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Bill

HB 1386

Use tax; revise authorized use of funds distributed to municipalities for infrastructure assistance.

2026 Regular Session Introduced by Trey Lamar

Mississippi revises use tax revenue distribution to municipalities, expanding eligible infrastructure projects for state funding assistance.

Passed
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Bill Summary · HB 1386

Legislative bill overview

HB 1386 revises how Mississippi distributes use tax revenue to municipalities, specifically modifying which infrastructure projects qualify for state assistance funding. The bill expands or redirects the authorized uses of these distributed funds beyond their previous scope to support municipal infrastructure development.

Why is this important

Municipalities depend on state infrastructure assistance to fund roads, utilities, and public facilities without raising local taxes. Changes to what projects qualify for funding directly affect which communities can afford necessary infrastructure improvements and how local governments allocate their budgets.

Potential points of contention

  • Equity concerns: If the bill narrows eligible projects, smaller or less affluent municipalities may lose access to critical funding for essential infrastructure
  • Revenue redirection: Changes to fund usage could shift money away from traditional infrastructure priorities (roads, water systems) toward newer categories, affecting communities relying on current allocations
  • Implementation burden: Municipalities may face compliance challenges understanding new requirements or applying for funding under revised criteria

Compiled from official sources — confirm details with the bill’s official record.

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