MS HB1599

Authorizes municipalities to impose a special sales tax of up to 1% on gross proceeds of sales or gross income from activities taxed at 7% or more under Mississippi Sales Tax Law, subject to approval by at least three-fifths of voters in a referendum.

Authorizes counties to impose the same special sales tax of up to 1% in unincorporated areas (Section 2), countywide with municipal agreement (Section 3), or in counties with multi-county municipalities (Section 4), each requiring three-fifths voter approval.

Revenue from special sales taxes must be placed in a separate fund and used exclusively to fund capital projects including recreational complexes, senior centers, community centers, auditoriums, libraries, street projects, water and sewage systems, gas lines, and multipurpose buildings.

Municipalities and counties may incur indebtedness secured by special sales tax proceeds in amounts not exceeding debt service capability, and such indebtedness is exempt from existing debt limitation laws.

Special sales taxes must be discontinued upon retirement of all indebtedness and completion of funded projects, with any remaining funds transferred to the general fund; establishes effective date contingent on Voting Rights Act preclearance.