MS HB116

Creates the Additional Sales Tax Revenue for Municipal Infrastructure Program to divert additional sales tax revenue to municipalities based on sales tax growth performance.

Requires a one percent (1%) year-over-year increase in total sales tax revenue collections before any additional diversion begins, with the Commissioner of Revenue certifying growth to the Legislative Budget Office and Governor after each fiscal year closes.

Establishes a tiered system of additional diversions: 0.3% initially, increasing to 0.6%, 0.9%, 1.2%, and up to 1.5% of municipal sales tax revenue upon each successive year of one percent or greater growth.

Restricts use of diverted funds to water and sewer system projects and road, street, and bridge repair, reconstruction, and resurfacing projects, with revenue excluded from general fund calculations.

Effective date is July 1, 2020.