The Mississippi Infrastructure Modernization Act of 2018 (MS HB1) was passed on Monday by the Mississippi State House of Representatives. Based upon current state “Use Tax” revenues, which the bill addresses, Kosciusko would receive an additional $243,061 annually.
Pending the governor’s signature, state municipalities and counties would begin receiving semi-annual payments beginning in January of 2019. The payments will be phased in over the course of four years, at a 25 percent increase per year.
The increase triggered by HB1 comes on the heels of a June ruling by the U.S. Supreme Court that allows states to collect internet sales tax.
As outlined in the bill, $3 million would be divided equally among the state’s municipalities ($10,033 each). Cities would receive 15 percent of total annual Use Tax revenues, half of which would be distributed according to population and half according to sales tax generated.
Similarly, the 15 percent of total annual Use Tax revenues distributed to counties would be calculated according to population and road miles, respectively.
As part of the bill, cities and counties must maintain current infrastrure spending levels to remain elgibile for Use Tax funds. For municipalities, this figure will be based on the average annual spending related to streets, water and sewer projects for the past five years, less the highest single-year total. For counties, funds spent on roads and bridges would used in calculating the necessary spending threshold.
On Aug. 21, Governor Phil Bryant issued a proclamation that called for an Extraordinary Session of the state’s legislature with hopes of passing MS HB1 and addressing the state’s mounting infrastructure needs. Kosciusko Mayor Jimmy W. Cockroft traveled to Jackson for the special session on Thursday, but departed on Friday with the matter still undecided.
On Tuesday, with the good financial news in-hand, the mayor expressed gratitude for the work done by District 48 Representative Jason White, who is the House Rules Chairman and also one of 14 representatives who sponsored the bill.
“He’s done a great job for us,” Cockroft said.
According to current estimates, Attala County and county municipalities would receive the following amounts, annually, once payments reach 100 percent in four years:
Attala County – $570,911
Ethel - $18,212
Kosciusko - $243,362
McCool - $12,941
Sallis - $13,299
