House Bill 1792

(As Passed the House)

AN ACT TO AMEND CHAPTER 854, LOCAL AND PRIVATE LAWS OF 1986, TO REVISE THE DEFINITION OF "HOTEL" AND "MOTEL" UNDER THE CITY OF STARKVILLE, MISSISSIPPI'S MOTEL-HOTEL TAX; TO PROVIDE FOR AN INDIRECT REFERENDUM ON THE CONTINUATION OF THE LEVYING OF SUCH TAX; AND FOR RELATED PURPOSES.

BE ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Chapter 854, Local and Private Laws of 1986, is amended as follows:

Section l. As used in this act, unless a different meaning is clearly indicated by the context, the words "hotel" and "motel" * * * means any establishment engaged in the business of furnishing or providing rooms intended or designed for dwelling, lodging or sleeping purposes to transient guests.

Section 2. (l) There is hereby created the Visitors and Convention Council, hereinafter referred to in this act as the "council," under the control of the Board of Directors of the Starkville Area Chamber of Commerce, Inc. The governing authority of the City of Starkville, Mississippi, is authorized to contract with the Visitors and Convention Council of the Starkville Area Chamber of Commerce, Inc., for the administrative responsibilities of a visitors and convention development program for the Starkville area. All contracts between the council and the City of Starkville, Mississippi, shall be signed by the President and the Executive Director of the Starkville Area Chamber of Commerce, Inc.

(2) The council shall have jurisdiction and authority over all matters relating to establishing, promoting and developing tourism, along with related matters, in the Starkville area. The council shall be authorized to own, lease, rent or otherwise furnish, equip and operate any and all facilities and equipment necessary or useful to promote visitor and convention development and to receive and expend, subject to the provisions of this act, revenues from other sources.

(3) The council shall be composed of eight (8) members appointed by the Board of Directors of the Starkville Area Chamber of Commerce, Inc., as herein provided, and one (l) member appointed by the Board of Aldermen of the City of Starkville, Mississippi, to represent the city. Five (5) members shall be from the motel and hotel industry or a business related to tourism. One (l) member shall be from Mississippi State University. Two (2) members shall be appointed from the community at large. The initial appointments to the council made by the Board of Directors of the Chamber of Commerce shall be for the following terms:

(a) Two (2) members of the council shall be appointed for terms of one (l) year.

(b) Three (3) members of the council shall be appointed for terms of two (2)years; and

All succeeding appointments shall be made for a term of three (3) years from the date of expiration of the initial appointment, except for the City of Starkville representative. Any vacancy which may occur shall be filled in the same manner as the original appointment and shall be made for the unexpired term. Each director shall serve until his successor is appointed and qualified. All members shall serve without compensation.

The members so appointed shall elect from among themselves a chairman. A member of the council shall not serve as chairman for more than two (2) consecutive one-year terms.

(4) The Starkville Area Chamber of Commerce, Inc. is authorized to employ personnel, obtain supplies, furnishings and other facilities necessary to administer the affairs and duties of the council and to pay therefor out of the revenue provided by this act.

Section 3. (1) For the purpose of providing funds for the promotion of a visitors and convention program in Starkville, Mississippi, and the surrounding area, the governing authority of the City of Starkville, Mississippi, is authorized to levy upon every person, firm or corporation operating a motel or hotel in such city, a tax, which may be cited as a "motel-hotel tax," at a rate not to exceed two percent (2%) of the gross proceeds of sales from room rentals of motels and hotels in Starkville, Mississippi. Such tax shall be in addition to all other taxes now imposed.

(2) (a) Before the tax authorized by this act may be imposed, the governing authority of the City of Starkville, Mississippi, shall adopt a resolution declaring its intention to levy the tax and establishing the amount of the tax levy and the date on which this tax initially shall be levied and collected. This date shall be the first day of a month but not less than the first day of the second month from the date of adoption of the resolution. Notice of the proposed tax levy shall be published once each week for at least three (3) consecutive weeks in a newspaper having a general circulation in such city. The first publication of such notice shall be made not less than twenty-one (21) days prior to the date fixed in the resolution on which the governing authority proposes to levy such tax, and the last publication shall be made not more than seven (7) days prior to such date. If, within the time of giving notice, twenty percent (20%) or fifteen hundred (1500), whichever is less, of the qualified electors of the city shall file a written petition against the levy of such tax, then such tax shall not be levied unless authorized by majority of the

qualified electors of such city voting at an election to be called and held for that purpose. Prior to the effective date of the tax levy approved as herein provided, the governing authority shall furnish to the * * *~~Chairman~~ Commissioner of the * * *~~State Tax Commission~~ Department of Revenue a certified copy of the resolution evidencing such tax levy.

