House Bill 894

AN ACT TO AMEND SECTION 27-19-11, MISSISSIPPI CODE OF 1972, TO ALLOW A COUNTY, IN THE DISCRETION OF THE BOARD OF SUPERVISORS, TO DISTRIBUTE A PORTION OF THE PROCEEDS OF THE HIGHWAY PRIVILEGE TAX ON BUSES AND CARRIERS OF PROPERTY AUTHORIZED TO BE SPENT ON ROAD AND BRIDGE CONSTRUCTION TO ANY CITY OR TOWN WITHIN THE COUNTY FOR ROAD OR BRIDGE CONSTRUCTION, IMPROVEMENT OR REPAIR WITHIN THAT CITY OR TOWN; TO AUTHORIZE THE BOARD OF SUPERVISORS TO DESIGNATE, AS A CONDITION OF SUCH DISCRETIONARY DISTRIBUTION, PARTICULAR ROAD OR BRIDGE PROJECTS ON WHICH THE CITY OR TOWN MAY SPEND THE DISTRIBUTION OR ANY SPECIFIED AMOUNTS THEREOF; TO BRING FORWARD SECTION 27-39-303, MISSISSIPPI CODE OF 1972, FOR THE PURPOSE OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 27-19-11, Mississippi Code of 1972, is amended as follows:

27-19-11. (1) On each carrier of property, for each commercial motor vehicle, truck-tractor or road tractor, and on each bus, there is hereby levied an annual highway privilege tax in accordance with the following schedule, except that the gross vehicle weight of buses shall be the gross weight of the vehicle plus one hundred fifty (150) pounds per each regular seat.

RATE OF TAX

GROSS WEIGHT COMMON AND PRIVATE PRIVATE

OF VEHICLE CONTRACT COMMERCIAL CARRIERS

NOT TO EXCEED CARRIERS OF AND OF

IN POUNDS PROPERTY NONCOMMERCIAL PROPERTY

CARRIERS OF

PROPERTY

0000 - 6000 $ 7.20 $ 7.20 $ 7.20

6001 - 10000 33.60 25.20 16.80

10001 - 16000 78.40 70.70 39.20

16001 - 20000 156.00 129.00 78.00

20001 - 26000 228.00 192.00 114.00

26001 - 30000 300.00 247.00 150.00

30001 - 36000 384.00 318.00 192.00

36001 - 40000 456.00 378.00 228.00

40001 - 42000 504.00 420.00 264.00

42001 - 44000 528.00 444.00 276.00

44001 - 46000 552.00 456.00 282.00

46001 - 48000 588.00 492.00 300.00

48001 - 50000 612.00 507.00 312.00

50001 - 52000 660.00 540.00 336.00

52001 - 54000 684.00 564.00 348.00

54001 - 56000 708.00 588.00 360.00

56001 - 58000 756.00 624.00 384.00

58001 - 60000 780.00 642.00 396.00

60001 - 62000 828.00 828.00 420.00

62001 - 64000 852.00 852.00 432.00

64001 - 66000 900.00 900.00 482.00

66001 - 68000 936.00 936.00 504.00

68001 - 70000 972.00 972.00 516.00

70001 - 72000 996.00 996.00 528.00

72001 - 74000 1,128.00 1,128.00 576.00

74001 - 76000 1,248.00 1,248.00 612.00

76001 - 78000 1,380.00 1,380.00 720.00

78001 - 80000 1,512.00 1,512.00 864.00

80001 - 84000 1,776.00 1,776.00 1,152.00

The purchase of the license tag exceeding 80,000 gross vehicle weight is limited to the transport of products as provided for harvest permits as defined in Section 27-19-81(4). Such license tag shall be a "HP" license tag with weight allowance printed on the cab card only.

In addition to the above levied annual highway privilege tax on vehicles with a gross weight exceeding ten thousand (10,000) pounds, there is levied and shall be collected an additional privilege tax in the amount of One Thousand Eight Hundred Seventy-five Dollars ($1,875.00) for each current or later year model vehicle based upon a licensed weight of eighty-four thousand (84,000) pounds. This additional privilege tax shall be reduced by the amount of One Hundred Seventy-five Dollars ($175.00) for each year of age to a minimum of Fifty Dollars ($50.00) and further reduced by the ratio of licensed weight to the maximum weight of eighty-four thousand (84,000) pounds. During the first year only, the privilege tax monies collected under the provisions of this paragraph shall be distributed to the various counties of the state on the basis of the ratio of the last year of annual ad valorem taxes collected by such counties on such vehicles to the total ad valorem taxes collected by all counties on such vehicles in the same year. In all subsequent years, the distribution to the counties shall be made on the basis of the ratio of the number of motor vehicles registered in excess of ten thousand (10,000) pounds, in each taxing district in each county, to the total number of such vehicles registered statewide. The counties shall then distribute these proceeds as they would if these collections were ad valorem taxes; however, a county may, in the discretion of the board of supervisors, distribute a portion of the proceeds authorized under Section 27-39-303 to be spent on road and bridge construction to any city or town within the county for road or bridge construction, improvement or repair within that city or town. The board of supervisors may, as a condition of such discretionary distribution, designate particular road or bridge projects on which the city or town may spend the distribution or any specified amounts thereof.

