Bill Text: MS SB3112 | 2019 | Regular Session | Introduced


Bill Title: City of Jackson; authorize additional tax on hotels and motels and extend repeal date on Convention and Visitors Bureau.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Failed) 2019-03-29 - Died In Committee [SB3112 Detail]

Download: Mississippi-2019-SB3112-Introduced.html

MISSISSIPPI LEGISLATURE

2019 Regular Session

To: Local and Private; Finance

By: Senator(s) Horhn, Blount, Frazier, Norwood

Senate Bill 3112

AN ACT TO AMEND CHAPTER 909, LOCAL AND PRIVATE LAWS OF 1999, AS LAST AMENDED BY CHAPTER 954, LOCAL AND PRIVATE LAWS OF 2018 TO EXTEND UNTIL JULY 1, 2022, THE REPEAL DATE ON THE PROVISIONS OF LAW THAT CREATE THE JACKSON CONVENTION AND VISITORS BUREAU AND IMPOSES A TAX ON THE GROSS PROCEEDS OF SALES OF RESTAURANTS, HOTELS AND MOTELS FOR THE PURPOSE OF PROVIDING FUNDS FOR THE BUREAU; TO AUTHORIZE THE GOVERNING AUTHORITIES OF THE CITY OF JACKSON, MISSISSIPPI, TO LEVY AN ADDITIONAL TAX ON THE GROSS PROCEEDS OF SALES OF HOTELS AND MOTELS FOR THE PURPOSE OF PROVIDING ADDITIONAL FUNDS FOR THE BUREAU; TO PROVIDE THAT THE LEVY OF THE ADDITIONAL TAX MAY BE IMPOSED ONLY IF APPROVED AT AN ELECTION BY 60% OF THOSE VOTING AT THE ELECTION; AND FOR RELATED PURPOSES.

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

     SECTION 1.  Chapter 909, Local and Private Laws of 1999, as amended by Chapter 941, Local and Private Laws of 2004, as amended by Chapter 958, Local and Private Laws of 2008, as amended by Chapter 954, Local and Private Laws of 2011, as amended by Chapter 937, Local and Private Laws of 2015, as amended by Chapter 954, Local and Private Laws of 2018, is amended as follows:

     Section 1.  As used in this act, the following terms shall have the meanings ascribed to them in this section unless otherwise clearly indicated by the context in which they are used:

          (a)  "Bureau" means the Jackson Convention and Visitors Bureau.

          (b)  "Council" means the City Council of the City of Jackson, Mississippi.

          (c)  "Hotel" or "motel" means and includes a place of lodging that at any one time will accommodate transient guests on a daily or weekly basis and that is known to the trade as such, and which is located within the city limits of Jackson, Mississippi.  Such terms shall not include a place of lodging with ten (10) or less rental units.

          (d)  "Mayor" means the Mayor of the City of Jackson, Mississippi.

          (e)  "Restaurant" means and includes all places where prepared food is sold and whose annual gross proceeds of sales or gross income for the preceding calendar year equals or exceeds One Hundred Thousand Dollars ($100,000.00), and which are located within the city limits of Jackson, Mississippi.  The term "restaurant" shall not include any nonprofit organization that is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code.  For the purpose of calculating gross proceeds of sales or gross income, the sales or income of all establishments owned, operated or controlled by the same person, persons or corporation shall be aggregated.

     Section 2.  There is hereby created the Jackson Convention and Visitors Bureau to be constituted and appointed as provided in Section 3 of this act.

     Section 3.  (1)  The Jackson Convention and Visitors Bureau shall consist of nine (9) members, who shall be appointed, qualify and take office within ninety (90) days of the enactment of this act, and the appointments to the bureau and the initial terms of the appointments shall be as follows:

          (a)  Two (2) hotel/motel members representing hotel or motel properties located within the city limits of Jackson, Mississippi, appointed by the mayor with confirmation by the council for terms of two (2) and four (4) years, respectively.  These members and their successors shall be appointed by the mayor with confirmation by the council after being selected from a panel of two (2) names for each membership position submitted by the Jackson Chapter of the Mississippi Hotel and Lodging Association.

          (b)  Two (2) restaurant members appointed by the mayor with confirmation by the council for terms of two (2) and four (4) years, respectively.  These members and their successors shall be appointed by the mayor with confirmation by the council after being selected from a panel of two (2) names for each membership position submitted by the Jackson Chapter of the Mississippi Hospitality and Restaurant Association.

