Senate Bill 3209

(As Passed the Senate)

AN ACT TO AUTHORIZE THE GOVERNING AUTHORITIES OF THE CITY OF HERNANDO, MISSISSIPPI, TO LEVY AN ADDITIONAL SALES TAX OF NOT MORE THAN 1% UPON THE GROSS PROCEEDS OF THE SALES OF RESTAURANTS FOR THE PURPOSE OF PROVIDING FUNDS TO SUPPORT CAPITAL IMPROVEMENTS RELATED TO PARKS AND RECREATION WITHIN THE CITY; TO PROVIDE THAT AN ELECTION BE HELD ON THE FIRST TUESDAY AFTER THE FIRST MONDAY IN NOVEMBER 2022 ON THE QUESTION OF THE LEVYING OF SUCH TAX; TO PROVIDE THAT THE TAX SHALL BE SUBJECT TO REAUTHORIZATION BY THE VOTERS AT EACH MUNICIPAL GENERAL ELECTION; AND FOR RELATED PURPOSES.

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

SECTION 1. As used in this act, the following terms have the meanings ascribed to them in this section unless the context clearly indicates otherwise:

(a) "City" means the City of Hernando, Mississippi.

(b) "Governing authorities" means the governing authorities of the city.

(c) "Prepared food" means food prepared or beverages prepared by a restaurant in the city that is (i) ready to be consumed without any further food preparation, alteration or repackaging on site; and (ii) prepared, provided, sold or served by a restaurant using any cooking, packaging or food preparation technique. Prepared food may be eaten either on or off a restaurant's premises.

(d) "Restaurant" means all places within the corporate limits of the city where prepared food and beverages are sold for consumption, whether such food is consumed on the premises or not. Such places include food trucks, lunch stands, cafes, cafeterias, delicatessens, drive-in restaurants, carry out restaurants, caterers, concession stands, hotel and motel dining rooms, convenience stores, grocery stores, restaurants and similar businesses. The term "restaurant" does not include any school, hospital, medical clinic, convalescent or nursing home providing food for students, patients, visitors and their families.

SECTION 2. (1) For the purpose of providing funds to support capital improvements related to parks and recreation within the city, the governing authorities, in their discretion, may levy, assess and collect a tax from persons, firms or corporations specified in this subsection, a tax, which shall be in addition to all other taxes or assessments imposed. The tax shall be imposed upon every person, firm or corporation operating a restaurant in the city where prepared food and drink are sold to the public, at a rate not to exceed one percent (1%) of the gross proceeds of the sales of such restaurant or business.

(2) Persons, firms, corporations or other entities liable for the tax imposed under subsection (1) of this section shall add the amount of the tax to the sales price of the food and beverages and shall collect, insofar as practicable, the amount of the tax due from the person purchasing the food or beverages at the time of payment therefor.

SECTION 3. (1) Before any tax authorized under this act may be imposed, the governing authorities shall adopt a resolution declaring their intention to levy the tax, setting forth the amount of the tax to be imposed, the date upon which the tax shall become effective and calling for an election to be held on the question. The date of the election shall be the first Tuesday after the first Monday in November 2022. Notice of the intention and the election shall be published once each week for at least three (3) consecutive weeks in a newspaper published or having a general circulation in the city, 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. At the election, all qualified electors of the city may vote, and the ballots used in the election shall have printed thereon a brief statement of the amount and purposes of the proposed tax levy and the words "FOR THE TAX" and, on a separate line, "AGAINST THE TAX" and the voters shall vote by placing a cross (X) or check (ü) opposite their choice on the proposition. When the results of the election shall have been canvassed and certified, the city may levy the tax if at least sixty percent (60%) of the qualified electors who vote in the election vote in favor of the tax. At least thirty (30) days before the effective date of the tax, the governing authorities shall furnish to the Department of Revenue a certified copy of the resolution evidencing the tax.

(2) After the initial levy of the tax authorized under this act, the authority for the tax shall expire at the end of the month in which the next municipal general election is held, unless the tax is reauthorized by at least sixty percent (60%) of the qualified electors who vote in that municipal general election. The tax shall be subject to the same reapproval by the electors at each subsequent municipal general election. Before each municipal general election, the governing authorities shall adopt a resolution declaring their intention to continue the levy of the tax authorized under this act and previously approved by the electors, and calling for an election to be held on the question of the continuation of the tax. No later than the end of the month in which the electors reauthorize the tax, the governing authorities shall furnish to the Department of Revenue a certified copy of the resolution evidencing the continuation of the tax. Except as otherwise provided in this subsection (2), the provisions of subsection (1) of this section shall apply to each municipal general election and notice therefor.

SECTION 4. (1) On or before the fifteenth day of the month preceding the date on which the city will begin to levy the tax authorized under Section 2 of this act, the governing authorities shall give written notification to the Commissioner of Revenue of the date on which the tax will become effective.

(2) The tax must be collected by and paid to the Department of Revenue in the same manner that state sales taxes are computed, collected and paid, and the full enforcement provisions and all other provisions of Title 27, Chapter 65, Mississippi Code of 1972, will apply as necessary for the implementation of this act.

(3) 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 governing authorities on or before the fifteenth day of the month following the month in which collected.

(4) Accounting for receipts and expenditures of the revenue from the tax shall be made separately 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 revenue from the tax shall be audited annually by an independent certified public accountant, and the accountant shall make a written report of his audit to the governing authorities. 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 pursuant to this act.

(5) The proceeds of the tax may not be considered by the city as general fund revenues but must be placed into a special fund apart from the city general fund and any other funds and expended by the city strictly for the purposes prescribed under Section 2 of this act.

SECTION 5. This act shall take effect and be in force from and after its passage.