House Bill 4172

AN ACT TO AUTHORIZE THE BOARD OF SUPERVISORS OF JACKSON COUNTY, MISSISSIPPI, TO CREATE A PUBLIC IMPROVEMENT DISTRICT UNDER CHAPTER 31, TITLE 19, MISSISSIPPI CODE OF 1972; TO AUTHORIZE THE DISTRICT TO IMPOSE AND COLLECT A RETAIL ASSESSMENT WITHIN THE DISTRICT; TO PROVIDE THAT THE PROCEEDS OF THE RETAIL ASSESSMENT MAY BE USED AND PLEDGED, TOGETHER WITH SPECIAL ASSESSMENTS AND OTHER REVENUES AUTHORIZED UNDER CHAPTER 31, TITLE 19, MISSISSIPPI CODE OF 1972, FOR THE PURPOSES SET FORTH IN CHAPTER 31, TITLE 19, MISSISSIPPI CODE OF 1972; TO REQUIRE THAT AN ELECTION BE HELD FOR THE IMPOSITION OF THE RETAIL ASSESSMENT; TO PROVIDE FOR COLLECTION AND DISBURSEMENT OF THE RETAIL ASSESSMENT BY THE DISTRICT; TO REQUIRE SEPARATE ACCOUNTING AND AN ANNUAL AUDIT; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) As used in this act, the following terms shall have the meanings ascribed to them in this section unless a different meaning is clearly indicated by the context in which they are used:

(a) "Board" means the governing board of the district.

(b) "County" means Jackson County, Mississippi.

(c) "District" or "public improvement district" means a public improvement district to be established within the county by the governing body under this act and Chapter 31, Title 19, Mississippi Code of 1972, solely for the purpose of undertaking one or more projects in connection with a development representing a private investment of not less than Twenty Million Dollars ($20,000,000).

(d) "Governing body" means the county board of supervisors.

(e) "Project" means any project, including the cost of a project, as defined in Section 19-31-5 or 17-25-27, Mississippi Code of 1972.

(f) "Retail assessment" means the special retail assessment authorized by this act.

(2) The definitions in Section 19-31-5, Mississippi Code of 1972, shall apply to this act, unless a contrary definition for a term is provided in this section or by the context of its use in this act.

SECTION 2. The governing body is hereby authorized to create and establish a public improvement district within the county in accordance with Chapter 31, Title 19, Mississippi Code of 1972, including, without limitation, the procedures set forth in Section 19-31-7, Mississippi Code of 1972. In addition to all other authority granted by Chapter 31, Title 19, Mississippi Code of 1972, such district is authorized to establish a retail assessment as further described in this act. The district shall operate and be maintained in accordance with Chapter 31, Title 19, Mississippi Code of 1972.

SECTION 3. (1) For the purpose of providing funds to pay the costs of one or more projects, including debt service on any debt incurred by the district in connection with such projects, the district is authorized, in its discretion, to levy and collect a retail assessment, which shall be in addition to all other taxes and assessments now imposed, as provided in this section. The retail assessment authorized by this act shall be imposed at a rate not to exceed one percent (1%) upon the gross proceeds of all sales and services within the district which are subject to the general rate of sales tax under Chapter 65, Title 27, Mississippi Code of 1972, and all retail sales of food or drink for human consumption not purchased with food stamps issued by the United States Department of Agriculture or other federal agency, but which would be exempt under Section 27-65-111(o), Mississippi Code of 1972, from the taxes imposed by Chapter 65, Title 27, Mississippi Code of 1972, if the food items were purchased with food stamps, attributable to such place of business within the district as determined by the board.

(2) The Legislature finds and declares that the projects to be undertaken by the district will provide a special and peculiar benefit upon the property located within the district that is different in kind and degree from any general benefit conferred upon the public at large. The Legislature further finds and declares that, although the retail assessment is collected through retail transactions occurring within the district, the retail assessment is imposed for the benefit of the property located within the district and is fair, reasonable, and proportionate to the special benefits received.

(3) Persons, firms, businesses, or corporations liable for the retail assessment imposed under subsection (1) of this section shall add the amount of the retail assessment to the sales price or gross income and shall collect, insofar as is practicable, the amount of the retail assessment due by them from the person receiving the product or service at the time of payment therefor.

(4) The retail assessment shall be collected by and paid to the district on a form prescribed by the district in the manner that state sales taxes are computed, collected, and paid. In addition to any enforcement provisions authorized by Chapter 31, Title 19, Mississippi Code of 1972, the district may enforce the collection of the retail assessment in like manner as state sales taxes are collected and enforced.

