MISSISSIPPI LEGISLATURE
2025 Regular Session
To: Accountability, Efficiency, Transparency
By: Senator(s) Parker, Blackwell, McLendon
AN ACT TO ESTABLISH THE SALES TAX DIVERSION STUDY COMMITTEE TO EXAMINE, EVALUATE AND DEVELOP RECOMMENDATIONS REGARDING THE PROPER ALLOCATION OF SALES TAX REVENUE BETWEEN THE DEPARTMENT OF REVENUE AND MUNICIPALITIES; TO DETAIL THE RESPONSIBILITIES OF THE COMMITTEE; TO PROVIDE FOR THE COMPOSITION OF THE COMMITTEE; TO PROVIDE THAT THE COMMITTEE SHALL REPORT ITS FINDINGS AND RECOMMENDATIONS TO THE LEGISLATURE NO LATER THAN DECEMBER 1, 2025; TO DIRECT THE DEPARTMENT OF REVENUE TO PROVIDE NECESSARY STAFF AND LOGISTICAL SUPPORT TO THE COMMITTEE; TO PROVIDE FOR THE DISSOLUTION OF THE COMMITTEE ON OR BEFORE JANUARY 1, 2026; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) Sales Tax Diversion Study Committee established. There is hereby created the Sales Tax Diversion Study Committee to examine, evaluate and develop recommendations regarding the proper allocation of sales tax revenue between the Mississippi Department of Revenue and municipalities. The committee shall:
(a) Conduct a comprehensive review of current sales tax diversion practices and identify discrepancies;
(b) Assess the financial impact of misallocated sales tax revenue on municipalities;
(c) Analyze technological solutions, including modernized software systems, to ensure accurate sales tax distribution;
(d) Evaluate the accountability and oversight mechanisms within the Department of Revenue; and
(e) Develop recommendations for legislative or administrative reforms to be implemented in the next legislative session.
(2) Composition of the committee. (a) The committee shall be composed of the following eleven (11) members:
(i) The Commissioner of Revenue, or his/her designee;
(ii) A member of the Mississippi State Senate appointed by the Lieutenant Governor;
(iii) A member of the Mississippi House of Representatives appointed by the Speaker of the House;
(iv) The Chairman of the Senate Finance Committee, or his/her designee;
(v) The Chairman of the House Ways and Means Committee, or his/her designee;
(vi) The Executive Director of the Mississippi Municipal League, or his/her designee;
(vii) The State Director of the National Federation of Independent Business, or his/her designee;
(viii) The Executive Director of the Mississippi Economic Council, or his/her designee;
(ix) A representative from a Mississippi municipality with a population over fifty thousand (50,000), appointed by the Governor;
(x) A representative from a Mississippi municipality with a population under fifty thousand (50,000), appointed by the Governor; and
(xi) An appointee of the Governor.
(b) Appointments to the committee shall be made within thirty (30) days of the effective date of this act.
(3) Committee organization and responsibilities. (a) At its first meeting, the committee shall:
(i) Elect a chairperson and vice-chairperson from among its members; and
(ii) Establish rules for transacting business and keeping records.
(b) The committee shall meet as necessary and report its findings and recommendations to the Legislature no later than December 1, 2025.
(c) A majority of committee members shall constitute a quorum for conducting business.
(4) Support and cooperation. (a) The Department of Revenue shall provide necessary staff and logistical support to the committee.
(b) To achieve its objectives, the committee may request data, analysis and assistance from any state agency, division or political subdivision.
(5) Dissolution of the committee. The committee shall be dissolved on or before January 1, 2026, unless extended by the Legislature.
SECTION 2. This act shall take effect and be in force from and after its passage.