MISSISSIPPI LEGISLATURE
2005 Regular Session
To: Ways and Means
By: Representative Warren
AN ACT TO AMEND SECTIONS 75-76-129 AND 75-76-177, MISSISSIPPI CODE OF 1972, TO IMPOSE AN ADDITIONAL LICENSE FEE ON THE GROSS REVENUE OF GAMING LICENSEES; TO PROVIDE THAT THE REVENUE COLLECTED FROM THE ADDITIONAL FEE SHALL BE DEPOSITED INTO THE STATE SUPPLEMENTAL DRUG ENFORCEMENT FUND, THE SUPPLEMENTAL STATE VETERANS AFFAIRS BOARD AND THE STATE SUPPLEMENTAL EDUCATION FUND; TO AMEND SECTIONS 27-7-901 AND 27-7-903, MISSISSIPPI CODE OF 1972, TO INCREASE THE AMOUNT OF THE TAX LEVIED ON AMOUNTS THAT ARE PAID TO PATRONS BY GAMING ESTABLISHMENTS; TO PROVIDE THAT THE REVENUE COLLECTED FROM THE TAX WILL BE DEPOSITED INTO THE STATE SUPPLEMENTAL EDUCATION FUND; TO CREATE THE STATE SUPPLEMENTAL DRUG ENFORCEMENT FUND; TO PROVIDE THAT MONIES IN SUCH FUND SHALL BE USED TO PROVIDE ADDITIONAL FUNDS TO THE MISSISSIPPI BUREAU OF NARCOTICS FOR USE IN THE ENFORCEMENT OF THE UNIFORM CONTROLLED SUBSTANCES LAW WITH RESPECT TO ILLICIT DRUG TRAFFIC IN THE STATE; TO CREATE THE SUPPLEMENTAL STATE VETERANS AFFAIRS BOARD FUND; TO PROVIDE THAT MONIES IN THE FUND SHALL BE USED TO PROVIDE ADDITIONAL FUNDS TO THE STATE VETERANS AFFAIRS BOARD FOR USE IN THE OPERATION, MANAGEMENT AND MAINTENANCE OF THE STATE VETERANS HOMES; TO CREATE THE STATE SUPPLEMENTAL EDUCATION FUND; TO PROVIDE THAT MONIES IN SUCH FUND SHALL BE USED TO SUPPORT PUBLIC EDUCATION IN KINDERGARTEN THROUGH GRADE 12, INSTITUTIONS OF HIGHER LEARNING, AND COMMUNITY AND JUNIOR COLLEGES; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 75-76-129, Mississippi Code of 1972, is amended as follows:
[Through 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, * * * (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)(c), or an amount equal to twenty-five percent (25%) of the revenue collected pursuant to the fee imposed under Section 75-76-177(1)(c), whichever is the greater amount, and (c) the revenue collected pursuant to the fee imposed under Section 75-76-177(2) 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)(c) 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)(c) 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 revenue collected during that month pursuant to the fee imposed under Section 75-76-177(2) shall be distributed as follows: (a) an amount equal to One Hundred Sixty-six Thousand Six Hundred Sixty-six Dollars and Sixty-six cents ($166,666.66) of the revenue collected during that month pursuant to the fee imposed under Section 75-76-177(2) shall be deposited by the State Tax Commission into the State Supplemental Drug Enforcement Fund created in Section 5 of House Bill No. ____, 2005 Regular Session, (b) an amount equal to Four Hundred Sixteen Thousand Six Hundred Sixty-six Dollars and Sixty-six cents ($416,666.66) of the revenue collected during that month pursuant to the fee imposed under Section 75-76-177(2) shall be deposited by the State Tax Commission into the Supplemental State Veterans Affairs Board Fund created in Section 6 of House Bill No. 1123, 2005 Regular Session, and (c) the remainder of the revenue collected during that month pursuant to the fee imposed under Section 75-76-177(2) shall be deposited by the State Tax Commission into the State Supplemental Education Fund created in Section 7 of House Bill No. 1123, 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)(c) 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 the local government fees imposed under Section 75-76-195, 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.
SECTION 2. Section 75-76-177, Mississippi Code of 1972, is amended as follows:
75-76-177. (1) From and after August 1, 1990, there is hereby imposed and levied on each gaming licensee a license fee based upon all the gross revenue of the licensee as follows:
(a) Four percent (4%) of all the gross revenue of the licensee which does not exceed Fifty Thousand Dollars ($50,000.00) per calendar month;
(b) Six percent (6%) of all the gross revenue of the licensee which exceeds Fifty Thousand Dollars ($50,000.00) per calendar month and does not exceed One Hundred Thirty-four Thousand Dollars ($134,000.00) per calendar month; and
(c) Eight percent (8%) of all the gross revenue of the licensee which exceeds One Hundred Thirty-four Thousand Dollars ($134,000.00) per calendar month.
