Mississippi Code 1972 (2023) › Title 27 - TAXATION AND FINANCE (§§ 27-1-1 — 27-117-15) › Chapter 67 - USE OR COMPENSATING TAXES (§§ 27-67-1 — 27-67-511) › Article 1 - USE TAX (§§ 27-67-1 — 27-67-35) › Section 27-67-35 - Special fund created to assist municipalities and counties in paying for the repair, maintenance, reconstruction of roads, streets, bridges; distribution of funds

(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 , except for personal property or equipment to be used for the purposes allowed in subparagraphs (i) and (ii) of this subsection (1)(a), 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. Expenditures by a municipality for purposes described in paragraph (a) of this subsection (1) and for which the municipality may not use monies received from the department under this subsection (1), may be considered when calculating the amount of funds expended by the municipality during the previous municipal fiscal year, provided the expenditures are related to the purposes described in (i), (ii) and/or (iii) in paragraph (a) of this subsection (1). 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 except for personal property or equipment to be used for the purposes allowed in subparagraph (i) of this subsection (2)(a), 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. Expenditures by a county for purposes described in paragraph (a) of this subsection (2) and for which the county may not use monies received from the department under this subsection (2), may be considered when calculating the amount of county funds expended by the county during the previous county fiscal year, provided the expenditures are related to purposes described in (i) and/or (ii) in paragraph (a) of this subsection (2).
(c)
The department and the Office of the State Auditor shall have all powers necessary to ensure the proper implementation of this subsection (2).
Laws, 2018, 1st Ex Sess, ch. 1, § 2, effective from and after passage (approved 8/29/2018).
Amended by Laws, 2024, ch. 436, SB 2492,§ 1, eff. 7/1/2024.
Amended by Laws, 2023, ch. 465, SB 2842,§ 1, eff. 7/1/2023.
Amended by Laws, 2021, ch. 446, HB 520,§ 1, eff. 4/16/2021.
Amended by Laws, 2020, ch. 441, SB 2362,§ 1, eff. 7/1/2020.