House Bill 1442

AN ACT TO AMEND SECTION 75-76-177, MISSISSIPPI CODE OF 1972, TO IMPOSE AN ADDITIONAL GAMING LICENSE FEE IN THE AMOUNT OF TWO PERCENT OF ALL GROSS REVENUE OF A GAMING LICENSEE PER CALENDAR MONTH; TO AMEND SECTION 75-76-129, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE ADDITIONAL GAMING LICENSE FEE SHALL NOT BE DEPOSITED INTO THE GENERAL FUND, BUT SHALL BE DEPOSITED INTO A SPECIAL FUND; TO CREATE A NEW SECTION TO ESTABLISH A SPECIAL FUND TO BE COMPRISED OF MONIES FROM THE ADDITIONAL GAMING LICENSE FEE AND TO PROVIDE THAT SUCH MONIES SHALL BE USED TO ASSIST IN PAYING THE COSTS OF CONSTRUCTING, IMPROVING AND MAINTAINING STATE AID ROADS IN ALL COUNTIES OF THE STATE; 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) 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, 2007, 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 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)(c), and (c) the additional gaming license 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. 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. The avails of the additional gaming license fee imposed under Section 75-76-177(2) shall be deposited by the State Tax Commission into the special fund created in Section 3 of House Bill No.____, 2007 Regular Session.

[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 and the additional gaming license 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. The avails of the additional gaming license fee imposed under Section 75-76-177(2) shall be deposited by the State Tax Commission into the special fund created in Section 3 of House Bill No.____, 2007 Regular Session.

SECTION 3. (1) There is created in the State Treasury a special fund, to be designated as the "Special Gaming Fund to Assist in State Aid Road Construction" to the credit of the Office of State Aid Road Construction. The special fund shall be comprised of the monies required to be deposited into the fund under Section 75-76-129, and any other funds that may be made available for the fund by the Legislature. The avails of the additional gaming license fee imposed under Section 75-76-177(2) shall be deposited by the State Tax Commission into the special fund. The fund shall be maintained by the State Treasurer as a special fund, separate and apart from the General Fund of the state.

(2) Monies in the fund shall be expended by the Office of State Aid Road Construction, upon appropriation by the Legislature, to assist in paying the costs of constructing, improving and maintaining state aid roads in all counties of the state, with each county receiving an equal benefit as all other counties. Unexpended amounts remaining in the special 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 special fund.

SECTION 4. The provisions of Section 3 of this act shall be codified in Chapter 76, Title 75, Mississippi Code of 1972.

SECTION 5. This act shall take effect and be in force from and after July 1, 2007.