MS SB2861

Extends the repeal date of Mississippi Code Section 27-65-241 by 20 years, from July 1, 2035 to July 1, 2055, allowing municipalities with populations of 150,000 or more to continue levying a one percent local sales tax.

The one percent sales tax applies to activities taxed at seven percent or more under state sales tax law, with exemptions for restaurants, hotels/motels, food purchases, cable services, and wholesale beverages.

Tax revenue must be used exclusively for road and street repair, reconstruction and resurfacing projects, and water, sewer and drainage projects based on a master plan approved by a municipal commission.

Municipalities must obtain voter approval through election with at least three-fifths of qualified electors voting in favor before implementing the tax, and the Department of Revenue retains one percent of collected proceeds for administrative costs.

Takes effect July 1, 2021.