MISSISSIPPI LEGISLATURE
2007 Regular Session
To: Ways and Means
By: Representative Mayo, Brown
AN ACT TO AUTHORIZE THE GOVERNING AUTHORITIES OF ANY MUNICIPALITY TO IMPOSE A SPECIAL SALES TAX OF NOT MORE THAN 1% ON THE GROSS PROCEEDS OF ALL SALES OR THE GROSS INCOME OF BUSINESSES IN THE MUNICIPALITY DERIVED FROM ACTIVITIES TAXED AT THE RATE OF 7% OR MORE UNDER THE MISSISSIPPI SALES TAX LAW; TO PROVIDE THAT THE SPECIAL SALES TAX SHALL NOT BE LEVIED UNLESS AUTHORIZED BY AT LEAST 3/5 OF THE VOTES CAST AT A REFERENDUM CALLED AND HELD FOR SUCH PURPOSE; TO AUTHORIZE A MUNICIPALITY TO INCUR INDEBTEDNESS IN AN AMOUNT NOT GREATER THAN AN AMOUNT FOR WHICH DEBT SERVICE IS CAPABLE OF BEING FUNDED BY THE PROCEEDS OF THE SPECIAL SALES TAX; TO PROVIDE THAT THE SPECIAL SALES TAX REVENUE COLLECTED PURSUANT TO SUCH A TAX SHALL BE USED AND EXPENDED BY THE MUNICIPALITY TO FUND CAPITAL PROJECTS; TO PROVIDE FOR THE DISCONTINUANCE OF THE SPECIAL SALES TAX UPON COMPLETION OF THE FUNDING OF THE PROJECTS FOR WHICH THE TAX WAS LEVIED; TO AUTHORIZE THE BOARD OF SUPERVISORS OF ANY COUNTY TO IMPOSE A SPECIAL SALES TAX OF NOT MORE THAN 1% ON THE GROSS PROCEEDS OF ALL SALES OR THE GROSS INCOME OF BUSINESSES IN THE COUNTY OUTSIDE THE CORPORATE BOUNDARIES OF ANY MUNICIPALITY WITHIN SUCH COUNTY DERIVED FROM ACTIVITIES TAXED AT THE RATE OF 7% OR MORE UNDER THE MISSISSIPPI SALES TAX LAW; TO PROVIDE THAT THE SPECIAL SALES TAX SHALL NOT BE LEVIED UNLESS AUTHORIZED BY AT LEAST 3/5 OF THE VOTES CAST AT A REFERENDUM CALLED AND HELD FOR SUCH PURPOSE; TO AUTHORIZE A COUNTY TO INCUR INDEBTEDNESS IN AN AMOUNT NOT GREATER THAN AN AMOUNT FOR WHICH DEBT SERVICE IS CAPABLE OF BEING FUNDED BY THE PROCEEDS OF THE SPECIAL SALES TAX; TO PROVIDE THAT THE SPECIAL SALES TAX REVENUE COLLECTED PURSUANT TO SUCH A TAX SHALL BE USED AND EXPENDED BY THE COUNTY TO FUND CAPITAL PROJECTS; TO PROVIDE FOR THE DISCONTINUANCE OF THE SPECIAL SALES TAX UPON COMPLETION OF THE FUNDING OF THE PROJECTS FOR WHICH THE TAX WAS LEVIED; TO AUTHORIZE THE BOARD OF SUPERVISORS OF ANY COUNTY TO IMPOSE A SPECIAL SALES TAX OF NOT MORE THAN 1% ON THE GROSS PROCEEDS OF ALL SALES OR THE GROSS INCOME OF BUSINESSES IN THE COUNTY INCLUDING THE CORPORATE BOUNDARIES OF ANY MUNICIPALITY WITHIN SUCH COUNTY DERIVED FROM ACTIVITIES TAXED AT THE RATE OF 7% OR MORE UNDER THE MISSISSIPPI SALES TAX LAW; TO PROVIDE THAT THE SPECIAL SALES TAX SHALL NOT BE LEVIED UNLESS AUTHORIZED BY AT LEAST 3/5 OF THE VOTES CAST AT A REFERENDUM CALLED AND HELD FOR SUCH PURPOSE; TO AUTHORIZE A COUNTY TO INCUR INDEBTEDNESS IN AN AMOUNT NOT GREATER THAN AN AMOUNT FOR WHICH DEBT SERVICE IS CAPABLE OF BEING FUNDED BY THE PROCEEDS OF THE SPECIAL SALES TAX; TO PROVIDE THAT THE SPECIAL SALES TAX REVENUE COLLECTED PURSUANT TO SUCH A TAX SHALL BE USED AND EXPENDED BY THE COUNTY TO FUND CAPITAL PROJECTS; TO PROVIDE FOR THE DISCONTINUANCE OF THE SPECIAL SALES TAX UPON COMPLETION OF THE FUNDING OF THE PROJECTS FOR WHICH THE TAX WAS LEVIED; TO AMEND SECTIONS 21-33-303 AND 19-9-5, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) Subject to the provisions of this section, the governing authorities of any municipality may impose upon all persons as a privilege for engaging or continuing in business or doing business within such municipality, a special sales tax at the rate of not more than one percent (1%) of the gross proceeds of sales or gross income of the business, as the case may be, derived from any of the activities taxed at the rate of seven percent (7%) or more under the Mississippi Sales Tax Law, Section 27-65-1 et seq. The tax levied under this section shall apply to every person making sales, delivery or installations of tangible personal property or services within any municipality which has adopted the levy authorized in this section but shall not apply to sales exempted by Sections 27-65-19, 27-65-101, 27-65-103, 27-65-105, 27-65-107, 27-65-109 and 27-65-111 of the Mississippi Sales Tax Law.
