Senate Bill 2004

(As Passed the Senate)

AN ACT TO AUTHORIZE THE GOVERNING AUTHORITIES OF THE TOWN OF DUCK HILL, MISSISSIPPI, TO LEVY A TAX UPON THE GROSS PROCEEDS OF THE SALES OF RESTAURANTS AND SALES OF PREPARED FOOD AT CONVENIENCE STORES, WHICH SHALL BE USED TO PROMOTE TOURISM, PARKS AND RECREATION WITHIN THE TOWN; TO PROVIDE FOR AN ELECTION ON THE QUESTION OF IMPLEMENTING THE TAX; 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 shall have the meanings ascribed to them in this section unless a different meaning is clearly indicated by the context in which they are used:

(a) "Governing authorities" means the governing authorities of the Town of Duck Hill, Mississippi.

(b) "Restaurant" or "convenience store" means all places where prepared food and beverages are sold for consumption, whether such food is consumed on the premises or not. The terms "restaurant" and "convenience store" do not include any school, hospital, medical clinic, convalescent or nursing home, or any restaurant-like facility operated by or in connection with a school, hospital, medical clinic, convalescent or nursing home providing food for students, patients, visitors or their families.

SECTION 2. (1) For the purpose of providing funds to promote tourism, parks and recreation within the town, the governing authorities are authorized, in their discretion, to levy and collect a tax, which shall be in addition to all of the taxes and assessments imposed. The tax shall be on every person, firm or corporation operating a restaurant, where prepared food and drink is sold to the public, at a rate not to exceed two percent (2%) of the gross proceeds of the sales of a restaurant or the sales of prepared food and drink at a convenience store.

(2) Persons, firms and corporations liable for the levy imposed under subsection (1) of this section shall add the amount of the levy to the sales price of the prepared food and drink at restaurants or the sales price of the prepared food and drink at convenience stores and shall collect the amount of the tax due from the person receiving such prepared food and drink.

(3) The tax shall be collected by and paid to the Department of Revenue on a form prescribed by the Department of Revenue in the manner that state sales taxes are computed, collected and paid; and 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.

(4) 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.

(5) The proceeds of the tax shall not be considered by the Town of Duck Hill as general fund revenues, but shall be dedicated to and expended solely for the purposes specified in this section.

SECTION 3. 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, and the date of the election shall be fixed in the resolution. Notice of such 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 Town of Duck Hill, 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 Town of Duck Hill 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 town may levy the tax if 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 provided in this section, the governing authorities shall furnish to the Department of Revenue a certified copy of the resolution evidencing the tax.

SECTION 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 town. The records reflecting the receipts and expenditures of these funds prescribed in this act shall be audited annually by an independent certified accountant, and the accountant shall make a written report of his or her 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.

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

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