated by the Bureau of Labor Statistics of the United States Department of Labor.

SECTION 5. Section 27-5-101, Mississippi Code of 1972, is amended as follows:

[With regard to any county which is exempt from the provisions of Section 19-2-3, this section shall read as follows:]

27-5-101. Unless otherwise provided in this section, on or before the fifteenth day of each month, all gasoline, diesel fuel or kerosene taxes which are levied under the laws of this state and collected during the previous month shall be paid and apportioned by the * * *~~State Tax Commission~~ Department of Revenue as follows:

(a) (i) Except as otherwise provided in Section 31-17-127, from the gross amount of gasoline, diesel fuel or kerosene taxes produced by the state, there shall be deducted an amount equal to one-sixth (1/6) of principal and interest certified by the State Treasurer to the * * *~~State Tax Commission~~ Department of Revenue to be due on the next semiannual bond and interest payment date, as required under the provisions of Chapter 130, Laws of 1938, and subsequent acts authorizing the issuance of bonds payable from gasoline, diesel fuel or kerosene tax revenue on a parity with the bonds issued under authority of said Chapter 130. The State Treasurer shall certify to the * * *~~State Tax Commission~~ Department of Revenue on or before the fifteenth day of each month the amount to be paid to the "Highway Bonds Sinking Fund" as provided by said Chapter 130, Laws of 1938, and subsequent acts authorizing the issuance of bonds payable from gasoline, diesel fuel or kerosene tax revenue, on a parity with the bonds issued under authority of said Chapter 130; and the * * *~~State Tax Commission~~ Department of Revenue shall, on or before the twenty-fifth day of each month, pay into the State Treasury for credit to the "Highway Bonds Sinking Fund" the amount so certified to him by the State Treasurer due to be paid into such fund each month. The payments to the "Highway Bonds Sinking Fund" shall be made out of gross gasoline, diesel fuel or kerosene tax collections before deductions of any nature are considered; however, such payments shall be deducted from the allocation to the Mississippi Department of Transportation under paragraph (c) of this section.

(ii) From the gross amount of the eight percent (8%) increase in gasoline and undyed diesel fuel taxes produced by the state pursuant to special transportation district referendum under Sections 27-55-11 and 27-55-519, there shall be deducted ten percent (10%) to be paid into the "County Road Assistance Program Fund." The payments to the "County Road Assistance Program Fund" shall be made out of such gross collections specified in this subparagraph (ii) before deductions of any nature are considered except for the deduction under subparagraph (i) of this paragraph (a).

(iii) From the gross amount of the eight percent (8%) increase in gasoline and undyed diesel fuel taxes produced by the state pursuant to special transportation district referendum under Sections 27-55-11 and 27-55-519, there shall be deducted One Hundred Fifty Thousand Dollars ($150,000.00) to be paid into the "Mississippi Highway-Railroad Grade Crossing Safety Account" established in Section 57-43-15, to be administered by the Mississippi Transportation Commission for the equitable allocation of funds for upgrade of public roadway/railroad grade crossing within that special transportation district which approved the referendum. The payments to the Mississippi Highway-Railroad Grade Crossing Safety Account shall be made out of such gross collections specified in this subparagraph (iii) before deductions of any nature are considered except for the deductions under subparagraph (i) and subparagraph (ii) of this paragraph (a).

This subparagraph (iii) shall stand repealed on July 1, 2023.

( * * *iiiv) From collections derived from the portion of the gasoline excise tax that exceeds Seven Cents (7¢) per gallon, from the portion of the tax on aviation gas under Section 27-55-11 that exceeds Six and Four-tenths Cents (6.4¢) per gallon, from the portion of the special fuel tax levied under Sections 27-55-519 and 27-55-521, at Eighteen Cents (18¢) per gallon that exceeds Ten Cents (10¢) per gallon, from the portion of the taxes levied under Section 27-55-519, at Five and Three-fourths Cents (5.75¢) per gallon that exceeds One Cent (1¢) per gallon on special fuel and Five and One-fourth Cents (5.25¢) per gallon on special fuel used as aircraft fuel, from the portion of the excise tax on compressed gas used as a motor fuel that exceeds the rate of tax in effect on June 30, 1987, and from the portion of the gasoline excise tax in excess of Seven Cents (7¢) per gallon and the diesel excise tax in excess of Ten Cents (10¢) per gallon under Section 27-61-5 there shall be deducted:

1. An amount as provided in Section 27-65-75(4) to the credit of a special fund designated as the "Office of State Aid Road Construction."

2. An amount equal to the tax collections derived from Two Cents (2¢) per gallon of the gasoline excise tax for distribution to the State Highway Fund to be used exclusively for the construction, reconstruction and maintenance of highways of the State of Mississippi or the payment of interest and principal on bonds when specifically authorized by the Legislature for that purpose.

