Nice surprise: Vicksburg receives higher-than-expected Use Tax revenues from State

Published 1:33 pm Wednesday, January 27, 2021

Vicksburg has received a higher-than-expected semi-annual payment from the Mississippi State Department of Revenue for Use Tax revenues totaling $392,622.25, which exceeds the previous year’s payment by approximately $184,000.

“This additional revenue will be put back in the hands of the taxpayers by way of infrastructure improvements as quickly as possible,” Mayor Flaggs said. “I’ve always said the city of Vicksburg provides the best quality service at the least cost to our taxpayers. This will help us continue to keep that promise while improving service to our residents.”

The tax is applicable to “goods purchased for use, storage, or other consumption anywhere in Mississippi and applies to the purchase of items that are shipped or delivered into the State of Mississippi, and for items purchased inside the state if sales tax was not paid at the time of purchase.”

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In 2020, the City of Vicksburg received approximately $208,000 from the State as a result of total collected Use Tax Revenues. The January 2021 payment is one of two semi-annual payments expected from the State.

The Infrastructure Modernization Act was passed during Mississippi’s 2018 Special Legislative Session. The Act created a special fund to assist municipalities in paying costs associated with the repair, maintenance and/or reconstruction of roads, streets and bridges and also with repair, maintenance and/or other improvements to water and sewer infrastructure.