          (c)  One (1) member representing the business community in the City of Jackson appointed by the mayor with confirmation by the council for a term of two (2) years.  This member and his or her successors shall be appointed by the mayor with confirmation by the council after being selected from a panel of two (2) names submitted by the Jackson Chamber of Commerce.  The names submitted by the Jackson Chamber of Commerce shall be those of persons who represent businesses located within the city limits of Jackson, Mississippi.

          (d)  One (1) member representing the arts community in the City of Jackson appointed by the mayor with confirmation by the council for a term of two (2) years.

          (e)  One (1) member representing the Capital City Convention Center Commission appointed by the mayor with confirmation by the council for a term of four (4) years.  This member and his or her successors shall be the Administrator of the Capital City Convention Center Commission or a member of the Capital City Convention Center Commission.

          (f)  One (1) member representing the attractions industry in the City of Jackson appointed by the mayor with confirmation by the council for a term of two (2) years.  This member and his or her successors shall be residents of the City of Jackson appointed by the mayor with confirmation by the council after being selected from a panel of two (2) names submitted by the Metro Jackson Attractions Association.

          (g)  One (1) at-large member appointed by the mayor with confirmation by the council for a term of four (4) years.

     (2)  (a)  All succeeding appointments shall be made for a term of four (4) years from the date of expiration of the initial appointment.  Any vacancy which may occur shall be filled by the mayor within ninety (90) days after such vacancy occurs in the same manner as the original appointment and shall be made for the unexpired term.  Each member of the bureau shall serve until his or her successor is appointed and qualified.

          (b)  No member of the bureau shall be an employee of the City of Jackson or Hinds County.  No member of the bureau shall be an elected official.

     (3)  Any member may be disqualified and removed from office for any one (1) of the following reasons:

          (a)  Conviction of a felony; or

          (b)  Failure to attend three (3) consecutive meetings without just cause; or

          (c)  Illegal use of a bureau motor vehicle as provided in Section 12 of this act.

     If a member of the bureau is removed for one (1) of the above reasons, the vacancy shall be filled in the manner prescribed in this section.

     Section 4.  Before entering upon the duties of the office, each appointed member of the bureau shall enter into and give bond to be approved by the Secretary of State of Mississippi in the sum of Twenty-five Thousand Dollars ($25,000.00), conditioned upon the faithful performance of his or her duties.  Such bond shall be payable to the State of Mississippi and, in the event of a breach thereof, suit may be brought by the State of Mississippi for the benefit of the bureau.

     Section 5.  When the members of the bureau shall have been appointed and qualified as set forth herein, they shall establish quarters and conduct a meeting after giving not less than ten (10) days' notice of the time and place of such meeting by registered mail, postage prepaid, directed to each appointed member of the bureau at his or her regular address given to the Secretary of State at the time of his or her qualification and posting bond.  At such meeting a quorum shall consist of a majority of the members of the bureau and a majority of those members attending shall elect a president and secretary, both of whom shall be members of the bureau, and adopt such rules and regulations as may govern the time and place for holding subsequent meetings, regular and special, and other rules and regulations not inconsistent with the provisions of this act.

     The bureau is further authorized to contract for the employment of personnel, supplies, furnishings and other facilities necessary to administer the affairs and duties of the bureau and to pay for same out of the revenue provided by this act.

     Section 6.  The bureau shall have jurisdiction and authority over all matters relating to the establishment, promotion and development of tourism and conventions and related matters within the City of Jackson, Mississippi.

     The bureau is authorized to contract for the furnishing, equipping and operation of any facilities necessary or useful in the promotion of tourism and conventions, to receive and expend, subject to the provisions of this act, revenues from any source.

     Section 7.  (1)  For the purpose of providing funds for the promotion of tourism and conventions, there is hereby levied, assessed and shall be collected from every person engaging in or doing business in the City of Jackson, Mississippi, as specified herein, a tax which may be cited as a "tourist and convention tax," which shall be in addition to all other taxes now imposed, as * * * hereinafter provided. follows:

          ( * * *2a) * * *  Such  A tax * * * shall be in the amount of one percent (1%) of the gross proceeds of sales of restaurants, hotels and motels, including, but not limited to, sales of beer and alcoholic beverages sold to be consumed on the premises.

          (b)  An additional tax, in the amount of one percent (1%) of the gross proceeds of sales of hotels and motels, including, but not limited to, sales of beer and alcoholic beverages sold to be consumed on the premises.

