Invoice of the Day: Residents for Financial Growth Act Mississippi Politics and Information

A bill from the Senate would allow local communities or counties to levy a special sales tax on all already taxed items that operate in the area. The aim of this increase is to help local projects that require additional funds.

According to the language of SB 2506, the tax on goods that are already taxed at the state sales tax rate of 7% must not exceed 1%. The city or county would need to provide a statement about when the tax will start, how much the tax will be, and what projects to target.

The calculation is:

Subject to the provisions of this section, the government authorities of a municipality or county may impose a special sales tax on any person as a privilege for the pursuit or continuation of business or business in that county or county, not exceeding one percent (1%) of gross proceeds Sales or the company’s gross income results from any of the activities taxed under the Mississippi Sales Tax Act at a rate of seven percent (7%) or more, Section 27-65-1 et seq. The tax levied under this Section applies to however, any person who makes sales, deliveries, or installations of tangible personal property or services in a municipality or county that has introduced the tax approved in this section does not apply to sales exempt from sections 27-65. 19, 27-65-101, 27-65-103, 27-65-105, 27-65-107, 27-65-109 36, and 27-65-111, Mississippi Sales Tax Law.

The bill was drafted by Senator McMahan and referred to the Finance Committee. Since this period has not yet expired, the invoice is still in its chamber of origin.