MS HB1683

Levies a 3% tax on gross proceeds from equipment rentals with terms of 365 days or less, in addition to existing sales taxes.

Requires the Department of Revenue to distribute tax proceeds by February 15 each year to counties where rentals occurred, which then distribute to municipalities and school districts based on their respective millage rates.

Exempts rental equipment from ad valorem (property) taxation for equipment used in rental agreements of 365 days or less by businesses paying the new rental tax.

Allows counties, municipalities, and school districts to use proceeds for any lawful purpose and to count revenues toward ad valorem tax growth limitations.

Effective July 1, 2010.