MISSISSIPPI LEGISLATURE

1997 Regular Session

To: Finance

By: Senator(s) Jordan (24th)

AN ACT TO AUTHORIZE COUNTIES TO IMPOSE A SALES TAX ON THE GROSS PROCEEDS OF ALL SALES OR GROSS INCOME OF BUSINESSES IN THE UNINCORPORATED AREAS OF THE COUNTY FROM ACTIVITIES TAXED AT THE RATE OF SEVEN PERCENT OR MORE UNDER THE MISSISSIPPI SALES TAX LAW; TO AUTHORIZE MUNICIPALITIES TO IMPOSE A SALES TAX ON THE GROSS PROCEEDS OF ALL SALES OR GROSS INCOME OF BUSINESSES IN THE MUNICIPALITY DERIVED FROM ACTIVITIES TAXED AT THE RATE OF SEVEN PERCENT OR MORE UNDER THE MISSISSIPPI SALES TAX LAW; TO AUTHORIZE THE MUNICIPALITIES IN A COUNTY AND THE COUNTY TO JOINTLY IMPOSE A SALES TAX ON THE GROSS PROCEEDS OF ALL SALES OR GROSS INCOME OF BUSINESSES IN THE COUNTY FROM ACTIVITIES TAXED AT THE RATE OF SEVEN PERCENT OR MORE UNDER THE MISSISSIPPI SALES TAX LAW; TO PROVIDE THAT SUCH TAXES SHALL NOT BE LEVIED UNLESS AUTHORIZED BY A MAJORITY OF THE VOTES CAST AT AN ELECTION TO BE CALLED AND HELD FOR SUCH PURPOSE; TO PROVIDE METHODS TO DISCONTINUE SUCH SALES TAX; AND FOR RELATED PURPOSES.  

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) The board of supervisors of any county may impose upon all persons as a privilege for engaging or continuing in business or doing business within the unincorporated areas of such county a 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 by this section shall apply to every person making sales, delivery or installations of tangible personal property or services within the unincorporated areas of any county which has adopted the levy herein authorized 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 and 27-65-111 of the Mississippi Sales Tax Law.

(2) The tax authorized herein shall not be levied unless approved by a majority of those persons voting in an election to be called and held for that purpose. Notice of such election shall be given, the election shall be held and the result thereof determined, as far as is practicable, in the same manner as other elections are held in the county. If an election results in favor of the levy, the board of supervisors shall adopt a resolution declaring that it has qualified for the levy and collection of the tax provided in this section and shall set the first day of the second month following the date of such adoption as the effective date of the tax levy. A certified copy of this resolution together with the result of the election shall be furnished the State Tax Commission not less than thirty (30) days prior to the effective date of the tax levy. Any county having held an election to adopt the tax with a resulting unfavorable vote may not hold another election on such proposition for a period of one (1) year from the date of the last election.

(3) All county sales taxes authorized in this section shall be collected by the State Tax Commission, shall be accounted for separately from the amount of sales tax collected for the state in the county, and shall be paid to the county in which collected. Payments to the counties shall be made by the State Tax Commission on or before the fifteenth day of the month following the month in which the tax was collected. Such payments may be used and expended by the counties for:

(a) Public safety; and

(b) Capital improvements.

(4) All provisions of the Mississippi Sales Tax Law applicable to filing of returns, discounts to the taxpayer, remittances to the State Tax Commission, enforced collection, rights of taxpayers, recovery of improper taxes, refunds of overpaid taxes or other provisions of law providing for imposition and collection of the state sales tax shall apply to the county sales tax authorized by this section, except where there is a conflict, in which case the provisions of this section shall control. Any damages, penalties or interest collected for the nonpayment of taxes imposed hereunder, or for noncompliance with the provisions of this section, shall be paid to the county in which such damages were collected on the same basis and in the same manner as the tax proceeds. Any overpayment of tax for any reason that has been disbursed to any county or any payment of the tax to any county in error may be adjusted by the State Tax Commission on any subsequent payment to such county pursuant to the provisions of the Mississippi Sales Tax Law. The State Tax Commission may, from time to time, make such rules and regulations not inconsistent with this section as may be deemed necessary to carry out its provisions, and such rules and regulations shall have the full force and effect of law.

(5) The board of supervisors of a county may discontinue the collection of the county sales tax by adopting a resolution to that effect. Such tax levy shall be discontinued on the first day of a month designated in the resolution, and the tax levy shall not apply to sales made on and after that date. A certified copy of the resolution shall be furnished to the State Tax Commission at least thirty (30) days prior to the effective date of the discontinuance.

(6) The sales tax levied pursuant to this section shall be discontinued by operation of law on the first day of the month fifteen (15) years after the date upon which such tax was levied pursuant to this section if such tax has not been discontinued sooner as provided for in subsection (5) of this section.

SECTION 2. (1) The governing authorities of any municipality may impose upon all persons as a privilege for engaging or continuing in business or doing business within such municipality a 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 by this section shall apply to every person making sales, delivery or installations of tangible personal property or services within any municipality which has adopted the levy herein authorized 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 and 27-65-111 of the Mississippi Sales Tax Law.

(2) The tax authorized herein shall not be levied unless approved by a majority of those persons voting in an election to be called and held for that purpose. Notice of such election shall be given, the election shall be held and the result thereof determined, as far as is practicable, in the same manner as other elections are held in the municipality. If an election results in favor of the levy, the governing authorities shall adopt a resolution declaring that it has qualified for the levy and collection of the tax provided in this section and shall set the first day of the second month following the date of such adoption as the effective date of the tax levy. A certified copy of this resolution together with the result of the election shall be furnished the State Tax Commission not less than thirty (30) days prior to the effective date of the tax levy. Any municipality having held an election to adopt the tax with a resulting unfavorable vote may not hold another election on such proposition for a period of one (1) year from the date of the last election.

