MISSISSIPPI LEGISLATURE

1998 Regular Session

To: Finance

By: Senator(s) Horhn

AN ACT TO AUTHORIZE THE BOARD OF SUPERVISORS OF ANY COUNTY TO IMPOSE A SALES TAX OF NOT MORE THAN 1/2 OF 1% ON THE GROSS PROCEEDS OF ALL SALES OR THE GROSS INCOME OF BUSINESSES IN THE COUNTY DERIVED FROM ACTIVITIES TAXED AT THE RATE OF 7% OR MORE UNDER THE MISSISSIPPI SALES TAX LAW; TO PROVIDE THAT THE PROCEEDS OF SUCH SALES TAX LEVY MAY BE USED BY THE COUNTY TO PAY THE PRINCIPAL OF, INTEREST ON, AND OTHER COSTS RELATED TO CERTAIN BONDS ISSUED FOR ECONOMIC DEVELOPMENT PURPOSES; TO PROVIDE THAT ANY PORTION OF THE PROCEEDS NOT USED TO PAY THE PRINCIPAL OF, INTEREST ON, OR OTHER COSTS RELATED TO SUCH BONDS SHALL BE DELIVERED BY THE COUNTY TO THE COUNTY ECONOMIC DEVELOPMENT DISTRICT OR AUTHORITY TO BE USED TO CARRY OUT THE FUNCTION OF SUCH DISTRICT OR AUTHORITY; TO PROVIDE THAT THE COUNTY SALES TAX 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) For the purpose of supporting a county economic development district created pursuant to Section 19-5-99, Mississippi Code of 1972, or a county economic development authority created pursuant to a local and private authorization, the board of supervisors of any county is authorized to impose upon all persons as a privilege for engaging or continuing in business or doing business within such county, a sales tax at the rate of not more than one-half of one percent (1/2 of 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., as provided hereinafter. 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) The tax levy authorized herein shall not be made unless authorized by a majority of the votes cast at 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 the levy and collection of the tax provided in this act 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 levy. Any county having held an election to adopt the tax with a resulting negative vote may not hold another election on such proposition within two (2) years from the date of the last election.

(3) All county sales taxes herein authorized 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, shall be paid to the county in which collected and shall be distributed by the State Tax Commission as follows: 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 by the county to pay the principal of, interest on, and other costs related to bonds issued pursuant to Section 19-5-99, Mississippi Code of 1972, or bonds issued pursuant to a local and private authorization to provide funds for county economic development authorities for the acquisition and improvement of land and the construction of improvements thereon, or other purposes related to economic development. Any portion of the payments not used to pay the principal of, interest on, and other costs related to bonds shall be delivered by the county to the county economic development district created pursuant to Section 19-5-99, Mississippi Code of 1972, or the county economic development authority created pursuant to a local and private authorization, as the case may be. The amounts delivered to a county economic development district or a county economic development authority shall be used by such district or authority to carry out its functions.

(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 the county involved 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 any 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 its effective date.

(6) If, more than one (1) year after the imposition of such sales tax, ten percent (10%) of the qualified electors of the county or fifteen hundred (1500), whichever is the lesser, shall file a written petition requesting the discontinuance of the levy of such tax, then an election on the question of discontinuance of the tax shall be called and held as provided hereinafter. The board of supervisors of the county shall call such election not less than forty-five (45) nor more than sixty (60) days after the filing of the petition. Notice of such election shall be signed by the clerk of the board of supervisors and shall be published once a week for at least three (3) consecutive weeks in at least one (1) newspaper published in such county. The first publication of such notice shall be made not less than twenty-one (21) days prior to the date fixed for such election, and the last publication shall be made not more than seven (7) days prior to such date. If no newspaper is published in such county, then such notice shall be given by publishing the same for the required time in some newspaper having a general circulation in such county and, in addition, by posting a copy of such notice for at least twenty-one (21) days next preceding such election at three (3) public places in such county. The election shall be held, as far as is practicable, in the same manner as other elections are held in counties. At such election, all qualified electors of the county may vote. The ballots used at such election shall have printed thereon a brief description of the sales tax and the amount of the sales tax levy and the words "FOR THE LOCAL SALES TAX" and "AGAINST THE LOCAL SALES TAX," and the voter shall vote by placing a cross (X) or check mark (V) opposite his choice on the proposition. When the results of the election have been canvassed by the election commissioners of the county and certified by them to the board of supervisors, it shall be the duty of such board of supervisors to determine and adjudicate whether or not a majority of the qualified electors who voted in such election voted against the tax. If a majority of the qualified electors who voted in such election voted against the tax, then such tax shall be discontinued on the first day of the second month following the election. The board of supervisors shall notify the State Tax Commission of the discontinuance of such tax pursuant to this subsection at least thirty (30) days prior to its discontinuance. If an election held pursuant to this subsection does not result in the discontinuance of such sales tax, then another election pursuant to this subsection may not be held within one (1) year of the date of such election.

SECTION 2. This act shall take effect and be in force from and after passage.