MS HB804

Amends Section 27-65-75 of Mississippi Code to limit the amount of erroneous sales tax disbursements that the Department of Revenue can recover from municipalities.

If erroneous disbursements occurred for three or more years, the maximum recovery is limited to the total amount erroneously disbursed over a three-year period beginning with the first erroneous disbursement.

If a municipality provides written notice to the Department of Revenue about erroneous disbursements during the three-year period, the maximum recovery is reduced to the total amount erroneously disbursed over only one year beginning with the first erroneous disbursement.

The provision applies to sales tax diversions under subsection (1) of Section 27-65-75 and is subject to Sections 27-65-51 and 27-65-53.