(2) Before any tax authorized under this section may be imposed, the governing authorities of the city shall adopt a resolution declaring its intention to levy the tax, setting forth the amount of the tax to be imposed, the capital project for which the revenue collected pursuant to the tax levy may be used and expended, the date upon which the tax shall become effective and calling for a referendum to be held on the question. The date of the referendum shall be set in the resolution. Notice of the referendum shall be published once each week for at least three (3) consecutive weeks in a newspaper published or having a general circulation in the county, with the first publication of the notice to be made not less than twenty-one (21) days before the date fixed in the resolution for the referendum and the last publication to be made not more than seven (7) days before the referendum. At the referendum, all qualified electors of the municipality may vote. The ballots used at the referendum shall have printed thereon a brief description of the sales tax, the amount of the sales tax levy, a description of the projects for which the tax revenue may be used and expended and the words "FOR THE LOCAL SALES TAX" and "AGAINST THE LOCAL SALES TAX" and the voter shall vote by placing a cross (X) or check mark (√) opposite his choice on the proposition. When the results of the referendum have been canvassed by the election commissioners of the municipality and certified by them to the governing authorities, it shall be the duty of such governing authorities to determine and adjudicate whether at least three-fifths (3/5) of the qualified electors who voted in the referendum voted in favor of the tax. If at least three-fifths (3/5) of the qualified electors who voted in the referendum voted in favor of the tax, the governing authorities shall adopt a resolution declaring the levy and collection of the tax provided in this section and shall set the first day of the second month following the date of such adoption as the effective date of the tax levy. A certified copy of this resolution, together with the result of the referendum, shall be furnished to the State Tax Commission not less than thirty (30) days before the effective date of the levy.
(3) The capital projects for which the revenue collected pursuant to the tax levy imposed under this section may be used and expended shall include, but not be limited to, the following:
(a) Recreational complexes;
(b) Senior centers;
(c) Community centers;
(d) Auditoriums;
(e) Libraries;
(f) Major street projects;
(g) Water and sewage systems;
(h) Gas lines; and
(i) Multipurpose buildings.
(4) (a) The special sales tax authorized by this section shall be collected by the State Tax Commission, shall be accounted for separately from the amount of sales tax collected for the state in the municipality and shall be paid to the municipality in which collected. The State Tax Commission may retain three percent (3%) of the proceeds of such tax for the purpose of defraying the costs incurred by the commission in the collection of the tax. Payments to the municipalities shall be made by the State Tax Commission on or before the fifteenth day of the month following the month in which the tax was collected.
(b) The proceeds of the special sales tax shall be placed into a separate fund apart from the municipal general fund and any other funds of the municipality, and shall be expended by the municipality solely for the purpose of paying any indebtedness or other obligation incurred or that may be incurred by the municipality for the capital projects specified in the resolution ordering the referendum.
(c) All provisions of the Mississippi Sales Tax Law applicable to filing of returns, discounts to the taxpayer, remittances to the State Tax Commission, enforced collection, rights of taxpayers, recovery of improper taxes, refunds of overpaid taxes or other provisions of law providing for imposition and collection of the state sales tax shall apply to the special sales tax authorized by this section, except where there is a conflict, in which case the provisions of this section shall control. Any damages, penalties or interest collected for the nonpayment of taxes imposed under this section, or for noncompliance with the provisions of this section, shall be paid to the municipality in which such damages, penalties or interest were collected on the same basis and in the same manner as the tax proceeds. Any overpayment of tax for any reason that has been disbursed to any municipality or any payment of the tax to any municipality in error may be adjusted by the State Tax Commission on any subsequent payment to the municipality involved pursuant to the provisions of the Mississippi Sales Tax Law. The State Tax Commission may, from time to time, make such rules and regulations not inconsistent with this section as may be deemed necessary to carry out the provisions of this section, and such rules and regulations shall have the full force and effect of law.
