The purchaser pays the 7 percent tax, while the retailer collects for the state. The Marketplace Facilitator Act would make it mandatory for giant online retailers like Amazon and Walmart to collect 7 percent tax on products they sell to other companies. Amazon and other major online retailers collect 7 percent tax on any items they sell. However, online retailers can also sell items that are owned by other companies on their sites. Mississippi is one five states that don’t require online retailers to collect use tax from items sold for other companies. Herb Frierson, the state revenue commissioner, stated that the annual revenue from collecting tax from third-party online sellers would be $50 million. Frierson stated, “It’s not about the revenue.” “It’s about fairness in marketplace.” The House passed the proposal and it is currently pending before Senate Finance Committee. It has been met with limited opposition by those who believe the proposal would create a new tax. Trey Lamar (R-Senatobia), House Ways and Means Chair, said that the bill would result in a tax being collected that is already valid under existing law. A U.S. Supreme Court ruling has prevented states from imposing the 7 percent use tax on remote retailers for years. Remote sales are items that can be purchased online or via catalogs. The Supreme Court ruled that remote retailers were exempt from the obligation to collect tax unless they had a physical presence in the state. The 2018 U.S. Supreme Court reversed this ruling and stated that states could require remote retailers to pay the tax. The state’s use-tax revenue has increased significantly since then. The state’s use tax revenue was $234.1 million in fiscal 2017, just before the Supreme Court ruling. This compares to $326.4 millions in fiscal 2019. The state’s use tax revenue has increased 1.5 percent in the first seven months to $208.3million for the 2020 fiscal year. The 7 percent sales tax charged on products purchased by businesses in the state continues to be the largest source of state income. The state received $2.06 billion in sales tax revenue in 2017, compared to $2.14 million in fiscal year 2019. The current fiscal year ended February 2017 saw sales tax revenue rise to $1.34 billion, an increase of 2.8 percent. The state’s total revenue collection through February, which are the first seven months, is $3.58 billion. This represents an increase of 4.8 per cent over the previous year’s collections during the same period. The Senate passed a teacher raise of $1,000 per year that will cost $56million annually. It is currently pending in Congress. Lt. Gov. Lt. Gov.