MISSISSIPPI LEGISLATURE

2000 Regular Session

To: Local and Private Legislation; Ways and Means

By: Representatives Moore (100th), Rushing, Hudson, Nettles

AN ACT TO AUTHORIZE THE GOVERNING AUTHORITIES OF THE CITY OF COLUMBIA, MISSISSIPPI, TO LEVY A TAX UPON THE GROSS PROCEEDS OF SALES FROM HOTEL AND MOTEL ROOM RENTALS AND RETAIL SALES OF PREPARED FOOD IN THE CITY; TO PROVIDE FOR A PETITION ELECTION ON THE QUESTION OF IMPOSING SUCH A TAX; TO PROVIDE THAT THE TAX SHALL BE COLLECTED BY THE STATE TAX COMMISSION AND PAID TO THE CITY OF COLUMBIA; TO PROVIDE THAT THE PROCEEDS FROM THE TAX SHALL BE USED FOR THE PURPOSE OF PROMOTING THE ATTRIBUTES OF THE CITY; 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 meanings ascribed in this section unless otherwise clearly indicated by the context in which they are used:

(a) "City clerk" means the City Clerk of the City of Columbia, Mississippi.

(b) "Governing authorities" means the duly elected Mayor and Board of Aldermen of the City of Columbia, 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 a hotel or motel. The term "hotel" or "motel" does not include any hospital, convalescent or nursing home or sanitarium, or any hotel-like facility operated by or is exclusively for patients and their families.

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

(e) "Restaurant" means and includes all places where prepared food and beverages are sold for consumption, whether such food is consumed on the premises or not. "Restaurant" as defined in this section does not include any school, hospital, convalescent or nursing home providing food for students, patients, visitors and their families.

SECTION 2. (1) For the purpose of providing funds to promote the attributes of the City of Columbia, Mississippi, including the restoration of historic downtown Columbia, the promotion, establishment, development, construction, furnishing, equipping and erection of improvements to the Columbia Exposition Center, and the promotion, establishment, development, construction, furnishing, equipping and erection of a multipurpose sports complex, the governing authorities of the City of Columbia, in their discretion, are authorized to levy and collect from every person, firm or corporation operating: (a) a hotel or motel in the city or (b) a restaurant in the city, a tax, which shall be in addition to all other taxes and assessments imposed, which shall not exceed two percent (2%) of the gross proceeds derived from: (i) room rentals of all such hotels or motels in the city, excluding charges for food, telephone, laundry, beverages and similar charges and (ii) sales of prepared food whether for consumption upon the premises or not. The tax shall not be levied upon or collected from gross proceeds derived from room rentals for day meetings where the room does not serve as overnight sleeping accommodations.

(2) Persons, firms or corporations liable for the tax imposed under 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 them from the person receiving the services or product at the time of payment therefor.

(3) 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.

(4) The proceeds of such tax, less three percent (3%) thereof which shall be retained by the State Tax Commission to defray the costs of collection, shall be paid to the City Clerk of the City of Columbia for and on behalf of the City of Columbia, Mississippi, on or before the fifteenth day of the month following the month in which they were collected.

(5) The proceeds of such tax shall not be considered by the City of Columbia as general fund revenues but shall be dedicated to and expended solely for the purposes specified in this section.

SECTION 3. Before the tax authorized by this act may be imposed, the governing authorities shall adopt a resolution declaring their intention to levy the tax, setting forth the amount of such tax and establishing the date on which the tax initially shall be levied and collected. Notice of the proposed tax shall be published once each week for at least three (3) consecutive weeks in a newspaper having a general circulation in the City of Columbia. The first publication of the notice shall be made not less than twenty-one (21) days before the date fixed in the resolution on which the tax initially is to be levied and collected, and the last publication of the notice shall be made not more then seven (7) days before that date. If, within the time of giving notice, twenty percent (20%) or fifteen hundred (1,500), whichever is less, of the qualified electors of the City of Columbia, file a written petition against the levy of such tax, then the tax shall not be levied unless authorized by a majority of the qualified electors of the City of Columbia, voting at an election to be called and held for that purpose. At least thirty (30) days before the effective date of the tax, the governing authorities shall furnish to the State Tax Commission a certified copy of the resolution evidencing such tax.

SECTION 4. Accounting for receipts and expenditures of the funds described in this act shall be made separately from the accounting of receipts and expenditures of the general fund and any other funds of the City of Columbia. 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 such audit shall be paid from the funds derived pursuant to this act.

SECTION 5. The governing authorities of the City of Columbia, 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 6. 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.