2006 Regular Session
To: Local and Private Legislation; Ways and Means
By: Representative Baker (74th), Coleman (65th), Denny, Fleming, Martinson
AN ACT TO AUTHORIZE THE GOVERNING AUTHORITIES OF THE CITY OF RIDGELAND, MISSISSIPPI, TO IMPOSE A SPECIAL SALES TAX OF NOT MORE THAN ONE PERCENT ON THE GROSS PROCEEDS OF ALL SALES OR THE GROSS INCOME OF BUSINESSES IN THE CITY DERIVED FROM ACTIVITIES TAXED AT THE RATE OF SEVEN PERCENT UNDER THE MISSISSIPPI SALES TAX LAW AND FROM CERTAIN RETAIL SALES OF FOOD; TO PROVIDE THAT THE SPECIAL SALES TAX SHALL NOT BE LEVIED UNLESS AUTHORIZED BY AT LEAST 60% OF THE VOTERS IN AN ELECTION CALLED AND HELD ON THE ISSUE OF THE TAX LEVY; TO AUTHORIZE THE CITY TO ISSUE BONDS OR OTHERWISE INCUR INDEBTEDNESS IN AN AMOUNT NOT GREATER THAN THE AMOUNT FOR WHICH DEBT SERVICE IS CAPABLE OF BEING FUNDED BY THE PROCEEDS OF THE SPECIAL SALES TAX; TO PROVIDE THAT THE REVENUE COLLECTED UNDER THE SPECIAL SALES TAX SHALL BE USED AND EXPENDED BY THE CITY ONLY TO FUND CERTAIN CAPITAL IMPROVEMENT PROJECTS; TO PROVIDE FOR THE DISCONTINUANCE OF THE SPECIAL SALES TAX UPON COMPLETION OF THE FUNDING OF THE CAPITAL IMPROVEMENT PROJECTS FOR WHICH THE TAX WAS LEVIED; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) The governing authorities of the City of Ridgeland, Mississippi, in their discretion, may 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 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: (a) Any of the activities taxed at the rate of seven percent (7%) under the Mississippi Sales Tax Law, Section 27-65-1 et seq., as provided hereinafter; and
(b) Retail sales of food for human consumption not purchased with food stamps issued by the United States Department of Agriculture, or other federal agency, but which would be exempt under paragraph (o) of Section 27-65-111 from the taxes imposed by this chapter if the food items were purchased with food stamps.
(2) The tax levied under this section shall apply to every person making sales, delivery or installations of tangible personal property or services within the city, but shall not apply to:
(a) 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; and
(b) The gross proceeds of sales of restaurants, hotels and motels that are subject to the tourist and convention tax levied under Chapter 910, Local and Private Laws of 1997.
SECTION 2. (1) In the resolution ordering the election required by subsection (2) of this section, the governing authorities of the city shall specify the capital improvement project that the revenue collected under the tax levy may be used and expended to construct. The governing authorities shall adopt a resolution and call an election regarding each individual capital improvement project for which it seeks to levy the special sales tax authorized by this act.
(2) The tax levy authorized in this act shall not be made unless approved by at least sixty percent (60%) of the qualified electors casting votes in an election to be called and held for that purpose. Notice of the election shall be given, the election shall be held and its result determined, as far as is practicable, in the same manner as other elections are held in the city. At the election, all qualified electors of the city may vote. The ballots used at such election shall have printed thereon a brief description of the special sales tax, the amount of the special sales tax levy, a description of the specific capital improvement project for which the special sales tax revenue may be used and expended and the words "FOR THE LOCAL SALES TAX" and "AGAINST THE LOCAL SALES TAX." The voter shall vote by placing a cross (X) or check mark (a) opposite his choice on the proposition. When the results of the election have been canvassed by the election commissioners of the city and certified by them to the governing authorities of the city, it shall be the duty of the governing authorities to determine whether at least sixty percent (60%) of the qualified electors in the city who voted in the election voted in favor of the tax. If the election results are in favor of the levy, then the governing authorities shall adopt a resolution declaring the levy and collection of the tax authorized by 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 the resolution together with the result of the election shall be furnished to the State Tax Commission not less than thirty (30) days before the effective date of the levy.
SECTION 3. (1) The special sales tax authorized by this act shall be collected by the State Tax Commission and shall be accounted for separately from the amount of sales tax collected for the state in the City of Ridgeland. The proceeds of the tax, less three percent (3%) thereof which shall be retained by the State Tax Commission to defray the cost of collection, shall be paid to the governing authorities of the City of Ridgeland on or before the fifteenth day of the month following the month in which collected.
(2) The proceeds of the special sales tax shall be placed into a separate fund apart from the municipal general fund and any other funds of the City of Ridgeland and shall not be considered by the city as general fund revenues. Such proceeds shall be dedicated to and expended by the governing authorities solely for the purpose of paying any indebtedness or other obligation the city may incur for the capital improvement project specified in the resolution ordering the election.
(3) 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 special sales tax authorized by this act, except where there is a conflict, in which case the provisions of this act shall control. Any damages, penalties or interest collected for the nonpayment of taxes imposed under this act, or for noncompliance with the provisions of this act, shall be paid to the city 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 the city or any payment of the tax to the city in error may be adjusted by the State Tax Commission on any subsequent payment to the city. The State Tax Commission, from time to time, may make such rules and regulations not inconsistent with the provisions of this act as may be deemed necessary to carry out the provisions of this act, and such rules and regulations shall have the full force and effect of law.
(4) The special sales tax shall be discontinued by the governing authorities of the City of Ridgeland on the first day of the month immediately following the date any indebtedness, including interest, incurred under Section 4 of this act is retired, or in the event the city incurs no indebtedness, the first day of the month after all obligations for the capital improvement project have been paid. Any amount remaining in the separate fund containing the proceeds of the special sales tax not necessary to retire the debt, or to pay any other obligations, shall be transferred to the municipal general fund.
SECTION 4. The governing authorities of the City of Ridgeland may issue bonds or otherwise incur indebtedness of the city in an aggregate principal amount that is not in excess of the amount for which debt service is capable of being funded by the proceeds of the special sales tax levied under this act.
SECTION 5. The Attorney General of the State of 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 6. 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.