(5) The proceeds of the retail assessment shall be paid to the district on or before the fifteenth day of the month following the month in which collected. The district may retain up to three percent (3%) of the retail assessment to defray the costs associated with the administration of the district. The district may contract with a public or private entity for the collection of the retail assessment.

(6) The proceeds of the retail assessment shall be dedicated to and expended solely for the purposes set forth in this act and other purposes authorized for the district under Chapter 31, Title 19, Mississippi Code of 1972, including for the payment and security of bonds to construct a project.

(7) The board may enter into one or more agreements with a developer for a term not to exceed thirty (30) years to reimburse the developer for the costs of a project or facilities related to a project in the district using any assessments generated by the project to, among other things, assist with the financing of a project. Any payments or reimbursements of costs of a project by the district may be conditioned upon such terms and conditions, and may contain such safeguards, including, without limitation, project deadlines and benchmarks, as the board determines will best promote and protect the public interest, convenience, and necessity.

(8) The district and one or more local government units are authorized to create a regional economic development alliance and enter into an agreement under Article 1, Chapter 64, Title 57, Mississippi Code of 1972.

SECTION 4. Before any retail assessment authorized under this act may be imposed, the board shall adopt a resolution declaring its intention to impose the retail assessment, setting forth the effective date of the retail assessment, setting forth the percentage of the retail assessment, 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 election shall be published once each week for at least two (2) consecutive weeks in a newspaper published or having a general circulation in the district, with the last day of such publication to be not fewer than fourteen (14) days nor more than twenty-eight (28) days before the date fixed in the resolution for the election. In addition, notice of the election shall be sent by United States first-class mail, not fewer than fourteen (14) days before the election, to all qualified voters at their last known address as shown on the tax rolls. Instructions on how all qualified voters may participate in the election, including the date, location, and time thereof, along with sample proxies, shall be provided as part of the notice mailed to qualified voters. All votes cast by proxy shall be in substantially the form provided in Section 19-31-9(2)(e), Mississippi Code of 1972, except that the form shall describe the retail assessment and the vote therefor. Except as herein provided, the election shall be held and conducted, and the results canvassed and certified, as provided by Section 19-31-9, Mississippi Code of 1972. At the election, all qualified voters may vote, and the ballots used in the election shall have printed thereon a brief statement of the percentage and the effective date of the proposed retail assessment and the words "FOR THE RETAIL ASSESSMENT" and, on a separate line, "AGAINST THE RETAIL ASSESSMENT." The qualified voters shall vote by placing a cross (X) opposite their choice on the proposition. When the results of the election shall have been canvassed and certified, the board may impose the retail assessment if a majority of the qualified voters who vote in the election vote in favor of the retail assessment. The board may, in its sole discretion and without the need for a new election, decrease or increase the percentage of the retail assessment so imposed up to the amount approved in the election. The retail assessment shall take effect not less than thirty (30) days after the election and remain in effect until repealed by the board.

SECTION 5. Accounting for receipts and expenditures of the funds described in this act must be made separately from the accounting of receipts and expenditures of other funds of the district. 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 the audit to the board. 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 under this act.

SECTION 6. (1) The proceeds of the retail assessment levied under this act, together with any amounts authorized under Chapter 31, Title 19, Mississippi Code of 1972, may be pledged to secure the payment of any contract obligations, bonds, or other indebtedness of the district authorized under Chapter 31, Title 19, Mississippi Code of 1972.

(2) Any pledge of the proceeds of the retail assessment made by the district under this act shall be valid and binding from the time when the pledge is made, without the need for physical delivery of any pledged property. The proceeds of the retail assessment so pledged and thereafter received by the district shall be immediately subject to the lien of such pledge and shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the district, irrespective of whether such parties have notice thereof.

(3) The board may covenant in any resolution imposing the retail assessment, in any contribution agreement, and in any other proceeding or instrument relating to bonds or other indebtedness payable from, or secured by, the proceeds of the retail assessment, that the retail assessment will not be repealed, reduced, or otherwise altered in a manner that would impair such pledge so long as any such bonds or other indebtedness are outstanding, subject to any provisions for amendment, defeasance, or discharge that may be set forth in the governing documents for such bonds or other indebtedness.

SECTION 7. This act shall be construed as supplemental and in addition to the powers of the district under Chapter 31, Title 19, Mississippi Code of 1972; however, this act will control in the event of any conflict between this act and other laws.

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