(2) From and after July 1, 2005, there is imposed and levied on each gaming licensee an additional license fee of two percent (2%) of all the gross revenue of the licensee per calendar month. Such license fee shall be in addition to the license fee imposed and levied under subsection (1) of this section.
(3) 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.
(4) 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.
(5) 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 3. Section 27-7-901, Mississippi Code of 1972, is amended as follows:
27-7-901. (1) (a) There is hereby levied, assessed and shall be collected a tax of three percent (3%) upon amounts that are paid or credited by gaming establishments licensed under the provisions of the Mississippi Gaming Control Act to their patrons. (b) In addition to the tax levied in paragraph (a) of this subsection, there is hereby levied, assessed and shall be collected an additional tax of three percent (3%) upon amounts that are paid or credited by gaming establishments licensed under the provisions of the Mississippi Gaming Control Act to their patrons. Revenue collected pursuant to the provisions of this paragraph (b) shall be deposited into the State Supplemental Education Fund created in Section 7 of House Bill No._1123, 2005 Regular Session.
(c) The tax shall be collected by licensed gaming establishments and remitted to the State Tax Commission in the manner provided for by regulations promulgated by the Chairman of the State Tax Commission.
(2) As used in this section, "amounts that are paid or credited" means amounts or credits that are subject to the withholding or reporting requirements of the Internal Revenue Code.
(3) No credit shall be allowed under the Income Tax Law of 1952 for the tax collected by licensed gaming establishments pursuant to this section.
SECTION 4. Section 27-7-903, Mississippi Code of 1972, is amended as follows:
27-7-903. (1) (a) There is hereby levied and assessed upon patrons of gaming establishments located in this state that are not licensed under the provisions of the Mississippi Gaming Control Act, a tax of three percent (3%) of the amounts that are paid or credited to such patrons by the gaming establishment, which tax is the same in kind and rate as has heretofore been imposed pursuant to Section 27-7-901 upon the patrons of gaming establishments which are licensed under the Mississippi Gaming Control Act.
(b) In addition to the tax levied in paragraph (a) of this subsection, there is hereby levied and assessed upon patrons of gaming establishments located in this state that are not licensed under the provisions of the Mississippi Gaming Control Act, an additional tax of three percent (3%) upon amounts that are paid or credited to such patrons by the gaming establishments. Revenue collected pursuant to the provisions of this paragraph (b) shall be deposited into the State Supplemental Education Fund created in Section 7 of House Bill No._1123, 2005 Regular Session.
(c) The legal incidence and duty to pay such taxes shall fall upon the patron. The assessment of such tax is subject to any exemptions as may exist under federal or state law. The State Tax Commission may enter into tax collection agreements regarding this tax.
(2) As used in this section, "amounts that are paid or credited" means amounts or credits that are subject to the withholding or reporting requirements of the Internal Revenue Code.
(3) No credit shall be allowed under the Income Tax Law of 1952 for the tax collected by gaming establishments pursuant to this section.
SECTION 5. There is created in the State Treasury a special fund to be designated as the "State Supplemental Drug Enforcement Fund." The fund shall consist of such monies deposited therein as provided under Section 75-76-129. Monies in the fund shall be subject to appropriation by the Legislature for the purpose of providing additional funds to the Mississippi Bureau of Narcotics for use in the enforcement of the Uniform Controlled Substances Law (Sections 41-29-101 through 41-29-187) with respect to illicit drug traffic in the state. Monies in the fund used for the purposes described in this section shall be in addition to other funds available from any other source for such purposes. 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 to the credit of the fund.
SECTION 6. There is created in the State Treasury a special fund to be designated as the "Supplemental State Veterans Affairs Board Fund." The fund shall consist of such monies deposited therein as provided under Section 75-76-129. Monies in the fund shall be subject to appropriation by the Legislature for the purpose of providing additional funds to the State Veterans Affairs Board for use in the operation, management and maintenance of the state veterans homes. Monies in the fund used for the purposes described in this section shall be in addition to other funds available from any other source for such purposes. 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 to the credit of the fund.
SECTION 7. There is created in the State Treasury a special fund to be designated as the "State Supplemental Education Fund." The fund shall consist of such monies deposited therein as provided under Section 75-76-129. Monies in the fund shall be subject to appropriation by the Legislature to support public education in kindergarten through Grade 12, the institutions of higher learning, and the community and junior colleges, proportionately based on the ratio that the amount of general funds appropriated by the Legislature to each of these entities for the preceding fiscal year bears to the total amount of general funds appropriated for the preceding state fiscal year. Monies in the fund used for the purposes described in this section shall be in addition to other funds available from any other source for such purposes. 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 to the credit of the fund.
SECTION 8. This act shall take effect and be in force from and after July 1, 2005.