House Bill 1994

AN ACT TO AUTHORIZE THE GOVERNING AUTHORITIES OF THE CITY OF RIDGELAND, MISSISSIPPI, TO LEVY AN ADDITIONAL TOURISM TAX OF TWO PERCENT UPON THE GROSS SALES OF HOTELS AND MOTELS DERIVED FROM ROOM RENTALS FOR THE PURPOSES OF TOURISM AND PARKS AND RECREATION; TO REQUIRE AN ELECTION BE HELD ON WHETHER THE 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, the following terms shall have the following meanings unless a different meaning is clearly indicated by the context in which they are used:

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

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

(c) "Hotel" or "motel" means and includes a place of lodging that at any one (1) time will accommodate transient guests on a daily or weekly basis and that is known to the trade as such. Such terms shall not include a place of lodging with ten (10) or less rental units.

SECTION 2. (1) For the purpose of providing funds to promote, advertise and improve the attributes of the city as they relate to tourism, parks and recreation, 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, assessed and collected, a tax not to exceed two percent (2%) of the gross proceeds of sales of room rentals for each such hotel or motel. (2) Persons or entities liable for the levy imposed under subsection (1) of this section shall add the amount of the tax to the sales price and shall collect the amount of the tax due from the person receiving the services at the time of payment.

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 fixed in the resolution. Notice of such intention 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.

(2) 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. (1) 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 Title 27, Chapter 65, Mississippi Code of 1972, shall apply as necessary to the implementation and administration of this act.

(2) 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.

(3) 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 Section 2 of this act.

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 not alter or amend Chapter 910, Local and Private Laws of 1997, which act, including the one percent (1%) tourist and convention tax authorized therein, shall remain unchanged, without amendment, and in full force and effect.

SECTION 6. This act shall be repealed from and after July 1, 2028.

SECTION 7. This act shall take effect and be in force from and after its passage.