Senate Bill 3032

AN ACT TO AUTHORIZE THE GOVERNING AUTHORITIES OF THE CITY OF GAUTIER, MISSISSIPPI, TO LEVY A TAX UPON THE GROSS PROCEEDS OF SALES OF RESTAURANTS AND UPON THE GROSS SALES OF HOTELS AND MOTELS DERIVED FROM ROOM RENTALS; TO PROVIDE THAT THE REVENUE FROM THE TAX SHALL BE EXPENDED BY THE CITY OF GAUTIER FOR THE PURPOSE OF PROVIDING FUNDS TO IMPROVE PARKS AND RECREATION FACILITIES FOR THE PURPOSE OF TOURISM AND ECONOMIC DEVELOPMENT WITHIN THE CITY; TO PROVIDE THAT THE TAX SHALL BE COLLECTED BY THE DEPARTMENT OF REVENUE AND PAID TO THE CITY OF GAUTIER; 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 have the meanings ascribed to them in this section unless the context clearly indicates otherwise:

(a) "City" means the City of Gautier, Mississippi.

(b) "Governing authorities" means the governing authorities of the City of Gautier, Mississippi.

(d) "Restaurant" means all places within the corporate limits of the city where prepared food and beverages are sold for consumption, whether such food is consumed on the premises or not. The term "restaurant" does not include any: school; hospital; convalescent or nursing home; restaurant-like facility operated by or in connection with a school, hospital, medical clinic, convalescent or nursing home providing food for students, patients, visitors or their families; or convenience store or service station where the sale of prepared food constitutes less than fifty percent (50%) of the gross sales.

(e) "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, which establishment consists of six (6) or more guest rooms, and does not encompass 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 improve parks and recreation facilities for the purpose of tourism and economic development within the city, the governing authorities of the City of Gautier, Mississippi, in their discretion, may levy, assess and collect a tax from persons, firms or corporation specified in this subsection, a tax, which shall be in addition to all other taxes or assessments imposed. The tax shall be imposed as follows:

(a) Upon every person, firm or corporation operating a restaurant or such other business in the City of Gautier, Mississippi, where prepared food and drink is sold to the public, at a rate not to exceed one percent (1%) of the gross proceeds of the sales of such restaurant or business.

(b) Upon every person, firm or corporation operating a hotel or motel in the City of Gautier, Mississippi, at a rate not to exceed one percent (1%) of the gross proceeds of sales from room rentals for each such hotel or motel.

(2) Persons, firms, corporations or other entities liable for the tax imposed under subsection (1) of this section shall add the amount of the tax to the sales price of the food and beverages and shall collect, insofar as practicable, the amount of the tax due from the person purchasing the food or beverages at the time of payment therefor.

SECTION 3. Before the tax authorized by this act may be imposed, the governing authorities shall adopt a resolution declaring their intention to levy the tax, setting forth the amount of such tax and establishing the date on which this tax initially shall be levied and collected. Notice of the proposed tax levy shall be published once each week for at least three (3) consecutive weeks in a newspaper having a general circulation in the city. 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 governing authorities propose to levy the tax, and the last publication of the notice shall be made not more than seven (7) days before that date. If, within the time of giving notice, twenty percent (20%) or fifteen hundred (1500), whichever is less, of the qualified electors of the city 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 the city, voting at an election to be called and held for that purpose. At least thirty (30) days before the effective date of the tax provided in this section, the governing authorities shall furnish to the Department of Revenue a certified copy of the resolution evidencing such tax.

SECTION 4. (1) On or before the fifteenth day of the month preceding the date on which the city will begin to levy the tax authorized under Section 2 of this act, the governing authorities shall give written notification to the Commissioner of Revenue of the date on which the tax will become effective.

(2) The tax must be collected by and paid to the Department of Revenue in the same manner that state sales taxes are computed, collected and paid, and the full enforcement provisions and all other provisions of Chapter 65, Title 27, Mississippi Code of 1972, will apply as necessary for the implementation of this act.

(3) Except for any amount retained by the Department of Revenue under Section 27-3-58, Mississippi Code of 1972, the revenue from the special tax collected under this act must be paid to the city on or before the fifteenth day of the month following the month in which collected.

(4) Accounting for receipts and expenditures of the revenue from the tax shall be made separately from the accounting of receipts and expenditures of the general fund and any other funds of the city. The records reflecting the receipts and expenditures of the revenue from the tax 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 pursuant to this act.

(5) The proceeds of the tax may not be considered by the city as general fund revenues but must be placed into a special fund apart from the city general fund and any other funds and expended by the city strictly for the purposes prescribed under Section 2 of this act.

SECTION 5. This act shall be repealed from and after July 1, 2016.

SECTION 6. The governing authorities of the City of Gautier, Mississippi, 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 7. 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.