MISSISSIPPI LEGISLATURE
2014 Regular Session
To: Tourism; Ways and Means
By: Representative Moak
AN ACT TO AMEND SECTION 57-26-5, MISSISSIPPI CODE OF 1972, TO EXTEND THE AUTHORITY OF THE MISSISSIPPI DEVELOPMENT AUTHORITY TO ISSUE CERTIFICATES DESIGNATING AN ENTITY AS AN APPROVED PARTICIPANT IN THE TOURISM PROJECT SALES TAX INCENTIVE PROGRAM AND AUTHORIZING THE APPROVED PARTICIPANT TO PARTICIPATE IN THE PROGRAM; TO PROVIDE THAT SUCH CERTIFICATES SHALL NOT BE ISSUED AFTER JULY 1, 2017; TO BRING FORWARD SECTIONS 57-26-3 AND 57-26-7, MISSISSIPPI CODE OF 1972, WHICH CREATE THE TOURISM PROJECT SALES TAX INCENTIVE FUND AND PROVIDE THAT THE MISSISSIPPI DEVELOPMENT AUTHORITY MAY NOT APPROVE APPLICATIONS FOR CERTAIN PROPOSED PROJECTS AFTER JUNE 30, 2104; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 57-26-5, Mississippi Code of 1972, is amended as follows:
57-26-5. (1) The MDA shall develop, implement and administer the incentive program authorized in Sections 57-26-1 through 57-26-5 and shall promulgate rules and regulations necessary for the development, implementation and administration of such program.
(2) A person, corporation
or other entity desiring to participate in the incentive program authorized in
Sections 57-26-1 through 57-26-5 must submit an application and an application
fee in the amount of Five Thousand Dollars ($5,000.00) to the MDA. Such
application must contain (a) plans for the proposed tourism project; (b) a
detailed description of the proposed tourism project; (c) the method of
financing the proposed tourism project and the terms of such financing; (d) an
independent study that identifies the number of out-of-state visitors
anticipated to visit the project and the ratio of out-of-state visitors to in-state
visitors; and (e) any other information required by the MDA. The Executive
Director of the MDA shall review the application and determine if it qualifies
as a tourism project under this section and under the rules and regulations
promulgated pursuant to this section. If the executive director determines the
proposed tourism project qualifies as a tourism project under this section and
under the rules and regulations promulgated pursuant to this section, he shall
issue a certificate to the person, corporation or other entity designating such
person, corporation or other entity as an approved participant and authorizing
the approved participant to participate in the incentive program provided for
in Sections 57-26-1 through 57-26-5. No certificate designating an entity as
an approved participant and authorizing the approved participant to participate
in the incentive program shall be issued from and after July 1, * * *
2017.
(3) The MDA shall cause a cost benefit analysis of the tourism project to be performed by a state institution of higher learning, the university research center or some other entity approved by the MDA.
SECTION 2. Section 57-26-3, Mississippi Code of 1972, is brought forward as follows:
57-26-3. (1) (a) There is created in the State Treasury a special fund to be known as the "Tourism Project Sales Tax Incentive Fund," into which shall be deposited such money as provided in Section 27-65-75(16). 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 State 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. The 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 authorized under Sections 57-26-1 through 57-26-5.
(b) Subject to the provisions of this section, incentive payments may be made by the MDA to an approved participant that incurs approved project costs to locate a tourism project in the state. The payments to an approved participant shall be for eighty percent (80%) of the amount of sales tax revenue collected from the operation of the tourism project, after making the diversions required in Section 27-65-75(7) and (8). 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 of incentive payments that an approved participant may receive shall not exceed thirty percent (30%) of the approved project costs incurred by the approved participant for the tourism project. Expansions, enlargements or additional investments made by an approved participant will not increase authorized incentive payments certified by the MDA. 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 on the occurrence of the earlier of:
(i) The date that an aggregate amount of thirty percent (30%) of the approved project costs incurred by the approved participant for the tourism project has been paid to the approved participant; or
(ii) Fifteen (15) years after the date the tourism project opens for commercial operation.
(2) At such time as incentive payments are no longer required to be made to an approved participant, the MDA shall notify the Department of Revenue and the sales tax revenue collected from the tourism project shall no longer be deposited into the Tourism Project Sales Tax Incentive Fund. Any amounts remaining in the fund that were collected from such project shall be transferred to the State General Fund.
SECTION 3. Section 57-26-7, Mississippi Code of 1972, is brought forward as follows:
57-26-7. The MDA shall not approve any application submitted after June 30, 2014, pursuant to Section 57-26-5 for a project that includes any resort development.
SECTION 4. This act shall take effect and be in force from and after July 1, 2014.