MISSISSIPPI LEGISLATURE
2020 Regular Session
To: Ways and Means
By: Representative Zuber
AN ACT TO AMEND SECTION 21-43-1, MISSISSIPPI CODE OF 1972, TO EXPAND THE PURPOSE FOR WHICH A TAX ON BUSINESSES WITH A PARKING AND BUSINESS IMPROVEMENT AREA WITHIN CERTAIN COUNTIES OR MUNICIPALITIES MAY BE UTILIZED WHICH SHALL INCLUDE TO PROMOTE TOURISM IN THE AREA; TO AMEND SECTION 21-43-3, MISSISSIPPI CODE OF 1972, TO REVISE THE DEFINITION OF "PARKING AND BUSINESS IMPROVEMENT AREA"; TO AMEND SECTION 21-43-5, MISSISSIPPI CODE OF 1972, TO REVISE THE COMPOSITION OF A CERTAIN ADVISORY BOARD THAT MAY INCLUDE AN EXISTING NONPROFIT CORPORATION; TO AMEND SECTION 21-43-7, MISSISSIPPI CODE OF 1972, TO CONFORM TO THE PRECEDING SECTIONS; TO AMEND SECTION 21-43-9, MISSISSIPPI CODE OF 1972, TO REVISE THE NOTICE OF HEARING FOR CERTAIN BUSINESSES; TO AMEND SECTION 21-43-11, MISSISSIPPI CODE OF 1972, TO CONFORM TO THE PRECEDING SECTIONS; TO AMEND SECTION 21-43-15, MISSISSIPPI CODE OF 1972, TO REVISE THE ORDINANCE REQUIREMENT CONCERNING THE PARKING AND BUSINESS IMPROVEMENT AREA; TO AMEND SECTION 21-43-19, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT UNDER CERTAIN CIRCUMSTANCES THE REVENUE COLLECTED BY A CERTAIN TAX SHALL BE REMITTED TO A NONPROFIT TO BE EXPENDED FOR SPECIFIED PURPOSES; TO AMEND SECTION 21-43-21, MISSISSIPPI CODE OF 1972, TO REQUIRE THE GOVERNING AUTHORITY TO ADOPT AN ORDINANCE TO DISESTABLISH AN AREA IF PROTEST IS GIVEN BY BUSINESSES IN THE PROPOSED AREA WHICH PAY A MAJORITY OF THE TAX; TO BRING FORWARD SECTIONS 21-43-13, 21-43-17 AND 21-43-23 MISSISSIPPI CODE OF 1972, FOR PURPOSES OF AMENDMENT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 21-43-1, Mississippi Code of 1972, is amended as follows:
21-43-1. The governing
authority of any county, or any municipality in a county * * * which borders on the Gulf of
Mexico * * * and the governing authority of any * * * county or any
municipality in a county having a population in excess of thirty-eight
thousand (38,000) according to the 1980 decennial census and bordering on the
Mississippi River wherein United States Highways 61 and 84 intersect are
authorized, in their discretion, to impose a tax on businesses within a parking
and business improvement area which is in addition to the general business
privilege license tax, and to use such proceeds for the following purposes:
(a) The acquisition, construction or maintenance of parking facilities for the benefit of the area.
(b) Decoration of any public place in the area.
(c) Promotion of public events which are to take place on or in public places in the area.
(d) Furnishing of music in any public place in the area.
(e) The general promotion of retail trade activities in the area.
(f) The construction and maintenance of air-conditioning facilities for the benefit of the area.
(g) Promotional, marketing, advertising or other activities to promote or enhance tourism in the area.
(h) The acquisition, construction or maintenance of improvements related to the enhancing tourism in the area.
SECTION 2. Section 21-43-3, Mississippi Code of 1972, is amended as follows:
21-43-3. "Parking and business improvement area" or "area" as used in this chapter shall mean an area designated as provided in this chapter. An area may include a municipality, a county, a municipality and county, or portions of any of the foregoing. In an area which includes more than one municipality or county, the municipality or county which adopts the resolution of intention described in Section 21-43-7 shall be the lead jurisdiction of the area. The municipality or county serving as the lead jurisdiction may not form an area within the territorial jurisdiction of another municipality or county without the consent of the governing body of that municipality or county.
"Business" as used in this chapter shall mean all types of business, including professions.
SECTION 3. Section 21-43-5, Mississippi Code of 1972, is amended as follows:
21-43-5. The governing
authority of any participating municipality or county shall appoint an
existing nonprofit corporation to serve as the advisory board or an
advisory board consisting of five (5) members who shall serve at the pleasure
of the appointing authority; such board members shall be professional
businessmen within the affected area * * *. * * * The designated advisory
board shall have the sole discretion as to how the revenue derived from the
tax is to be used within the scope of the purposes as provided in Section 21-43-1.
SECTION 4. Section 21-43-7, Mississippi Code of 1972, is amended as follows:
21-43-7. A parking and business improvement area may be established whenever the governing authority of any municipality or county shall by resolution establish such an area. The resolution shall contain the following information:
(a) Description of the boundaries of the proposed area;
(b) The time and place of a hearing to be held to consider establishment of an area;
(c) The proposed uses to which the additional revenue shall be put; and
(d) The proposed
amount or method and bases of the initial rate of increase, or additional
levy * * * of
the * * *
tax, with a breakdown by class of business if such classification is to be
used.
