MS SB2455

Creates the Additional Sales Tax Revenue for Municipal Infrastructure Program that diverts an additional 0.3% to 1.5% of sales tax revenue to municipalities for infrastructure projects, with the percentage increasing incrementally each fiscal year that sales tax collections exceed the prior year by 1% or more.

Revenue received by municipalities under this program must be segregated from general funds and may be expended solely for water and sewer system projects and road, street and bridge repair, reconstruction and resurfacing projects.

The diversion begins at 0.3% and increases to a maximum of 1.5% over five fiscal years, with each increase triggered only when the Commissioner of Revenue certifies that sales tax revenue grew by at least 1% compared to the prior fiscal year.

The Commissioner of Revenue must certify annually to the Legislative Budget Office and Governor whether sales tax revenue increased by 1% or more to determine implementation of each increase tier.

The act takes effect July 1, 2018, and is repealed June 30, 2018.