House Bill 1362

AN ACT TO PROVIDE THAT WHEN THE GOVERNING AUTHORITY OF A MUNICIPALITY OR THE BOARD OF SUPERVISORS OF A COUNTY IMPLEMENTS A TOURISM TAX, THEN THE PROCEEDS OF SUCH TAX MAY BE UTILIZED BY THE MUNICIPALITY OR COUNTY FOR A SEPARATE LAW ENFORCEMENT FIRST RESPONDERS RETIREMENT FUND, WATER SYSTEM OR SEWER SANITATION SYSTEM; TO PROVIDE THAT IN ORDER FOR THE PROCEEDS TO BE UTILIZED IN SUCH MANNER, THE MUNICIPALITY OR COUNTY SHALL NOT LEVY ANY NEW SPECIAL TAXES AND THERE MUST BE A REDUCTION IN DEBT OWED BY THE MUNICIPALITY OR COUNTY; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) When the governing authority of a municipality or the board of supervisors of a county levies a special tax upon the gross proceeds from the sales of hotels, motels or restaurants, then one hundred percent (100%), less three percent (3%) thereof which shall be retained by the Department of Revenue to defray the cost of collecting the tax, may be utilized by the municipality or county, as the case may be, in any one (1) of the following areas or any combination thereof within the municipality or county:

(a) The separate law enforcement first responders retirement fund;

(b) The water system; and/or

(2) In order to utilize the proceeds of the tax as authorized under subsection (1) of this section, the municipality or county, as the case may be, shall not levy any new special taxes and there must be a reduction of debt by the municipality or county. If a new special tax is levied by the municipality or county, as prohibited by this subsection, then the previous special tax shall be permanently repealed.

(3) Any increase in debt by the municipality or county after the implementation of the special tax levy shall suspend the special tax levy until the debt falls below the level it was previously before the implementation of the special tax levy.

SECTION 2. This act shall take effect and be in force from and after its passage.