(1) An excise tax at the rate of Eighteen Cents (18¢) per gallon through June 30, 2025, Twenty-one Cents (21¢) per gallon from July 1, 2025, through June 30, 2026, Twenty-four Cents (24¢) per gallon from July 1, 2026, through June 30, 2027, Twenty-seven Cents (27¢) per gallon from July 1, 2027, until the date specified in Section 65-39-35, and Fourteen and Three-fourths Cents (14.75¢) per gallon thereafter is levied on any person engaged in business as a distributor of special fuel or who acts as such who sells:(a) Special fuel for use in performing contracts for construction, reconstruction, maintenance or repairs, where such contracts are entered into with the State of Mississippi, any political subdivision of the State of Mississippi, or any department, agency, institution of the State of Mississippi or any political subdivision thereof.(b) Dyed diesel fuel or kerosene to a state or local governmental entity for use on the highways in a motor vehicle.(c) Special fuel for use on the highway.
(a) Special fuel for use in performing contracts for construction, reconstruction, maintenance or repairs, where such contracts are entered into with the State of Mississippi, any political subdivision of the State of Mississippi, or any department, agency, institution of the State of Mississippi or any political subdivision thereof.
(b) Dyed diesel fuel or kerosene to a state or local governmental entity for use on the highways in a motor vehicle.
(c) Special fuel for use on the highway.
(2) An excise tax at the rate of Eighteen Cents (18¢) per gallon through June 30, 2025, Twenty-one Cents (21¢) per gallon from July 1, 2025, through June 30, 2026, Twenty-four Cents (24¢) per gallon from July 1, 2026, through June 30, 2027, Twenty-seven Cents (27¢) per gallon from July 1, 2027, until the date specified in Section 65-39-35, and Fourteen and Three-fourths Cents (14.75¢) per gallon thereafter is levied on any person who:(a) Uses dyed diesel fuel or kerosene in a motor vehicle on the highways of this state in violation of Section 27-55-539.(b) Purchases or acquires undyed diesel fuel or kerosene for nonhighway use and subsequently uses such diesel fuel or kerosene in a motor vehicle on the highways of this state.(c) Purchases or acquires special fuel for use in performing contracts as specified in this section.
(a) Uses dyed diesel fuel or kerosene in a motor vehicle on the highways of this state in violation of Section 27-55-539.
(b) Purchases or acquires undyed diesel fuel or kerosene for nonhighway use and subsequently uses such diesel fuel or kerosene in a motor vehicle on the highways of this state.
(c) Purchases or acquires special fuel for use in performing contracts as specified in this section.
(3) Beginning July 1, 2029, and on July 1 of every other year thereafter, the excise tax rate provided in this section shall be adjusted by the percentage change in the yearly average of the National Highway Construction Cost Index (NHCCI) issued by the U.S. Federal Highway Administration (FHWA) for the most recent twelve-month published period ending December 31, compared to the base year average, which is the average for the twelve-month period ending December 31, 2025, and rounded to the nearest whole cent. The maximum amount of increase in the excise tax rate shall not exceed One Cent (1¢) per net gallon of gasoline or special fuel and shall take effect every other year. The Department of Revenue shall notify each terminal supplier, position holder, licensed distributors distributor, and importer of the tax rate adjustment applicable under this paragraph on or before March 1.