HB1250_S_Cmte_Amend

SECTION 1. As used in Sections 1 and 2 of this act, the following terms and phrases shall have the meanings ascribed in this section unless the context clearly indicates otherwise:

(a) "Approved capital costs" means any or all of the following:

(i) Obligations incurred for labor and materials in connection with the acquisition, construction, installation, equipping, and rehabilitation of a project and all related costs thereto;

(ii) The costs of acquiring land or rights in land and any cost incidental thereto;

(iii) All costs of reasonable architectural and engineering services, including test borings, surveys, estimates, plans and specifications, preliminary investigations, and supervision of construction, as well as for the performance of all the duties required by or consequent to the acquisition, construction, installation, equipping and rehabilitation of a project;

(iv) All costs which shall be required to be paid under the terms of any contract or contracts for the acquisition, construction, installation, equipping and rehabilitation of a project; and

(v) All other costs of a nature comparable to those described above.

Approved capital costs does not mean working capital, marketing expense, inventory and other soft cost as determined by the MDA.

(b) "Approved participant" means a person, corporation, or other entity issued a certificate by the MDA under Section 2 of this act.

(c) "Certificate" means a Certificate of Public Convenience and Necessity authorized to be issued by the MDA pursuant to Sections 1 and 2 of this act.

(d) "MDA" means the Mississippi Development Authority.

(e) (i) "Project" means any of the following:

1. A tourist-oriented enterprise, as herein specified or as designated by the MDA, which requires the purchase of admission, is located in a county bordering on the Mississippi River where State Highway 4 intersects U.S. Highway 61, and has an initial capital investment of not less than Twelve Million Dollars ($12,000,000.00) from federal, local and/or private sources; or

2. Future project expansions or complementary or ancillary projects and facilities (provided such ancillary projects and facilities are owned by the owner of the tourist-oriented enterprise) meeting the same criteria for a project, as defined herein, which are contiguous to the original project site and owned by the owner of the initial project, or its successor in interest, and which project additions and expansions must also meet all other criteria of a qualifying project. However, capital investment in any ancillary project or facility described in this paragraph (e)(i)2 shall not be included in determining whether the capital investment requirements of paragraph (e)(i)1 are satisfied.

In addition, in order for a project to qualify under the provisions of Sections 1 and 2 of this act, it shall, at a minimum, have a positive economic impact on the state and the increased tax revenues and economic benefits derived from the project will exceed the tax incentives granted to the approved participant pursuant to this act.

(ii) The term "project" does not mean any of the following:

1. Any business, corporation or entity having a gaminq license issued under Section 75-76-1 et seq., Mississippi Code of 1972, but may include a tourism-oriented facility owned by such a business, corporation or entity that is in excess of development that the State Gaming Commission requires for the issuance or renewal of a gaming license;

2. Facilities that are:

a. Primarily devoted to the retail sale of merchandise in which retail sales exceed twenty-five percent (25%) of the total sales of the facility;

b. Tourism-oriented facilities out of which the retail sale of merchandise exceeds twenty-five percent (25%) of total sales of the facility or the attraction;

c. Convention centers, lodging facilities and restaurants.

(f) "State" means the State of Mississippi.

(g) "Unit of local government" means any city, county or other public entity created by statute.

SECTION 2. (1) The MDA shall develop, implement and administer the program authorized in Sections 1 and 2 of this act and shall adopt rules and regulations necessary for the development, implementation and administration of the program.

(2) Any person, corporation or other entity desiring to participate in the incentive program authorized by Sections 1 and 2 of this act must pay a nonrefundable application fee of Five Thousand Dollars ($5,000.00) to the MDA which shall be used, without appropriation from the Legislature, by the MDA to offset administrative costs and then shall submit an application, hereinafter described, to the MDA on or before June 30, 2006. After June 30, 2006, MDA shall not accept any applications to participate in the program. The application shall contain:

(a) Plans for the proposed project;

(b) A detailed description of the proposed project and its site;

(c) A project budget including capital and other anticipated expenditures for the project that indicates that the total cost of the project shall achieve or exceed the investment threshold and the anticipated sources of funding the costs of the project;

(d) Marketing plans for the project;

(e) The anticipated employment and wages to be paid at the project;

(f) Business plans describing the operation of the project, including the anticipated revenues and expenses generated by the project;

(g) Financial information regarding the applicant as may be requested by the MDA to demonstrate that the applicant has the financial resources to construct and operate the project;

(h) Résumés of applicants and of its senior staff as may be requested by the MDA to demonstrate that the applicant has the required experience to construct and operate the project; and

(i) Any other information required by the MDA that would satisfactorily demonstrate that the project meets all specified criteria prescribed and approved by the MDA.

