Mississippi Senate Bill SB2857

Mississippi 2023 Regular Session

• Introduced: 1/16/23
• Refer: 1/16/23
• Failed: 1/31/23

Caption

Use tax; revise standards for municipality's eligibility to receive monies from special fund for infrastructure assistance.

Impact

The major implication of this bill is the removal of intricate calculations that municipalities previously had to perform based on their average annual expenditures to qualify for allocation from the special fund. Instead, SB2857 subjects municipalities to the same distribution stipulations that apply to counties. This aims to simplify the funding mechanisms available to municipalities, thereby facilitating easier access to necessary funds for infrastructure projects and potentially expediting the pace of local improvements.

Summary

Senate Bill 2857 amends Section 27-67-35 of the Mississippi Code of 1972 to establish a special fund designed to provide financial assistance for municipalities' infrastructure projects, specifically targeting road and bridge improvements as well as water and sewer infrastructure enhancements. This special fund is maintained separately from the General Fund, whereby municipalities can receive allocations intended to support financial commitments for infrastructure-related costs. The bill sets forth a framework through which municipal authorities can tap into state funds, streamlining the process of obtaining necessary financial resources for upgrading critical infrastructure.

Contention

Notably, the bill establishes that if municipalities do not meet a defined expenditure requirement, their allocated funding can be proportionately reduced. This provision ties the municipalities' financial contributions to their eligibility for state funding, introducing a layer of accountability but also a potential barrier for smaller municipalities that may struggle to meet these criteria. This aspect raises concerns regarding equity among various municipalities, as those with lesser financial capabilities could be disadvantaged in their ability to secure funds for essential infrastructure improvements.