From the privilege tax monies collected under this section, Three Million Seven Hundred Thirty-two Thousand Four Hundred Three Dollars and Eleven Cents ($3,732,403.11) shall be earmarked and set aside to be apportioned and paid to the counties of the state in the manner provided by Section 27-19-159 * * *~~, Mississippi Code of 1972~~. Any excess privilege tax monies collected under this section shall be deposited into the State Highway Fund for the construction, maintenance and reconstruction of highways and roads of the State of Mississippi or the payment of interest and principal on bonds authorized by the 1972 Regular Session of the Legislature for construction and reconstruction of highways.

No privilege license shall be issued for any period of time for less than One Dollar ($1.00). Any person making application for the license tag under this section is required to sign an affidavit attesting to facts indicating the applicability of this section. Proof of purchase of valid harvest permit for the vehicle must be presented at time of purchase of the license tag.

The annual highway privilege tax imposed on operators engaged exclusively in the transportation of household goods shall be the same as the tax imposed upon private commercial carriers by this section. In determining the amount of privilege taxes due under the provisions of this section, there shall be allowed a maximum tolerance of five hundred (500) pounds on all classes of carriers except carriers of liquefied compressed gases and in the case of carriers of liquefied compressed gases there shall be allowed a maximum tolerance of two thousand (2,000) pounds.

Any owner or operator who operates a motor vehicle on the public highways, with a license tag attached to it which was issued for another or different vehicle, shall be liable for the privilege tax on said vehicle for twelve (12) months plus a penalty thereon of twenty-five percent (25%).

Carriers of property duly registered and licensed in another state and being used to transport farm harvesting machinery or equipment to and from a particular county in this state may, upon adoption of a resolution by the board of supervisors of the county where such machinery or equipment is being exclusively used in harvesting farm crops within the county, be exempt from the taxes herein levied when the resolution is filed with the Department of Revenue. However, the exemption shall not exceed a period of forty (40) days for any annual period without a second resolution of approval by the board of supervisors who shall have the authority to extend the exemption not to exceed an additional period of twenty (20) days during any annual period.

A private commercial carrier of property hauling interstate may purchase a common and contract carrier of property license plate at the prescribed fee to allow the carrier to lease on a one-way basis per trip without qualifying with the Public Service Commission.

(2) Beginning January 1, 2024, an owner of a carrier of property whose gross vehicle weight does not exceed ten thousand (10,000) pounds may choose a license tag with a black background and a white pinstripe border. "Mississippi" shall be printed at the top, and the name of the county shall be printed at the bottom. The application and the additional fee of Thirty-eight Dollars and Twenty-five Cents ($38.25), less Two Dollars ($2.00) to be remitted to the Department of Revenue License Tag Acquisition Fund created in Section 27-19-179, shall be remitted to the department on a monthly basis as prescribed by the department. The remaining Thirty-six Dollars and Twenty-five Cents ($36.25) of the additional fee shall be deposited to the credit of the Law Enforcement Officers and Fire Fighters Death Benefits Trust Fund established in Section 45-2-1. In all other respects, tags issued under this subsection (2) shall follow the guidelines for tags issued under subsection (1) of this section.

SECTION 2. Section 27-39-303, Mississippi Code of 1972, is brought forward as follows:

27-39-303. The board of supervisors of any county is hereby empowered to levy ad valorem taxes on taxable property in the respective counties in any one (1) year, as shown by the assessment roll containing assessments of property made as of January 1 of the year, and the assessment of motor vehicles as made according to the provisions of the Motor Vehicle Ad Valorem Tax Law of 1958 (Section 27-51-1 et seq.) for all general county purposes, exclusive only of levies for schools at the rate necessary to fund such purposes.

The board of supervisors of any county is further empowered to expend the proceeds of this levy for any purpose authorized for any other levy which the board of supervisors is authorized to make. The board of supervisors may authorize general fund expenditures for road and bridge construction; provided that the expenditures do not exceed thirty percent (30%) of the general fund in any one (1) fiscal year; provided that any general fund expenditures shall be subject to the requirements of Section 65-15-21, Mississippi Code of 1972; and the board may authorize general fund expenditures for school purposes when necessary to meet the minimum local ad valorem tax effort required by Section 37-57-1, Mississippi Code of 1972.

The board of supervisors of any county is further empowered to distribute from the county general fund a portion of the county's share of payments made by the Tennessee Valley Authority to the state in lieu of taxes (a) to the school districts of said county and (b) for construction on the roads and bridges of said county in an amount which bears the same proportion to the total amount of the county's share as the millage for the school fund and road and bridge fund bears to the total millage levied by the county. In the event said in lieu payments are expended for capital improvements, said payments shall not be subject to the increase limitations specified in Section 27-39-321 or 37-57-107, Mississippi Code of 1972.

SECTION 3. This act shall take effect and be in force from and after July 1, 2024.