1998 Regular Session
To: Local and Private Legislation; Ways and Means
By: Representatives Martinson, Johnson
House Bill 1849
AN ACT TO AUTHORIZE THE CITY OF RIDGELAND, MISSISSIPPI, TO INCUR INDEBTEDNESS IN THE AMOUNT OF $50,000,000.00 FOR THE PURPOSE OF CONSTRUCTING TRANSPORTATION INFRASTRUCTURE PROJECTS RECOMMENDED TO BE LOCATED IN THE CITY BY THE TRANSPORTATION PLAN UPDATE FOR THE CITY OF RIDGELAND, MISSISSIPPI, DATED JULY 1996, THE MADISON-RIDGELAND CONNECTOR FEASIBILITY STUDY DATED MAY 1997, AND THE JACKSON URBANIZED AREAS TRANSPORTATION PLAN FOR THE YEAR 2020 DATED JUNE 1997; TO REQUIRE THE CITY OF RIDGELAND TO IMPOSE A 1% SALES TAX ON ALL ITEMS CURRENTLY TAXED AT 7% BEFORE INCURRING ANY INDEBTEDNESS UNDER THIS ACT; TO REQUIRE THE REVENUE COLLECTED FROM SUCH SALES TAX TO BE USED TO PAY FOR THE COSTS INCURRED IN CONSTRUCTING SUCH TRANSPORTATION INFRASTRUCTURE PROJECTS, INCLUDING THE PAYMENT OF ANY INDEBTEDNESS, INCLUDING INTEREST, INCURRED BY THE CITY PURSUANT TO THIS ACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Whenever used in this act, unless a different meaning clearly appears in the context, the following terms shall be given the following meanings:
(a) "City" means the City of Ridgeland, Mississippi.
(b) "Governing body" means the Mayor and Board of Aldermen of the City of Ridgeland, Mississippi.
(c) "Project" means transportation infrastructure projects recommended to be located in the City of Ridgeland by the Transportation Plan Update for the City of Ridgeland, Mississippi, dated July 1996, the Madison-Ridgeland Connector Feasibility Study dated May 1997, and the Jackson Urbanized Areas Transportation Plan for the year 2020 dated June 1997.
SECTION 2. It is hereby determined and declared to be in the best interest of the people of the city and the surrounding area to provide an adequate transportation infrastructure in the city. It is in the public interest that the city's critical transportation problems be alleviated. The construction of the project will assure the maintenance and improvement of the living conditions of the people of the area and the continuation of industrial, commercial and economic opportunities in the area.
SECTION 3. The governing body may incur indebtedness of the city in the aggregate principal amount not to exceed Fifty Million Dollars ($50,000,000.00) for the purpose of funding the project. The indebtedness shall not be considered when computing any limitation of indebtedness of the city established by law. The city may use the proceeds of the special tax levied pursuant to Section 4 of this act without incurring debt; however, the amount of any proceeds so used shall be deducted from the aggregate principal indebtedness authorized to be incurred under this section. In no event may the total of the aggregate amount of debt incurred by the city and the amount of the proceeds used by the city without incurring debt exceed Fifty Million Dollars ($50,000,000.00).
SECTION 4. (1) Before any indebtedness may be incurred by the city pursuant to this act, the governing body shall impose upon all persons as a privilege for engaging or continuing in business or doing business within such city, a special sales tax at the rate of 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 on the effective date of this act under the Mississippi Sales Tax Law, Section 27-65-1 et seq., Mississippi Code of 1972. The tax levied by this section shall apply to every person making sales, deliveries or installations of tangible personal property or services within the city 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) Before the tax authorized by this section may be imposed, the governing body shall adopt a resolution declaring its intention to levy the tax and establishing the amount of the tax and the date on which the tax initially shall be levied and collected. The date shall be the first day of a month but not less than forty-five (45) days from the date of adoption of the resolution. Notice of the proposed tax levy shall be published once each week for at least three (3) consecutive weeks in a newspaper having a general circulation in the city. The first publication of notice shall be made not less than twenty-one (21) days before the date fixed in the resolution on which the governing body proposes to levy such tax, and the last publication shall be made not more than seven (7) days before such date. If, within the time of giving notice, twenty percent (20%) or fifteen hundred (1500), whichever is less, of the qualified electors of the city file a written petition against the levy of such tax, then such tax shall not be levied unless authorized by a majority of the qualified electors of such city voting at an election to be called and held for that purpose.
SECTION 5. (1) On or before the fifteenth day before the imposition of the special sales tax authorized in Section 4 of this act, the governing body shall give written notification to the Chairman of the State Tax Commission of the date on which the special sales tax will become effective.
(2) Such tax shall be collected in the same manner as the state sales tax imposed by Title 27, Chapter 65, Mississippi Code of 1972, and shall be accounted for separately from the amount of sales tax collected for the state in the city. All provisions of the State Sales Tax Law applicable to filing of such returns, discounts to the taxpayer, remittances to the State Tax Commission and retainage thereby of sums to defray the costs of collection, collection enforcement, rights of taxpayers, recovery of improper taxes, refunds of overpaid taxes or other provisions of said chapter providing for imposition and collection of the sales tax shall apply to the tax authorized by this act.
(3) On or before the fifteenth day of each month, the revenue from the special sales tax collected under the provisions of this section during the preceding month shall be paid to the city.
(4) The proceeds of such taxes shall be placed into a separate fund apart from the municipal general fund and any other funds of the city, and shall be expended by the city solely for the purposes of paying any indebtedness or other obligations the city may incur for the project.
(5) Persons liable for the taxes imposed herein shall add the amount of tax to the sales price or gross income, and in addition thereto shall collect, insofar as practicable, the amount of the tax due by him from the person receiving the services or goods at the time of payment therefor.
(6) The special sales tax shall stand repealed on the first day of the month immediately succeeding the date the indebtedness incurred pursuant to this act, including interest, is retired, or in the event the city incurs no indebtedness, the first day of the month after the total amount of the revenue collected from the special sales tax reaches Fifty Million Dollars ($50,000,000.00). Any amount remaining in the separate fund containing the proceeds of the special tax not necessary to retire such debt, including interest, shall be transferred to the municipal general fund.
(7) If, at any time after the effective date of this act, the Legislature, by enactment of a general law, authorizes the imposition of a sales tax by municipalities, then the rate of tax authorized thereunder, if imposed by the city, shall be reduced by the rate of tax levied under this act.
SECTION 6. This act shall be deemed to be full and complete authority for the exercise of the powers granted, but this act shall not be deemed to repeal or to be in derogation of any existing law of this state.
SECTION 7. The governing authorities of the City of Ridgeland shall submit this act, immediately upon approval by the Governor, or upon approval by the Legislature subsequent to a veto, to the Attorney General of the United States or to the United States District Court for the District of Columbia in accordance with the provisions of the Voting Rights Act of 1965, as amended and extended.
SECTION 8. This act shall take effect and be in force from and after the date it is effectuated under Section 5 of the Voting Rights Act of 1965, as amended and extended.