The governor approved legislation creating a Sales Tax Diversion Study Committee to examine how sales tax revenue is allocated between the Mississippi Department of Revenue and municipalities, the Magnolia Tribune reported.
House Bill 898, authored by Rep. Rodney Hall, R, sets up the panel to conduct a comprehensive review of current practices, identify discrepancies and recommend reforms to the Legislature before the 2027 session, the bill says.
The push for the study began in DeSoto County after the city of Southaven identified businesses it said were incorrectly coded in the Department of Revenue system, the Magnolia Tribune reported. The errors, the report said, left local-option sales tax that should have been returned to the city at the state level.
Rep. Hall told the Magnolia Tribune that the bill is meant to ensure revenue generated in communities is properly returned to support local growth and infrastructure. “What we uncovered suggests the system isn’t always working as intended, and it’s likely that cities across Mississippi have funds that should be back home still sitting in Jackson,” Hall said. “In a time when every dollar matters, this bill delivers accountability and modern solutions to strengthen our communities and creates a more reliable environment for businesses to grow.”
Under HB 898, members of the study committee include the chairman of the House Ways and Means Committee; the chairman of the Senate Finance Committee; three senators appointed by the lieutenant governor; three House members appointed by the speaker; the commissioner of the Department of Revenue; the state auditor; the executive director of the Mississippi Municipal League; two municipal representatives (one from a city with more than 50,000 residents and one from a city with fewer), appointed by the governor; the executive director of the Mississippi Economic Council; and a representative from a destination marketing organization appointed by the lieutenant governor. The bill says the committee, which can begin work after July 1, may request data and assistance from any state agency or political subdivision while conducting its review.
Jon Ross Myers is the executive editor and publisher of the Mississippi News Network, Mississippi's largest digital only media company. He can be reached at editor@tippahnews.com
