AN ACT TO CREATE THE "BUILD UP MISSISSIPPI ACT"; TO AUTHORIZE THE GOVERNING AUTHORITIES OF A MUNICIPALITY TO IMPOSE A SALES TAX ON THE GROSS PROCEEDS OF ALL SALES OR THE GROSS INCOME OF BUSINESSES IN THE MUNICIPALITY DERIVED FROM ACTIVITIES TAXED AT THE RATE OF SEVEN PERCENT UNDER THE MISSISSIPPI SALES TAX LAW AND ON RETAIL SALES OF FOOD FOR HUMAN CONSUMPTION NOT PURCHASED WITH FOOD STAMPS BUT WHICH WOULD BE EXEMPT FROM SALES TAX IF PURCHASED WITH FOOD STAMPS; TO PROVIDE THAT THE GOVERNING AUTHORITIES OF A MUNICIPALITY, BY A VOTE ENTERED UPON THEIR MINUTES BEFORE JULY 1, 2026, MAY OPT OUT OF IMPOSING THE TAX PROVIDED FOR IN THIS ACT; TO AUTHORIZE THE BOARD OF SUPERVISORS OF A COUNTY TO IMPOSE A SALES TAX ON THE GROSS PROCEEDS OF ALL SALES OR THE GROSS INCOME OF BUSINESSES IN THE COUNTY OUTSIDE OF THE MUNICIPALITIES IN THE COUNTY DERIVED FROM ACTIVITIES TAXED AT THE RATE OF SEVEN PERCENT UNDER THE MISSISSIPPI SALES TAX LAW AND ON RETAIL SALES OF FOOD FOR HUMAN CONSUMPTION NOT PURCHASED WITH FOOD STAMPS BUT WHICH WOULD BE EXEMPT FROM SALES TAX IF PURCHASED WITH FOOD STAMPS; TO PROVIDE THAT THE BOARD OF SUPERVISORS OF A COUNTY, BY A VOTE ENTERED UPON ITS MINUTES BEFORE JULY 1, 2026, MAY OPT OUT OF IMPOSING THE TAX PROVIDED FOR IN THIS ACT; TO AMEND SECTION 27-65-17, MISSISSIPPI CODE OF 1972, TO REDUCE THE SALES TAX RATE ON RETAIL SALES OF FOOD FOR HUMAN CONSUMPTION NOT PURCHASED WITH FOOD STAMPS BUT WHICH WOULD BE EXEMPT FROM SALES TAX IF PURCHASED WITH FOOD STAMPS; TO AMEND SECTION 27-65-19, MISSISSIPPI CODE OF 1972, TO LEVY A TAX ON THE GROSS INCOME FROM RETAIL SALES OF CERTAIN MOTOR FUELS; TO AMEND SECTION 27-65-75, MISSISSIPPI CODE OF 1972, TO REVISE THE AMOUNT OF STATE SALES TAX REVENUE THAT IS DISTRIBUTED TO MUNICIPALITIES; TO REVISE THE DISTRIBUTION OF STATE SALES TAX REVENUE COLLECTED FROM RETAIL SALES OF FOOD FOR HUMAN CONSUMPTION NOT PURCHASED WITH FOOD STAMPS BUT WHICH WOULD BE EXEMPT FROM SALES TAX IF PURCHASED WITH FOOD STAMPS; TO PROVIDE THAT SALES TAX REVENUE DERIVED FROM RETAIL SALES OF CERTAIN MOTOR FUELS SHALL BE DEPOSITED INTO THE MAINTENANCE AND CAPACITY PROJECTS FUND CREATED IN THIS ACT; TO PROVIDE FOR THE TEMPORARY DISTRIBUTION OF CERTAIN STATE SALES REVENUE INTO THE BUDGET STABILIZATION FUND CREATED IN THIS ACT; TO AMEND SECTION 27-65-111, MISSISSIPPI CODE OF 1972, TO REVISE THE SALES TAX EXEMPTION ON SALES OF CERTAIN MOTOR FUEL; TO CREATE THE "BUDGET STABILIZATION FUND" AS A SPECIAL FUND IN THE STATE TREASURY; TO PROVIDE THAT MONIES IN THE