HB 850 Summary

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

• Authorizes county boards of supervisors to impose a special sales tax of up to 1% on businesses outside municipal corporate boundaries, and separately authorizes countywide sales taxes with municipal agreement or for counties with multi-county municipalities.

• Revenue from special sales taxes must be placed in separate funds and used exclusively for capital projects including recreational complexes, senior centers, libraries, street projects, water and sewage systems, gas lines, and multipurpose buildings.

• Permits municipalities and counties imposing special sales taxes to incur indebtedness not exceeding the amount supportable by the tax revenue, exempting such debt from standard indebtedness limitations under Mississippi Code Sections 21-33-303 and 19-9-5.

• Special sales taxes must be discontinued once all project debt is retired or obligations are paid, with remaining funds transferred to general funds; Department of Revenue retains 3% of collected proceeds for administrative costs.