MS HB1745

Authorizes the City of Fayette, Mississippi to impose a special sales tax of up to 2% on gross proceeds of sales or business income taxed at 7% under state sales tax law.

Tax cannot be levied without approval by at least three-fifths of voters in a city election with notice published for three consecutive weeks prior to voting.

Revenue from the special sales tax must be placed in a separate fund and used only to fund capital improvement projects and pay related indebtedness, with the State Tax Commission retaining 3% of proceeds to cover collection costs.

City may incur indebtedness backed by the special sales tax revenue in an amount not exceeding what debt service can be funded by projected tax proceeds, and this indebtedness does not count against the city's debt limitations.

Tax automatically discontinues when all indebtedness and obligations for the capital improvement projects are paid, with any remaining fund balance transferred to the city's general fund.