(3) All municipal sales taxes authorized in this section shall be collected by the State Tax Commission, shall be accounted for separately from the amount of sales tax collected for the state in the municipality, and shall be paid to the municipality in which collected. Payments to the municipalities shall be made by the State Tax Commission on or before the fifteenth day of the month following the month in which the tax was collected. Such payments may be used and expended by the municipalities for:

(a) Public safety; and

(b) Capital improvements.

(4) All provisions of the Mississippi Sales Tax Law applicable to filing of returns, discounts to the taxpayer, remittances to the State Tax Commission, enforced collection, rights of taxpayers, recovery of improper taxes, refunds of overpaid taxes or other provisions of law providing for imposition and collection of the state sales tax shall apply to the county sales tax authorized by this section, except where there is a conflict, in which case the provisions of this section shall control. Any damages, penalties or interest collected for the nonpayment of taxes imposed hereunder, or for noncompliance with the provisions of this section, shall be paid to the municipality in which such damages were collected on the same basis and in the same manner as the tax proceeds. Any overpayment of tax for any reason that has been disbursed to any municipality or any payment of the tax to any municipality in error may be adjusted by the State Tax Commission on any subsequent payment to such municipality pursuant to the provisions of the Mississippi Sales Tax Law. The State Tax Commission may, from time to time, make such rules and regulations not inconsistent with this section as may be deemed necessary to carry out its provisions, and such rules and regulations shall have the full force and effect of law.

(5) The governing authorities of a municipality may discontinue the collection of the municipal sales tax by adopting a resolution to that effect. Such tax levy shall be discontinued on the first day of a month designated in the resolution, and the tax levy shall not apply to sales made on and after that date. A certified copy of the resolution shall be furnished to the State Tax Commission at least thirty (30) days prior to the effective date of the discontinuance.

(6) The sales tax levied pursuant to this section shall be discontinued by operation of law on the first day of the month fifteen (15) years after the date upon which such tax was levied pursuant to this section if such tax has not been discontinued sooner as provided for in subsection (5) of this section.

SECTION 3. (1) The governing authorities of all municipalities in a county and the board of supervisors of such county may jointly impose upon all persons as a privilege for engaging or continuing in business or doing business within the county a 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 by this section shall apply to every person making sales, delivery or installations of tangible personal property or services within any county which has adopted the levy herein authorized 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 and 27-65-111 of the Mississippi Sales Tax Law.

(2) Prior to the election required by subsection (3) of this section, the governing authorities of all municipalities in the county and the board of supervisors of the county shall jointly adopt a resolution declaring the need for the tax and specifying the amount of the tax revenue collected that will be paid to each governmental unit participating in the levy of the tax if the tax is approved as provided for in subsection (3) of this section.

(3) The tax authorized herein shall not be levied unless approved by a majority of those persons voting in an election to be called and held for that purpose. Notice of such election shall be given, the election shall be held and the result thereof determined, as far as is practicable, in the same manner as other elections are held in the county. If an election results in favor of the levy, the governing authorities of the municipality and the board of supervisors of the county shall jointly adopt a resolution declaring that the county has qualified for the levy and collection of the tax provided in this section and shall set the first day of the second month following the date of such adoption as the effective date of the tax levy. A certified copy of this resolution and the resolution adopted pursuant to subsection (2) of this section, together with the result of the election shall be furnished the State Tax Commission not less than thirty (30) days prior to the effective date of the tax levy. Any county having held an election to adopt the tax with a resulting unfavorable vote may not hold another election on such proposition for a period of one (1) year from the date of the last election.

(3) All sales taxes authorized in this section shall be collected by the State Tax Commission, shall be accounted for separately from the amount of sales tax collected for the state, and shall be paid to the governmental entities in the county in which collected as provided for in the resolution adopted pursuant to subsection (2) of this section. Payments shall be made by the State Tax Commission on or before the fifteenth day of the month following the month in which the tax was collected. Such payments may be used and expended by a municipality or county for:

(a) Public safety; and

(b) Capital improvements.

(4) All provisions of the Mississippi Sales Tax Law applicable to filing of returns, discounts to the taxpayer, remittances to the State Tax Commission, enforced collection, rights of taxpayers, recovery of improper taxes, refunds of overpaid taxes or other provisions of law providing for imposition and collection of the state sales tax shall apply to the sales tax authorized by this section, except where there is a conflict, in which case the provisions of this section shall control. Any damages, penalties or interest collected for the nonpayment of taxes imposed hereunder, or for noncompliance with the provisions of this section, shall be paid to the county or municipality on the same basis and in the same manner as the tax proceeds. Any overpayment of tax for any reason that has been disbursed to any county or municipality or any payment of the tax to any county or municipality in error may be adjusted by the State Tax Commission on any subsequent payment to such municipality pursuant to the provisions of the Mississippi Sales Tax Law. The State Tax Commission may, from time to time, make such rules and regulations not inconsistent with this section as may be deemed necessary to carry out its provisions, and such rules and regulations shall have the full force and effect of law.

(5) The sales tax levied pursuant to this section shall be discontinued by operation of law on the first day of the month fifteen (15) years after the date upon which such tax was levied pursuant to this section.

SECTION 4. This act shall take effect and be in force from and after its passage.