3. The balance shall be deposited in the State Treasury to the credit of the State Highway Fund.

(b) Subject to the provisions that said basis of distribution shall in nowise affect adversely the amount specifically pledged in paragraph (a) of this section to be paid into the "Highway Bonds Sinking Fund," the "County Road Assistance Program Fund" and the "Mississippi Highway-Railroad Grade Crossing Safety Account," the following shall be deducted from the amount produced by the state tax on gasoline, diesel fuel or kerosene tax collections, excluding collections derived from the portion of the gasoline excise tax that exceeds Seven Cents (7¢) per gallon, from the portion of the tax on aviation gas under Section 27-55-11 that exceeds Six and Four-tenths Cents (6.4¢) per gallon, from the portion of the special fuel tax levied under Sections 27-55-519 and 27-55-521, at Eighteen Cents (18¢) per gallon that exceeds Ten Cents (10¢) per gallon, from the portion of the taxes levied under Section 27-55-519, at Five and Three-fourths Cents (5.75¢) per gallon that exceeds One Cent (1¢) per gallon on special fuel and Five and One-fourth Cents (5.25¢) per gallon on special fuel used as aircraft fuel, from the portion of the excise tax on compressed gas used as a motor fuel that exceeds the rate of tax in effect on June 30, 1987, and from the portion of the gasoline excise tax in excess of Seven Cents (7¢) per gallon and the diesel excise tax in excess of Ten Cents (10¢) per gallon under Section 27-61-5:

(i) Twenty percent (20%) of such amount which shall be earmarked and set aside for the construction, reconstruction and maintenance of the highways and roads of the state, provided that if such twenty percent (20%) should reduce any county to a lesser amount than that received in the fiscal year ending June 30, 1966, then such twenty percent (20%) shall be reduced to a percentage to provide that no county shall receive less than its portion for the fiscal year ending June 30, 1966;

(ii) The amount allowed as refund on gasoline or as tax credit on diesel fuel or kerosene used for agricultural, maritime, industrial, domestic, and nonhighway purposes;

(iii) Five percent (5%) of such amount shall be paid to the State Highway Fund;

(iv) The amount or portion thereof authorized by legislative appropriation to the Fisheries and Wildlife Fund created under Section 59-21-25;

(v) The amount for deposit into the special aviation fund under paragraph (d) of this section; and

(vi) The remainder shall be divided on a basis of nine-fourteenths (9/14) and five-fourteenths (5/14) (being the same basis as Four and One-half Cents (4-1/2¢) and Two and One-half Cents (2-1/2¢) is to Seven Cents (7¢) on gasoline, and six and forty-three one-hundredths (6.43) and three and fifty-seven one-hundredths (3.57) is to Ten Cents (10¢) on diesel fuel or kerosene). The amount produced by the nine-fourteenths (9/14) division shall be allocated to the * * * ~~Transportation~~ Department of Transportation and paid into the State Treasury as provided in this section and in Section 27-5-103 and the five-fourteenths (5/14) division shall be returned to the counties of the state on the following basis:

1. In each fiscal year, each county shall be paid each month the same percentage of the monthly total to be distributed as was paid to that county during the same month in the fiscal year which ended April 9, 1960, until the county receives One Hundred Ninety Thousand Dollars ($190,000.00) in such fiscal year, at which time funds shall be distributed under the provisions of paragraph (b)(vi)4 of this section.

2. If after payments in 1 above, any county has not received a total of One Hundred Ninety Thousand Dollars ($190,000.00) at the end of the fiscal year ending June 30, 1961, and each fiscal year thereafter, then any available funds not distributed under 1 above shall be used to bring such county or counties up to One Hundred Ninety Thousand Dollars ($190,000.00) or such funds shall be divided equally among such counties not reaching One Hundred Ninety Thousand Dollars ($190,000.00) if there is not sufficient money to bring all the counties to said One Hundred Ninety Thousand Dollars ($190,000.00).

3. When a county has been paid an amount equal to the total which was paid to the same county during the fiscal year ended April 9, 1960, such county shall receive no further payments during the then current fiscal year until the last month of such current fiscal year, at which time distribution will be made under 2 above, except as set out in 4 below.

4. During the last month of the current fiscal year, should it be determined that there are funds available in excess of the amount distributed for the year under 1 and 2 above, then such excess funds shall be distributed among the various counties as follows:

One-third (1/3) of such excess to be divided equally among the counties;

One-third (1/3) of such excess to be paid to the counties in the proportion which the population of each county bears to the total population of the state according to the last federal census;

One-third (1/3) of such excess to be paid to the counties in the proportion which the number of square miles of each county bears to the total square miles in the state.

5. It is the declared purpose and intent of the Legislature that no county shall be paid less than was paid during the year ended April 9, 1960, unless the amount to be distributed to all counties in any year is less than the amount distributed to all counties during the year ended April 9, 1960.

The Municipal Aid Fund as established by Section 27-5-103 shall not participate in any portion of any funds allocated to any county hereunder over and above One Hundred Ninety Thousand Dollars ($190,000.00).

In any county having countywide road or bridge bonds, or supervisors district or district road or bridge bonds outstanding, which exceed, in the aggregate, twelve percent (12%) of the assessed valuation of the taxable property of the county or district, it shall be the duty of the board of supervisors to set aside not less than sixty percent (60%) of such county's share or district's share of the gasoline, diesel fuel or kerosene taxes to be used in paying the principal and interest on such road or bridge bonds as they mature.

In any county having such countywide road or bridge bonds or district road or bridge bonds outstanding which exceed, in the aggregate, eight percent (8%) of the assessed valuation of the taxable property of the county, but which do not exceed, in the aggregate, twelve percent (12%) of the assessed valuation of the taxable property of the county, it shall be the duty of the board of supervisors to set aside not less than thirty-five percent (35%) of such county's share of the gasoline, diesel fuel or kerosene taxes to be used in paying the principal and interest of such road or bridge bonds as they mature.

In any county having such countywide road or bridge bonds or district road or bridge bonds outstanding which exceed, in the aggregate, five percent (5%) of the assessed valuation of the taxable property of the county, but which do not exceed, in the aggregate, eight percent (8%) of the assessed valuation of the taxable property of the county, it shall be the duty of the board of supervisors to set aside not less than twenty percent (20%) of such county's share of the gasoline, diesel fuel or kerosene taxes to be used in paying the principal and interest of such road and bridge bonds as they mature.

In any county having such countywide road or bridge bonds or district road or bridge bonds outstanding which do not exceed, in the aggregate, five percent (5%) of the assessed valuation of the taxable property of the county, it shall be the duty of the board of supervisors to set aside not less than ten percent (10%) of such county's share of the gasoline, diesel fuel or kerosene taxes to be used in paying the principal and interest on such road or bridge bonds as they mature.

The portion of any such county's share of the gasoline, diesel fuel or kerosene taxes thus set aside for the payment of the principal and interest of road or bridge bonds, as provided for in this section, shall be used first in paying the currently maturing installments of the principal and interest of such countywide road or bridge bonds, if there be any such countywide road or bridge bonds outstanding, and secondly, in paying the currently maturing installments of principal and interest of district road or bridge bonds outstanding. It shall be the duty of the board of supervisors to pay bonds and interest maturing in each supervisors district out of the supervisors district's share of the gasoline, diesel fuel or kerosene taxes of such district.

The remaining portion of such county's share of the gasoline, diesel fuel or kerosene taxes, after setting aside the portion above provided for the payment of the principal and interest of bonds, shall be used in the construction and maintenance of any public highways, bridges, or culverts of the county, including the roads in special or separate road districts, in the discretion of the board of supervisors, or in paying the interest and principal of county road and bridge bonds or district road and bridge bonds, in the discretion of the board of supervisors.

In any county having no countywide road or bridge bonds or district road or bridge bonds outstanding, all such county's share of the gasoline, diesel fuel or kerosene taxes shall be used in the construction, reconstruction, and maintenance of the public highways, bridges, or culverts of the county as the board of supervisors may determine.

In every county in which there are county road bonds or seawall or road protection bonds outstanding which were issued for the purpose of building bridges or constructing public roads or seawalls, such funds shall be used in the manner provided by law.

(c) From the amount produced by the nine-fourteenths (9/14) division allocated to the * * * ~~Transportation~~ Department of Transportation, there shall be deducted:

(i) The amount paid to the State Treasurer for the "Highway Bonds Sinking Fund" under paragraph (a) of this section;

(ii) Any amounts due counties in accordance with Section 65-33-45 which have outstanding bonds issued for seawall or road protection purposes, issued under provisions of Chapter 319, Laws of 1924, and amendments thereto;

(iii) Except as otherwise provided in Section 31-17-127, the remainder shall be paid by the * * *~~State Tax Commission~~ Department of Revenue to the State Treasurer on the fifteenth day of each month next succeeding the month in which the gasoline, diesel fuel or kerosene taxes were collected to the credit of the State Highway Fund.

The funds allocated for the construction, reconstruction, and improvement of state highways, bridges, and culverts, or so much thereof as may be necessary, shall first be used in conjunction with funds supplied by the federal government for such purposes and allocated to the * * * ~~State Transportation~~ Department of Transportation to be expended on the state highway system. It is specifically provided hereby that the necessary portion of such funds hereinabove allocated to the * * * ~~State Transportation~~ Department of Transportation may be used for the prompt payment of principal and interest on highway bonds heretofore issued, including such bonds issued or to be issued under the provisions of Chapter 312, Laws of 1956, and amendments thereto.