(3) If the MDA determines that the applicant and the project reasonably satisfy the criteria for approval as described in Sections 1 and 2 of this act, the MDA may issue a preliminary approval of the project.

(4) After issuing the preliminary approval, the MDA shall engage the services of an institution of higher learning in the state to analyze the data made available by the applicant and to collect and analyze additional information necessary to determine that, in the independent judgment of the institution of higher learning, the tourism project:

(a) Shall have capital expenditures in excess of the minimum requirements set forth herein;

(b) Shall have a positive economic impact on the state;

(d) Complies with the rules and regulations and minimum requirements adopted by the MDA.

The institution of higher learning shall consult with MDA staff and shall agree as to methodology to be used and assumptions to be made in preparing its report, and upon completion of such analysis, shall provide the MDA staff a written report of its findings. Approval shall not be granted if it is determined that there is no projected net positive economic impact to the state.

The applicant shall pay for the cost of the institution of higher learning's report, shall cooperate with the institution of higher learning, and shall provide all of the data that the institution of higher learning deems necessary to make its determination under this subsection.

(5) After a review of relevant materials, the institution of higher learning's report, and completion of other inquiries, MDA may issue its certificate approving the project, setting forth the terms and conditions under which the project is approved, the amount of the original capital costs approved by the MDA to which the incentives provided for in this section apply and the extent to which the incentives provided for in this section may be used. A copy of each certificate issued by the MDA shall be sent to the State Tax Commission.

(6) (a) There is created in the State Treasury a special fund to be known as the "Tourism Sales Tax Incentive Fund," into which shall be deposited such money as provided in Section 27-65-75(20). The monies in the fund shall be used for the purpose of making the incentive payments authorized in this section. The fund shall be administered by the MDA. Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the General Fund, and any interest earned on or investment earnings on the amounts in the fund shall be deposited to the credit of the fund. MDA may use not more than one percent (1%) of interest earned or investment earnings, or both, on amounts in the fund for administration and management of the incentive program. Any funds used by MDA under this subsection shall be in addition to any funds made available to MDA under Section 2(2) of this act.

(b) Incentive payments may be made by the MDA to an approved participant that incurs approved costs to locate an approved project in the state. The payments to an approved participant shall be for the amount of sales tax revenue collected on the gross proceeds of sales generated by the project, after making the diversions required in Section 27-65-75. The incentive payments shall decrease at the rate of ten percent (10%) per year starting the sixth year. The MDA shall ensure that payments made pursuant to this section are utilized to pay the debt service incurred by the approved participant for the project or any approved cost incurred by the approved participant for the project as set forth in the certificates issued by the MDA. The MDA shall make payments to an approved participant on a semiannual basis with payments being made in the months of January and July. The aggregate amount that an approved participant may receive shall not exceed the lesser of thirty-five percent (35%) of the original capital costs funded from private sources as set forth in the certificate issued by the MDA or thirty-five percent (35%) of the actual capital cost expended from private sources on the project by the approved participant. The MDA shall make the calculations necessary to make the payments provided for in this section. The MDA shall cease making incentive payments to an approved participant upon the occurrence of the earlier of:

(i) The date upon which the aggregate amount that the approved participant is authorized to receive pursuant to this subsection has been paid by the MDA to the approved participant;

(ii) Ten (10) years from the date the original indebtedness for the project was incurred, without regard to any refinancing or additional financing for any addition to or expansion of the project;

(iii) Any violation of the terms and provisions of the certificate or any agreement arising out of the certificate;

(iv) The project ceases operations for a continuous period of ninety (90) days or more (except for seasonal projects or an act of God); or

(v) The project or approved applicant is involved in any state or federal bankruptcy proceedings not discharged within ninety (90) days.

(7) At such time as payments are no longer required to be made to an approved participant, the MDA shall notify the State Tax Commission and the sales tax revenue collected from such project shall no longer be deposited into the Tourism Sales Tax Incentive Fund, and any amounts remaining in the fund that were collected from such participant shall be transferred to the State General Fund.

