MISSISSIPPI LEGISLATURE
2020 Regular Session
To: Local and Private Legislation
By: Representatives Kinkade, Carpenter, Darnell, Hale, McCray, Morgan, Pigott, Powell
AN ACT TO AUTHORIZE THE GOVERNING AUTHORITIES OF THE CITY OF OLIVE BRANCH, MISSISSIPPI, TO LEVY A SALES TAX UPON HOTEL AND MOTEL ROOM RENTALS, WHICH SHALL BE USED TO PROMOTE THE CITY'S ROAD AND BRIDGE IMPROVEMENTS; TO PROVIDE FOR AN ELECTION ON WHETHER THE TAX MAY BE LEVIED; TO AUTHORIZE THE GOVERNING AUTHORITIES TO ISSUE BONDS FOR A TERM NOT TO EXCEED TWENTY YEARS FOR THE PURPOSE OF FUNDING ROAD AND BRIDGE IMPROVEMENTS; 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 meanings ascribed in this section unless otherwise clearly indicated by the context in which they are used:
(a) "City" means the City of Olive Branch, Mississippi.
(b) "Governing authorities" means the governing authorities of the City of Olive Branch, Mississippi.
(c) "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 hotel—like facility operated by or in connection with a hospital or medical clinic providing rooms exclusively for patients and their families.
(d) "Road and Bridge Improvements" means repairing, widening and construction of roads and bridges including, but not limited to, all necessary design, inspection, right-of-way acquisition, signalization, signage and storm water infrastructure necessary for said roads or bridges.
SECTION 2. (1) For the purpose of providing funds to promote road and bridge improvements and/or pay the principal of or interest on any bonds issued for such improvements pursuant to Section 5 of this act, the governing authorities, in their discretion, are authorized to levy and collect from every person, firm or corporation operating a hotel or motel in the city a tax, which shall be in addition to all other, taxes and assessments imposed and which shall not exceed a rate of one percent (1%) of the gross proceeds of each overnight room rental in all such hotels or motels in the city, excluding charges for food, telephone, laundry, beverages and similar charges. The tax shall not be levied upon or collected on room rentals for day meetings where the room does not serve as overnight sleeping accommodations.
(2) The tax rate levied pursuant to subsection (1) of this section when combined with the state sales tax rate and any other tax rate levied by the city or DeSoto County, Mississippi, pursuant to local and private legislation, shall not exceed a ten percent (10%) tax rate upon the gross proceeds of room rentals of hotels and motels.
(3) Persons, firms or corporations liable for the tax imposed under subsection (1) of this section shall add the amount of the levy to the sales price of the rooms and products setout in subsection (l) of this section and shall collect the amount of the tax due by them from the person receiving the services or product at the time of payment therefore.
(4) The tax shall be collected by and paid to the 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.
(5) 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.
(6) The proceeds of the tax shall not be considered by the City of Olive Branch, Mississippi, 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 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 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 fixed in the resolution. Notice of such intention and 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 Olive Branch, Mississippi, 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 Olive Branch may vote, and the ballots used in the election shall have printed thereon a brief statement of the amount and purposes of the proposed tax levy and the words "FOR THE TAX" and, on a separate line, "AGAINST THE TAX" and the voter shall vote by placing a cross (X) or check () opposite their choice on the proposition. When the results of the election shall have been canvassed and certified, the city may levy, the tax if sixty percent (60%) of the qualified electors who vote in the election vote in favor of the tax. 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 the tax.
SECTION 4. Accounting for receipts and expenditures of the fund 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 Olive Branch, Mississippi. 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. (1) For the purposes of providing funds to pay costs associated with the improvements described in Section 2 (1) of this act, the governing authorities are authorized to issue general obligation bonds of the municipality or incur other indebtedness 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 under this act.
(2) Except as otherwise provided in this section, bonds issued under this section shall be issued in accordance with the provisions of Sections 21—33—301 through 21—33—329, and Sections 31—25—1 through 31—25—107, Mississippi Code of 1972, or as allowed by other applicable law. Bonds authorized to be issued under this section shall not be included in the limitation on indebtedness imposed in Section 21—33 303, Mississippi Code of 1972, or any other limitation on indebtedness of the city. Bonds issued under the provisions of this section and income therefrom shall be exempt from all taxation in the State of Mississippi.
SECTION 6. Sections 1 through 4 of this act shall be repealed from and after July 1, 2040, with such time frame to allow sufficient time to service the debt outlined in Section 5 of this act. Any tax levied pursuant to this act may continue to be levied for such period as is necessary to service debt associated with any bonds issued pursuant to Section 5 of this act.
SECTION 7. This act shall take effect and be in force from and after its passage.