Senate Bill 3216

AN ACT TO AUTHORIZE THE GOVERNING AUTHORITIES OF THE TOWN OF WALNUT, MISSISSIPPI, TO LEVY A SPECIAL TAX OF NOT MORE THAN 3% UPON THE GROSS PROCEEDS OF HOTELS AND MOTELS DERIVED FROM ROOM RENTALS AND TO LEVY A SPECIAL TAX OF NOT MORE THAN 3% UPON THE GROSS PROCEEDS OF SALES OF RESTAURANTS, FOR THE PURPOSE OF PROVIDING FUNDS TO PROMOTE, CONSTRUCT, FINANCE, OPERATE, EQUIP, LEASE, AND MAINTAIN EXISTING AND NEW PARKS AND RECREATION FACILITIES AND EQUIPMENT WITHIN THE TOWN; TO PROVIDE FOR AN ELECTION ON WHETHER SUCH SPECIAL TAX MAY BE LEVIED; TO PROVIDE FOR THE ISSUANCE AND REPAYMENT OF DEBT RELATED TO PARKS AND RECREATION WITHIN THE TOWN FROM THE PROCEEDS OF THE SPECIAL TAX; TO PROVIDE FOR THE REFUNDING OR RESTRUCTURING OF DEBT PRESENTLY OUTSTANDING AND RELATED TO PARKS AND RECREATION WITHIN THE TOWN FROM THE PROCEEDS OF THE SPECIAL TAX; TO AUTHORIZE THE TOWN TO LEASE AND LEASE BACK PROPERTY TO PROMOTE PARKS AND RECREATION; 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 the following meanings, unless a different meaning is clearly indicated by the context in which the terms are used:

(a) "Governing authorities" means the Mayor and Board of Aldermen of the Town of Walnut, Mississippi.

(b) "Hotel" or "motel" means any establishment within the town engaged in the business of furnishing or providing rooms intended or designed for dwelling, lodging, or sleeping purposes to transient guests.

(d) "Restaurant" means all places within the town where prepared food and beverages are sold for consumption, including beer, alcoholic beverages, and nonalcoholic beverages, whether such prepared food and beverages are sold for consumption on the premises or not. The term "restaurant" does not include any school, hospital, medical clinic, convalescent or nursing home, or any other restaurant-like facility operated by or in connection with a school, hospital, medical clinic, or convalescent or nursing home providing food for students, patients, visitors, or their families.

(e) "Town" means the Town of Walnut, Mississippi.

SECTION 2. (1) For the purpose of providing funds to promote, construct, finance, operate, equip, lease, and maintain existing and new parks and recreation facilities and equipment within the town, to pay the principal of and interest on bonds or other indebtedness issued pursuant to Section 5 of this act, to accomplish the refunding and/or refinancing of the principal of and interest on any presently outstanding indebtedness incurred by the town related to parks and recreation, and for related purposes, the governing authorities are authorized, in their discretion, to levy and collect a special tax from the following persons, firms, and corporations, which special tax shall be in addition to all of other general state sales taxes and assessments levied upon such persons, firms, and corporations:

(a) A special tax upon every person, firm, or corporation operating a hotel or motel in the town at a rate not to exceed three percent (3%) of the gross proceeds of room rentals for each such hotel or motel; and

(b) A special tax upon every person, firm, or corporation operating a restaurant in the town at a rate not to exceed three percent (3%) of the gross proceeds of the sales of the restaurant derived from retail sales of prepared food and beverages, including beer, alcoholic beverages, and nonalcoholic beverages.

(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 town or Tippah 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 or a ten percent (10%) tax rate on the gross proceeds of sales of restaurants.

(3) Persons, firms, or corporations liable for the special tax levied pursuant to subsection (1) of this section shall add the amount of the special tax to the sales price of the products set out in subsection (1) of this section and shall collect the amount of the special tax due by such persons, firms, and corporations from the persons, firms, or corporations receiving the services or product at the time of payment therefore.