(d) The special sales tax shall be discontinued by the governing authorities of the municipality on the first day of the month immediately succeeding the date any indebtedness, including interest, incurred by the municipality for the projects is retired, or in the event the municipality incurs no indebtedness, the first day of the month after all obligations for the projects have been paid. Any amount remaining in the separate fund containing the proceeds of the special sales tax not necessary to retire the debt or pay any other obligations, shall be transferred to the municipal general fund.
(e) The governing authorities of a municipality may not impose a special sales tax under this section on sales that are subject to any tax levied and collected (before the date a resolution is adopted under subsection (2) of this section) under the authority of a local and private law of the State of Mississippi, and which tax is collected and paid to the State Tax Commission in the same or similar manner that state sales taxes are collected and paid.
(f) If a municipality imposing a special sales tax under this section expands its corporate boundaries, the governing authorities of the municipality may not impose the special sales tax in the annexed area unless the tax is approved at a referendum conducted, as far as is practicable, in the manner provided in subsection (2) of this section, except that only qualified electors in the annexed area may vote in the referendum. However, if a municipality imposing a special sales tax under this section expands its corporate boundaries into a county that is imposing a special sales tax under Section 2 of this act, the governing authorities of the municipality may not impose the special sales tax in the annexed area for as long as such county is imposing a special sales tax under Section 2 of this act.
(g) If a municipality imposing a special sales tax under this section contracts its corporate boundaries, the special sales tax shall continue to be imposed in the area that was in the corporate boundaries of the municipality before the contraction of such boundaries.
(h) In no event may the tax levied by this section when added to any other tax levied by Section 2, 3 or 4 of this act exceed the rate of one percent (1%) of the gross proceeds of sales or gross income of businesses, as the case may be, derived from any of the activities taxed at the rate of seven percent (7%) or more under the Mississippi Sales Tax Law, Section 27-65-1 et seq.
(5) The governing authorities of any municipality that levies a special sales tax pursuant to this section may incur indebtedness of the municipality in an aggregate principal amount that is not in excess of an amount for which debt service is capable of being funded by the proceeds of the special sales tax levied pursuant to this section. The indebtedness authorized by this subsection shall not be considered when computing any limitation of indebtedness of the municipality established by law.
SECTION 2. (1) Subject to the provisions of this section, the board of supervisors of any county may impose upon all persons as a privilege for engaging or continuing in business or doing business within such county but outside the corporate boundaries of any municipality within such county, a special sales tax at the rate of not more than one percent (1%) of the gross proceeds of sales or gross income of the business, as the case may be, derived from any of the activities taxed at the rate of seven percent (7%) or more under the Mississippi Sales Tax Law, Section 27-65-1 et seq. The tax levied under this section shall apply to every person making sales, delivery or installations of tangible personal property or services within any municipality which has adopted the levy authorized in this section but shall not apply to sales exempted by Sections 27-65-19, 27-65-101, 27-65-103, 27-65-105, 27-65-107, 27-65-109 and 27-65-111 of the Mississippi Sales Tax Law.
(2) Before any tax authorized under this section may be imposed, the board of supervisors of the county shall adopt a resolution declaring its intention to levy the tax, setting forth the amount of the tax to be imposed, the capital project for which the revenue collected pursuant to the tax levy may be used and expended, the date upon which the tax shall become effective and calling for a referendum to be held on the question. The date of the referendum shall be set in the resolution. Notice of the referendum shall be published once each week for at least three (3) consecutive weeks in a newspaper published or having a general circulation in the county, with the first publication of the notice to be made not less than twenty-one (21) days before the date fixed in the resolution for the referendum and the last publication to be made not more than seven (7) days before the referendum. At the referendum, all qualified electors of the county may vote. The ballots used at the referendum shall have printed thereon a brief description of the sales tax, the amount of the sales tax levy, a description of the projects for which the tax revenue may be used and expended and the words "FOR THE LOCAL SALES TAX" and "AGAINST THE LOCAL SALES TAX" and the voter shall vote by placing a cross (X) or check mark (√) opposite his choice on the proposition. When the results of the referendum have been canvassed by the election commissioners of the county and certified by them to the board of supervisors, it shall be the duty of the board of supervisors to determine and adjudicate whether at least three-fifths (3/5) of the qualified electors who voted in the referendum voted in favor of the tax. If at least three-fifths (3/5) of the qualified electors who voted in the referendum voted in favor of the tax, the board of supervisors shall adopt a resolution declaring the levy and collection of the tax provided in this section and shall set the first day of the second month following the date of such adoption as the effective date of the tax levy. A certified copy of this resolution, together with the result of the referendum, shall be furnished to the State Tax Commission not less than thirty (30) days before the effective date of the levy.
