Senate Bill 3221

(As Passed the Senate)

AN ACT TO AUTHORIZE THE GOVERNING AUTHORITIES OF THE CITY OF RIDGELAND TO LEVY, ASSESS AND COLLECT A 1% TAX ON THE GROSS PROCEEDS OF ALL SALES FROM RESTAURANTS, AND A 2% TAX ON THE GROSS PROCEEDS OF ALL SALES FROM HOTELS AND MOTELS TO PROVIDE FUNDS SOLELY FOR CAPITAL IMPROVEMENTS FOR THE ENHANCEMENT OF FREEDOM RIDGE PARK, PHASE II; 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 herein unless otherwise clearly indicated by context:

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

(b) "Governing authorities" means the Mayor and 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 fewer rental units.

(d) "Restaurant" means and includes all places where prepared food is sold and whose annual gross proceeds of sales or gross income for the preceding calendar year equals or exceeds One Hundred Thousand Dollars ($100,000.00). For the purpose of calculating gross proceeds of sales or gross income, the sales or income of all establishments owned, operated or controlled by the same person or corporation shall be aggregated.

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

SECTION 2. (1) For the purpose of providing funds for capital improvements for the enhancement of Freedom Ridge Park, the governing authorities, in their discretion, may hereby levy, assess and collect a special tax from persons, firms or corporations specified in this subsection, which shall be in addition to all other taxes or assessments imposed. The special tax may be imposed upon every person, firm or corporation that:

(a) Operates a restaurant in the city where prepared food and drink are sold to the public, at a rate not to exceed one percent (1%) of the gross proceeds of the sales of such restaurant; and

(b) Operates a hotel or motel in the city at a rate not to exceed two percent (2%) of the gross proceeds of room rentals for each such hotel or motel.

(2) Persons, firms, corporations or other entities liable for the tax imposed under subsection (1) of this section shall add the amount of the tax to the sales price and shall collect, insofar as practicable, the amount of the tax due from the person purchasing the food, beverages, hotel or motel accommodations at the time of payment therefor.

(3) The special tax shall be collected by and paid to the Department of Revenue on a form prescribed by the department 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, shall apply as necessary to the implementation and administration of this act.

(4) Except for any amount retained by the Department of Revenue pursuant to Section 27-3-58, Mississippi Code of 1972, 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 purpose of capital improvements for the enhancement of Freedom Ridge Park, Phase II.

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 the first Tuesday after the first Monday in November 2024. 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 ballot. When the results of the election 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 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 stand repealed from and after the first day of the month immediately succeeding the date the final payment has been issued to cover the capital improvements for the enhancement of Freedom Ridge Park, Phase II.

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