MS HB1386

Expands authorized uses of municipal infrastructure assistance funds from use tax revenue to include repair, maintenance, and reconstruction of sidewalks alongside existing allowances for roads, streets, bridges, and buildings

Municipal infrastructure fund distributes $3,000,000 equally among all municipalities, with remaining funds split 50% by population and 50% by sales tax revenue share

Municipalities must maintain base expenditure levels (averaged from October 2020 through September 2022) on infrastructure purposes to receive full fund allocations, with annual adjustments tied to CPI up to 0.5%

Funds cannot be used for employee salaries, benefits, administrative costs, or non-infrastructure buildings, but may be pledged for debt service on qualifying infrastructure projects

Effective date is July 1, 2026