Senate Bill 2863

AN ACT TO AUTHORIZE THE GOVERNING AUTHORITIES OF THE CITY OF CORINTH, MISSISSIPPI, TO IMPOSE A SPECIAL SALES TAX AT A RATE NOT TO EXCEED 1/4 OF 1% ON THE GROSS PROCEEDS OF SALES OR GROSS INCOME BUSINESSES IN THE CITY FROM ACTIVITIES TAXED AT THE RATE OF 7% OR MORE UNDER THE MISSISSIPPI SALES TAX LAW; TO PROVIDE FOR AN ELECTION ON THE QUESTION OF IMPOSING THE SPECIAL SALES TAX; TO AUTHORIZE THE CITY TO INCUR INDEBTEDNESS IN AN AMOUNT NOT GREATER THAN AN AMOUNT WHOSE DEBT SERVICE IS CAPABLE OF BEING FUNDED BY THE REVENUE FROM THE SPECIAL SALES TAX; TO PROVIDE THAT REVENUE COLLECTED FROM THE SPECIAL SALES TAX MUST BE EXPENDED BY THE CITY ONLY TO FUND IMPROVEMENTS, REPAIRS, RESTORATION, SURFACING, AND RESURFACING PORTIONS OF SHILOH ROAD, HARPER ROAD AND TATE STREET AND RELATED INFRASTRUCTURE; AND FOR RELATED PURPOSES.

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

SECTION 1. The governing authorities of the City of Corinth, Mississippi, in their discretion, may impose upon all persons as a privilege for engaging or continuing in business or doing business within the City of Corinth, Mississippi, a special sales tax at the rate of not more than one-fourth of one percent (1/4 of 1%) of the gross proceeds of sales and 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., Mississippi Code of 1972, as provided in this section. The tax levied by this section shall apply to every person making sales, delivery or installations of tangible personal property or service within the city, 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.

SECTION 2. Before the tax authorized by this act may be imposed, the governing authorities of the City of Corinth shall adopt a resolution declaring its intention to levy the tax, setting forth the amount of the tax to be imposed, the purposes for which the revenue collected pursuant to the tax levy may be used and expended, the date upon which the tax shall become effective, the date upon which it shall be repealed and calling for an election to be held on the question. The date of the election shall be set in the resolution. Notice of the election shall be published once each week for at least three (3) consecutive weeks in a newspaper published or having a general circulation in the City of Corinth 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 election and the last publication to be made not more than seven (7) days before the election. At the election all qualified electors of the municipality may vote. The ballots used at the election shall have printed thereon a brief description of the sales tax, the amount of the sales tax levy, a description of the purposes 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 voters shall vote by placing a cross (X) or check mark (ü) opposite his or her choice on the proposition. When the results of the election have been canvassed by the election commissioners of the City of Corinth 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 election voted in favor of the tax. If at least three-fifths (3/5) of the qualified electors who voted in the election voted in favor of the tax, the governing authorities shall adopt a resolution declaring the levy and collection of the tax provided in this act 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 election, shall be furnished to the Department of Revenue not less than thirty (30) days before the effective date of the levy.

SECTION 3. (1) The special sales tax authorized by this act shall be collected by the Department of Revenue, shall be accounted for separately from the amount of sales tax collected for the state in the city and shall be paid to the city. Payments to the City of Corinth are to be made by the Department of Revenue on or before the fifteenth day of the month following the month in which the tax was collected.

(2) (a) The proceeds of the special sales tax shall be placed into a separate fund apart from the city general fund and any other funds of the City of Corinth, and shall be expended by the city solely to fund the cost of improvements, repairs, restoration, surfacing, resurfacing and upgrading portions of Shiloh Road, Harper Road and Tate Street and work upon adjacent sidewalks, related utilities, drainage infrastructure, engineering and planning, payment of professional fees, bond costs and fees, acquisition of materials, acquisition of easements and rights-of-way, and payment of principal, interest and costs in connection with these projects, and/or for the purpose of paying any indebtedness or other obligation that the city may incur in connection with such projects including, but not limited to, issuance and retirement of bonds, specified in the resolution ordering the election.

(b) The tax authorized to be levied by this act shall cease to be levied the month following completion of the projects described in this subsection or nine (9) years after the imposition of the tax authorized by this section, whichever comes first. The city shall notify the Department of Revenue if the projects are completed prior to the expiration of the nine-year period.

(3) All provisions of the Mississippi Sales Tax Law applicable to filing of returns, discounts to the taxpayer, remittances to the Department of Revenue, enforced collection, rights of taxpayers, recovery of improper taxes, refunds of overpaid taxes and other provisions of law providing for impositions and collection of the state sales tax shall apply to the special sales tax authorized by this act, except where there is a conflict, in which case the provisions of this act shall control. Any damages, penalties or interest collected for the nonpayment of taxes imposed under this act, or for noncompliance with the provisions of this act, shall be paid to the city 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 the city or any payment of the tax to the city in error may be adjusted by the Department of Revenue on any subsequent payment to the city pursuant to the provisions of the Mississippi Sales Tax Law. The Department of Revenue, from time to time, may make such rules and regulations not inconsistent with this act as may be deemed necessary to carry out its provisions, and such rules and regulations shall have the full force and effect of law.

SECTION 4. The governing authorities of the City of Corinth may incur indebtedness of the city 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 act. The indebtedness authorized by this section shall not be considered when computing any limitation of indebtedness of the city established by law.

SECTION 5. Accounting for receipts and expenditures of the funds described in this act shall be made separately from the accounting of receipts and expenditures of the general fund and any other funds of the City of Corinth. 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 of the city. 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.

SECTION 6. This act shall take effect and be in force from and after its passage.