Thursday, August 23, 2018

City Of Louisville Passes Resolution In Support Of Internet Sales Tax Diversion To Municipalities

At a recent Board of Aldermen meeting, the City of Louisville passed a resolution urging the State Legislature to “Balance the Scales with Internet Sales” by diverting a portion of internet sales tax to municipalities.

The City of Louisville has joined the Mississippi Municipal League and its 292 member municipalities across the state in an effort to support the inclusion of this diversion in any legislation for infrastructure funding that might be considered during a special session.

The resolution states that cities, towns and villages in Mississippi are responsible for over 23,000 street miles. It also states that municipal governments in the state provide water and sewer services to over 50% of the citizens in Mississippi. Being able to provide quality public infrastructure in the State’s municipalities is critical to the economic vitality of our cities and towns and a necessary component of providing a better quality of life for the citizens of Mississippi at large. 

 With the recent U.S. Supreme Court sales tax ruling, the Legislature will now have the opportunity to “Balance the Scales with Internet Sales” and treat internet sales tax as they do traditional sales tax and divert at least 18.5% back to the cities based on the point of delivery of the products sold. At the very least, the Legislature should set aside a portion of all Use Tax to be diverted to cities on a per capita basis to be used for water, sewer, and street infrastructure.
“This revenue needs to be shared with cities and towns,” stated Mayor Will Hill. “We are the economic engines of this state. If we can improve our infrastructure, the state only stands to gain. The climate for economic development and job creation will be improved and retail should grow, increasing overall sales tax collections for the state.”