SECTION 3. Section 27-65-75, Mississippi Code of 1972, is amended as follows:

27-65-75. On or before the fifteenth day of each month, the revenue collected under the provisions of this chapter during the preceding month shall be paid and distributed as follows:

(1) On or before August 15, 1992, and each succeeding month thereafter through July 15, 1993, eighteen percent (18%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Sections 27-65-15, 27-65-19(3) and 27-65-21, on business activities within a municipal corporation shall be allocated for distribution to the municipality and paid to the municipal corporation. On or before August 15, 1993, and each succeeding month thereafter, eighteen and one-half percent (18-1/2%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Sections 27-65-15, 27-65-19(3) and 27-65-21, on business activities within a municipal corporation shall be allocated for distribution to the municipality and paid to the municipal corporation.

A municipal corporation, for the purpose of distributing the tax under this subsection, shall mean and include all incorporated cities, towns and villages.

Monies allocated for distribution and credited to a municipal corporation under this subsection may be pledged as security for a loan if the distribution received by the municipal corporation is otherwise authorized or required by law to be pledged as security for such a loan.

In any county having a county seat that is not an incorporated municipality, the distribution provided under this subsection shall be made as though the county seat was an incorporated municipality; however, the distribution to the municipality shall be paid to the county treasury in which the municipality is located, and those funds shall be used for road, bridge and street construction or maintenance in the county.

(2) On or before September 15, 1987, and each succeeding month thereafter, from the revenue collected under this chapter during the preceding month, One Million One Hundred Twenty-five Thousand Dollars ($1,125,000.00) shall be allocated for distribution to municipal corporations as defined under subsection (1) of this section in the proportion that the number of gallons of gasoline and diesel fuel sold by distributors to consumers and retailers in each such municipality during the preceding fiscal year bears to the total gallons of gasoline and diesel fuel sold by distributors to consumers and retailers in municipalities statewide during the preceding fiscal year. The State Tax Commission shall require all distributors of gasoline and diesel fuel to report to the commission monthly the total number of gallons of gasoline and diesel fuel sold by them to consumers and retailers in each municipality during the preceding month. The State Tax Commission shall have the authority to promulgate such rules and regulations as is necessary to determine the number of gallons of gasoline and diesel fuel sold by distributors to consumers and retailers in each municipality. In determining the percentage allocation of funds under this subsection for the fiscal year beginning July 1, 1987, and ending June 30, 1988, the State Tax Commission may consider gallons of gasoline and diesel fuel sold for a period of less than one (1) fiscal year. For the purposes of this subsection, the term "fiscal year" means the fiscal year beginning July 1 of a year.

(3) On or before September 15, 1987, and on or before the fifteenth day of each succeeding month, until the date specified in Section 65-39-35, the proceeds derived from contractors' taxes levied under Section 27-65-21 on contracts for the construction or reconstruction of highways designated under the highway program created under Section 65-3-97 shall, except as otherwise provided in Section 31-17-127, be deposited into the State Treasury to the credit of the State Highway Fund to be used to fund that highway program. The Mississippi Department of Transportation shall provide to the State Tax Commission such information as is necessary to determine the amount of proceeds to be distributed under this subsection.

(4) On or before August 15, 1994, and on or before the fifteenth day of each succeeding month through July 15, 1999, from the proceeds of gasoline, diesel fuel or kerosene taxes as provided in Section 27-5-101(a)(ii)1, Four Million Dollars ($4,000,000.00) shall be deposited in the State Treasury to the credit of a special fund designated as the "State Aid Road Fund," created by Section 65-9-17. On or before August 15, 1999, and on or before the fifteenth day of each succeeding month, from the total amount of the proceeds of gasoline, diesel fuel or kerosene taxes apportioned by Section 27-5-101(a)(ii)1, Four Million Dollars ($4,000,000.00) or an amount equal to twenty-three and one-fourth percent (23-1/4%) of those funds, whichever is the greater amount, shall be deposited in the State Treasury to the credit of the "State Aid Road Fund," created by Section 65-9-17. Those funds shall be pledged to pay the principal of and interest on state aid road bonds heretofore issued under Sections 19-9-51 through 19-9-77, in lieu of and in substitution for the funds previously allocated to counties under this section. Those funds may not be pledged for the payment of any state aid road bonds issued after April 1, 1981; however, this prohibition against the pledging of any such funds for the payment of bonds shall not apply to any bonds for which intent to issue those bonds has been published, for the first time, as provided by law before March 29, 1981. From the amount of taxes paid into the special fund under this subsection and subsection (9) of this section, there shall be first deducted and paid the amount necessary to pay the expenses of the Office of State Aid Road Construction, as authorized by the Legislature for all other general and special fund agencies. The remainder of the fund shall be allocated monthly to the several counties in accordance with the following formula:

(a) One-third (1/3) shall be allocated to all counties in equal shares;

(b) One-third (1/3) shall be allocated to counties based on the proportion that the total number of rural road miles in a county bears to the total number of rural road miles in all counties of the state; and

(c) One-third (1/3) shall be allocated to counties based on the proportion that the rural population of the county bears to the total rural population in all counties of the state, according to the latest federal decennial census.