     ( * * *32)  Persons liable for the tax imposed * * * herein by this act shall add the amount of tax to the sales price or gross proceeds of sales, and in addition thereto shall collect, insofar as practicable, the amount of the tax due by him from the person receiving the services or goods at the time of payment therefor.

     ( * * *43) * * *  Such tax  The taxes levied under this act shall be collected by and paid to the Department of Revenue on a form prescribed by the Department of Revenue, in the same manner that state sales taxes are computed, collected and paid; and the 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.

     ( * * *54)  The proceeds of * * * such tax the taxes levied under this act, 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 by the Department of Revenue.  The city, in turn, shall remit the funds to the bureau not later than ten (10) days after receiving the funds from the Department of Revenue.

     ( * * *65)  The proceeds of the * * * tax taxes levied under this act shall not be considered by the city as general fund revenues and shall be dedicated solely for the purpose of carrying out programs and activities which are designated by the Jackson Convention and Visitors Bureau and which are designed to attract conventions and tourists into Jackson, Mississippi.

     ( * * *76)  As a condition of the receipt of any funds provided by the bureau for the support of any event, the person or organization receiving such funds shall provide the bureau with a written accounting of all expenditures of such funds.  Such accounting shall be made available to the public under the provisions of the Mississippi Public Records Act of 1983.

     Section 8.  (1)  Before the taxes authorized by Section 7(1)(a) of this act shall be imposed, the governing authorities of the City of Jackson shall adopt a resolution declaring their intention to levy the tax, setting forth the amount of such tax and establishing the date on which this tax initially shall be levied and collected.  This date shall be not less than the first day of the second month from the date of adoption of the resolution.

     The resolution shall be published in a local newspaper at least twice during the period from the adoption of the resolution to the effective date of the taxation prescribed in this act, with the last publication being made no later than ten (10) days prior to the effective date of such taxation.  A certified copy of the resolution shall be furnished to the Department of Revenue at least thirty (30) days prior to the date on which the tax shall be initially levied and collected.

     (2)  If the tax levied under * * * this chapter Section 7(1)(a) of this act was imposed without a vote of the electorate, the governing authorities of the City of Jackson, Mississippi, shall, within sixty (60) days after the effective date of Senate Bill No. 2910, 2015 Regular Session, by resolution spread upon their minutes, declare the intention of the governing authorities to continue imposing the tax and describe the tax levy including the tax rate, annual revenue collections and the purposes for which the proceeds are used.  The resolution shall be published once each week for at least three (3) consecutive weeks in a newspaper having a general circulation in the city.  The first publication of the notice shall be made within fourteen (14) days after the governing authorities adopt the resolution declaring their intention to continue the tax.  If, on or before the date specified in the resolution for filing a written protest, which date shall be not less than forty-five (45) days and not more than sixty (60) days after the governing authorities adopt the resolution, twenty percent (20%) or one thousand five hundred (1,500), whichever is less, of the qualified electors of the city file a written petition against the levy of the tax, an election shall be called and held with the election to be conducted at the next special election day as such is defined by Section 23-15-833, Mississippi Code of 1972, occurring more than sixty (60) days after the date specified in the resolution for filing a written protest.  The tax shall not be continued unless authorized by a majority of the qualified electors of the city, voting at the election.  If the majority of qualified electors voting in the election vote against the imposition of the tax, the tax shall cease to be imposed on the first day of the month following certification of the election results by the election commissioners of the city to the governing authorities.  The governing authorities shall notify the Department of Revenue of the date of the discontinuance of the tax and shall publish sufficient notice thereof in a newspaper published or having a general circulation in the city.  If no protest is filed, then the governing authorities shall state that fact in their minutes and may continue the levy and assessment of the tax.

     This subsection shall not apply if the revenue from the tax authorized by * * * this chapter Section 7(1)(a) of this act has been contractually pledged for the payment of debt incurred prior to the effective date of Senate Bill No. 2910, 2015 Regular Session, until such time as the debt is satisfied.  Once the debt has been satisfied, the governing authorities shall, within sixty (60) days, adopt a resolution declaring the intention of the governing authorities to continue the tax which shall initiate the procedure described in subsection (1) of this section.

     (3)  Before the additional tax authorized under Section 7(1)(b) of this section may be imposed, the governing authorities of the City of Jackson 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.  The date of the election shall be fixed in the resolution.  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 () opposite their choice on the proposition.  When the results of the election shall have been canvassed and certified, the city may levy the additional 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 additional tax, the governing authorities of the city shall furnish to the Department of Revenue a certified copy of the resolution evidencing the tax.