SECTION 5. Section 21-43-9, Mississippi Code of 1972, is amended as follows:
21-43-9. Notice of the hearing shall be given by:
(a) One (1) publication of the resolution of intention in a newspaper of general circulation in the municipality or county, which may be made as provided in Section 21-17-19;
(b) Mailing a complete copy of the resolution of intention to each business that shall pay the additional tax imposed pursuant to this chapter in the proposed or established area. Publication and mailing shall be completed at least ten (10) days prior to the time of the hearing.
SECTION 6. Section 21-43-11, Mississippi Code of 1972, is amended as follows:
21-43-11. Whenever a
hearing is held under this chapter, the governing authority of any municipality
shall hear all protests and receive evidence for or against the proposed
action; rule upon all protests which determination shall be final; and may
continue the hearing from time to time. Proceedings shall terminate if protest
is made by businesses in the proposed area which pay a majority of the * * * additional tax imposed pursuant to
this chapter within the area * * *.
SECTION 7. Section 21-43-15, Mississippi Code of 1972, is amended as follows:
21-43-15. (1) If the governing authority, following the hearing, decides to establish the proposed area, it shall adopt an ordinance to that effect. This ordinance shall contain the following information:
(a) The number, date and title of the resolution of intention pursuant to which it was adopted;
(b) The time and place the hearing was held concerning the formation of such area;
(c) The description of the boundaries of such area;
(d) A statement that the businesses in the area established by the ordinance shall be subject to the provisions of the additional tax provided by this chapter;
(e) The proposed
amount or method and basis of the initial rate of increase, or additional
levy, of the * * * tax to be imposed with a breakdown by
classification of business, if such classification is used;
(f) A statement that a
parking and business improvement area has been established; * * *
(g) A statement that the governing authority shall not decrease the level of publicly funded services in the area after the establishment of parking and business improvement area; and
( * * *h) The uses to which the additional
revenue shall be put.
(2) Any parking and business improvement area may have a term stated in the ordinance adopted pursuant to this section. If a term limit is stated in the ordinance, an area whose term has expired, or will expire, may be renewed by following the procedures for establishment as provided in this chapter. Upon renewal, any remaining revenues derived from the additional rate or levy, or any revenues derived from the sale of assets acquired with the additional revenues, shall be transferred to the nonprofit corporation identified in the renewed area.
SECTION 8. Section 21-43-19, Mississippi Code of 1972, is amended as follows:
21-43-19. (1) The collection of the tax imposed pursuant to this chapter shall be made at the same time and in the same manner as any other business privilege license tax. If a nonprofit corporation is identified pursuant to Section 21-43-5, all revenue raised by the tax imposed pursuant to this chapter shall be remitted to the nonprofit corporation and all such revenue spent for the purposes set forth and in accordance with the ordinance described in Section 21-43-15 or pursuant to this Section 21-43-19.
(2) At any time after the establishment of an area pursuant to this chapter and upon the request of the advisory board, changes may be made to the initial provisions of the area by the legislative body after compliance with the procedures set forth in this section as follows:
(a) Changes to * * * the additional rate or levy or * * * to increase the * * * boundaries of the * * * area as
specified in the ordinance establishing the area, may be made by an
ordinance adopted after a hearing before the governing authority.
The governing authority
shall adopt a resolution of intention to change the additional rate or levy or to
increase the * * * boundaries of the * * * area at
least fifteen (15) days prior to the hearing required by this section. This
resolution shall specify the proposed change and shall give the time and place
of the hearing.
(b) Changes to decrease the boundaries or the uses to which the additional revenue shall be put as specified in the ordinance establishing the area shall be made by a resolution adopted by the governing authority. The resolution shall specify the adopted changes.
(3) The tax levied hereunder must be for the purposes specified in the ordinances and the proceeds shall not be used for any other purpose.
SECTION 9. Section 21-43-21, Mississippi Code of 1972, is amended as follows:
21-43-21. The governing authority of any municipality may disestablish an area by ordinance after a hearing before such authority, at which all protest shall be heard, and such authority shall adopt a resolution of intention to disestablish the area not less than fifteen (15) days prior to the hearing required by this section. The resolution shall state the time and place of the hearing. The governing authority shall adopt the ordinance to disestablish an area if protest is given by businesses in the proposed area which pay a majority of the taxes imposed pursuant to this chapter.
SECTION 10. Section 21-43-13, Mississippi Code of 1972, is brought forward as follows:
21-43-13. If the governing authority decides to change the boundaries of the proposed area, the hearing shall be continued to a time not less than fifteen (15) days after such decision and notice shall be given as provided in Section 21-43-9 stating the boundary amendments, but no resolution of intention is required.
SECTION 11. Section 21-43-17, Mississippi Code of 1972, is brought forward as follows:
21-43-17. For purposes of the additional tax to be imposed pursuant to this chapter, the governing authority may make a reasonable classification of businesses, giving consideration to various factors.
Businesses recently established in the area may be exempted from the tax imposed pursuant to this chapter for a period not exceeding one (1) year from the date they commenced business in the area.
SECTION 12. Section 21-43-23, Mississippi Code of 1972, is brought forward as follows:
21-43-23. Whenever an area has been disestablished, any remainder of taxes or acquired assets shall be subject to disposition as the advisory board shall determine.
SECTION 13. This act shall take effect and be in force from and after July 1, 2020.