Nothing contained in this section shall be construed to reduce the amount of such gasoline, diesel fuel or kerosene excise taxes levied by the state, allotted under the provisions of Title 65, Chapter 33, Mississippi Code of 1972, to counties in which there are outstanding bonds issued for seawall or road protection purposes issued under the provisions of Chapter 319, Laws of 1924, and amendments thereto; the amount of said gasoline, diesel fuel or kerosene excise taxes designated in this section for the payment of bonds and interest authorized and issued or to be issued under the provisions of Chapter 130, Laws of 1938, and subsequent acts authorizing the issuance of bonds payable from gasoline, diesel fuel or kerosene tax revenue, shall, in such counties, be considered as being paid "into the State Treasury to the credit of the State Highway Fund" within the meaning of Section 65-33-45 in computing the amount to be paid to such counties under the provisions of said section, and this section shall be administered in connection with Title 65, Chapter 33, Mississippi Code of 1972, and Sections 65-33-45, 65-33-47 and 65-33-49 dealing with seawalls, as if made a part of this section.

(d) The proceeds of the Five and One-fourth Cents (5.25¢) of the tax per gallon on oils used as a propellant for jet aircraft engines, and Six and Four-tenths Cents (6.4¢) of the tax per gallon on aviation gasoline and the tax of One Cent (1¢) per gallon for each gallon of gasoline for which a refund has been made pursuant to Section 27-55-23 because such gasoline was used for aviation purposes, shall be paid to the State Treasury into a special fund to be used exclusively, pursuant to legislative appropriation, for the support and development of aeronautics as defined in Section 61-1-3.

(e) State highway funds in an amount equal to the difference between Forty-two Million Dollars ($42,000,000.00) and the annual debt service payable on the state's highway revenue refunding bonds, Series 1985, shall be expended for the construction or reconstruction of highways designated under the highway program created under Section 65-3-97.

(f) "Gasoline, diesel fuel or kerosene taxes" as used in this section shall be deemed to mean and include state gasoline, diesel fuel or kerosene taxes levied and imposed on distributors of gasoline, diesel fuel or kerosene, and all state excise taxes derived from any fuel used to propel vehicles upon the highways of this state, when levied by any statute.

[With regard to any county which is required to operate on a countywide system of road administration as described in Section 19-2-3, this section shall read as follows:]

(a) (i) Except as otherwise provided in Section 31-17-127, from the gross amount of gasoline, diesel fuel or kerosene taxes produced by the state, there shall be deducted an amount equal to one-sixth (1/6) of principal and interest certified by the State Treasurer to the * * *~~State Tax Commission~~ Department of Revenue to be due on the next semiannual bond and interest payment date, as required under the provisions of Chapter 130, Laws of 1938, and subsequent acts authorizing the issuance of bonds payable from gasoline, diesel fuel or kerosene tax revenue on a parity with the bonds issued under authority of said Chapter 130. The State Treasurer shall certify to the * * *~~State Tax Commission~~ Department of Revenue on or before the fifteenth day of each month the amount to be paid to the "Highway Bonds Sinking Fund" as provided by said Chapter 130, Laws of 1938, and subsequent acts authorizing the issuance of bonds payable from gasoline, diesel fuel or kerosene tax revenue, on a parity with the bonds issued under authority of said Chapter 130; and the * * *~~State Tax Commission~~ Department of Revenue shall, on or before the twenty-fifth day of each month, pay into the State Treasury for credit to the "Highway Bonds Sinking Fund" the amount so certified to him by the State Treasurer due to be paid into such fund each month. The payments to the "Highway Bonds Sinking Fund" shall be made out of gross gasoline, diesel fuel or kerosene tax collections before deductions of any nature are considered; however, such payments shall be deducted from the allocation to the * * * ~~Transportation~~ Department of Transportation under paragraph (c) of this section.

This subparagraph (iii) shall stand repealed on July 1, 2023.

1. An amount as provided in Section 27-65-75(4) to the credit of a special fund designated as the "Office of State Aid Road Construction."

