Senate Bill 3091

AN ACT TO AUTHORIZE THE BOARD OF SUPERVISORS OF LEE COUNTY, MISSISSIPPI, TO IMPOSE A SPECIAL SALES TAX OF NOT MORE THAN 3/4% 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% UNDER THE MISSISSIPPI SALES TAX LAW; TO PROVIDE THAT THE SPECIAL SALES TAX SHALL NOT BE LEVIED UNLESS AUTHORIZED BY A MAJORITY OF THE VOTES CAST BY QUALIFIED ELECTORS ON THE ISSUE AT A REGULAR COUNTY ELECTION; TO PROVIDE THAT THE REVENUE COLLECTED FROM THE SPECIAL SALES TAX SHALL BE USED AND EXPENDED BY THE BOARD OF SUPERVISORS SOLELY FOR FUNDING A PROJECT SPECIFIED BY THE BOARD AND PLACED ON THE BALLOT AS THE PROJECT TO BE FUNDED BY THE SPECIAL SALES TAX OR PAYING DEBT SERVICE ON BONDS ISSUED OR LOANS RECEIVED FOR THE SAME PURPOSE; FOR THE PURPOSE OF FUNDING THE PROJECT OF THE BOARD OF SUPERVISORS, TO AUTHORIZE THE COUNTY TO ISSUE GENERAL OBLIGATION BONDS OR RECEIVE LOANS IN AN AGGREGATE PRINCIPAL AMOUNT NOT IN EXCESS OF AN AMOUNT FOR WHICH DEBT SERVICE IS CAPABLE OF BEING FUNDED BY THE PROCEEDS OF THE SPECIAL SALES TAX LEVIED UNDER THIS ACT; AND FOR RELATED PURPOSES.

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

SECTION 1. The following terms as used in this act shall have meanings ascribed in this section unless the context clearly indicates otherwise:

(a) "Board of supervisors" or "board" means the Board of Supervisors of Lee County, Mississippi.

(b) "County" means Lee County, Mississippi.

SECTION 2. (1) The Board of Supervisors of Lee County, Mississippi, may impose upon all persons as a privilege for engaging or continuing in business or doing business within the county, a special sales tax at the rate of not more than three-quarters percent (3/4%) 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%) under the Mississippi Sales Tax Law, Section 27-65-1 et seq.

(2) The tax levied under this act shall apply to every person making sales, delivery or installations of tangible personal property or services within the county 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.

SECTION 3. Before the tax authorized under this act may be imposed, the board of supervisors shall adopt a resolution declaring its intention to levy the tax, setting forth the amount of the tax to be imposed, the specific project or projects for which the revenue collected pursuant to the tax levy may be used and expended, the date upon which the tax shall become effective, and the authorization for the continuance of the tax until debt is serviced on bonds issued or loans received for the project. The proposed tax and project shall be included on the ballot at the next regular county election. Notice of the ballot issue shall be published once each week for at least three (3) consecutive weeks in a newspaper published or having a general circulation in Lee County, with the first publication of the 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. The ballots used at the election shall have printed thereon a brief description of the special sales tax, the amount of the special sales tax levy, a specific description of the 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," and the voter shall vote by placing a cross (X) or a check mark (ü) 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 the board of supervisors to determine and adjudicate whether or not a majority of the qualified electors who voted thereon in the election voted in favor of the levy of the tax, and unless a majority of the qualified electors who voted thereon in the election voted in favor of the levy of the tax, then the tax shall not be levied. If a majority of the qualified electors who voted thereon in the election voted in favor of the tax, the board of supervisors 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 this resolution, together with the results of the election, shall be furnished to the Department of Revenue not less than thirty (30) days before the effective date of the levy.

SECTION 4. (1) The special sales tax authorized by this act shall be collected by the Department of Revenue and shall be accounted for separately from the amount of sales tax collected for the state in Lee County. The proceeds of the tax, less three percent (3%) thereof which shall be retained by the Department of Revenue to defray the cost of collection, shall be paid to the board of supervisors on or before the fifteenth day of the month following the month in which the tax was collected.

(2) The proceeds of the special sales tax shall be placed into a special project fund apart from the county general fund and any other funds of Lee County, and shall be expended by the board of supervisors for the sole purpose of funding the specific project described on the ballot or paying debt service on bonds issued or loans received for the project under this act. The special fund shall be set up by the Lee County Chancery Clerk, or by the county administrator under the supervision of the Lee County Chancery Clerk. The records reflecting the receipts and expenditures of the monies in the special fund shall be audited annually by an independent certified public accountant, and the accountant shall make a written report of his audit to the board of supervisors. The audit shall be made and completed as soon as practicable after the close of the fiscal year, and expenses of the audit shall be paid from the funds derived in accordance with this act.

(3) All provisions of the Mississippi Sales Tax Law applicable to the filing of returns, discounts to the taxpayer, remittances to the Department of Revenue, 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 county 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 county or any payment of the tax to the county in error may be adjusted by the Department of Revenue or any subsequent payment to the county. The Department of Revenue may, from time to time, make such rules and regulations not inconsistent with 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 authority to levy the tax shall be repealed on the first day of the month immediately succeeding the payment in full of the principal of and interest on all bonds issued or loans received pursuant to this act. The balance of any funds remaining in the special fund described in subsection (2) of this section after final payment of all principal of and interest on the bonds or loans shall be deposited into the general fund of the county.

SECTION 5. (1) For the purposes of providing funds to pay costs associated with the project of the board of supervisors described in Section 3 of this act, the board of supervisors is authorized to issue general obligation bonds of the county or receive loans in an aggregate principal amount not to exceed an amount for which debt service is capable of being funded by the proceeds of the special sales tax levied under this act. Any future board of supervisors shall be bound by a bond or loan agreement entered into by a previous board under this act.

(2) The bonds authorized to be issued under this act shall be issued and the proceeds managed in accordance with the provisions of Section 19-9-1 et seq., Mississippi Code of 1972, and sold in accordance with the provisions of Section 31-19-25.

SECTION 6. This act shall take effect and be in force from and after its passage.