MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Local and Private

By: Senator(s) Smith

AN ACT TO AUTHORIZE THE GOVERNING BODY OF THE CITY OF MAGEE, MISSISSIPPI TO LEVY A SPECIAL TAX ON THE GROSS PROCEEDS OF SALES OF HOTELS AND MOTELS AND ON THE GROSS PROCEEDS OF SALES OF RESTAURANTS DERIVED FROM THE SALE OF PREPARED FOODS TO FUND THE ESTABLISHMENT AND CONSTRUCTION OF A SPORTS COMPLEX; AND FOR RELATED PURPOSES.

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

SECTION 1. As used in this act, the following words shall have the meanings ascribed to them in this section unless otherwise clearly indicated by the context in which they are used:

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

(b) "Governing body" means the Mayor and Board of Aldermen of Magee, 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 and which are known in the trade as such, where the establishment consists of five (5) 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.

(d) "Project" means the establishment and construction of a sports complex and related appurtenances within the corporate limits of the city, and shall include, but not be limited to, the purchase of property for such purposes; construction of and/or improvements to baseball, softball fields and tennis courts; architect, engineering and legal fees associated with the project; road construction for access to facilities; parking areas; utilities; restroom facilities; bleachers or other seating for baseball fields and softball fields; and scoreboards.

(e) "Restaurant" means and includes all places within the city where prepared foods and beverages are sold for consumption whether such food is consumed on the premises or not. "Restaurant" as defined herein does not include any school, hospital, convalescent or nursing home, or any restaurant-like facility operated by or in connection with a school, hospital, medical clinic, convalescent or nursing home, or prison facility providing food for students, patients, inmates, visitors and their families.

SECTION 2. In addition to the powers and authority granted under this act, the governing body shall have jurisdiction and authority over all matters relating to the promotion, establishment, development, construction, furnishing and equipping of the project, including the authority to enter into such contracts and agreements as may be necessary to carry out the intent of this act. In carrying out the provisions of this act, the governing body shall adhere to the provisions of the public purchasing laws, public works contracts laws and public bid laws as provided by the laws of the State of Mississippi, except as may be expressly otherwise provided for herein.

The governing body is further authorized to receive and expend, subject to the provisions of this act, revenues from any source for the purposes enumerated herein.

SECTION 3. (1) For the purpose of providing funds for the establishment, development, construction, furnishing, equipping and erection of the project, there is hereby levied, assessed and shall be collected from every person engaging in or doing business in the city, as provided in subsection (2) of this section, a tax which may be cited as the "recreation facilities tax," which shall be in addition to all other taxes now imposed.

(2) Such tax shall be in an amount not to exceed one percent (1%) of the gross proceeds of sales of hotels and motels, and not to exceed one percent (1%) of the gross proceeds of sales of restaurants derived from the sale of prepared foods.

(3) Persons, firms and corporations liable for the tax imposed herein shall add the amount of tax to the sales price of or gross proceeds of sales from the goods, products and services subject to the tax and, in addition thereto, shall collect insofar as practicable the amount of the tax due by them from the person receiving the services or goods at the time of payment therefor.

(4) Such tax shall be collected as set forth in subsection (3) above and paid to the State Tax Commission in the same manner that state sales taxes are computed, collected and paid; and the full enforcement 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, less three percent (3%) to be retained by the State Tax Commission to defray the costs of collection, shall be paid to the city on or before the fifteenth day of the month following the month in which they were collected.

(6) The proceeds of the tax shall not be considered by the city as general fund revenues but shall be dedicated solely for the purpose of carrying out the project.

(7) Not more than two (2) months following the time that (a) the project has been completed, and (b)(i) either all principal, interest, costs and other expenses for all bonds, notes or other borrowings issued or made to fund the project have been paid and are completely satisfied, or (ii) there exists in any special account established to retire such bonds, notes or other borrowings an amount on deposit which, together with any earnings on investments to accrue to the account, is equal to or greater than the amount necessary to pay such indebtedness, then the city shall discontinue the tax.

SECTION 4. (1) Before the taxes authorized by this act shall be imposed, the governing body of the city shall adopt a resolution as follows:

(a) Declaring its intention to levy the tax, setting forth the amount of such tax; and

(b) Setting the date for the election required by subsection (2) of this act.

The resolution shall be published in a local newspaper at least three (3) times over three (3) consecutive weeks, with the last publication made no less than seven (7) days prior to the date set forth in the resolution for the election.

(2) The tax levy authorized herein shall not be made unless authorized by a majority of the votes cast at an election to be called and held for that purpose. Notice of such election shall be given, the election shall be held and the result thereof determined, as far as is practicable, in the same manner as other elections are held in the municipality. At such election, all qualified electors of the municipality may vote. The ballots used at such election shall have printed thereon a brief description of the sales tax, the amount of the sales tax levy, a description of the specific transportation infrastructure projects and/or other capital projects that the tax revenue may be used and expended to construct 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 (_) opposite his choice on the proposition. When the results of the election have been canvassed by the election commissioners of the municipality and certified by them to the governing authorities, it shall be the duty of such governing authorities to determine and adjudicate whether or not a majority of the qualified electors who voted in such election voted against the tax. If an election results in favor of the levy, the governing authorities shall adopt a resolution declaring the levy and collection of the tax provided in this act and shall set the first day of the second month following the date of such adoption as the effective date of the tax levy. A certified copy of this resolution together with the result of the election shall be furnished the State Tax Commission not less than thirty (30) days prior to the effective date of the levy.

SECTION 5. Accounting for receipts and expenditures of the funds herein described shall be made separate 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 herein shall be audited annually as a part of the annual audit of the city or by independent audit if so determined by the governing body. Such audit shall be made and completed as soon as practicable after the close of the fiscal year, and expenses of such audit may be paid from the funds derived pursuant to Section 3 of this act.

SECTION 6. The governing body of the city is further authorized and empowered to adopt any and all lawful resolutions, orders or ordinances; execute and deliver such agreements, contracts, indentures and certificates; and do and perform any and all other acts and things necessary and requisite to levy the tax and carry out the purposes of this act.

SECTION 7. The governing authorities of the City of Magee, 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 8. 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.