House Bill 4119

(COMMITTEE SUBSTITUTE)

AN ACT TO AUTHORIZE THE GOVERNING AUTHORITIES OF THE CITY OF MORTON, MISSISSIPPI, TO LEVY A SPECIAL TAX OF NOT MORE THAN 3% UPON THE GROSS SALES OF HOTELS AND MOTELS DERIVED FROM ROOM RENTALS AND 2% UPON THE GROSS PROCEEDS OF SALES OF RESTAURANTS FOR THE PURPOSE OF PROVIDING FUNDS TO PROMOTE, CONSTRUCT, FINANCE, OPERATE, EQUIP, LEASE, AND MAINTAIN EXISTING AND NEW PARKS AND RECREATION FACILITIES AND EQUIPMENT WITHIN THE CITY; TO PROVIDE FOR AN ELECTION ON WHETHER SUCH SPECIAL 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 the terms are used:

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

(b) "Governing authorities" means the Mayor and Board of Aldermen of the city.

(c) "Hotel" or "Motel" means any establishment within the city engaged in the business of furnishing or providing rooms intended or designed for dwelling, lodging, or sleeping purposes to transient guests.

(d) "Prepared food" means food prepared on the premises of a restaurant.

(e) "Restaurant" means all places within the city where prepared food and beverages are sold for consumption, including beer, alcoholic beverages, and nonalcoholic beverages, whether such prepared food and beverages are sold for consumption on the premises or not. The term "restaurant" does not include any school, hospital, medical clinic, convalescent or nursing home, or any other restaurant-like facility operated by or in connection with a school, hospital, medical clinic, or convalescent or nursing home providing food for students, patients, visitors, or their families.

SECTION 2. (1) For the purpose of providing funds to promote, construct, finance, operate, equip, lease, and maintain existing and new parks and recreation facilities and equipment within the city, the governing authorities are authorized in their discretion, to levy and collect form the following persons a tax, which shall be in addition to all other taxes and assessments imposed. The tax shall be imposed on the following persons:

(a) A special tax 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; and

(b) A special tax upon every person, firm, and corporation operating a restaurant in the city at a rate not to exceed two percent (2%) of the gross proceeds of the sales of the restaurant derived from retail sale of prepared food and beverages, including beer, alcoholic beverages, and nonalcoholic beverages.

(2) Persons, firms, or corporations liable for the special tax levied pursuant to subsection (1) of this section shall add the amount of the special tax to the sales price of the products and rooms set out in subsection (1) of this section and shall collect the amount of the special tax due by such persons, firms, and corporations from the persons, firms, or corporations receiving the services or product at the time of payment therefore.

(3) The special tax shall be collected by and paid to the Mississippi Department of Revenue on a form prescribed by the Mississippi Department of Revenue in the manner that general state sales taxes are computed, collected, and paid. Full enforcement provisions and all other provisions of Section 27-65-1 et seq., Mississippi Code of 1972, as amended, shall apply as necessary to the implementation and administration of this act.

(4) Except for any amount retained by the Mississippi Department of Revenue pursuant to Section 27-3-58, Mississippi Code of 1972, as amended, the proceeds of the special tax shall be paid to the city on or before the fifteenth day of the month following the month in which such special tax is collected.

(5) The proceeds of the special 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 special tax authorized pursuant to this act may be levied, the governing authorities shall adopt a resolution declaring their intention to levy the special tax, setting forth the amount of the special tax to be levied, the date upon which the special tax shall become effective, and calling for an election to be held on the question of the levy of the special tax. The date of the election shall be fixed in the resolution adopted by the governing authorities. Notice of such intention and the election shall be published once each week for at least three (3) consecutive weeks in a newspaper published in 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 date fixed in the resolution for 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 special 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 (🗸) opposite their choice on the election. When the results of the election shall have been canvassed and certified, the city may levy the special tax if sixty percent (60%) of the qualified electors who vote in the election vote in favor of the special tax. At least thirty (30) days before the effective date of the special tax provided in this section, the governing authorities shall furnish a certified copy of the resolution evidencing the special tax to the Mississippi Department of Revenue.

SECTION 4. Accounting for receipts and expenditures of the funds generated by the special tax 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 generated by the special tax prescribed in this act shall be audited annually by an independent certified public accountant, and the accountant shall make a written report of the 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.