     Section 9.  Before the expenditure of funds herein prescribed, a budget reflecting the anticipated receipts and expenditures for such purposes as promotion, advertising and operation, shall be approved by the bureau.  The first budget of receipts and expenditures shall cover the period beginning with the effective date of the tax and ending with the end of the city's fiscal year, and thereafter the budget shall be on the same fiscal basis as the budget of the City of Jackson.

     Section 10.  Accounting for receipts and expenditures of the funds herein described shall be the responsibility of the bureau and shall be made separately from the accounting of receipts and expenditures of the general fund and any other funds of the municipality to which it is originally paid.  The records reflecting the receipts and expenditures of the funds prescribed herein shall be audited annually by an independent certified public accountant, and such accountant shall make a written report of his or her audit to the City Clerk of Jackson and to the bureau.  The complete audit shall be made available by the bureau to any person who requests a copy, under the provisions of Sections 25-61-1 through 25-61-17, Mississippi Code of 1972, also known as the "Mississippi Public Records Act of 1983."  The audit shall be made and completed as soon as practicable after the close of the fiscal year, and the expenses of such audit may be paid from the funds derived pursuant to Section 7 of this act.  The State Auditor of Public Accounts shall have the authority to conduct audits of the bureau.

     Section 11.  The bureau shall not contract with any person who is related to an employee of the bureau within the third degree or who is the spouse of an employee of the bureau, nor shall the bureau contract with a business entity of which an employee of the bureau is an officer, director, owner, partner or employee, or is a holder of more than ten percent (10%) of the fair market value, or from which an employee of the bureau or his or her relative within the third degree derives more than One Thousand Dollars ($1,000.00) in annual income, or over which an employee of the bureau or his or her relative within the third degree exercises control.

     Section 12.  No motor vehicle owned or leased by the bureau shall be operated by any member or employee of the bureau except in the performance of his or her official duties directly related to the business of the bureau.  Any violation of this prohibition may be punished by removal from office or employment.

     Section 13.  The bureau shall be subject to Sections 25-61-1 through 25-61-17, Mississippi Code of 1972, also known as the "Mississippi Public Records Act of 1983."

     Section 14.  (1)  (a)  The Joint Legislative Committee on Performance Evaluation and Expenditure Review (PEER Committee) shall conduct a review of the bureau, which shall include, but not be limited to, accounting practices, office operations, administration, staffing, resource utilization and other best practices of facility management.  The review shall be provided to the Lieutenant Governor, Speaker of the House, the Chairman of the Senate Local and Private Committee, the Chairman of the House of Representatives Local and Private Committee, each member of the Senate and House of Representatives who represents a portion of the City of Jackson, the mayor and members of the council by not later than December 15, 2018.  The report shall also be posted on the PEER Committee website.

          (b)  The PEER Committee may contract with a private contractor or contractors to conduct the review, or any part or parts thereof required by this section.

     (2)  (a)  In the event that the PEER Committee determines that contractors should be used, it shall seek competitive proposals for services and select the lowest and best proposal or proposals.

          (b)  The bureau shall be legally and unconditionally obligated to pay the expenses of any work performed by any such contractor or contractors utilized by the PEER Committee as provided in paragraph (c) of this subsection to perform the work described in subsection (1) of this section.

          (c)  Upon completion of the review and after the Executive Director of the PEER Committee has accepted the work product of the contractor or contractors, the contractor or contractors utilized shall submit to the bureau an invoice or invoices for the costs of services rendered in an amount not to exceed One Hundred Thousand Dollars ($100,000.00), in the aggregate.  In the event that the contractor or contractors are not paid within forty-five (45) days of submitting the invoice or invoices, the contractor or contractors shall notify the PEER Committee of the failure to make payment.  In such case, the Executive Director of the PEER Committee shall give notice to the Commissioner of Revenue.  Upon receipt of the notice, the Commissioner of Revenue shall immediately impound the revenue from the tax levied by authority of this act until such time as sufficient funds are accumulated to pay the contractor or contractors.  At that time, the Department of Revenue shall pay the invoice or invoices from the impounded funds.

          (d)  The review required by this section shall be prepared for the purpose of benefiting the City of Jackson in the administration of its visitors' and convention programs, and for the purpose of assisting the Legislature in determining the need for continued authorization of the taxes levied by this act.

     Section 15.  This act shall stand repealed from and after July 1, * * * 2019 2022.

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

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