House Bill 1844

(As Sent to Governor)

AN ACT TO AUTHORIZE THE GOVERNING AUTHORITIES OF THE CITY OF HOUSTON, MISSISSIPPI, TO LEVY A TAX UPON THE GROSS SALES OF HOTELS, MOTELS AND RESTAURANTS IN AN AMOUNT NOT TO EXCEED TWO PERCENT OF GROSS SALES; TO PROVIDE THAT SUCH TAX SHALL BE COLLECTED BY THE STATE TAX COMMISSION AND PAID TO THE CITY OF HOUSTON; TO PROVIDE THAT THE PORTION OF THE PROCEEDS RECEIVED BY THE CITY OF HOUSTON SHALL BE DEDICATED TO AND EXPENDED SOLELY FOR THE PURPOSE OF PROVIDING FUNDS FOR THE PROMOTION OF TOURISM AND ECONOMIC AND COMMUNITY DEVELOPMENT IN THE CITY OF HOUSTON, AND FOR THE PURPOSE OF RETIRING THE DEBT AND PROVIDING FOR THE CONTINUED OPERATION AND MAINTENANCE OF THE HOUSTON SPORTSPLEX; TO PROVIDE FOR A PETITION ELECTION TO BE HELD ON THE QUESTION OF IMPOSING THE TAX; 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 to them in this section unless a different meaning is clearly indicated by the context in which they are used:

(a) "Governing authorities" means the governing authorities of the City of Houston, Mississippi.

(b) "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, where such establishment consists of ten (10) or more guest rooms and does not encompass 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.

(c) "Restaurant" means all places where prepared food and/or beverages are sold for consumption, whether such food or beverage is consumed on the premises or not. The term "restaurant" 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 providing food for students, patients, visitors or their families.

SECTION 2. (1) For the purpose of providing funds for the promotion of tourism and economic and community development in the City of Houston, and for the purpose of retiring the debt and providing for the continued operation and maintenance of the Houston Sportsplex, the governing authorities of the City of Houston, in their discretion, may levy and collect from the following persons a tax, which shall be in addition to all of the taxes and assessments imposed. The tax shall be imposed upon the following persons:

(a) A tax upon every person, firm or corporation operating a hotel or motel in the City of Houston, at a rate not to exceed two percent (2%) of the gross income; and

(b) A tax upon every person, firm or corporation operating a restaurant in the City of Houston, at a rate not to exceed two percent (2%) of the gross income from the sales of all prepared foods and/or beverages sold for consumption on or off the premises of such restaurant.

(2) Persons, firms or corporations liable for the levy imposed under subsection (1) of this section shall add the amount of the levy to the sales price of the rooms and products set out in subsection (1) of this section 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 manner that state sales taxes are computed, collected and paid; and 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 cost of collection, shall be paid to the governing authorities of the City of Houston 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 Houston as general fund revenues but shall be dedicated to and expended solely for the following purposes:

(a) Eighty-eight percent (88%) of the gross proceeds from the tax shall be allocated and expended to retire the debt and to provide for the operation and maintenance of the Houston Sportsplex;

(b) Twelve percent (12%) of the gross proceeds from the tax shall be allocated and expended for community and economic development.

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 Houston. 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 than seven (7) days before such date. If, within the time of giving notice, twenty percent (20%) or fifteen hundred (1500), whichever is less, of the qualified electors of the First Judicial District of Chickasaw County, file a written petition against the levy of such tax, then the tax shall not be levied unless authorized by a sixty percent (60%) majority of the qualified electors of the First Judicial District of Chickasaw County, 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 must be made separately from the accounting of receipts and expenditures of the general fund and any other funds of the City of Houston. 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. This act shall stand repealed from and after July 1, 2008.

SECTION 6. The governing authorities of the City of Houston 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 7. 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.