MISSISSIPPI LEGISLATURE

1998 Regular Session

To: Local and Private Legislation; Ways and Means

By: Representative Shows

AN ACT TO AMEND CHAPTER 983, LOCAL AND PRIVATE LAWS OF 1996, TO AUTHORIZE THE GOVERNING AUTHORITIES OF THE CITY OF LAUREL TO INCREASE THE RECREATION AND PUBLIC IMPROVEMENT PROMOTION TAX LEVIED UPON THE GROSS PROCEEDS DERIVED FROM HOTEL AND MOTEL OVERNIGHT ROOM RENTALS, UPON THE RETAIL SALES OF CERTAIN RESTAURANTS AND UPON THE GROSS INCOME DERIVED FROM CERTAIN ON-PREMISES SALES OF ALCOHOLIC BEVERAGES; TO AUTHORIZE THE LEVYING OF AN ADDITIONAL TAX, FOLLOWING APPROVAL BY A COUNTYWIDE REFERENDUM, UPON THE GROSS PROCEEDS OF CERTAIN OFF-PREMISES SALES OF ALCOHOLIC BEVERAGES; TO PROVIDE THAT THE TAXES LEVIED AND THE BONDS AUTHORIZED TO BE ISSUED UNDER THIS ACT ALSO MAY BE USED TO CONSTRUCT, EQUIP, MAINTAIN AND OPERATE THE SOUTH MISSISSIPPI FAIRGROUND; AND FOR RELATED PURPOSES. 

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

SECTION 1. Chapter 983, Local and Private Laws of 1996, is amended as follows:

Section 1. As used in this act, the following words shall have the meanings ascribed to them in this section unless otherwise clearly indicated by the context in which they are used:

(a) "Act" shall mean this act.

(b) "City" shall mean the City of Laurel, Mississippi.

(c) "Fair Commission" shall mean the South Mississippi Fair Commission created pursuant to Chapter 990, Local and Private Laws of 1994.

(d) "Fairground complex" shall mean the land and improvements thereon commonly known as the South Mississippi Fairground, which land and improvements are subject to the jurisdiction of the South Mississippi Fair Commission.

(e) "Governing body" shall mean the mayor and city council of the city.

(f) "Hotel" or "motel" shall mean a place of lodging within the city that at any one time will accommodate transient guests on a daily or weekly basis, excluding hotels or motels with ten (10) or less overnight rental units.

(g) "Project" shall mean (i) land and improvements thereon to be used for recreation facilities within or in close proximity to the corporate limits of the city, and after construction of such facilities shall mean any other land and improvements thereon, that are open and available to the general public and used for general public purposes that may be funded with the proceeds of the tax authorized to be levied pursuant to this act, including the operation and maintenance of such facilities, and (ii) the construction and equipping of improvements at the fairground complex.

(h) "Restaurant" shall mean and include all places within the city where prepared foods and beverages are sold for consumption, whether such foods are prepared or consumed on the premises or not. "Restaurant" as defined herein does not include any school, hospital, convalescent or nursing home, or any restaurant-like facility operated by or in connection with a school, hospital, medical clinic, convalescent or nursing home providing food for students, patients, visitors and their families, or any restaurant having annual gross sales of less than One Hundred Thousand Dollars ($100,000,00).

(i) "Tax" shall mean the sales tax authorized by Section 3 of this act.

Section 2. In addition to the power and authority granted under this act, the governing body shall have jurisdiction and authority over all matters relating to the promotion, establishment, development, construction, furnishing and equipping of the project, including the authority to enter into such contracts and agreements as may be necessary to carry out the intent of this act. In carrying out the provisions of this act, the governing body shall adhere to the provisions of the public purchasing laws, public works contracts laws and public bid laws as provided by the laws of the State of Mississippi, except as may be expressly otherwise provided for herein.