FUND SHALL BE APPROPRIATED BY THE LEGISLATURE TO FURTHER THE PURPOSES OF THIS ACT; TO AMEND SECTION 27-7-5, MISSISSIPPI CODE OF 1972, TO PHASE OUT THE STATE INCOME TAX ON THE TAXABLE INCOME OF INDIVIDUALS; TO AMEND SECTION 65-9-17, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT IF A COUNTY OPTS OUT OF IMPOSING THE TAX PROVIDED FOR IN THIS ACT, THE COUNTY MAY NOT RECEIVE ANY ASSISTANCE FROM THE STATE AID ROAD FUND WHICH IS DERIVED FROM MONIES DEPOSITED INTO THE FUND FROM REVENUE DERIVED FROM THE TAX IMPOSED BY COUNTIES UNDER THIS ACT; TO AMEND SECTION 27-115-85, MISSISSIPPI CODE OF 1972, TO REVISE THE DISTRIBUTION OF NET PROCEEDS GENERATED BY THE ALYCE G. CLARKE MISSISSIPPI LOTTERY LAW TO PROVIDE THAT $100,000,000.00 OF THE NET PROCEEDS SHALL BE PAID INTO THE EMPLOYER'S ACCUMULATION ACCOUNT OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM UNTIL THE FUNDED RATIO FOR THE SYSTEM IS 80% AT THE END OF A FISCAL YEAR AND THEREAFTER, FOR EACH MONTH AFTER THAT FISCAL YEAR SUCH NET PROCEEDS SHALL BE PAID INTO THE STATE GENERAL FUND AND THAT ALL SUCH MONIES DEPOSITED INTO THE LOTTERY PROCEEDS FUND OVER $100,000,000.00 SHALL BE TRANSFERRED INTO THE EDUCATION ENHANCEMENT FUND FOR THE PURPOSES OF FUNDING THE EARLY CHILDHOOD LEARNING COLLABORATIVE, THE CLASSROOM SUPPLY FUND AND/OR OTHER EDUCATIONAL PURPOSES AND INTO THE MULTI-MODEL TRANSPORTATION IMPROVEMENT FUND; TO CREATE THE "MAINTENANCE AND CAPACITY PROJECTS FUND" AS A SPECIAL FUND IN THE STATE TREASURY; TO PROVIDE THAT MONEY IN THE FUND SHALL BE UTILIZED BY THE MISSISSIPPI DEPARTMENT OF TRANSPORTATION, WITH THE ADVICE OF THE MAINTENANCE AND CAPACITY PROJECTS FUND ADVISORY BOARD, TO PROVIDE FUNDING FOR MAINTENANCE AND CAPACITY PROJECTS; TO CREATE THE MAINTENANCE AND CAPACITY PROJECTS FUND ADVISORY BOARD AND PROVIDE FOR ITS MEMBERSHIP; TO PROVIDE THAT THE MAINTENANCE AND CAPACITY PROJECTS FUND ADVISORY BOARD SHALL PROVIDE NONBINDING ADVICE TO THE DEPARTMENT OF TRANSPORTATION REGARDING THE EXPENDITURE OF MONEY IN THE MAINTENANCE AND CAPACITY PROJECTS FUND; TO BRING FORWARD SECTION 27-115-51, MISSISSIPPI CODE OF 1972, WHICH PROVIDES FOR THE DEPOSIT OF MONIES RECEIVED FROM LOTTERY TICKET SALES INTO A CORPORATE OPERATING ACCOUNT AND THE TRANSFER OF NET PROCEEDS FROM THE CORPORATE OPERATING ACCOUNT TO THE LOTTERY PROCEEDS FUND FOR THE PURPOSES OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES.

Statutes affected:
As Introduced: 27-65-17, 27-65-19, 27-65-75, 27-65-111, 27-7-5, 65-9-17, 27-115-85, 27-115-51