3. The balance shall be deposited in the State Treasury to the credit of the State Highway Fund.

(b) Subject to the provisions that said basis of distribution shall in nowise affect adversely the amount specifically pledged in paragraph (a) of this section to be paid into the "Highway Bonds Sinking Fund," the "County Road Assistance Program Fund" and the "Mississippi Highway-Railroad Grade Crossing Safety Account," the following shall be deducted from the amount produced by the state tax on gasoline, diesel fuel or kerosene tax collections, excluding collections derived from the portion of the gasoline excise tax that exceeds Seven Cents (7¢) per gallon, from the portion of the tax on aviation gas under Section 27-55-11 that exceeds Six and Four-tenths Cents (6.4¢) per gallon, from the portion of the special fuel tax levied under Sections 27-55-519 and 27-55-521, at Eighteen Cents (18¢) per gallon, that exceeds Ten Cents (10¢) per gallon, from the portion of the taxes levied under Section 27-55-519, at Five and Three-fourths Cents (5.75¢) that exceeds One Cent (1¢) per gallon on special fuel and Five and One-fourth Cents (5.25¢) per gallon on special fuel used as aircraft fuel, from the portion of the excise tax on compressed gas used as a motor fuel that exceeds the rate of tax in effect on June 30, 1987, and from the portion of the gasoline excise tax in excess of Seven Cents (7¢) per gallon and the diesel excise tax in excess of Ten Cents (10¢) per gallon under Section 27-61-5:

(ii) The amount allowed as refund on gasoline or as tax credit on diesel fuel or kerosene used for agricultural, maritime, industrial, domestic and nonhighway purposes;

(iii) Five percent (5%) of such amount shall be paid to the State Highway Fund;

(iv) The amount or portion thereof authorized by legislative appropriation to the Fisheries and Wildlife Fund created under Section 59-21-25;

(v) The amount for deposit into the special aviation fund under paragraph (d) of this section; and

One-third (1/3) of such excess to be divided equally among the counties;

One-third (1/3) of such excess to be paid to the counties in the proportion which the population of each county bears to the total population of the state according to the last federal census;

One-third (1/3) of such excess to be paid to the counties in the proportion which the number of square miles of each county bears to the total square miles in the state.

In any county having road or bridge bonds outstanding which exceed, in the aggregate, twelve percent (12%) of the assessed valuation of the taxable property of the county, it shall be the duty of the board of supervisors to set aside not less than sixty percent (60%) of such county's share of the gasoline, diesel fuel or kerosene taxes to be used in paying the principal and interest on such road or bridge bonds as they mature.

In any county having such road or bridge bonds outstanding which exceed, in the aggregate, eight percent (8%) of the assessed valuation of the taxable property of the county, but which do not exceed, in the aggregate, twelve percent (12%) of the assessed valuation of the taxable property of the county, it shall be the duty of the board of supervisors to set aside not less than thirty-five percent (35%) of such county's share of the gasoline, diesel fuel or kerosene taxes to be used in paying the principal and interest of such road or bridge bonds as they mature.

In any county having such road or bridge bonds outstanding which exceed, in the aggregate, five percent (5%) of the assessed valuation of the taxable property of the county, but which do not exceed, in the aggregate, eight percent (8%) of the assessed valuation of the taxable property of the county, it shall be the duty of the board of supervisors to set aside not less than twenty percent (20%) of such county's share of the gasoline, diesel fuel or kerosene taxes to be used in paying the principal and interest of such road and bridge bonds as they mature.

In any county having such road or bridge bonds outstanding which do not exceed, in the aggregate, five percent (5%) of the assessed valuation of the taxable property of the county, it shall be the duty of the board of supervisors to set aside not less than ten percent (10%) of such county's share of the gasoline, diesel fuel or kerosene taxes to be used in paying the principal and interest on such road or bridge bonds as they mature.

In any county having no road or bridge bonds outstanding, all such county's share of the gasoline, diesel fuel or kerosene taxes shall be used in the construction, reconstruction and maintenance of the public highways, bridges or culverts of the county, as the board of supervisors may determine.

(c) From the amount produced by the nine-fourteenths (9/14) division allocated to the * * * ~~Transportation~~ Department of Transportation, there shall be deducted:

(i) The amount paid to the State Treasurer for the "Highway Bonds Sinking Fund" under paragraph (a) of this section;

The funds allocated for the construction, reconstruction and improvement of state highways, bridges and culverts, or so much thereof as may be necessary, shall first be used in conjunction with funds supplied by the federal government for such purposes and allocated to the * * * ~~Transportation~~ Department of Transportation to be expended on the state highway system. It is specifically provided hereby that the necessary portion of such funds hereinabove allocated to the * * * ~~Transportation~~ Department of Transportation may be used for the prompt payment of principal and interest on highway bonds heretofore issued, including such bonds issued or to be issued under the provisions of Chapter 312, Laws of 1956, and amendments thereto.

SECTION 6. Section 27-19-43, Mississippi Code of 1972, is amended as follows:

[This section shall be applicable in any special transportation district in the state which has approved the imposition of highway improvement taxes pursuant to referendum authorized in Section 2 of this act.]

27-19-43. (1) License tags, substitute tags and decals for individual fleets and for private carriers of passengers, school buses (excluding school buses owned by a school district in the state), church buses, taxicabs, ambulances, hearses, motorcycles and private carriers of property, and private commercial carriers of property of a gross weight of ten thousand (10,000) pounds and less, shall be sold and issued by the tax collectors of the several counties.