The governing body is further authorized (a) to receive and expend, subject to the provisions of this act, revenues from any source for the purposes enumerated herein; and (b) to contract, in its discretion, with the Fair Commission with respect to constructing and equipping the public improvements and facilities at the fairground complex including providing the funding for such improvements and facilities from the proceeds of the bonds that may be issued pursuant to this act.

Section 3. (1) For the purpose of providing funds for the promotion, establishment, development, construction, furnishing, equipping, erection, operation and maintenance of the project, there is hereby levied, assessed and shall be collected from every person engaging in or doing business in the city, as provided in subsection (2) of this section, a tax which may be cited as the "recreation and public improvement promotion tax," which shall be in addition to all other taxes now imposed.

(2) Such tax shall be in an amount not to exceed (a) two percent (2%) of the gross proceeds derived from hotel and motel room rentals and retail sales of restaurants, including, but not limited to, sales of beer and alcoholic beverages sold by an on-premises Alcoholic Beverage Control permit holder for on-premises consumption; (b) two percent (2%) on the gross proceeds derived from the sale of alcohol by Alcoholic Beverage Control package store permittees for off-premises consumption; and (c) two percent (2%) on the gross proceeds derived from the wholesale price of beer sold for off-premises consumption.

(3) Persons, firms and corporations liable for the tax imposed herein shall add the amount of tax to the sales price of or gross income from the goods, products and services subject to the tax and, in addition thereto, shall collect insofar as practicable the amount of the tax due by them from the person receiving the services or goods at the time of payment therefor.

(4) Such tax shall be collected as set forth in subsection (3) above and paid to the State Tax Commission, on a form prescribed by the State Tax Commission, in the same manner that state sales taxes are computed, collected and paid; and the full enforcement provisions of Chapter 65, Title 27, Mississippi Code of 1972, shall apply as necessary to the implementation and administration of this act.

(5) The proceeds of the tax, less three percent (3%) to be retained by the State Tax Commission to defray the cost of collection, shall be paid to the city on or before the fifteenth day of the month following the month in which they were collected.

(6) The proceeds of the tax shall not be considered by the city as general fund revenues but shall be dedicated solely for the purpose of constructing, operating and maintaining the project as the governing body, in its sole discretion, shall determine.

(7) At such times as (a) all principal, interest, costs and other expenses for all bonds, notes or other borrowings under this act have been paid and are completely satisfied, or (b) there exists in any special account established to retire such bonds, notes or other borrowings an amount on deposit which, together with any earnings on investments to accrue to the account, is equal to or greater than the amount necessary to pay such indebtedness, then the city may set the tax being levied hereunder at a rate the avails of which will not exceed the amount necessary to pay continuing operation and maintenance costs of the project but in no event to exceed one-half (1/2) of the maximum tax authorized and levied under Section 3(2) of this act.

Section 4. (1) Before the taxes authorized by Chapter 983, Local and Private Laws of 1996, may be imposed, the governing body of the city shall adopt a resolution declaring their intention to:

(a) Levy the tax, setting forth the amount of such tax and establishing the date on which the tax initially shall be levied and collected; and

(b) Issue bonds of the city to provide funds to defray the cost of the project, setting forth the estimated amount of bonds to be issued and a general description of the project, if the governing body elects to include provisions for issuance of bonds in such resolution.

The resolution shall state the time, date and place upon which the governing body shall take action to authorize and direct levying the tax and, if applicable, the issuance of bonds. The resolution shall be published in a local newspaper at least three (3) times over three (3) consecutive weeks, with the last publication made no less than seven (7) days prior to the date set forth in the resolution on which the governing body would proceed to levy the tax and, if applicable, issue the bonds.

If, after giving notice, twenty percent (20%) or fifteen hundred (1500), whichever is less, of the qualified electors of the city shall file a written petition against the levy of such tax or the issuance of the bonds, or both, at or prior to the time and date set forth in the resolution, then such tax shall not be levied and the bonds shall not be issued unless authorized by a majority of the qualified electors of the city voting at an election to be called and held for such purpose or purposes. The election shall be conducted in the manner as other city elections, and the governing body shall direct the city election commissioners to conduct such election.

