MississippiHB 13862026 Regular SessionHouseWALLET

Use tax; revise authorized use of funds distributed to municipalities for infrastructure assistance.

Sponsored By: John Thomas "Trey" Lamar (Republican)

Signed by Governor

Ways and MeansFinance

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 0 costs, 2 mixed.

State runs and audits the funds

The Department of Revenue runs the city and county funds and makes payments. The State Auditor can review and enforce proper use of the money. The law starts on July 1, 2026. That is when agencies begin operating these funds and distributions.

New city funds for roads and water

The state creates a special fund to help cities fix roads, bridges, sidewalks, and water and sewer systems, including drainage. Money can also be pledged to help pay debt on those projects. It cannot pay salaries, general admin costs, most debt service, or buildings not tied to roads and bridges; equipment is allowed only if needed for the work. Payments go out in January and July. First, $3,000,000 is split equally among all cities. The rest is split: half by each city’s share of municipal population and half by its share of last year’s state sales tax distributions. A city gets its full amount only if it spent at least its base amount last year on these purposes. The base is the city’s average from Oct 1, 2020 to Sep 30, 2022, not counting grants, loans, or bonds, and it rises each July 1 by the smaller of 0.5% or last year’s U.S. inflation. If the city spent less, its payment is cut by the same percent. Some related costs that cannot be paid with this fund still count toward the spending test.

New county funds for roads and bridges

The state creates a special fund to help counties repair, maintain, and rebuild roads and bridges. Money can also be pledged to help pay debt on those projects. It cannot pay salaries, general admin costs, most debt service, or buildings not tied to roads and bridges; equipment is allowed only if needed for the work. Payments go out in January and July. County money is split three ways: one‑third equally to all counties, one‑third by each county’s rural road miles, and one‑third by each county’s rural population. Beginning July 1, 2020, a county cannot receive more in a year than it spent the prior county fiscal year on allowed work. Bond proceeds do not count toward that spending test. Some related costs that cannot be paid with this fund still count toward the test.

Sponsors & Cosponsors

Sponsor

John Thomas "Trey" Lamar
Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 174 • No: 0

Senate vote • 3/5/2026

Passed

Yes: 52 • No: 0

House vote • 2/4/2026