(2) Applications for license tags for motor vehicles in a corporate fleet registered under Section 27-19-66 and trailers in a fleet registered under Section 27-19-66.1, and applications for all other license tags, substitute tags and decals shall be filed with the department or the local tax collector of the respective counties and forwarded to the department for issuance to the applicant. All tags and decals for vehicles owned by the state or any agency or instrumentality thereof, and vehicles owned by a fire protection district, school district or a county or municipality, and all vehicles owned by a road, drainage or levee district shall be issued by the department.

(3) In addition to the privilege taxes levied herein, there shall be collected the following registration or tag fee:

(a) For the issuance of both a license tag and two (2) decals, a fee of Five Dollars ($5.00).

(b) For the issuance of up to two (2) decals only, a fee of Three Dollars and Seventy-five Cents ($3.75).

(c) Additionally, the tax collector or the department, as the case may be, shall assess and collect a fee of Four Dollars ($4.00) upon each set of license tags and two (2) decals issued, or upon each set of two (2) decals issued, and that sum shall be deposited in the Mississippi Trauma Care Systems Fund established in Section 41-59-75, to be used for the purposes set out in that section.

No tag or decal shall be issued either by a tax collector or by the department without the collection of such registration fee except substitute tags and decals and license tags for vehicles owned by the State of Mississippi.

Beginning July 1, 1987, and until the date specified in Section 65-39-35, there shall be levied a registration fee of Five Dollars ($5.00) in addition to the regular registration fee imposed in paragraphs (a) and (b) of this subsection. Such additional registration fee shall be levied in the same manner as the regular registration fee.

(4) (a) In addition to other vehicle privilege taxes specified herein, for the year beginning January 1, 2018, and for each year thereafter, there is hereby levied and there shall be paid to the Mississippi Department of Revenue a Motor Fuels Tax Fee of:

(i) One Hundred Fifty Dollars ($150.00) upon every electric-drive motor vehicle to be registered; and

(ii) Seventy-five Dollars ($75.00) upon every hybrid-drive motor vehicle or hydrogen-drive motor vehicle to be registered.

The additional fee shall accrue and shall be collectible upon each electric-drive motor vehicle, hybrid-drive motor vehicle and hydrogen-drive motor vehicle under the same circumstances and shall be payable in the same manner and times as apply to the regular vehicle registration fee.

(b) For purposes of this section:

(i) "Electric-drive motor vehicle" means a vehicle subject to a registration fee as provided by law that is propelled solely by electrical energy and is not capable of using gasoline, diesel or any other fuel for propulsion.

(ii) "Hybrid-drive motor vehicle" means a vehicle subject to a registration fee as provided by law that is capable of being propelled at least in part by electrical energy through the use of a battery storage system of at least four (4) kilowatt-hours, is capable of being recharged from an external source of electricity and is also capable of using gasoline, diesel fuel or alternative fuel to propel the vehicle.

(iii) "Hydrogen-drive motor vehicle" means a vehicle that uses hydrogen as its onboard fuel for motive power.

SECTION 7. Section 27-19-99, Mississippi Code of 1972, is amended as follows:

27-19-99. (1) The Department of Revenue shall furnish the tax collector of each county a sufficient supply of license tags or plates and a sufficient supply of license receipts with which to make the collection of the taxes imposed by the provisions of this article, which such tax collectors are required to collect. The license tag receipts shall be on forms prescribed by the department. Upon the payment of the taxes and fees required by this article, the tax collector shall issue the license receipt in the form prescribed by the department. The department shall keep account against the tax collector for the license taxes and fees collected. The tax collector shall keep a similar account.

(2) The tax collector shall, at the end of each month or within twenty (20) days thereafter, pay into the county road fund all privilege taxes collected by him during the preceding month upon motor vehicle privilege licenses which he is entitled to issue, less the county's commission.

(3) The tax collector shall keep a record of the information furnished by the owners of each motor vehicle registered. The record shall be made in numerical order by tag number or decal number, whichever is appropriate. At the end of each month, or within twenty (20) days thereafter, the tax collector shall submit to the department a copy of such record, together with the copy of each registration receipt, and shall, at the same time, remit to the department the registration fee for each license tag or decal sold by him during the preceding month. When the tax collector shall have complied with the provisions of this section and shall have forwarded to the department, within the time specified, all reports required of him hereunder, he shall then be entitled to retain five percent (5%) of the registration fees imposed in Section 27-19-43(3)(a) and (b), to be paid into the county general fund; otherwise the county's commission shall be forfeited. The five percent (5%) shall not apply to any additional registration fee imposed above the amounts imposed in Section 27-19-43(3)(a) and (b). The department shall keep a record from the duplicates filed by the tax collectors of all registered vehicles.

(4) Counties that use their existing computer system to communicate all data regarding vehicle title and registration transactions to the state's central computer system shall be allotted Fifty Cents (50¢) for each registration fee collected by the county and remitted to the Department of Revenue. Such communication must successfully pass any edit features and successfully create or update title/registration records on the network system. This amount paid to the county shall be deposited into the county general fund to be expended only for costs incurred for the purchase of equipment, software, maintenance, or other costs directly related to the title/registration network system, and for education and training.

(5) All monies remitted to the department by tax collectors as registration or tag fees from the portion of the rate imposed in Section 27-19-43(3)(a) and (b), and all monies received by the department directly as registration or tag fees from the portion of the rate imposed in Section 27-19-43(3)(a) and (b), except as otherwise provided in subsection (6) of this section, shall be paid by the department into the General Fund of the State Treasury on the first day of the month succeeding the month in which such fees are received by the department.

(6) On April 1, 2010, and on the first day of each month succeeding the month in which registration or tag fees are received by the Department of Revenue, the portion of the receipts equal to the cost of the license tags, decals and associated freight costs shall be deposited into the special fund created in Section 27-19-179.

(7) Except as otherwise provided in Section 31-17-127, all monies remitted to the department by tax collectors as registration or tag fees from the additional rate of Five Dollars ($5.00) and all monies received by the department directly as registration or tag fees from the additional rate of Five Dollars ($5.00) shall be paid into the State Treasury to the credit of the State Highway Fund for the construction or reconstruction of highways designated under the highway program created under Section 65-3-97.

(8) All monies remitted to the department by tax collectors as additional registration fees for electric-drive, hybrid-drive and hydrogen-drive motor vehicles under Section 27-19-43(4) shall be paid into the State Treasury to the credit of the Transportation District Infrastructure Repair, Renovation and Maintenance Fund and used for the maintenance, repair and reconstruction of highways designated under the highway program created under Section 65-3-97 and for bridge and railroad crossings upgrades in the applicable transportation district.

SECTION 8. [This section shall be applicable in any special transportation district in the state which has approved the imposition of highway improvement taxes pursuant to referendum authorized in Section 2 of this act.]

(1) There is imposed a tire fee upon the sale of each new tire sold at wholesale. The fee shall be imposed on any person engaging in the business of making wholesale sales of new tires within this state. The fee shall be imposed at the rate of Two Dollars and Fifty Cents ($2.50) for each new tire sold with a rim diameter of less than twenty-four (24) inches and Three Dollars ($3.00) for each new tire sold with a rim diameter of twenty-four (24) inches or greater. The fee shall be added to the total cost to the purchaser at wholesale; however, a person engaged in the business of making retail sales of tires in this state who purchases tires from a wholesaler or manufacturer outside this state upon which the tire fee is not imposed, shall be responsible for remitting the tire fee directly to the Department of Revenue in lieu of payment of the tax to the wholesaler or manufacturer. The fee imposed, less five percent (5%) of fees collected, which shall be retained by the tire wholesaler or retailer as collection costs, shall be paid to the Department of Revenue in the form and manner required by the Department of Revenue and shall include a statement showing the total number of new tires sold during the preceding month. The Department of Revenue shall promulgate rules and regulations necessary to administer the fee collection and enforcement.

(2) The Department of Revenue shall administer, collect and enforce the fee authorized under this section under the same procedures used in the administration, collection and enforcement of the state sales tax imposed under Chapter 65, Title 27, Mississippi Code of 1972, except as provided in this section. The proceeds of the tire fee, less five percent (5%) of the proceeds, which shall be retained by the Department of Revenue as collection costs, shall be transferred by the Department of Revenue into the Transportation District Infrastructure Repair, Renovation and Maintenance Fund.

SECTION 9. There is created in the State Treasury a special fund to be designated as the "Transportation District Infrastructure Repair, Renovation and Maintenance Fund." The fund shall consist of money required to be deposited into the fund by Sections 1 through 8 of this act, and any other money the Legislature designates for deposit into the fund. Money in the fund shall not lapse and any interest and investment earnings on amounts in the fund shall be deposited to the credit of the fund. Upon appropriation by the Legislature, money in the fund at the end of each fiscal year shall be allocated to be utilized solely for repair, renovation and rehabilitation of roads, highways, bridges and railroad crossings maintained by the Mississippi Department of Transportation in the special transportation district which has approved the imposition of the additional taxes pursuant to the referendum as authorized in this act.