The effective date of such tax levy shall not be sooner than the first day of the second month from the date the governing body adjudicated no protest to levying the tax or the date of a favorable election on the question of levying the tax, as the case may be. If no protest or an insufficient protest is presented, the bonds may be issued at any time within two (2) years of the date the governing body adjudicates no protest or, in the alternative, within two (2) years of a favorable election on the issuance of the bonds.

Before the effective date of tax levy approved under this subsection (1), the governing body shall furnish a certified copy of the resolution evidencing such tax levy to the Chairman of the State Tax Commission.

(2) Before any tax may be imposed under Section 3(2) of House Bill , 1998 Regular Session, that exceeds the amount of such tax that was authorized to be imposed under Chapter 983, Local and Private Laws of 1996, or for which no authority to impose such tax was authorized under Chapter 983, Local and Private Laws of 1996, the governing body of the city shall adopt a resolution declaring its intention to levy the tax, setting forth the amount of such tax to be imposed, the date upon which such tax shall become effective and establishing a date for the calling of a referendum to be held on the question. Notice of such intention shall be published once each week for at least three (3) consecutive weeks in a newspaper published or having a general circulation in the county, with the first publication of such notice to be made not less than twenty-one (21) days before the date fixed in the resolution for the election and the last publication to be made not more than seven (7) days before the election. At the election, all qualified electors of the county may vote, and the ballots used in such election shall have printed thereon a brief statement of the amount and purposes of the proposed tax levy and the words "FOR THE RECREATION AND PUBLIC IMPROVEMENT PROMOTION TAX" and, on a separate line, "AGAINST THE RECREATION AND PUBLIC IMPROVEMENT PROMOTION TAX," and the voters shall vote by placing a cross (X) or check (U) opposite their choice on the proposition. When the results of any such election shall have been canvassed by the election commission of the county and certified, the county may levy the tax if a majority of the qualified electors who vote in the election vote in favor of the tax.

Section 5. The governing body shall adopt its first budget of receipts and expenditures to cover the period beginning with the effective date of the tax and ending with the end of the city's fiscal year; and, thereafter, the budget shall be on the same fiscal basis as the budget of the city.

Section 6. Accounting for receipts and expenditures of the funds herein described shall be made separate from the accounting of receipts and expenditures of the general fund and any other funds of the city. The records reflecting the receipts and expenditures of the funds prescribed herein shall be audited annually as a part of the annual audit of the city or by independent audit if so determined by the governing body. Such audit shall be made and completed as soon as practicable after the close of the fiscal year, and expenses of such audit may be paid from the funds derived pursuant to Section 3 of this act.

Section 7. The governing body of the city may borrow money for the purposes set forth in this act in any one or any combination of the following methods. The city is authorized to issue, from time to time, negotiable bonds of the city for the purposes set forth in Section 2 of this act and to pay for costs of issuing the bonds (including bond insurance, credit enhancements, rating agency fees and legal fees and expenses), which bonds may be secured by all or any portion of the tax revenue generated in Section 3 of this act, along with such other security as may be provided by the city. The city is further authorized to incur debt, borrow funds and/or issue bonds for the purposes set forth in Section 2 herein pursuant to Section 31-25-1 et seq., Mississippi Code of 1972. Revenue bonds authorized to be issued or debt incurred under this act shall not be included within the limitation on indebtedness imposed in Section 21-33-303, Mississippi Code of 1972.

The city is hereby further authorized to issue general obligation bonds of the city pursuant to Section 21-33-301, Mississippi Code of 1972; provided, however, that upon compliance with the public notice requirements set forth in Section 4 of this act, compliance with Sections 21-33-307 through 21-33-329, Mississippi Code of 1972, shall not be required. General obligation bonds issued pursuant to this paragraph shall be exempt from the debt limit imposed by Section 21-33-303, Mississippi Code of 1972, to the extent that such debt is paid with the tax revenues generated pursuant to Section 3 hereof and not with an ad valorem tax levy.

