House Bill 1802

AN ACT TO AUTHORIZE THE GOVERNING AUTHORITIES OF THE CITY OF LUCEDALE, MISSISSIPPI, TO LEVY A TAX THAT SHALL NOT EXCEED THREE PERCENT UPON THE GROSS SALES OF HOTELS AND MOTELS DERIVED FROM ROOM RENTALS AS WELL AS TO LEVY A TAX THAT SHALL NOT EXCEED ONE PERCENT UPON THE GROSS PROCEEDS OF SALES OF RESTAURANTS; TO PROVIDE THAT SUCH TAX SHALL BE USED FOR THE PURPOSE OF GENERATING REVENUE FOR PARKS AND RECREATIONAL CAPITAL IMPROVEMENT PROJECTS; TO REQUIRE AN ELECTION BE HELD ON THE QUESTION OF WHETHER SUCH TAX MAY BE LEVIED; AND FOR RELATED PURPOSES.

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

SECTION 1. As used in this act:

(a) "City" means the City of Lucedale, Mississippi.

(b) "Governing authorities" means the Mayor and Board of Aldermen of the City of Lucedale, 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 any hotel-like facility operated by or in connection with a hospital or medical clinic providing rooms exclusively for patients and their families.

(d) "Restaurant" means all places within the corporate limits of the city where prepared food and beverages are sold for consumption, whether such food is consumed on the premises or not.
This includes food trucks, lunch stands, cafes, cafeterias, delicatessens, drive-in restaurants, carry out restaurants, caterers, concession stands, hotel and motel dining rooms, convenience stores, grocery stores, restaurants and other similar businesses. The term "restaurant" does not include any school, hospital, medical clinic, convalescent or nursing home providing food for students, patients, visitors or their families or any restaurant having annual gross sales of less than Twenty-five Thousand Dollars ($25,000.00).

(e) "Prepared food" means food or beverages prepared by a restaurant within the corporate limits of the city that is (i) ready to consume without any further food preparation, alteration or repackaging on site; (ii) prepared, provided, sold or served by a restaurant using any cooking, packaging or food preparation technique. Prepared food may be eaten either on or off a restaurant's premises.

SECTION 2. (1) For the purpose of providing funds for parks and recreational capital improvements projects, the governing authorities are authorized, in their discretion, to levy and collect from the following persons a tax, which shall be in addition to all of the taxes and assessments imposed. The tax shall be imposed on the following persons:

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

(b) A tax upon every person, firm or corporation operating a restaurant in the city, at a rate not to exceed one percent (1%) of the gross proceeds of the sales of the restaurant.

(2) Persons, firms or corporations liable for the levy imposed under subsection (1) of this section shall add the amount of the levy to the sales price of the rooms and products set out in subsection (1) of this section and shall collect, insofar as is practicable, the amount of the tax due by them from the person receiving the services or product at the time of payment therefor.

(3) 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.

(4) 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 city on or before the fifteenth day of the month following the month in which collected.

(5) The proceeds of the tax shall not be considered by the city 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. 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, 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 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 voters shall vote by placing a cross (X) or check (ü) 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 funds herein described shall be made separately from the accounting of receipts and expenditures of the general fund and any other funds of the city. 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. This act shall be repealed from and after July 1, 2027.

SECTION 6. This act shall take effect and be in force from and after its passage.