Bill Text: MS HB1265 | 2025 | Regular Session | Introduced

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Bill Title: Sales Tax Diversion Study Committee; create.

Spectrum: Moderate Partisan Bill (Republican 9-1-1)

Status: (Failed) 2025-02-04 - Died In Committee [HB1265 Detail]

Download: Mississippi-2025-HB1265-Introduced.html

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MISSISSIPPI LEGISLATURE

2025 Regular Session

To: Ways and Means

By: Representatives Hall, Blackwell, Burch, Grady, Hawkins, Hulum, Keen, Lott, McMillan, Varner, Yates

House Bill 1265

AN ACT TO CREATE THE SALES TAX DIVERSION STUDY COMMITTEE, WHICH SHALL DEVELOP RECOMMENDATIONS CONCERNING THE PROPER ALLOCATION OF SALES TAX REVENUE BETWEEN THE MISSISSIPPI DEPARTMENT OF REVENUE AND MUNICIPALITIES; TO PROVIDE THE DUTIES AND COMPOSITION OF THE COMMITTEE; TO REQUIRE THE COMMITTEE TO MAKE A LEGISLATIVE REPORT UPON COMPLETION OF THE STUDY; AND FOR RELATED PURPOSES.

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

     SECTION 1.  There is 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.

          (e)  Develop recommendations for legislative or administrative reforms to be implemented in the 2026 Legislative Session.

     SECTION 2.  The committee shall be composed of the following thirteen (13) members:

          (a)  Three (3) members of the Mississippi Senate, appointed by the Lieutenant Governor;

          (b)  Three (3) members of the Mississippi House of Representatives, appointed by the Speaker of the House;

          (c)  The Commissioner of the Mississippi Department of Revenue, or a designee, as an ex officio nonvoting member;

          (d)  The Executive Director of the Mississippi Municipal League, or a designee;

          (e)  The State Auditor, or a designee, to assess financial oversight concerns;

          (f)  A representative from a Mississippi municipality with a population over fifty thousand (50,000), appointed by the Governor;

          (g)  A representative from a Mississippi municipality with a population under fifty thousand (50,000), appointed by the Governor;

          (h)  The Executive Director of the Mississippi Economic Council, or a designee; and

          (i)  The Executive Director of the Business and Industry Political Education Committee, or designee.

     Appointments made under this section shall be made within thirty (30) days of the effective date of this act.

     SECTION 3.  (1)  At its first meeting, the committee shall elect a chairperson and vice chairperson from among its members  and shall establish rules for transacting business and keeping records.

     (2)  The committee shall meet as necessary and report its findings and recommendations to the Legislature no later than December 1, 2025.

     (3)  A majority of committee members shall constitute a quorum for conducting business.

     SECTION 4.  (1)  The Mississippi Department of Revenue shall provide necessary staff and logistical support to the committee.

     (2)  To achieve its objectives, the committee may request data, analysis and assistance from any state agency, division or political subdivision.

     SECTION 5.  The Sales Tax Diversion Study Committee shall dissolve on or before January 1, 2026, unless extended by the Legislature.

     SECTION 6.  This act shall take effect and be in force from and after July 1, 2025.