Rep. Lamar mentioned the invoice clarifies that going ahead the town would spend the cash on water and sewer wants.

On Thursday, the Mississippi Home handed Home Invoice 1168 which might revise using income from the Metropolis of Jackson’s municipal possibility particular gross sales tax. After heavy debate on the Home flooring, Representatives handed the invoice by a vote of 76-41, with two amendments failing by a voice vote.

Underneath the laws, the cash from the town’s 1% native gross sales tax can be solely used to pay the price of repairs, upgrades and enhancements to the municipality’s water system and associated infrastructure.

In the course of the 2011 Common Session of the Mississippi Legislature, a invoice was handed to authorize the Metropolis of Jackson to impose a Particular Gross sales Tax of 1% on any individual participating in enterprise within the metropolis for the aim of funding water, sewer, highway, and bridge restore. The tax applies to these actions taxed on the charge of seven% or extra beneath the Mississippi Gross sales Tax Legislation. The Mayor and the Metropolis Council of Jackson adopted, by decision, their intent to levy the tax as the results of the town large election held Tuesday, January 14, 2014. This tax grew to become efficient March 1, 2014.

The Jackson, Mississippi gross sales tax is 8%, consisting of 7% Mississippi state gross sales tax and 1% Jackson native gross sales taxes.

State Consultant Trey Lamar (R), Home Methods and Means Committee Chairman, mentioned that from 2014-2022, the tax has generated about $120 million. 

Consultant Lamar, who represents Lafayette and Tate counties, is the writer of the laws. He mentioned the invoice merely clarifies that going ahead the town would “strictly” spend that cash on water and sewer wants.

He defined that no cash can be taken away from the Metropolis of Jackson, saying, “We’re simply merely prioritizing the place it’s going to be spent and I hear Jackson’s acquired a water downside.” 

The invoice abstract is as follows:

“An act to amend Part 27-65-241, Mississippi Code of 1972, which authorizes the levy of a municipal particular gross sales tax in sure municipalities, to offer that for a municipality that’s levying a tax beneath this part on July 1, 2023, all income collected by the municipality after July 1, 2023, shall be used solely to pay the price of repairs, upgrades and enhancements to the municipality’s water system and associated infrastructure; to offer that if a municipality levying a tax beneath this part fails to adjust to sure audit or reporting necessities and doesn’t treatment the noncompliance inside thirty days after receiving written discover of noncompliance, the division of income shall withhold funds in any other case payable to the municipality beneath this part till the division receives written discover that the municipality has complied with such necessities; and for associated functions.”

Whereas many lawmakers, together with those that characterize the capital metropolis and metro space, expressed considerations about different issues that want consideration as effectively, together with roads and infrastructure, Lamar maintained that the town’s water disaster ought to be a precedence. 

“I really feel like potential to have recent, clear consuming water, and never have sewage operating on high of the roads, at this cut-off date, is a better precedence than paving potholes,” Rep. Lamar mentioned. 

State Consultant Zakiya Summers (D), who represents Hinds County, provided the primary modification to HB 1168. The modification would change the language to say, “As soon as the federal cash is obtained by the town of Jackson, then income will likely be redirected again and used.” The modification failed by a vote of 45-70.

A second modification was launched by State Consultant Robert Johnson (D), the Home Minority Chief. His modification sought to amend line 119 to 125 of the invoice by putting sure language. That modification additionally failed by a vote of 40-74.

Although the invoice has handed the Home, it now heads to the Senate for consideration the place it should obtain extra debate.

You may watch the controversy on the Home flooring under: