Use tax; require PEER to provide certain reporting concerning expenditures of tax by municipalities and counties.
The bill facilitates the creation of a special fund in the State Treasury, separate from the General Fund, dedicated specifically to supporting municipalities and counties in their infrastructure needs. This fund will assist with costs associated with the maintenance and reconstruction of roads, streets, bridges, and necessary improvements to water and sewer infrastructure. The Department of Revenue will manage the distribution of these funds semiannually, thus making it essential for local governments to document expenditures appropriately to receive allocations.
House Bill 545, introduced by Representative Ford, aims to amend Section 27-67-35 of the Mississippi Code to enhance oversight on the expenditures of use tax by municipalities and counties. The bill mandates the Joint Legislative Committee on Performance Evaluation and Expenditure Review (PEER) to provide annual reports to the legislature regarding how these tax revenues are allocated and spent. This change aims to improve accountability and transparency in municipal financial dealings, particularly concerning infrastructure improvements.
One notable aspect of the bill is the requirement for municipalities to have spent an amount equivalent to their previous base expenditures to qualify for full fund distributions. This stipulation raises concerns about equitable access to funds, particularly for smaller municipalities that may struggle to match prior expenditure levels. Critics might argue this could disadvantage those needing the most support to maintain essential services and infrastructure.
The act is set to take effect on July 1, 2023, indicating a timeline for municipalities to prepare for these reporting and funding changes. It reflects a broader legislative trend focusing on fiscal accountability and prioritizing necessary public works funding, which could have lasting implications for local governance and financial sustainability in Mississippi.