Senate Bill 2434

(COMMITTEE SUBSTITUTE)

AN ACT TO CREATE THE SALES TAX TAXATION OF CONSTRUCTION-RELATED ACTIVITIES STUDY COMMITTEE TO EXAMINE AND DEVELOP RECOMMENDATIONS FOR THE TAXATION OF CERTAIN CONSTRUCTION-RELATED ACTIVITIES IN MISSISSIPPI; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) There is hereby created the Sales Tax Taxation of Construction-Related Activities Study Committee to examine and develop recommendations regarding the taxation of certain construction-related activities in Mississippi.

(2) The committee shall, at a minimum, study and report to the 2021 Regular Session of the Legislature the committee's recommendation for which construction-related businesses should be subject to sales taxation in Mississippi and the committee's recommendation as to the manner in which construction-related activities should be taxed in Mississippi. The committee shall provide the provisions of the current Mississippi law that will need to be amended to adopt the measures described in this section and any other measures recommended by the committee.

(3) The committee shall be composed of the following members:

(a) The Commissioner of the Mississippi Department of Revenue, or his/her designee;

(b) A member of the Mississippi State Senate appointed by the Lieutenant Governor;

(d) The Chairman of the Senate Finance Committee;

(e) The Chairman of the House Ways and Means Committee;

(f) The Executive Director of the Mississippi Associated General Contractors of Mississippi, or his/her designee;

(g) The President of the Associated Builders and Contractors Mississippi, or his/her designee;

(h) The President of the Homebuilders Association of Mississippi, or his/her designee; and

(i) An appointee of the Governor.

(4) Appointments to the study committee shall be made within thirty (30) days of the effective date of this act. At the first meeting, the committee shall elect from among its membership a chairman, a vice chairman and any other officers determined to be necessary, and shall adopt rules for transacting business and keeping records.

(5) A majority of the members of the study committee shall constitute a quorum. In the adoption of rules, resolutions and reports, and in the election of a chairman, vice chairman and any other officers determined to be necessary, an affirmative vote of a majority of the members present shall be required.

(6) The Department of Revenue shall provide the staff and other support necessary for the study committee to perform its duties.

(7) To effectuate the purposes of this act, any department, division, board, bureau, committee, institution or agency of the state, or any political subdivision thereof, shall, at the request of the chairman of the study committee, provide the facilities, assistance, information and data needed to enable the study committee to carry out its duties.

(8) Upon its report to the 2021 Regular Session of the Legislature, the study committee shall be dissolved.

SECTION 2. This act shall take effect and be in force from and after its passage.