(3) The capital projects for which the revenue collected pursuant to the tax levy imposed under this section may be used and expended shall include, but not be limited to, the following:
(a) Recreational complexes;
(b) Senior centers;
(c) Community centers;
(d) Auditoriums;
(e) Libraries;
(f) Major street projects;
(g) Water and sewage systems;
(h) Gas lines; and
(i) Multipurpose buildings.
(4) (a) The special sales tax authorized by this section shall be collected by the State Tax Commission, shall be accounted for separately from the amount of sales tax collected for the state in the county and shall be paid to the county in which collected. The State Tax Commission may retain three percent (3%) of the proceeds of such tax for the purpose of defraying the costs incurred by the commission in the collection of the tax. Payments to the counties shall be made by the State Tax Commission on or before the fifteenth day of the month following the month in which the tax was collected.
(b) The proceeds of the special sales tax shall be placed into a separate fund apart from the county general fund and any other funds of the county, and shall be expended by the county solely for the purpose of paying any indebtedness or other obligation incurred or that may be incurred by the county for the capital projects specified in the resolution ordering the referendum.
(c) All provisions of the Mississippi Sales Tax Law applicable to filing of returns, discounts to the taxpayer, remittances to the State Tax Commission, enforced collection, rights of taxpayers, recovery of improper taxes, refunds of overpaid taxes or other provisions of law providing for imposition and collection of the state sales tax shall apply to the special sales tax authorized by this section, except where there is a conflict, in which case the provisions of this section shall control. Any damages, penalties or interest collected for the nonpayment of taxes imposed under this section, or for noncompliance with the provisions of this section, shall be paid to the county in which such damages, penalties or interest were collected on the same basis and in the same manner as the tax proceeds. Any overpayment of tax for any reason that has been disbursed to any county or any payment of the tax to any county in error may be adjusted by the State Tax Commission on any subsequent payment to the county involved pursuant to the provisions of the Mississippi Sales Tax Law. The State Tax Commission may, from time to time, make such rules and regulations not inconsistent with this section as may be deemed necessary to carry out the provisions of this section, and such rules and regulations shall have the full force and effect of law.
(d) The special sales tax shall be discontinued by the board of supervisors of the county on the first day of the month immediately succeeding the date any indebtedness, including interest, incurred by the county for projects is retired, or in the event the county incurs no indebtedness, the first day of the month after all obligations for the projects have been paid. Any amount remaining in the separate fund containing the proceeds of the special sales tax not necessary to retire the debt or pay any other obligations, shall be transferred to the county general fund.
(e) The board of supervisors of a county may not impose a special sales tax under this section on sales that are subject to any tax levied and collected (before the date a resolution is adopted under subsection (2) of this section) under the authority of a local and private law of the State of Mississippi, and which tax is collected and paid to the State Tax Commission in the same or similar manner that state sales taxes are collected and paid.
(f) If the board of supervisors of a county imposes a special sales tax under this section and a municipality annexes a part of the county, the special sales tax shall continue to be imposed in the annexed area until the board of supervisors discontinues the tax as provided in paragraph (d) of this subsection.
(g) If the board of supervisors of a county imposes a special sales tax under this section, and a municipality within the county that is not imposing a special sales tax under Section 1 of this act contracts its municipal corporate boundaries, the board of supervisors of the county may not impose a special sales tax in the de-annexed area unless the tax is approved at a referendum conducted, as far as is practicable, in the manner provided in subsection (2) of this section, except that only qualified electors in the de-annexed area may vote in such referendum.
(h) In no event may the tax levied by this section when added to any other tax levied by Section 1, 3 or 4 of this act exceed the rate of one percent (1%) of the gross proceeds of sales or gross income of businesses, as the case may be, derived from any of the activities taxed at the rate of seven percent (7%) or more under the Mississippi Sales Tax Law, Section 27-65-1 et seq.
(5) The board of supervisors of any county that levies a special sales tax pursuant to this section may incur indebtedness of the county in an aggregate principal amount that is not in excess of an amount for which debt service is capable of being funded by the proceeds of the special sales tax levied pursuant to this section. The indebtedness authorized by this subsection shall not be considered when computing any limitation of indebtedness of the county established by law.
