House Bill 430

AN ACT TO AMEND SECTIONS 75-76-177 AND 75-76-129, MISSISSIPPI CODE OF 1972, TO PROVIDE FOR A FLAT RATE OF EIGHT PERCENT ON FEES CHARGED ON THE GROSS REVENUE OF GAMING LICENSEES; TO IMPOSE AN ADDITIONAL FEE OF THREE PERCENT ON THE GROSS REVENUES OF GAMING LICENSEES; TO PROVIDE THAT THE AVAILS OF THE ADDITIONAL LICENSE FEE SHALL BE DEPOSITED INTO A SPECIAL FUND IN THE STATE TREASURY AND DISTRIBUTED TO NONGAMING COUNTIES FOR EXPENDITURE FOR CONSTRUCTION AND REPAIR OF COUNTY ROADS AND BRIDGES, FOR LAW ENFORCEMENT PURPOSES AND FOR ANY OTHER PURPOSES FOR WHICH COUNTY GENERAL FUNDS LAWFULLY MAY BE EXPENDED; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 75-76-177, Mississippi Code of 1972, is amended as follows:

75-76-177. (1) (a) From and after July 1, 2005, there is hereby imposed and levied monthly on each gaming licensee a license fee of eight percent (8%) of all the gross revenue of the licensee.

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(b) From and after July 1, 2005, there is imposed and levied monthly on each gaming licensee an additional license fee of three percent (3%) of all the gross revenue of the licensee.

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(2) All revenue received from any game or gaming device which is leased for operation on the premises of the licensee-owner to a person other than the owner thereof or which is located in an area or space on such premises which is leased by the licensee-owner to any such person, must be attributed to the owner for the purposes of this section and be counted as part of the gross revenue of the owner. The lessee is liable to the owner for his proportionate share of such license fees.

(3) If the amount of license fees required to be reported and paid pursuant to this section is later determined to be greater or less than the amount actually reported and paid by the licensee, the Chairman of the State Tax Commission shall:

(a) Assess and collect the additional license fees determined to be due, with interest thereon until paid; or

(b) Refund any overpayment, with interest thereon, to the licensee.

Interest must be computed, until paid, at the rate of one percent (1%) per month from the first day of the first month following either the due date of the additional license fees or the date of overpayment.

(4) Failure to pay the fees provided for in this section when they are due for continuation of a license shall be deemed a surrender of the license.

SECTION 2. Section 75-76-129, Mississippi Code of 1972, is amended as follows:

[Through June 30, 2022, this section shall read as follows:]

75-76-129. On or before the last day of each month all taxes, fees, interest, penalties, damages, fines or other monies collected by the State Tax Commission during that month under the provisions of this chapter, with the exception of (a) the local government fees imposed under Section 75-76-195, * * * (b) an amount equal to Three Million Dollars ($3,000,000.00) of the revenue collected pursuant to the fee imposed under Section 75-76-177(1)(a), or an amount equal to twenty-five percent (25%) of the revenue collected pursuant to the fee imposed under Section 75-76-177(1)(a), whichever is the greater amount, and (c) the avails of the fee imposed under Section 75-76-177(1)(b), shall be paid by the State Tax Commission to the State Treasurer to be deposited in the State General Fund. The local government fees shall be distributed by the State Tax Commission pursuant to Section 75-76-197. Except for the period beginning on July 1, 2004, and through June 30, 2005, an amount equal to Three Million Dollars ($3,000,000.00) of the revenue collected during that month pursuant to the fee imposed under Section 75-76-177(1)(a) shall be deposited by the State Tax Commission into the bond sinking fund created in Section 65-39-3. Except for the period beginning on July 1, 2004, and through June 30, 2005, the revenue collected during that month pursuant to the fee imposed under Section 75-76-177(1)(a) that is in excess of Three Million Dollars ($3,000,000.00), but is less than twenty-five percent (25%) of the amount of revenue collected during that month, shall be deposited into the State Highway Fund to be used exclusively for the reconstruction and maintenance of highways of the State of Mississippi. The avails of the fee imposed under Section 75-76-177(1)(b) shall be deposited by the State Tax Commission into the special fund created in Section 3 of House Bill No._430, 2005 Regular Session.

For the period beginning on July 1, 2004, and through June 30, 2005, twenty-five percent (25%) of the amount of revenue collected during each month pursuant to the fee imposed under Section 75-76-177(1)(a) shall be deposited into the Budget Contingency Fund created in Section 27-103-301.

[From and after July 1, 2022, this section shall read as follows:]

75-76-129. On or before the last day of each month, all taxes, fees, interest, penalties, damages, fines or other monies collected by the State Tax Commission during that month under the provisions of this chapter, with the exception of (a) the local government fees imposed under Section 75-76-195, and (b) the avails of the fee imposed under Section 75-76-177(b), shall be paid by the State Tax Commission to the State Treasurer to be deposited in the State General Fund. The local government fees shall be distributed by the State Tax Commission pursuant to Section 75-76-197. The avails of the fee imposed under Section 75-76-177(1)(b) shall be deposited by the State Tax Commission into the special fund created in Section 3 of House Bill No. 430, 2005 Regular Session.

SECTION 3. There is created in the State Treasury a special fund. The fund shall consist of such monies as are required to be deposited into the fund under Section 75-76-129. Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned or investment earnings on amounts in the fund shall be deposited into such fund. Beginning on the last working day of October 2005 and on the last working day of each three (3) months thereafter, the monies on deposit and to the credit of the special fund shall be paid and distributed by the State Treasurer, upon warrants issued by the State Fiscal Officer, equally to and among the chancery clerks of the counties within the state in which gaming is not authorized by law. Upon receipt of such monies, the chancery clerk shall deposit such monies in the county general fund and the board of supervisors of such county may appropriate and authorize such monies to be expended for the construction, repair and maintenance of county roads and bridges, for law enforcement purposes or for any other purposes for which county general fund monies lawfully may be expended.

SECTION 4. This act shall take effect and be in force from and after July 1, 2005.