Section 8. If the city elects to issue revenue bonds to defray the cost of the project, such bonds may be serial or term; redeemable, with or without premium, or nonredeemable and registered with registration privileges as to principal and interest; shall bear interest at a rate to be determined pursuant to the sale of the bonds; and shall be payable at such time or times as shall be prescribed in the ordinance authorizing them. The bonds shall mature at such time or times, not exceeding the estimated life of the improvements and in no event longer than thirty (30) years from their date, and at such place or places as shall be prescribed in the ordinance authorizing their issuance. All bonds and interest thereon issued pursuant to the authority granted in this act shall possess all the qualities of negotiable instruments. The bonds shall be executed in such manner, and shall be substantially in the form, prescribed in the authorizing ordinance. In case any of the officers whose signatures or countersignatures appear on the bonds shall cease to be such officers before delivery of such bonds, such signatures or countersignatures shall nevertheless be valid and sufficient for all purposes the same as if they had remained in office until such delivery. No bond shall bear more than one (1) rate of interest. Each bond shall bear interest from its date to its stated maturity date at the interest rate specified in the bid. All bonds of the same maturity shall bear the same rate of interest from date to maturity. All interest accruing on such bonds so issued shall be payable semiannually or annually, except that the first interest payment on any such bond may be for any period not exceeding two (2) years.

No interest payment shall be evidenced by more than one (1) rate of interest. The lowest interest rate specified for any bonds issued shall not be less than seventy percent (70%) of the highest interest rate specified for the same bond issue. Such bonds shall be sold in such manner and upon such terms as the governing body of the city shall determine, provided that such bonds shall not bear a greater overall maximum interest rate to maturity than that allowed in Section 75-17-103, Mississippi Code of 1972, and the interest rate on any one (1) interest maturity shall not exceed the maximum interest rate allowed on such bonds. Each interest rate specified in any bid must be in multiples of one-eighth of one percent (1/8 of 1%) or in multiples of one-tenth of one percent (1/10 of 1%). If the bonds are serial bonds, such bonds shall mature annually, and the first maturity date thereof shall not be more than two (2) years from the date of such bonds. Such bonds shall be legal investments for trustees and other fiduciaries, and for savings banks, trust companies and insurance companies organized under the laws of the State of Mississippi. The bonds and interest thereon shall be exempt from all state, county, municipal and other taxation under the laws of the State of Mississippi. The principal of and interest on such bonds shall be payable solely from the revenues derived from levying the tax described in Section 3 of this act and such other security as may be provided by the city. No bond issued pursuant to the authority granted in this section shall constitute an indebtedness of a municipality within the meaning of any statutory or charter restriction, limitation or provision. It shall be plainly stated on the face of each such bond in substance that the same has been issued pursuant to the authority granted in this act and that the taxing power of the city is not pledged to the payment of such bond or interest thereon, and that such bond and the interest thereon are payable solely from the revenues derived from levying the tax described in Section 3 hereof and such other security as may be provided by the city.

Such bonds shall be sold at public or private sale and, if sold at public sale, shall be sold in the manner provided by Section 31-19-25.

The city is hereby authorized to employ investment bankers, underwriters, financial advisors, legal counsel, bond counsel and such other required professionals and to pay the fees and expenses incidental thereto.

Section 9. This act, without reference to any other statute not referred to herein, shall be deemed to be full and complete authority to carry out the activities set forth herein, including levying the tax authorized pursuant to Section 3 hereof, borrowing money and issuing bonds, and shall be construed as an additional and alternate method therefor.

Section 10. Any bonds issued under the provisions of this act may be validated in the manner provided by law.

Section 11. The governing body of the city is further authorized and empowered to adopt any and all lawful resolutions, orders or ordinances; execute and deliver such agreements, contracts, indentures and certificates; and do and perform any and all other acts and things necessary and requisite to levy the tax, issue the bonds and carry out the purposes of this act.

SECTION 2. The governing authorities of the City of Laurel, Mississippi, 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 3. 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.