House Bill 1744

(As Sent to Governor)

AN ACT TO AUTHORIZE THE GOVERNING AUTHORITIES OF THE CITY OF LUCEDALE, MISSISSIPPI, TO LEVY A TAX THAT SHALL NOT EXCEED THREE PERCENT UPON THE GROSS SALES OF HOTELS AND MOTELS DERIVED FROM ROOM RENTALS; TO PROVIDE THAT SUCH TAX SHALL BE USED FOR THE PURPOSE OF GENERATING REVENUE FOR PARKS AND RECREATIONAL CAPITAL IMPROVEMENT PROJECTS; TO REQUIRE AN ELECTION BE HELD ON THE QUESTION OF WHETHER SUCH TAX MAY BE LEVIED; AND FOR RELATED PURPOSES.

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

SECTION 1. As used in this act:

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

(b) "Governing authorities" means the Mayor and Board of Aldermen of the City of Lucedale, Mississippi.

(c) "Hotel" or "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, where the establishment consists of six (6) or more guest rooms. The term "hotel" or "motel" does not include any hospital, convalescent or nursing home or sanitarium, or any hotel-like facility operated by or in connection with a hospital or medical clinic providing rooms exclusively for patients and their families.

SECTION 2. (1) For the purpose of providing funds for parks and recreational capital improvements projects, the governing authorities are authorized, in their discretion, to levy assess and collect from every person or entity operating a hotel or motel, in addition to all other taxes currently being levied, a tax not to exceed three (3%) of the gross proceeds of sales of room rentals for each such hotel or motel. The tax shall be imposed upon every person, firm or corporation operating a motel or hotel in the city, at a rate not to exceed three percent (3%) of the gross proceeds of room rentals for each such hotel or motel.

(2) Persons or entities liable for the tax shall add the amount of the tax to the sales price and shall collect the amount of the tax due by them from the person receiving the services at the time of payment.

(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 city 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 city 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. 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 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 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 funds herein described 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 funds prescribed in this act 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 in accordance with this act.

SECTION 5. This act shall be repealed from and after July 1, 2028.

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