For the purposes of this subsection, the term "gasoline, diesel fuel or kerosene taxes" means such taxes as defined in paragraph (f) of Section 27-5-101.

The amount of funds allocated to any county under this subsection for any fiscal year after fiscal year 1994 shall not be less than the amount allocated to the county for fiscal year 1994.

Any reference in the general laws of this state or the Mississippi Code of 1972 to Section 27-5-105 shall mean and be construed to refer and apply to subsection (4) of Section 27-65-75.

(5) One Million Six Hundred Sixty-six Thousand Six Hundred Sixty-six Dollars ($1,666,666.00) each month shall be paid into the special fund known as the "State Public School Building Fund" created and existing under the provisions of Sections 37-47-1 through 37-47-67. Those payments into that fund are to be made on the last day of each succeeding month hereafter.

(6) An amount each month beginning August 15, 1983, through November 15, 1986, as specified in Section 6 of Chapter 542, Laws of 1983, shall be paid into the special fund known as the Correctional Facilities Construction Fund created in Section 6 of Chapter 542, Laws of 1983.

(7) On or before August 15, 1992, and each succeeding month thereafter through July 15, 2000, two and two hundred sixty-six one-thousandths percent (2.266%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Section 27-65-17(2) shall be deposited by the commission into the School Ad Valorem Tax Reduction Fund created under Section 37-61-35. On or before August 15, 2000, and each succeeding month thereafter, two and two hundred sixty-six one-thousandths percent (2.266%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Section 27-65-17(2), shall be deposited into the School Ad Valorem Tax Reduction Fund created under Section 37-61-35 until such time that the total amount deposited into the fund during a fiscal year equals Forty-two Million Dollars ($42,000,000.00). Thereafter, the amounts diverted under this subsection (7) during the fiscal year in excess of Forty-two Million Dollars ($42,000,000.00) shall be deposited into the Education Enhancement Fund created under Section 37-61-33 for appropriation by the Legislature as other education needs and shall not be subject to the percentage appropriation requirements set forth in Section 37-61-33.

(8) On or before August 15, 1992, and each succeeding month thereafter, nine and seventy-three one-thousandths percent (9.073%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Section 27-65-17(2), shall be deposited into the Education Enhancement Fund created under Section 37-61-33.

(9) On or before August 15, 1994, and each succeeding month thereafter, from the revenue collected under this chapter during the preceding month, Two Hundred Fifty Thousand Dollars ($250,000.00) shall be paid into the State Aid Road Fund.

(10) On or before August 15, 1994, and each succeeding month thereafter through August 15, 1995, from the revenue collected under this chapter during the preceding month, Two Million Dollars ($2,000,000.00) shall be deposited into the Motor Vehicle Ad Valorem Tax Reduction Fund established in Section 27-51-105.

(11) Notwithstanding any other provision of this section to the contrary, on or before February 15, 1995, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of Section 27-65-17(2) and the corresponding levy in Section 27-65-23 on the rental or lease of private carriers of passengers and light carriers of property as defined in Section 27-51-101 shall be deposited, without diversion, into the Motor Vehicle Ad Valorem Tax Reduction Fund established in Section 27-51-105.

(12) Notwithstanding any other provision of this section to the contrary, on or before August 15, 1995, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of Section 27-65-17(1) on retail sales of private carriers of passengers and light carriers of property, as defined in Section 27-51-101 and the corresponding levy in Section 27-65-23 on the rental or lease of these vehicles, shall be deposited, after diversion, into the Motor Vehicle Ad Valorem Tax Reduction Fund established in Section 27-51-105.

(13) On or before July 15, 1994, and on or before the fifteenth day of each succeeding month thereafter, that portion of the avails of the tax imposed in Section 27-65-22 that is derived from activities held on the Mississippi state fairgrounds complex, shall be paid into a special fund that is created in the State Treasury and shall be expended upon legislative appropriation solely to defray the costs of repairs and renovation at the Trade Mart and Coliseum.

