MS SB2278

Authorizes counties to receive 18.5% of sales tax revenue collected on business activities within a tax increment financing redevelopment project area if the county issued bonds under the Tax Increment Financing Act to finance the project.

Requires three conditions for the diversion: the county must have outstanding debt service on bonds issued for the redevelopment project, and a development valued at $10,000,000 or more must be located or will be located in the redevelopment area.

County must certify to the Department of Revenue that all requirements are met and provide the amount of bonded indebtedness and expected satisfaction date before revenue diversion begins.

Diverted sales tax revenue must be deposited into the fund required under the tax increment financing plan and used solely to satisfy the county's indebtedness; diversion ends when the indebtedness is satisfied.

Amends the Tax Increment Financing Act to allow counties to use sales tax revenue allocated under this section as a source for debt service on tax increment financing bonds, in addition to ad valorem tax revenues.