MS HB1304

Expands the definition of "person doing business in this state" to include out-of-state sellers lacking physical presence who make retail sales into Mississippi exceeding $250,000 in the preceding calendar year.

Requires out-of-state sellers meeting the $250,000 sales threshold to collect and remit use tax to Mississippi.

Directs the Department of Revenue to distribute a portion of use tax revenue collected from qualifying out-of-state sellers and voluntary taxpayers to municipalities.

Calculates municipal distributions by applying the same percentage of use tax revenue that sales tax revenue represents, then multiplying that amount by 18.5%, with distributions allocated proportionally based on each municipality's prior-year sales tax revenue.

Takes effect July 1, 2017, with first distributions to municipalities due by January 31, 2018.