House Bill 1702

AN ACT TO AUTHORIZE THE GOVERNING AUTHORITIES OF THE CITY OF FULTON, MISSISSIPPI, TO LEVY A TAX UPON THE GROSS PROCEEDS OF HOTELS AND MOTELS DERIVED FROM ROOM RENTALS; TO PROVIDE THAT THE REVENUE FROM THE TAX SHALL BE EXPENDED BY THE CITY OF FULTON TO PROMOTE TOURISM, RETIREMENT, ECONOMIC DEVELOPMENT, INFRASTRUCTURE AND PARKS AND RECREATION; TO PROVIDE THAT THE TAX SHALL BE COLLECTED BY THE DEPARTMENT OF REVENUE AND PAID TO THE CITY OF FULTON; TO PROVIDE FOR A REVERSE REFERENDUM ON WHETHER THE TAX MAY BE LEVIED; AND FOR RELATED PURPOSES.

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

SECTION 1. As used in this act, the following terms shall have the following meanings unless a different meaning is clearly indicated by the context in which they are used:

(a) "Governing authorities" means the governing authorities of the City of Fulton, Mississippi.

(b) "Hotel" or "motel" means any establishment engaged in the business of furnishing or providing rooms intended or designed for dwelling, lodging or sleeping purposes to transient guests, where the establishment consists of six (6) or more guest rooms. The term "hotel" or "motel" does not include any hospital, convalescent or nursing home or sanitarium, or any hotel-like facility operated by or in connection with a hospital or medical clinic providing rooms exclusively for patients and their families.

SECTION 2. (1) For the purpose of providing funds to promote tourism, retirement, economic development, infrastructure and parks and recreation, the governing authorities are authorized, in their discretion, to levy and collect a tax upon every person, firm or corporation operating a motel or hotel in the City of Fulton, at a rate not to exceed three percent (3%) of the gross proceeds from room rentals for each hotel and motel. The tax levied by this subsection shall be in addition to all other taxes and assessments imposed.

(2) Persons, firms or corporations liable for the levy imposed under subsection (1) of this section shall add the amount of the levy to the sales price of the rooms and products set out in subsection (1) of this section and shall collect, insofar as is practicable, the amount of the tax due by them from the person receiving the services or product at the time of payment therefor.

(3) The tax shall be collected by and paid to the Mississippi Department of Revenue on a form prescribed by the Department of Revenue in the manner that state sales taxes are computed, collected and paid; and full enforcement provisions and all other provisions of Chapter 65, Title 27, Mississippi Code of 1972, shall apply as necessary to the implementation and administration of this act.

(4) The proceeds of the tax, less three percent (3%) thereof which shall be retained by the Department of Revenue to defray the cost of collection, shall be paid to the governing authorities on or before the fifteenth day of the month following the month in which collected.

(5) The proceeds of the tax shall not be considered by the City of Fulton as general fund revenues but shall be dedicated to and expended solely for the purposes specified in this section.

SECTION 3. Before any tax authorized by this act may be levied, the governing authorities shall adopt a resolution declaring its intention to levy the tax, setting forth the amount of such tax and establishing the date on which the tax initially shall be levied. Notice of the proposed tax shall be published once each week for at least three (3) consecutive weeks in a newspaper having a general circulation in Fulton, Mississippi. The first publication of the notice shall be made not less than twenty-one (21) days before the date fixed in the resolution on which the tax initially is to be levied, and the last publication of the notice shall be made not more than seven (7) days before such date. If, within the time giving notice, twenty percent (20%) or one thousand five hundred (1,500), whichever is less, of the qualified electors of Fulton, Mississippi, file a written petition against the levy of such tax, then the tax shall not be levied unless authorized by a majority of the qualified electors of Fulton, Mississippi, voting at an election to be called and held for that purpose.

SECTION 4. Accounting for receipts and expenditures of the funds herein described shall be made separately from the accounting of receipts and expenditures of the general fund and any other funds of the City of Fulton. The records reflecting the receipts and expenditures of the funds prescribed in this act shall be audited annually by an independent certified public accountant, and the accountant shall make a written report of his audit to the governing authorities. The audit shall be made and completed as soon as practicable after the close of the fiscal year, and expenses of the audit shall be paid from the funds derived in accordance with this act.

SECTION 5. The governing authorities are directed to 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 6. 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.