SECTION 3. (1) Subject to the provisions of this section, the board of supervisors of any county that does not contain within such county a municipality with corporate boundaries also located in one or more other counties may, with the agreement of the governing authorities of all municipalities in the county, impose upon all persons as a privilege for engaging or continuing in business or doing business within such county (including the corporate boundaries of any municipality within the county), a special sales tax at the rate of not more than one percent (1%) of the gross proceeds of sales or gross income of the business, as the case may be, derived from any of the activities taxed at the rate of seven percent (7%) or more under the Mississippi Sales Tax Law, Section 27-65-1 et seq. The tax levied under this section shall apply to every person making sales, delivery or installations of tangible personal property or services within any county which has adopted the levy herein authorized but shall not apply to sales exempted by Sections 27-65-19, 27-65-101, 27-65-103, 27-65-105, 27-65-107, 27-65-109 and 27-65-111 of the Mississippi Sales Tax Law.
(2) Before any tax authorized under this section may be imposed, the board of supervisors of the county shall adopt a resolution declaring its intention to levy the tax, setting forth the amount of the tax to be imposed, the capital project for which the revenue collected pursuant to the tax levy may be used and expended, the date upon which the tax shall become effective and calling for a referendum to be held on the question; however, the board of supervisors may call a referendum only after entering into a joint agreement with the governing authorities of each municipality in the county consenting to the calling of a countywide referendum on the question of the special sales tax levy. The date of the referendum shall be set in the resolution. Notice of the referendum shall be published once each week for at least three (3) consecutive weeks in a newspaper published or having a general circulation in the county, with the first publication of the notice to be made not less than twenty-one (21) days before the date fixed in the resolution for the referendum and the last publication to be made not more than seven (7) days before the referendum. At the referendum, all qualified electors of the county may vote. The ballots used at the referendum shall have printed thereon a brief description of the sales tax, the amount of the sales tax levy, a description of the projects for which the tax revenue may be used and expended and the words "FOR THE LOCAL SALES TAX" and "AGAINST THE LOCAL SALES TAX" and the voter shall vote by placing a cross (X) or check mark (√) opposite his choice on the proposition. When the results of the referendum have been canvassed by the election commissioners of the county and certified by them to the board of supervisors, it shall be the duty of the board of supervisors to determine and adjudicate whether at least three-fifths (3/5) of the qualified electors who voted in the referendum voted in favor of the tax. If at least three-fifths (3/5) of the qualified electors who voted in the referendum voted in favor of the tax, the board of supervisors shall adopt a resolution declaring the levy and collection of the tax provided in this section and shall set the first day of the second month following the date of such adoption as the effective date of the tax levy. A certified copy of this resolution, together with the result of the referendum, shall be furnished to the State Tax Commission not less than thirty (30) days before the effective date of the levy.
(3) The capital projects for which the revenue collected pursuant to the tax levy imposed under this section may be used and expended shall include, but not be limited to, the following:
(a) Recreational complexes;
(b) Senior centers;
(c) Community centers;
(d) Auditoriums;
(e) Libraries;
(f) Major street projects;
(g) Water and sewage systems;
(h) Gas lines; and
(i) Multipurpose buildings.
(4) (a) The special sales tax authorized by this section shall be collected by the State Tax Commission, shall be accounted for separately from the amount of sales tax collected for the state in the county and shall be paid to the county in which collected. The State Tax Commission may retain three percent (3%) of the proceeds of such tax for the purpose of defraying the costs incurred by the commission in the collection of the tax. Payments to the counties shall be made by the State Tax Commission on or before the fifteenth day of the month following the month in which the tax was collected.
(b) The proceeds of the special sales tax shall be placed into a separate fund apart from the county general fund and any other funds of the county, and shall be expended by the county solely for the purpose of paying any indebtedness or other obligation incurred or that may be incurred by the county for the capital projects specified in the resolution ordering the referendum.
(c) All provisions of the Mississippi Sales Tax Law applicable to filing of returns, discounts to the taxpayer, remittances to the State Tax Commission, enforced collection, rights of taxpayers, recovery of improper taxes, refunds of overpaid taxes or other provisions of law providing for imposition and collection of the state sales tax shall apply to the special sales tax authorized by this section, except where there is a conflict, in which case the provisions of this section shall control. Any damages, penalties or interest collected for the nonpayment of taxes imposed under this section, or for noncompliance with the provisions of this section, shall be paid to the county in which such damages, penalties or interest were collected on the same basis and in the same manner as the tax proceeds. Any overpayment of tax for any reason that has been disbursed to any county or any payment of the tax to any county in error may be adjusted by the State Tax Commission on any subsequent payment to the county involved pursuant to the provisions of the Mississippi Sales Tax Law. The State Tax Commission may, from time to time, make such rules and regulations not inconsistent with this section as may be deemed necessary to carry out the provisions of this section, and such rules and regulations shall have the full force and effect of law.
