Mississippi cities deliver the services residents and businesses rely on.
Verify the revenue. Modernize the share. Keep the checkout rate unchanged.
The four questions
What happens first?
A statewide coding, situs, reconciliation, dispute, and reporting review.
What changes next?
The municipal share rises from 18.5 percent to 30.0 percent over six years.
What stays the same?
The tax rate and taxable base paid by consumers.
How are small towns included?
Defined use-tax flexibility under the existing mixed distribution formula.
The proposition
The Legislature began the allocation review through House Bill 898. Finish the work by verifying coding and situs, enacting a six-year schedule from 18.5 percent to 30.0 percent, pairing the grocery diversion at 42.0 percent, modernizing defined use-tax purposes for public-safety assets and small towns, and requiring standardized municipal reporting.
The six-year schedule
Projection
Forward-looking figure under stated assumptions. Not a reported or derived actual.
The schedule below sets out proposal figures. It is not enacted law, and no figure in it is a Department of Revenue fiscal note.
| Stage | Regular shareof the covered regular sales dollar | City return per covered $1cents per covered regular sales dollar | Paired grocery sharepercent | State and other allocations per covered regular $1cents per covered regular sales dollar | Gain in municipal share |
|---|---|---|---|---|---|
| Current | 18.5% | 1.295 | 25.9% | 5.705 | Baseline |
| Year 1 | 20.5% | 1.435 | 28.7% | 5.565 | 10.81% |
| Year 2 | 22.5% | 1.575 | 31.5% | 5.425 | 21.62% |
| Year 3 | 24.5% | 1.715 | 34.3% | 5.285 | 32.43% |
| Year 4 | 26.5% | 1.855 | 37.1% | 5.145 | 43.24% |
| Year 5 | 28.5% | 1.995 | 39.9% | 5.005 | 54.05% |
| Year 6 | 30.0% | 2.100 | 42.0% | 4.900 | 62.16% |
Current
- Regular shareof the covered regular sales dollar
- 18.5%
- City return per covered $1cents per covered regular sales dollar
- 1.295
- Paired grocery sharepercent
- 25.9%
- State and other allocations per covered regular $1cents per covered regular sales dollar
- 5.705
- Gain in municipal share
- Baseline
Year 1
- Regular shareof the covered regular sales dollar
- 20.5%
- City return per covered $1cents per covered regular sales dollar
- 1.435
- Paired grocery sharepercent
- 28.7%
- State and other allocations per covered regular $1cents per covered regular sales dollar
- 5.565
- Gain in municipal share
- 10.81%
Year 2
- Regular shareof the covered regular sales dollar
- 22.5%
- City return per covered $1cents per covered regular sales dollar
- 1.575
- Paired grocery sharepercent
- 31.5%
- State and other allocations per covered regular $1cents per covered regular sales dollar
- 5.425
- Gain in municipal share
- 21.62%
Year 3
- Regular shareof the covered regular sales dollar
- 24.5%
- City return per covered $1cents per covered regular sales dollar
- 1.715
- Paired grocery sharepercent
- 34.3%
- State and other allocations per covered regular $1cents per covered regular sales dollar
- 5.285
- Gain in municipal share
- 32.43%
Year 4
- Regular shareof the covered regular sales dollar
- 26.5%
- City return per covered $1cents per covered regular sales dollar
- 1.855
- Paired grocery sharepercent
- 37.1%
- State and other allocations per covered regular $1cents per covered regular sales dollar
- 5.145
- Gain in municipal share
- 43.24%
Year 5
- Regular shareof the covered regular sales dollar
- 28.5%
- City return per covered $1cents per covered regular sales dollar
- 1.995
- Paired grocery sharepercent
- 39.9%
- State and other allocations per covered regular $1cents per covered regular sales dollar
- 5.005
- Gain in municipal share
- 54.05%
Year 6
- Regular shareof the covered regular sales dollar
- 30.0%
- City return per covered $1cents per covered regular sales dollar
- 2.100
- Paired grocery sharepercent
- 42.0%
- State and other allocations per covered regular $1cents per covered regular sales dollar
- 4.900
- Gain in municipal share
- 62.16%
- Source
- Six-year municipal share schedule 18.5%→30.0% (proposal figures). Published by MMRP build paper (owner-approved).
- As of
- Retrieved
- Definition
- A covered regular sales dollar is a dollar of municipal business activity to which the ordinary diversion clause applies; statutory exclusions and separately treated categories preserved.
- Rounding
- cents per covered regular sales dollar to 3 decimals; grocery share produces identical municipal cents at the 5% grocery rate.
What that is worth, in cents
Today
1.295 cents
to the municipality
At the endpoint
2.100 cents
to the municipality
Per covered regular sales dollar. The tax rate and the taxable base paid by consumers do not change.
The allocation at the endpoint
At the 30.0 percent endpoint, each covered regular sales dollar divides the covered 7-cent tax as follows.
To the municipality2.100 cents
To the State and other statutory allocations4.900 cents
ProjectionProposal figures
What the Partnership stands for
Allocation integrity
Every municipality receives what current law already directs.
Public safety and infrastructure
Police, fire, streets, drainage, utilities, parks.
Small-town use-tax benefits
Defined flexibility inside the existing pool formula.
City accountability
Standardized public reporting, audits, and open-meeting votes.
What to do next
City officials
Join the Mississippi Municipal Revenue Partnership and ask your governing authority to adopt the model resolution.
Model resolution available upon approval.
Public
Ask the HB 898 committee to recommend the complete 2027 package.
Objections and frequently asked questions
Residents and businesses
Ask State leaders to verify the allocation and return a larger, accountable share of existing sales and use taxes to the cities providing the services that support commerce.