Bill Text: MS SB2842 | 2023 | Regular Session | Enrolled
Bill Title: Use tax; revise provisions regarding special infrastructure assistance funds for muninicpalities and counties.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2023-04-13 - Approved by Governor [SB2842 Detail]
Download: Mississippi-2023-SB2842-Enrolled.html
MISSISSIPPI LEGISLATURE
2023 Regular Session
To: Finance
By: Senator(s) DeLano
Senate Bill 2842
(As Sent to Governor)
AN ACT TO AMEND SECTION 27-67-35, MISSISSIPPI CODE OF 1972, WHICH CREATES SPECIAL FUNDS IN THE STATE TREASURY TO BE USED TO PROVIDE MONIES TO ASSIST MUNICIPALITIES AND COUNTIES IN PAYING COSTS ASSOCIATED WITH ROAD AND BRIDGE IMPROVEMENTS AND, FOR MUNICIPALITIES, WATER AND SEWER INFRASTRUCTURE IMPROVEMENTS, TO REQUIRE THAT THESE MONIES NOT BE USED FOR SALARIES, BENEFITS OR ANY FORM OF COMPENSATION FOR EMPLOYEES, OR FOR CONTRACT EMPLOYEES, ADMINISTRATIVE COSTS, DEBT SERVICE EXCEPT AS PROVIDED IN THE SECTION, PERSONAL PROPERTY OR EQUIPMENT EXCEPT EQUIPMENT PERMANENTLY INSTALLED AS PART OF A ROAD OR BRIDGE, OR FOR THE CONSTRUCTION OR MAINTENANCE OF PUBLIC BUILDINGS OR OTHER STRUCTURES THAT ARE NOT INTEGRAL TO THE SYSTEM OF ROADS AND BRIDGES; TO REVISE THE TIME PERIOD REFERENCED IN THE DEFINITION OF "BASE EXPENDITURES" THAT MUST BE MET BY A MUNICIPALITY IN ORDER TO BE ELIGIBLE TO RECEIVE THE FULL AMOUNT OF MONIES ALLOCATED FOR DISTRIBUTION FROM THE SPECIAL FUND; TO PROVIDE THAT THE AMOUNT OF BASE EXPENDITURES SHALL BE ADJUSTED AND COMPOUNDED ANNUALLY BY INCREASING OR DECREASING SUCH AMOUNT BY A PERCENTAGE THAT IS THE LESSER OF 0.5% OR THE UNITED STATES INFLATION RATE FOR THE PREVIOUS CALENDAR YEAR; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-67-35, Mississippi Code of 1972, is amended as follows:
27-67-35. (1) (a) There is
hereby created a special fund in the State Treasury. The fund shall be maintained
by the State Treasurer as a separate and special fund, separate and apart from the
General Fund of the state. The fund shall consist of monies deposited therein under
Section 27-67-31(e) and monies from any other source designated for deposit into
such fund. Monies in the fund shall be expended by the department * * * to provide funds to assist municipalities
in this state in paying costs associated with (i) repair, maintenance and/or reconstruction
of roads, streets and bridges in municipalities, (ii) repair, maintenance and/or
other improvements to water infrastructure and sewer infrastructure, including storm water and drainage improvements, and/or
(iii) as a pledge to pay all or a portion of debt service
on debt issued by a municipality for * * * the purposes provided in this
subsection (1)(a). These monies shall not be used for salaries, benefits
or any form of compensation for employees, or for contract employees, administrative
costs, debt service except as provided in this subsection (1)(a), personal property
or equipment (other than equipment to be permanently installed as part of a road
or bridge), or for the construction or maintenance of public buildings or other
structures that are not integral to the system of roads and bridges. Unexpended
amounts remaining in the fund at the end of a fiscal year shall not lapse into the
State General Fund, and any interest earned or investment earnings on amounts in
the fund shall be deposited to the credit of the fund.
(b) (i) Subject to the provisions of this paragraph (b) and Section 65-21-31, funds provided to municipalities under this subsection (1) shall be allocated and distributed to municipalities as follows:
1. Three Million Dollars ($3,000,000.00) shall be allocated to all municipalities in equal shares, and
2. The remainder of the funds allocated as follows:
a. One-half (1/2) shall be allocated to municipalities based on the proportion that the population of a municipality according to the most recent federal decennial census bears to the total population of all municipalities in the state according to the most recent federal decennial census, and
b. One-half
(1/2) shall be allocated to municipalities based on the proportion that the amount
of sales tax revenue distributed to a municipality during the preceding fiscal year
under Section 27-65-75(1)(a) bears to the total amount of sales tax revenue distributed
to all municipalities during the preceding fiscal year under Section 27-65-75(1)(a).
The department * * *
shall distribute funds under this subsection (1) on a semiannual basis with distributions
being made in the months of January and July.
(ii) In order to be
eligible to receive the full amount of funds allocated for distribution to a municipality
during a year under this subsection (1), the municipality must have expended an
amount not less than the amount of base expenditures during the previous municipal
fiscal year for the purposes described in paragraph (a) of this subsection (1).
If a municipality fails to expend such required amount, then the amount of funds
allocated for distribution to the municipality shall be reduced by the percentage
by which the municipality failed to expend the amount of base expenditures. For
the purposes of this subsection (1), "base expenditures" means the average
annual expenditures made by a municipality for purposes described in paragraph (a)
of this subsection (1) for the * * * two-year period beginning October 1, * * * 2020, and ending September 30, * * * 2022. * * * Expenditure
of grant proceeds, loan proceeds, or the proceeds of bonds issued by a municipality
for the purposes described in paragraph (a) of this subsection (1) shall not be
considered when calculating the base period. Beginning July 1, * * * 2023, and each succeeding July 1 thereafter,
the amount of the base expenditures shall be adjusted and compounded annually by
increasing or decreasing such amount by a percentage amount that is equal
to the lesser of one-half percent (0.5%) or to the United States inflation
rate for the previous calendar year ending on December 31 as certified by the department * * * and provided to the municipalities
thereby within thirty (30) days of such certification. The United States inflation
rate for a calendar year shall be the Consumer Price Index for the calendar year
for urban consumers as calculated by the Bureau of Labor Statistics of the United
States Department of Labor.
(c) The department * * * and the * * * Office of the State Auditor
shall have all powers necessary to ensure the proper implementation of this subsection
(1).
(2) (a) There is hereby created
a special fund in the State Treasury. The fund shall be maintained by the State
Treasurer as a separate and special fund, separate and apart from the General Fund
of the state. The fund shall consist of monies deposited therein under Section
27-67-31(f) and monies from any other source designated for deposit into such fund.
Monies in the fund shall be expended by the department * * * to provide funds to assist counties
in this state in paying costs associated with (i) the repair, maintenance
and/or reconstruction of roads, streets and bridges in counties, and/or (ii)
as a pledge to pay all or a portion of debt service on debt issued by a county for * * * the purposes provided in this subsection
(2)(a). These monies shall not be used for salaries, benefits or any form
of compensation for employees, or for contract employees, administrative costs,
debt service except as provided in this subsection (2)(a), personal property or
equipment (other than equipment to be permanently installed as part of a road or
bridge), or for the construction or maintenance of public buildings or other structures
that are not integral to the system of roads and bridges. Unexpended amounts
remaining in the fund at the end of a fiscal year shall not lapse into the State
General Fund, and any interest earned or investment earnings on amounts in the fund
shall be deposited to the credit of the fund.
(b) (i) Subject to the provisions of this paragraph (b) and Section 65-21-31, funds provided to counties under this subsection (2) shall be allocated and distributed to counties in the following proportions:
1. One-third (1/3) shall be allocated to all counties in equal shares,
2. One-third (1/3) shall be allocated to counties based on the proportion that the total number of rural road miles in a county bears to the total number of rural road miles in all counties of the state, and
3. One-third (1/3) shall be allocated to counties based on the proportion that the rural population of a county bears to the total rural population in all counties of the state, according to the latest federal decennial census.
The department * * * shall distribute funds under this subsection
(2) on a semiannual basis with distributions being made in the months of January
and July. Rural road miles and rural road population in the counties shall be determined
in the same manner as they are determined for the purposes of the distribution formula
in Section 65-9-3.
(ii) From and after July 1, 2020, of the funds allocated for distribution to a county during a year under this subsection (2), the maximum amount of such funds that may be distributed to the county during that year shall not exceed the amount of county funds expended by the county during the previous county fiscal year for purposes described in paragraph (a) of this subsection (2). Expenditure of the proceeds of bonds issued by a county to pay costs associated with the repair, maintenance and/or reconstruction of roads, streets and bridges shall not be considered when determining the amount of county funds expended by the county during the previous county fiscal year.
(c) The department * * * and the * * * Office of the State Auditor
shall have all powers necessary to ensure the proper implementation of this subsection
(2).
SECTION 2. This act shall take effect and be in force from and after July 1, 2023.