(4) The special tax shall be collected by and paid to the Mississippi Department of Revenue on a form prescribed by the department in the manner that general state sales taxes are computed, collected, and paid. Full enforcement provisions and all other provisions of Section 27-65-1 et seq., Mississippi Code of 1972, shall apply as necessary to the implementation and administration of this act.

(5) Except for any amount retained by the Department of Revenue pursuant to Section 27-3-58, Mississippi Code of 1972, the proceeds of the special tax shall be paid to the town on or before the fifteenth day of the month following the month in which such special tax is collected.

(6) The proceeds of the special tax shall not be considered by the town as general fund revenues but shall be dedicated to and expended solely for the purposes specified in this section.

SECTION 3. Before any special tax authorized pursuant to this act may be levied, the governing authorities shall adopt a resolution declaring their intention to levy the special tax, setting forth the amount of the special tax to be levied, the date upon which the special tax shall become effective, and calling for an election to be held on the question of the levy of the special tax. The date of the election shall be fixed in the resolution adopted by the governing authorities. Notice of such intention and the election shall be published once each week for at least three (3) consecutive weeks in a newspaper published in or having a general circulation in the town, 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 date fixed in the resolution for the election. At the election, all qualified electors of the town may vote, and the ballots used in the election shall have printed thereon a brief statement of the amount and purposes of the proposed special tax levy and the words "FOR THE TAX" and, on a separate line, "AGAINST THE TAX," and the voters shall vote by placing a cross (X) or check (🗸) opposite their choice on the election. When the results of the election have been canvassed and certified, the town may levy the special tax if sixty percent (60%) of the qualified electors who vote in the election vote in favor of the special tax. At least thirty (30) days before the effective date of the special tax provided in this section, the governing authorities shall furnish a certified copy of the resolution evidencing the special tax to the Department of Revenue

SECTION 4. Accounting for receipts and expenditures of the funds generated by the special tax herein described shall be made separately from the accounting of receipts and expenditures of the general fund and any other funds of the town. The records reflecting the receipts and expenditures of the funds generated by the special tax prescribed in this act shall be audited annually by an independent certified public accountant, and the accountant shall make a written report of the 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 purpose of providing funds to promote, construct, finance, operate, equip, lease, and maintain existing and new parks and recreation facilities and equipment within the town, to pay the principal of and interest on bonds or other indebtedness issued pursuant to this act, to accomplish the refunding and/or refinancing of the principal of and interest on any presently outstanding indebtedness incurred by the town related to parks and recreation, and for related purposes, as described in Section 2 of this act, the governing authorities are authorized to issue bonds or incur other indebtedness in an aggregate principal amount that is not in excess of the amount for which debt service is capable of being paid by the proceeds of the special tax levied pursuant to this act.

(2) Except as otherwise provided in this section, bonds or other indebtedness issued pursuant to this section shall be issued in accordance with the provisions of Section 21-33-301 et seq., 17-21-51 et seq., 31-25-1 et seq., 31-15-1 et seq., or 31-27-1 et seq., or as allowed by other applicable law. Bonds or other indebtedness authorized to be issued pursuant to this section shall not be included in the limitation on indebtedness imposed in Section 21-33-301 et seq., Mississippi Code of 1972, or any other limitation on indebtedness of the town. Bonds or other indebtedness issued pursuant to the provisions of this section and interest income therefrom shall be exempt from all taxation by the State of Mississippi.

SECTION 6. The governing authorities are authorized and empowered, if necessary and in their discretion, to lease town-owned property for a term not to exceed twenty (20) years for a nominal fee for the construction, operation and maintenance of new sports tournament and recreational facilities and existing sports and recreational facilities. The governing authorities are further authorized to lease the town-owned property back for a term not to exceed twenty (20) years for a negotiated fee, after which such time the town shall own the sports complex free and clear.

SECTION 7. Sections 1 through 4 of this act shall be repealed from and after July 1, 2034, or on the first day of the month immediately succeeding the date the payment of the principal of redemption premium, if any, and interest on the bonds issued under this act have been paid in full, whichever is earlier.

SECTION 8. This act shall take effect and be in force from and after its passage.