(b) If the tax levied under this chapter was imposed without a vote of the electorate, the governing authorities shall, within sixty (60) days after the effective date of House Bill No. 1792, 2023 Regular Session, by resolution spread upon its minutes, declare the intention of the governing authorities to continue imposing the tax and describe the tax levy including the tax rate, annual revenue collections and the purposes for which the proceeds are used. The resolution shall be published once a week for at least three (3) consecutive weeks in a newspaper published or having a general circulation in the municipality, with the first publication to be made within fourteen (14) days after the governing authorities adopt the resolution declaring their intention to continue the tax. If, on or before the date specified in the resolution for filing a written protest, which date shall be not less than forty-five (45) days and not more than sixty (60) days after the governing authorities adopt the resolution, twenty percent (20%) or fifteen hundred (1500), whichever is less, of the qualified electors of the municipality file a written protest against the imposition of the tax, then an election upon the levy and assessment of the tax shall be called and held as in the manner provided for in subsection (2)(a) of this section, with the election to be conducted at the next special election day as such is defined by Section 23-15-833, Mississippi Code of 1972, occurring more than sixty (60) days after the date specified in the resolution for filing a written protest. If the requisite number of qualified electors vote against the imposition of the tax, the tax shall cease to be imposed on the first day of the month following certification of the election results by the election commissioners of the municipality to the governing authorities. The governing authorities shall notify the Department of Revenue of the date of the discontinuance of the tax and shall publish sufficient notice thereof in a newspaper published or having a general circulation in the municipality. If no protest is filed, then the governing authorities shall state that fact in their minutes and may continue the levy and assessment of the tax.

This subsection (2)(b) shall not apply if the revenue from the tax authorized by this chapter has been contractually pledged for the payment of debt incurred prior to the effective date of House Bill No. 1792, 2023 Regular Session, until such time as the debt is satisfied. Once the debt has been satisfied, the governing authorities, shall within sixty (60) days, adopt a resolution declaring the intention of the governing authorities to continue the tax which shall initiate the procedure described in subsection (2)(a) of this section.

(3) Persons, firms or corporations liable for the tax imposed herein shall add the amount of tax to the sales price of room rentals, and in addition thereto, shall collect, insofar as practicable, the amount of the tax due by them from the person receiving the services at the time of payment therefor.

(4) Such tax shall be collected by and paid to the * * *~~State Tax Commission~~ Department of Revenue in a form prescribed by the * * *~~State Tax Commission~~ 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 Chapter 65, Title 27, Mississippi Code of 1972, shall apply as necessary to the implementation and administration of this act.

(5) The proceeds of such tax, less three percent (3%) to be retained by the * * *~~State Tax Commission~~ Department of Revenue to defray the costs of collection, shall be paid to the governing authority of the City of Starkville, Mississippi, on or before the fifteenth day of the month following the month in which collected.

(6) The proceeds of such tax shall not be considered by the city as general fund revenues but shall be dedicated to and used by the council solely for the purpose of carrying out programs and activities designed to attract visitors to promote economic development of the city and surrounding area.

Section 4. The books of the council shall be audited annually by an independent certified public accountant, and such accountant shall make a written report of his audit to the council who will thereupon submit a copy of such report to the Board of Directors of the Chamber of Commerce and the governing authority of the City of Starkville. Such audit shall be made and completed as soon as practicable after the close of the fiscal year, and

copies of the report of such audit shall be filed with the city within fifteen (15) days after receipt thereof by the council.

Section 5. This act shall be repealed from and after July 1, 2027.

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

and after its passage.