SECTION 10. (1) There is hereby created the County Road Assistance Fund Program to be administered by the State Aid Engineer for the purposes of assisting the counties and municipalities of this state in the special transportation district which has approved the imposition of the additional taxes pursuant to the referendum as authorized in this act, in the construction, reconstruction and paving of county and municipal roads, streets and bridges, other than state designated highways that are maintained by the Department of Transportation. In administering the program, the State Aid Engineer shall have the following powers and duties:

(a) To expend funds made available for the purposes of this section for use on roads, streets and bridges, other than state designated highways that are maintained by the Department of Transportation, with the approval of the applicable District Transportation Planning Council;

(b) To maintain a priority of statewide projects that program funds will be expended on, with the approval of the applicable District Transportation Planning Council;

(c) To keep and compile records of all expenditures on roads under the program, which records must be kept separate and apart from other state aid records;

(d) To establish such rules and regulations as the State Aid Engineer determines as necessary to implement the provisions of the County Road Assistance Program, with the approval of the applicable District Transportation Planning Council; and

(e) To report to the Legislature and the applicable District Transportation Planning Council, no later than January 1 of each year, on the County Road Assistance Program. Such report shall include what projects were approved and constructed.

(2) There is hereby created the County Road Assistance Program Fund, which shall consist of such funds designated for deposit into the fund under Section 27-5-101. Upon appropriation by the Legislature, money in the fund at the end of each fiscal year shall be allocated to be utilized solely for repair, renovation and rehabilitation of roads, highways, bridges and railroad crossings maintained by the Mississippi Department of Transportation in the special transportation district which has approved the imposition of the additional taxes pursuant to the referendum as authorized in this act. Monies in the fund may be expended by the State Aid Engineer in accordance with the provisions of this section. Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned on amounts in the fund shall be deposited to the credit of the fund.

SECTION 11. Section 57-43-15, Mississippi Code of 1972, is amended as follows:

57-43-15. (1) There is established within the Railroad Revitalization Fund a new account to be entitled the Mississippi Highway-Railroad Grade Crossing Safety Account. The account shall be administered by the Mississippi Department of Transportation and shall consist of:

(a) Such monies as are transferred to it on July 1, 2001, from the Mississippi Grade Crossing Closure Account;

(b) Thirty-five percent (35%) of collections from the locomotive fuel tax imposed under Section 27-59-307 for the previous year;

(c) Monies transferred to it from the Railroad Revitalization Fund, pursuant to the provisions of Section 2 of Chapter 497, Laws of 2009 * * *.; and

(d) Monies transferred to it from the 8% increase in gasoline and undyed diesel fuel taxes produced by the state pursuant to the special transportation district referendum under Sections 27-55-11 and 27-55-519, to be expended solely for upgrade of public highway/railroad grade crossings within the special transportation district which approved the referendum for increasing the taxes.

Unexpended amounts remaining in the account at the end of a fiscal year shall not lapse into the State General Fund; and any interest earned on amounts in the account shall be deposited to the credit of the account.

(2) The Mississippi Transportation Commission, after consulting with the railroads operating in Mississippi, shall promulgate rules to ensure equitable allocation of the funds described in subsection (1) of this section to projects throughout the state, and shall consider the proportionate number of main line track miles of each railroad and the number of public roadway/railroad grade crossings on each railroad's main line. Expenditure of monies from the Mississippi Highway-Railroad Grade Crossing Safety Account shall be limited to the following purposes:

(a) Financial aid for closure of public roadway/railroad grade crossings;

(b) Realignment of construction costs of roadways being rerouted to facilitate a closure of a public roadway/railroad grade crossing;

(c) Monies to match federal or other funds for a grade separation eliminating an at-grade crossing of a public roadway and railroad;

(d) Installation, maintenance or upgrade of highway-railroad grade crossing signals, at the discretion of the Mississippi Transportation Commission, based upon the Federal Railroad Administration ranking of all Mississippi highway-railroad grade crossings. Not less than ten percent (10%) of the monies necessary to defray the costs of such installations must be federal funds;

(e) Separation of grades of highway/railroad crossings;

(f) Improvement of any grade crossing including the necessary roadway approaches thereto of any railroad across a public road highway;

(g) Construction, reconstruction, repair or replacement of the grade crossing surface structure; and

(h) Installation of an automatic advance warning signal alerting a motorist that a grade crossing is ahead.

(3) The Mississippi Department of Transportation shall consider all requests from the state's diagnostic review of public roadway/railroad grade crossings and from individual railroads for expenditure of funds for the purposes described in subsection (2) of this section, and shall establish uniform criteria and guidelines relating to such crossings and the expenditure of funds; provided, however, that expenditures from the increased fuel taxes under subsection (1)(d) of this section may only be made for railroad crossing upgrades in the special transportation district which approved the tax increase, as approved by the applicable District Transportation Planning Council.

SECTION 12. This act shall take effect and be in force from and after July 1, 2018.