(d) The special sales tax shall be discontinued by the board of supervisors of the county on the first day of the month immediately succeeding the date any indebtedness, including interest, incurred by the county for the capital projects is retired, or in the event the county incurs no indebtedness, the first day of the month after all obligations for the capital projects have been paid. Any amount remaining in the separate fund containing the proceeds of the special sales tax not necessary to retire the debt or pay any other obligations, shall be transferred to the county general fund.
(e) The board of supervisors of a county may not impose a special sales tax under this section on sales that are subject to any tax levied and collected (before the date a resolution is adopted under subsection (2) of this section) under the authority of a local and private law of the State of Mississippi, and which tax is collected and paid to the State Tax Commission in the same or similar manner that state sales taxes are collected and paid.
(f) In no event may the tax levied by this section when added to any other tax levied by Section 1, 2 or 4 of this act exceed the rate of one percent (1%) of the gross proceeds of sales or gross income of businesses, as the case may be, derived from any of the activities taxed at the rate of seven percent (7%) or more under the Mississippi Sales Tax Law, Section 27-65-1 et seq.
(5) The board of supervisors of any county that levies a special sales tax pursuant to this section may incur indebtedness of the county in an aggregate principal amount that is not in excess of an amount for which debt service is capable of being funded by the proceeds of the special sales tax levied pursuant to this section. The indebtedness authorized by this subsection shall not be considered when computing any limitation of indebtedness of the county established by law.
SECTION 4. (1) Subject to the provisions of this section, the board of supervisors of any county that contains within such county any municipality with corporate boundaries also located within one or more other counties may impose upon all persons as a privilege for engaging or continuing in business or doing business within such county (including the corporate boundaries of any municipality located within the county and such other county or counties and including the corporate boundaries of any municipality located completely within the county), a special sales tax at the rate of not more than one percent (1%) of the gross proceeds of sales or gross income of the business, as the case may be, derived from any of the activities taxed at the rate of seven percent (7%) or more under the Mississippi Sales Tax Law, Section 27-65-1 et seq. The tax levied under this section shall apply to every person making sales, delivery or installations of tangible personal property or services but shall not apply to sales exempted by Sections 27-65-19, 27-65-101, 27-65-103, 27-65-105, 27-65-107, 27-65-109 and 27-65-111 of the Mississippi Sales Tax Law.
(2) Before any tax authorized under this section may be imposed, the board of supervisors of the county shall adopt a resolution declaring its intention to levy the tax, setting forth the amount of the tax to be imposed, the capital project for which the revenue collected pursuant to the tax levy may be used and expended, the date upon which the tax shall become effective and calling for a referendum to be held on the question. Before a referendum may be called on the question of the special sales tax levy, a joint agreement must be entered into by the board of supervisors of the county proposing to levy the special sales tax ("initiating county"), the governing authorities of each municipality with corporate boundaries located within the initiating county and also located within one or more other counties and in which municipality the board of supervisors of the initiating county proposes to levy the tax, and the board of supervisors of all other counties in which the corporate boundaries of any such municipality located within the initiating county also are located, consenting to the calling of a referendum in each of the counties in which the municipal corporate boundaries of any such municipality are located. However, the board of supervisors of the initiating county may propose to exclude one or more municipalities with corporate boundaries located within the county and also located within one or more other counties from the special sales tax levy and, in such case, it shall not be necessary for the other county or counties in which the corporate boundaries of an excluded municipality are located to enter into the joint agreement before a referendum may be called. The special sales tax may not be levied within the corporate boundaries of such an excluded municipality regardless of the results of a referendum. The date of the referendum shall be set in the resolution. Notice of the referendum shall be published once each week for at least three (3) consecutive weeks in a newspaper published or having a general circulation in the county, with the first publication of the notice to be made not less than twenty-one (21) days before the date fixed in the resolution for the referendum and the last publication to be made not more than seven (7) days before the referendum. At the referendum, all qualified electors of the county may vote. The ballots used at the referendum shall have printed thereon a brief description of the sales tax, the amount of the sales tax levy, a description of the projects for which the tax revenue may be used and expended and the words "FOR THE LOCAL SALES TAX" and "AGAINST THE LOCAL SALES TAX" and the voter shall vote by placing a cross (X) or check mark (√) opposite his choice on the proposition. When the results of the referendum have been canvassed by the election commissioners of the county and certified by them to the board of supervisors, it shall be the duty of the board of supervisors to determine and adjudicate whether at least three-fifths (3/5) of the qualified electors who voted in the referendum voted in favor of the tax. If at least three-fifths (3/5) of the qualified electors who voted in the referendum voted in favor of the tax, the board of supervisors shall adopt a resolution declaring the levy and collection of the tax provided in this section and shall set the first day of the second month following the date of such adoption as the effective date of the tax levy. A certified copy of this resolution, together with the result of the referendum, shall be furnished to the State Tax Commission not less than thirty (30) days before the effective date of the levy.
