Sales Tax Diversion Study Committee; create., the official text

MISSISSIPPI LEGISLATURE

2026 Regular Session

To: Ways and Means

By: Representatives Hall, Remak

House Bill 898

(As Sent to Governor)

AN ACT TO CREATE THE SALES TAX DIVERSION STUDY COMMITTEE,
WHICH SHALL DEVELOP RECOMMENDATIONS CONCERNING THE PROPER ALLOCATION OF SALES
TAX REVENUE BETWEEN THE MISSISSIPPI DEPARTMENT OF REVENUE AND MUNICIPALITIES;
TO PROVIDE THE DUTIES AND COMPOSITION OF THE COMMITTEE; TO REQUIRE THE
COMMITTEE TO MAKE A LEGISLATIVE REPORT UPON COMPLETION OF THE STUDY; AND FOR
RELATED PURPOSES.

BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1.
There is created the Sales Tax Diversion Study Committee to examine, evaluate,
and develop recommendations regarding the proper allocation of sales tax
revenue between the Mississippi Department of Revenue and municipalities.  The
committee shall:

(a)  Conduct a
comprehensive review of current sales tax diversion practices and identify
discrepancies.

(b)  Assess the
financial impact of misallocated sales tax revenue on municipalities.

(c)  Analyze
technological solutions, including modernized software systems, to ensure
accurate sales tax distribution.

(d)  Evaluate the
accountability and oversight mechanisms within the Department of Revenue.

(e)  Develop
recommendations for legislative or administrative reforms to be implemented in
the 2027 Legislative Session.

SECTION 2.
The committee shall be composed of the following fifteen (16) members:

(a)  The Chairman of
the Ways and Means Committee of the Mississippi House of Representatives;

(b)  The Chairman of
the Finance Committee of the Mississippi Senate;

(c)  Three (3) members
of the Mississippi Senate, appointed by the Lieutenant Governor;

(d)  Three (3) members
of the Mississippi House of Representatives, appointed by the Speaker of the
House;

(e)  The Commissioner
of the Mississippi Department of Revenue, or a designee, as an ex officio
nonvoting member;

(f)  The Executive
Director of the Mississippi Municipal League, or a designee;

(g)  The State Auditor,
or a designee, to assess financial oversight concerns;

(h)  A representative
from a Mississippi municipality with a population over fifty thousand (50,000),
appointed by the Governor;

(i)  A representative
from a Mississippi municipality with a population under fifty thousand
(50,000), appointed by the Governor;

(j)  The Executive
Director of the Mississippi Economic Council, or a designee;

(k)  The Executive
Director of the Business and Industry Political Education Committee, or a
designee; and

(l)  A representative
of a destination marketing organization, appointed by the Lieutenant Governor.

Appointments made under this
section shall be made within thirty (30) days of the effective date of this
act.

SECTION 3.
(1)  At its first meeting, the committee shall elect a chairperson and vice
chairperson from among its members  and shall establish rules for transacting
business and keeping records.

(2)  The committee shall
meet as necessary and report its findings and recommendations to the
Legislature no later than December 1, 2026.

(3)  A majority of committee
members shall constitute a quorum for conducting business.

SECTION 4.
(1)  The Mississippi Department of Revenue shall provide necessary staff and
logistical support to the committee.

(2)  To achieve its
objectives, the committee may request data, analysis and assistance from any
state agency, division or political subdivision.

SECTION 5.
The Sales Tax Diversion Study Committee shall dissolve on or before January 1,
2027, unless extended by the Legislature.

SECTION 6.
This act shall take effect and be in force from and after July 1, 2026.