MS HB1559

Limits recovery of erroneously disbursed sales tax funds to municipalities to a maximum of 3 years of erroneous payments, beginning from the date of the first erroneous disbursement.

Reduces the recovery period to 1 year if a municipality provides written notice to the Department of Revenue indicating the erroneous disbursement during the initial 3-year period.

Brings forward Sections 27-65-51 and 27-65-53 of the Mississippi Code to clarify provisions related to refunds of overpaid or improperly collected sales taxes.

Applies these limitations to funds erroneously disbursed under subsection (1) of Section 27-65-75, which governs municipal allocations of sales tax revenue.

Takes effect July 1, 2016.