(3) The capital projects for which the revenue collected pursuant to the tax levy imposed under this section may be used and expended shall include, but not be limited to, the following:
(a) Recreational complexes;
(b) Senior centers;
(c) Community centers;
(d) Auditoriums;
(e) Libraries;
(f) Major street projects;
(g) Water and sewage systems;
(h) Gas lines; and
(i) Multipurpose buildings.
(4) (a) The special sales tax authorized by this section shall be collected by the State Tax Commission, shall be accounted for separately from the amount of sales tax collected for the state in the county and shall be paid to the county in which collected. The State Tax Commission may retain three percent (3%) of the proceeds of such tax for the purpose of defraying the costs incurred by the commission in the collection of the tax. Payments to the counties shall be made by the State Tax Commission on or before the fifteenth day of the month following the month in which the tax was collected.
(b) The proceeds of the special sales tax shall be placed into a separate fund apart from the county general fund and any other funds of the county, and shall be expended by the county solely for the purpose of paying any indebtedness or other obligation incurred or that may be incurred by the county for the capital projects specified in the resolution ordering the referendum.
(c) All provisions of the Mississippi Sales Tax Law applicable to filing of returns, discounts to the taxpayer, remittances to the State Tax Commission, enforced collection, rights of taxpayers, recovery of improper taxes, refunds of overpaid taxes or other provisions of law providing for imposition and collection of the state sales tax shall apply to the special sales tax authorized by this section, except where there is a conflict, in which case the provisions of this section shall control. Any damages, penalties or interest collected for the nonpayment of taxes imposed under this section, or for noncompliance with the provisions of this section, shall be paid to the county in which such damages, penalties or interest were collected on the same basis and in the same manner as the tax proceeds. Any overpayment of tax for any reason that has been disbursed to any county or any payment of the tax to any county in error may be adjusted by the State Tax Commission on any subsequent payment to the county involved pursuant to the provisions of the Mississippi Sales Tax Law. The State Tax Commission may, from time to time, make such rules and regulations not inconsistent with this section as may be deemed necessary to carry out the provisions of this section, and such rules and regulations shall have the full force and effect of law.
(d) The special sales tax shall be discontinued by the board of supervisors of the county on the first day of the month immediately succeeding the date any indebtedness, including interest, incurred by the county for the capital projects is retired, or in the event the county incurs no indebtedness, the first day of the month after all obligations for the capital projects have been paid. Any amount remaining in the separate fund containing the proceeds of the special sales tax not necessary to retire the debt or pay any other obligations, shall be transferred to the county general fund.
(e) The board of supervisors of a county may not impose a special sales tax under this section on sales that are subject to any tax levied and collected (before the date a resolution is adopted under subsection (2) of this section) under the authority of a local and private law of the State of Mississippi, and collected and paid to the State Tax Commission in the same or similar manner that state sales taxes are collected and paid.
(f) In no event may the tax levied by this section when added to any other tax levied by Section 1, 2 or 3 of this act exceed the rate of one percent (1%) of the gross proceeds of sales or gross income of businesses, as the case may be, derived from any of the activities taxed at the rate of seven percent (7%) or more under the Mississippi Sales Tax Law, Section 27-65-1 et seq.
(5) The board of supervisors of any county that levies a special sales tax pursuant to this section may incur indebtedness of the county in an aggregate principal amount that is not in excess of an amount for which debt service is capable of being funded by the proceeds of the special sales tax levied pursuant to this section. The indebtedness authorized by this subsection shall not be considered when computing any limitation of indebtedness of the county established by law.
