MS HB1328

Extends the repeal date from 2012 to July 1, 2016 for the City of Pontotoc's authority to levy a tax of up to 2% on gross sales of hotels, motels, and restaurants

Expands the permitted use of tax proceeds from tourism promotion only to also include parks and recreation and economic development

Requires the Department of Revenue to collect the tax, retaining 3% for administrative costs, with remaining proceeds paid to the city by the 15th of each month

Establishes an indirect referendum process allowing 20% or 1,500 qualified electors (whichever is less) to petition against the tax, triggering a public vote requiring 60% approval to continue

Mandates separate accounting of tax funds from the general fund and requires annual independent audits of receipts and expenditures