House Bill 1658

AN ACT TO AUTHORIZE THE GOVERNING AUTHORITIES OF THE CITY OF CLINTON, MISSISSIPPI, TO IMPOSE A SPECIAL SALES TAX OF NOT MORE THAN ONE PERCENT ON THE GROSS PROCEEDS OF ALL SALES OR THE GROSS INCOME OF BUSINESSES IN THE CITY DERIVED FROM ACTIVITIES TAXED AT THE RATE OF SEVEN PERCENT UNDER THE MISSISSIPPI SALES TAX LAW; TO PROVIDE THAT THE SPECIAL SALES TAX SHALL NOT BE LEVIED UNLESS AUTHORIZED BY AT LEAST SIXTY PERCENT OF THE VOTES CAST AT AN ELECTION CALLED AND HELD FOR SUCH PURPOSE; TO PROVIDE THAT THE REVENUE COLLECTED FROM THE SPECIAL SALES TAX SHALL BE USED AND EXPENDED BY THE CITY SOLELY TO FUND THE ESTABLISHMENT OF STORM DRAINAGE OR SEWERAGE SYSTEMS, CONSTRUCTION, REPAIR, REHABILITATION, AND RECONSTRUCTION OF ROADWAYS, SIDEWALKS, DRIVEWAYS, PARKWAYS, WALKWAYS OR PUBLIC PARKING FACILITIES; AND FOR RELATED PURPOSES; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) The governing authorities of the City of Clinton, Mississippi, may impose upon all persons as a privilege for engaging or continuing in business or doing business within the city, a special sales tax at the rate of not more than one percent (1%) of the gross proceeds of sales or gross income of the business, as the case may be, derived from any of the activities taxed at the rate of seven percent (7%) under the Mississippi Sales Tax Law, Section 27-65-1 et seq.

(2) The tax levied under this act shall apply to every person making sales, delivery or installations of tangible personal property or services within the city but shall not apply to:

(a) 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; and

(b) Sales that are subject to any tax levied and collected (before the date a resolution is adopted under Section 2 of this act) under the authority of a local and private law of the State of Mississippi, and which tax is collected and paid to the Department of Revenue in the same or similar manner that state sales taxes are collected and paid.

SECTION 2. Before any tax authorized under this act may be imposed, the governing authorities shall adopt a resolution declaring their intention to levy the tax, setting forth the amount of the tax to be imposed, the purpose for which the revenue collected pursuant to the tax levy may be used and expended, the date upon which the tax shall become effective 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 Clinton, 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 City of Clinton may vote. The ballots used at the election shall have printed thereon a brief description of the special sales tax, the amount of the special sales tax levy, a description for which the special sales tax revenue may be used and expended and the words "FOR THE LOCAL SALES TAX" and "AGAINST THE LOCAL SALES TAX" and the voter shall vote by placing a cross (x) or a check mark (ü) opposite his choice on the proposition. When the results of the election have been canvassed by the election commissioners of the city and certified by them to the governing authorities, it shall be the duty of the governing authorities to determine and adjudicate whether at least sixty percent (60%) of the qualified electors who voted in the election voted in favor of the tax. If at least sixty percent (60%) 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 authorized by 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 results 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 and shall be accounted for separately from the amount of sales tax collected for the state in the City of Clinton. 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 the tax was collected.

(2) The proceeds of the special sales tax shall be placed into a separate fund apart from the municipal general fund and any other funds of the City of Clinton, and shall be expended by the governing authorities solely for the purpose of establishing storm drainage or sewerage systems; the construction, repair, rehabilitation and reconstruction of roadways, sidewalks, driveways, parkways, walkways or public parking facilities within the corporate limits of the city.

(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 or other provisions of law providing for imposition 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 or any subsequent payment to the city. The Department of Revenue may, from time to time, make such rules and regulations not inconsistent with this act as may be deemed necessary to carry out the provisions of this act, and such rules and regulations shall have the full force and effect of law.

SECTION 4. This act shall take effect and be in force from and after its passage.