A bill originating in the Senate would give local municipalities or counties the ability to impose a special sales tax on all already taxed items in operating within that area. The intent of this increase is to help with local projects that need additional funding.

According to the language of SB 2506 the tax could not be greater than 1% on any goods already taxed at the 7% state sales tax rate. The city or county would be required to issue a statement as to when the tax will begin, how much the tax will be and what projects it is to go towards.

The bill reads: 

Subject to the provisions of this section, the governing authorities of any municipality or county may impose upon all persons as a privilege for engaging or continuing in business or doing business within such municipality or county, a special sales tax at the rate of not more than one percent (1%) of the gross proceeds of sales or gross income of the business, as the case may be, derived from any of the activities taxed at the rate of seven percent (7%) or more under the Mississippi Sales Tax Law, Section 27-65-1 et seq. The tax levied under this section shall apply to every person making sales, delivery or installations of tangible personal property or services within any municipality or county which has adopted the levy authorized in this section but shall not apply to sales exempted by Sections 27-65-19, 27-65-101, 27-65-103, 27-65-105, 27-65-107, 27-65-109 36 and 27-65-111, Mississippi Sales Tax Law.

The bill was authored by Senator McMahan and referred to the Finance committee. Because that deadline has not yet passed the bill is still in its originating chamber.