MISSISSIPPI LEGISLATURE

2000 Regular Session

To: Local and Private; Finance

By: Senator(s) Moffatt, Robertson

AN ACT TO AUTHORIZE THE GOVERNING AUTHORITIES OF THE CITY OF GAUTIER, MISSISSIPPI, TO LEVY A TAX UPON THE GROSS PROCEEDS DERIVED FROM HOTEL, MOTEL AND BED AND BREAKFAST ROOM RENTALS 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 GAUTIER; TO PROVIDE THAT THE PROCEEDS FROM THE TAX SHALL BE USED FOR THE PURPOSE OF CAPITAL IMPROVEMENTS AND ECONOMIC DEVELOPMENT IN THE GAUTIER AREA; 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) "Governing authorities" means the governing authorities of the City of Gautier, Mississippi.

(b) "Hotel," "motel" or "bed and breakfast" 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. The term "hotel," "motel" or "bed and breakfast" 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.

SECTION 2. (1) For the purpose of providing funds for capital improvement and economic development in the Gautier, Mississippi, area, the governing authorities of the City of Gautier, in their discretion, are authorized to levy and collect from every person, firm or corporation operating a hotel, motel or bed and breakfast in the city a tax, which shall be in addition to all other taxes and assessments imposed, which shall not exceed three percent (3%) of the gross proceeds derived from room rentals of all such hotels, motels or bed and breakfasts in the city.

(2) 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.

(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 governing authorities on or before the fifteenth day of the month in which collected.

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

SECTION 3. 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 Gautier. 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 4. SECTION 6. This act shall take effect and be in force from and after July 1, 2000.