(14) On or before August 15, 1998, and each succeeding month thereafter through July 15, 2005, that portion of the avails of the tax imposed in Section 27-65-23 that is derived from sales by cotton compresses or cotton warehouses and that would otherwise be paid into the General Fund, shall be deposited in an amount not to exceed Two Million Dollars ($2,000,000.00) into the special fund created under Section 69-37-39.

(15) Notwithstanding any other provision of this section to the contrary, on or before September 15, 2000, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of Section 27-65-19(1)(f) and (g)(i)2, shall be deposited, without diversion, into the Telecommunications Ad Valorem Tax Reduction Fund established in Section 27-38-7.

(16) On or before August 15, 2000, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of this chapter on the gross proceeds of sales of a project as defined in Section 57-30-1 shall be deposited, after all diversions except the diversion provided for in subsection (1) of this section, into the Sales Tax Incentive Fund created in Section 57-30-3.

(17) Notwithstanding any other provision of this section to the contrary, on or before April 15, 2002, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under Section 27-65-23 on sales of parking services of parking garages and lots at airports shall be deposited, without diversion, into the special fund created under Section 27-5-101(d).

(18) On or before August 15, 2007, and each succeeding month thereafter through July 15, 2008, from the sales tax revenue collected during the preceding month under the provisions of this chapter, Two Million Five Hundred Thousand Dollars ($2,500,000.00) shall be deposited into the Special Funds Transfer Fund created in Section 4 of Chapter 556, Laws of 2003.

(19) (a) On or before August 15, 2005, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of this chapter on the gross proceeds of sales of a business enterprise located within a redevelopment project area under the provisions of Sections 57-91-1 through 57-91-11, and the revenue collected on the gross proceeds of sales from sales made to a business enterprise located in a redevelopment project area under the provisions of Sections 57-91-1 through 57-91-11 (provided that such sales made to a business enterprise are made on the premises of the business enterprise), shall, except as otherwise provided in this subsection (19), be deposited, after all diversions, into the Redevelopment Project Incentive Fund as created in Section 57-91-9.

(b) For a municipality participating in the Economic Redevelopment Act created in Sections 57-91-1 through 57-91-11, the diversion provided for in subsection (1) of this section attributable to the gross proceeds of sales of a business enterprise located within a redevelopment project area under the provisions of Sections 57-91-1 through 57-91-11, and attributable to the gross proceeds of sales from sales made to a business enterprise located in a redevelopment project area under the provisions of Sections 57-91-1 through 57-91-11 (provided that such sales made to a business enterprise are made on the premises of the business enterprise), shall be deposited into the Redevelopment Project Incentive Fund as created in Section 57-91-9, as follows:

(i) For the first six (6) years in which payments are made to a developer from the Redevelopment Project Incentive Fund, one hundred percent (100%) of the diversion shall be deposited into the fund;

(ii) For the seventh year in which such payments are made to a developer from the Redevelopment Project Incentive Fund, eighty percent (80%) of the diversion shall be deposited into the fund;

(iii) For the eighth year in which such payments are made to a developer from the Redevelopment Project Incentive Fund, seventy percent (70%) of the diversion shall be deposited into the fund;

(iv) For the ninth year in which such payments are made to a developer from the Redevelopment Project Incentive Fund, sixty percent (60%) of the diversion shall be deposited into the fund; and

(v) For the tenth year in which such payments are made to a developer from the Redevelopment Project Incentive Fund, fifty percent (50%) of the funds shall be deposited into the fund.

(20) On or before August 15, 2006, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of this chapter on the gross proceeds of sales of a project as defined in Section 1 of House Bill No. 1250, 2006 Regular Session, shall be deposited, after all diversions, into the Tourism Sales Tax Incentive Fund created in Section 2 of House Bill No. 1250, 2006 Regular Session.

(21) The remainder of the amounts collected under the provisions of this chapter shall be paid into the State Treasury to the credit of the General Fund.

(22) It shall be the duty of the municipal officials of any municipality that expands its limits, or of any community that incorporates as a municipality, to notify the commissioner of that action thirty (30) days before the effective date. Failure to so notify the commissioner shall cause the municipality to forfeit the revenue that it would have been entitled to receive during this period of time when the commissioner had no knowledge of the action. If any funds have been erroneously disbursed to any municipality or any overpayment of tax is recovered by the taxpayer, the commissioner may make correction and adjust the error or overpayment with the municipality by withholding the necessary funds from any later payment to be made to the municipality.

SECTION 4. This act shall take effect and be in force from and after its passage.