MS HB1674

Authorizes Holly Springs city government 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.

Tax requires approval by at least 3/5 of voters in a municipal election with notice published for three consecutive weeks prior to voting.

Exempts sales already exempted under state law, plus restaurants, hotels/motels, and unprepared food for human consumption not purchased with food stamps.

Revenue from tax may be used for capital improvement projects including fire protection equipment, public works repairs, city hall renovation, parks and recreation, drainage improvements, and debt retirement, with total capital plan not to exceed $8,000,000.

Department of Revenue collects the tax, retains 3% for collection costs, and pays proceeds to the city monthly; the tax authority repeals 60 days after the city receives $8,000,000 in aggregate proceeds.