Use tax revenue; deposit 10% into State Highway Fund for construction, reconstruction, repair or maintenance of highways.
Summary
SB 2564 amends Mississippi’s use tax revenue distribution statute to dedicate a new share of monthly use tax collections to highways. Beginning July 1, 2025, 10% of the total use tax revenue collected each month would be deposited into the State Highway Fund. The bill specifies that these funds must be used exclusively for the construction, reconstruction, repair, or maintenance of state highways.
The measure does not change the use tax itself or the general administration of the tax; instead, it redirects a portion of existing revenue after other statutory distributions are made. The remaining use tax revenue would continue to flow to the State General Fund and other existing earmarked funds, including education-related funds, bridge replacement, and road-related accounts already listed in Section 27-67-31.
Impact
The bill would amend Section 27-67-31 of the Mississippi Code to create a new ongoing earmark of 10% of monthly use tax revenue for the State Highway Fund. This would affect the state’s revenue allocation structure by reducing the amount of use tax revenue otherwise available for the State General Fund and any other distributions that occur after the new highway deposit. The practical effect is to provide a dedicated funding stream for state highway projects and maintenance, while leaving the underlying use tax rate and collection rules unchanged.
Sentiment
Based on the bill text and available context, the measure appears to be framed as a transportation funding bill with a straightforward policy goal: increasing dedicated money for highways. There are no recorded committee transcripts or votes in the provided materials, so there is no documented opposition or support to assess from debate history. The caption and structure suggest a fiscally targeted, infrastructure-oriented proposal rather than a controversial tax increase.
Contention
The main policy issue likely concerns revenue prioritization: directing 10% of use tax receipts to highways could reduce flexibility in the General Fund and potentially affect other state spending priorities. Supporters would likely emphasize road construction and maintenance needs, while any critics would focus on the diversion of revenue from general purposes or question whether use tax proceeds should be earmarked rather than left for broader budget use. No specific objections, amendments, or named opponents are reflected in the provided legislative history.