Bill Text: MS HB1745 | 2010 | Regular Session | Introduced
Bill Title: City of Fayette; authorize to impose a certain local sales tax.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2010-04-28 - Died In Committee [HB1745 Detail]
Download: Mississippi-2010-HB1745-Introduced.html
MISSISSIPPI LEGISLATURE
2010 Regular Session
To: Local and Private Legislation; Ways and Means
By: Representative Middleton
House Bill 1745
AN ACT TO AUTHORIZE THE GOVERNING AUTHORITIES OF THE CITY OF FAYETTE, MISSISSIPPI, TO IMPOSE A SPECIAL SALES TAX OF NOT MORE THAN TWO 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 THREE-FIFTHS OF THE VOTES CAST AT AN ELECTION CALLED AND HELD FOR SUCH PURPOSE; TO AUTHORIZE THE CITY OF FAYETTE TO INCUR INDEBTEDNESS IN AN AMOUNT NOT GREATER THAN AN AMOUNT FOR WHICH DEBT SERVICE IS CAPABLE OF BEING FUNDED BY THE PROCEEDS OF THE SPECIAL SALES TAX; TO PROVIDE THAT THE REVENUE COLLECTED FROM THE SPECIAL SALES TAX SHALL BE USED AND EXPENDED BY THE CITY ONLY TO FUND CERTAIN CAPITAL IMPROVEMENT PROJECTS; TO PROVIDE FOR THE DISCONTINUANCE OF THE SPECIAL SALES TAX UPON COMPLETION OF THE FUNDING OF THE PROJECTS FOR WHICH THE TAX WAS LEVIED; 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 Fayette, Mississippi, ("governing authorities") may impose upon all persons as a privilege for engaging or continuing in business or doing business within such city, a special sales tax at the rate of not more than two percent (2%) 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 State Tax Commission 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 capital improvement projects 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 Fayette, 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 Fayette 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 of the projects 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 check mark (√) 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 three-fifths (3/5) of the qualified electors who voted in the election voted in favor of the tax. If at least three-fifths (3/5) 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 result of the election, shall be furnished to the State Tax Commission 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 State Tax Commission and shall be accounted for separately from the amount of sales tax collected for the state in the City of Fayette. The proceeds of the tax, less three percent (3%) thereof which shall be retained by the State Tax Commission 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 Fayette, and shall be expended by the governing authorities solely for the purpose of paying any indebtedness or other obligation incurred or that may be incurred by the city for the capital improvement projects specified in the resolution ordering the election.
(3) All provisions of the Mississippi Sales Tax Law applicable to filing of returns, discounts to the taxpayer, remittances to the State Tax Commission, 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 State Tax Commission on any subsequent payment to the city. The State Tax Commission 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.
(4) The special sales tax shall be discontinued by the governing authorities on the first day of the month immediately succeeding the date any indebtedness, including interest, incurred under Section 4 of this act for the capital improvement projects is retired, or in the event the city incurs no indebtedness, the first day of the month after all obligations for the projects have been paid. Any amount remaining in the separate fund containing the proceeds of the special sales tax not necessary to retire the debt or pay any other obligations, shall be transferred to the municipal general fund.
(5) If the City of Fayette expands its corporate boundaries, the governing authorities may not impose the special sales tax in the annexed area unless the tax is approved at an election conducted, as far as is practicable, in the manner provided in Section 2 of this act, except that only qualified electors in the annexed area may vote in the election.
SECTION 4. The governing authorities may issue bonds or otherwise incur indebtedness of the city 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. The indebtedness authorized by this section shall not be considered when computing any limitation of indebtedness of the city established by law.
SECTION 5. The governing authorities of the City of Fayette, Mississippi, shall submit this act, immediately upon approval by the Governor, or upon approval by the Legislature subsequent to a veto, to the Attorney General of the United States or to the United States District Court for the District of Columbia in accordance with the provisions of the Voting Rights Act of 1965, as amended and extended.
SECTION 6. This act shall take effect and be in force from and after the date it is effectuated under Section 5 of the Voting Rights Act of 1965, as amended and extended.