SECTION 5. Section 21-33-303, Mississippi Code of 1972, is amended as follows:
21-33-303. No municipality shall hereafter issue bonds secured by a pledge of its full faith and credit for the purposes authorized by law in an amount which, when added to the then outstanding bonded indebtedness of such municipality, shall exceed either (a) fifteen percent (15%) of the assessed value of the taxable property within such municipality, according to the last completed assessment for taxation, or (b) ten percent (10%) of the assessment upon which taxes were levied for its fiscal year ending September 30, 1984, whichever is greater. In computing such indebtedness, there may be deducted all bonds or other evidences of indebtedness, heretofore or hereafter issued, for school, water, sewerage systems, gas, and light and power purposes and for the construction of special improvements primarily chargeable to the property benefited, or for the purpose of paying the municipality's proportion of any betterment program, a portion of which is primarily chargeable to the property benefited. However, in no case shall any municipality contract any indebtedness which, when added to all of the outstanding general obligation indebtedness, both bonded and floating, shall exceed either (a) twenty percent (20%) of the assessed value of all taxable property within such municipality according to the last completed assessment for taxation or (b) fifteen percent (15%) of the assessment upon which taxes were levied for its fiscal year ending September 30, 1984, whichever is greater. Nothing herein contained shall be construed to apply to contract obligations in any form heretofore or hereafter incurred by any municipality which are subject to annual appropriations therefor, or to bonds heretofore issued by any municipality for school purposes, or to contract obligations in any form heretofore or hereafter incurred by any municipality which are payable exclusively from the revenues of any municipally-owned utility, or to bonds issued by any municipality under the provisions of Sections 57-1-1 through 57-1-51, or to any special assessment improvement bonds issued by any municipality under the provisions of Sections 21-41-1 through 21-41-53, or to any indebtedness incurred under Section 55-23-8, or to any indebtedness incurred under Section 1 of House Bill
No. 440, 2007 Regular Session.
All bonds issued prior to July 1, 1990, pursuant to this chapter by any municipality for the purpose of the constructing, replacing, renovating or improving wastewater collection and treatment facilities in order to comply with an administrative order of the Mississippi Department of Natural Resources issued pursuant to the Federal Water Pollution Control Act and amendments thereto, are hereby exempt from the limitation imposed by this section if the governing body of the municipality adopts an order, resolution or ordinance to the effect that the rates paid by the users of such facilities shall be increased to the extent necessary to provide sufficient funds for the payment of the principal of and interest on such bonds as each respectively becomes due and payable as well as the necessary expenses in connection with the operation and maintenance of such facilities.
SECTION 6. Section 19-9-5, Mississippi Code of 1972, is amended as follows:
19-9-5. No county shall hereafter issue bonds secured by a pledge of its full faith and credit for the purposes authorized by law in an amount which, when added to the then outstanding bonds of such county, shall exceed either (a) fifteen percent (15%) of the assessed value of the taxable property within such county according to the last completed assessment for taxation, or (b) fifteen percent (15%) of the assessment upon which taxes were levied for its fiscal year ending September 30, 1984, whichever is greater.
However, any county in the state which shall have experienced washed-out or collapsed bridges on the public roads of the county for any cause or reason may hereafter issue bonds for bridge purposes as now authorized by law in an amount which, when added to the then outstanding general obligation bonds of such county, shall not exceed either (a) twenty percent (20%) of the assessed value of the taxable property within such county according to the last completed assessment for taxation or (b) fifteen percent (15%) of the assessment upon which taxes were levied for its fiscal year ending September 30, 1984, whichever is greater.
Provided further, in computing such indebtedness, there may be deducted all bonds or other evidences of indebtedness heretofore or hereafter issued, for the construction of hospitals, ports or other capital improvements which are payable primarily from the net revenue to be generated from such hospital, port or other capital improvement, which revenue shall be pledged to the retirement of such bonds or other evidences of indebtedness, together with the full faith and credit of the county. However, in no case shall any county contract any indebtedness payable in whole or in part from proceeds of ad valorem taxes which, when added to all of the outstanding general obligation indebtedness, both bonded and floating, shall exceed either (a) twenty percent (20%) of the assessed value of all taxable property within such county according to the last completed assessment for taxation, or (b) fifteen percent (15%) of the assessment upon which taxes were levied for its fiscal year ending September 30, 1984, whichever is greater. Nothing herein contained shall be construed to apply to contract obligations in any form heretofore or hereafter incurred by any county which are subject to annual appropriations therefor, or to bonds heretofore or hereafter issued by any county for school purposes, or to bonds issued by any county under the provisions of Sections 57-1-1 through 57-1-51, or to any indebtedness incurred under Section 55-23-8, or to bonds issued under Section 57-75-37, or to any indebtedness incurred under Section 2, 3 or 4 of House Bill No. 440, 2007 Regular Session.
SECTION 7. It is the intent of the Legislature that the amount of state general funds appropriated to the State Tax Commission shall not be reduced because of funds collected by the commission under Sections 1, 2, 3 and/or 4 of this act.
SECTION 8. Sections 1 through 4 of this act shall be known and may be cited as the "Mississippi Optional Sales Tax Act."
SECTION 9. The Attorney General of the State of Mississippi 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 10. 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.