MS HB1269

Municipalities with populations of 150,000 or more may impose a 1-cent-per-gallon excise tax on gasoline and diesel fuel for motor vehicles, in addition to state fuel taxes.

Before imposing the tax, the municipality must adopt a resolution declaring its intention and calling for a public election; notice must be published weekly for three consecutive weeks with the first notice at least 21 days before the election.

The tax becomes effective only if approved by a majority of qualified voters in the election; if approved, the municipality must adopt a final resolution and notify the Department of Revenue at least 30 days before the effective date.

The Department of Revenue collects the tax, retains 1% for collection costs, and pays the remaining proceeds to the municipality by the 15th day of the following month.

Tax proceeds must be placed in a separate municipal fund and used solely for repair, maintenance, and reconstruction of roads, streets, and bridges within the municipality.