MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Ways and Means

By: Representative Johnson

AN ACT TO AUTHORIZE THE BOARD OF SUPERVISORS OF ANY COUNTY TO IMPOSE A SALES TAX OF NOT MORE THAN 1% ON THE GROSS PROCEEDS OF ALL SALES IN THE COUNTY DERIVED FROM ACTIVITIES TAXED AT THE RATE OF 7% OR MORE UNDER THE MISSISSIPPI SALES TAX LAW; TO PROVIDE THAT THE COUNTY SALES TAX SHALL NOT BE LEVIED UNLESS AUTHORIZED BY A MAJORITY OF THE VOTERS OF THE COUNTY VOTING AT AN ELECTION ON THE QUESTION OF IMPOSING SUCH TAX; TO PROVIDE THAT THE REVENUE COLLECTED FROM THE SALES TAX AUTHORIZED BY THIS ACT SHALL BE DISTRIBUTED TO THE COUNTY AND THE MUNICIPALITIES WITHIN SUCH COUNTY; TO PROVIDE METHODS TO DISCONTINUE SUCH SALES TAX; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) Subject to the provisions of subsection (2) of this section, the board of supervisors of any county may levy, assess and collect a special sales tax, in addition to all other taxes now imposed, at a rate of not more than one percent (1%) of the gross proceeds of sales derived from all sales and services within the county and in any municipality located within the county, which sales and services are taxed at the rate of seven percent (7%) or more under Section 27-65-1 et seq.

(2) (a) Before the tax authorized by this act may be imposed, the board of supervisors shall adopt a resolution declaring its intention to levy the tax, setting forth the amount of such tax and calling for an election to be held on the question of the levy of the tax. Notice of such intention shall be published once each week for at least three (3) consecutive weeks in a newspaper published in the county. The first publication of such notice shall be made not less than twenty-one (21) days before the date fixed in the resolution for the election and the last publication shall be made not more than seven (7) days before such date. If no newspaper is published in such county, then the notice shall be given by publishing the notice for the required time in some newspaper having a general circulation in such county and, in addition, by posting a copy of the notice for at least twenty-one (21) days next preceding the election at three (3) public places in such county. The election on the question of the levy of the tax shall be held, as far as is practicable, in the same manner as other elections are held in counties. At the election, all qualified electors of the county may vote. The ballots used at such election shall have printed thereon a brief description of the sales tax and the amount of the sales tax levy and the words "FOR THE LOCAL SALES TAX" and "AGAINST THE LOCAL SALES TAX," and the voter shall vote by placing a cross (X) or check mark (V) opposite his choice on the proposition. When the results of the election on the question of the levy of the tax have been canvassed by the election commissioners of the county and certified by them to the board of supervisors, the county may levy the tax if a majority of the qualified electors who voted in the election voted in favor of the tax. If a majority of the qualified electors who voted in the election voted in favor of the tax, the board of supervisors shall adopt a resolution declaring the levy and collection of the tax and shall set the first day of the second month following the date of such election as the effective date of the tax levy. The board of supervisors shall furnish a certified copy of such resolution together with the result of the election to the State Tax Commission not less than thirty (30) days before the effective date of the tax. Any county having held an election to adopt the tax with a resulting negative vote may not hold another election on such proposition within one (1) year from the date of the last election.

(b) The tax authorized by this act may not be levied by any county that levies an additional sales tax under local and private law, unless the local and private tax is discontinued. Any county levying the tax authorized by this act may not levy the tax inside a municipality located within the county if such municipality levies an additional sales tax under local and private law, unless the local and private tax is discontinued. Any municipality levying an additional sales tax under local and private law, and which does not discontinue such tax, shall not be eligible to receive any revenue derived from the sales tax levied by a county under this act.

(3) Persons, firms or corporations 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 is practicable, the amount of the tax due by him from the person receiving the services or product at the time of payment therefor.

(4) Such tax shall be collected by and paid to the State Tax Commission on a form prescribed by the State Tax Commission in the same manner that state sales taxes are computed, collected and paid; and the 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.

(5) The proceeds of such tax shall be allocated to the county in which collected and shall be distributed by the State Tax Commission as follows: Each eligible municipality within the county shall receive the sales tax collected in the proportion that the population of each municipality bears to the total population of the county according to the latest federal decennial census, and the remainder of such sales tax collected shall be paid to the county. Payments to the counties and municipalities shall be made by the State Tax Commission on or before the fifteenth day of the month following the month in which the tax was collected. Such payments may be used and expended by the counties and municipalities for any purpose for which they are authorized by law to expend funds.

(6) The board of supervisors of any county may discontinue the collection of the sales tax authorized by this act by adopting a resolution to that effect. Such tax levy shall be discontinued on the first day of a month designated in the resolution, and the tax levy shall not apply to sales made on and after that date. The board of supervisors shall furnish a certified copy of such resolution to the State Tax Commission at least thirty (30) days before its effective date.

(7) If, more than one (1) year after the imposition of the sales tax authorized by this act, ten percent (10%) of the qualified electors of the county or fifteen hundred (1500), whichever is less, shall file a written petition requesting the discontinuance of the levy of such tax, then an election on the question of the discontinuance of the tax shall be called and held as provided in this subsection (7). The board of supervisors of the county shall call such election not less than forty-five (45) days nor more than sixty (60) days after the filing of the petition. Notice of such election shall be signed by the clerk of the board of supervisors and shall be published once a week for at least three (3) consecutive weeks in a newspaper published in such county. The first publication of such notice shall be made not less than twenty-one (21) days before the date fixed for the election, and the last publication shall be made not more than seven (7) days before such date. If no newspaper is published in such county, then the notice shall be given by publishing the notice for the required time in some newspaper having a general circulation in such county and, in addition, by posting a copy of the notice for at least twenty-one (21) days next preceding the election at three (3) public places in such county. The election shall be held, as far as is practicable, in the same manner as other elections are held in counties. At the election, all qualified electors of the county may vote. The ballots used at such election shall have printed thereon a brief description of the sales tax and the amount of the sales tax levy and the words "FOR THE LOCAL SALES TAX" and "AGAINST THE LOCAL SALES TAX," and the voter shall vote by placing a cross (X) or check mark (V) opposite his choice on the proposition. When the results of the election have been canvassed by the election commissioners of the county and certified by them to the board of supervisors, the county shall discontinue the tax if a majority of the qualified electors who voted in the election voted against the tax. If a majority of the qualified electors who voted in the election voted against the tax, the board of supervisors shall adopt a resolution declaring the discontinuance of the tax and shall set the first day of the second month following the date of such election as the effective date of the discontinuance of the tax. The board of supervisors shall furnish a certified copy of such resolution together with the result of the election to the State Tax Commission not less than thirty (30) days before the effective date of the discontinuance of the tax. If an election held pursuant to this subsection (7) does not result in the discontinuance of such sales tax, then another election pursuant to this subsection (7) may not be held within one (1) year of the date of such election.

SECTION 2. The Attorney General of the State of Mississippi, shall submit this act, immediately upon approval by the Governor, or upon approval by the Legislature subsequent to a veto, to the Attorney General of the United States or to the United States District Court for the District of Columbia in accordance with the provisions of the Voting Rights Act of 1965, as amended and extended.

SECTION 3. This act shall take effect and be in force from and after the date it is effectuated under Section 5 of the Voting Rights Act of 1965, as amended and extended.