MS HB523

Authorizes Mississippi municipalities to impose a special sales tax of up to 1% on gross proceeds of sales or business income taxed at 7% or more under state sales tax law.

Requires approval by at least three-fifths of votes cast in a municipal referendum before the tax can be levied, with notice published for three consecutive weeks prior to the vote.

Restricts tax revenue use to funding capital projects including recreational complexes, senior centers, libraries, street projects, water and sewage systems, and multipurpose buildings, subject to Mississippi Development Authority approval.

Limits the special sales tax to a maximum of 10 years unless voters approve extension through another election; tax automatically discontinues upon project completion and debt retirement as determined by the Mississippi Development Authority.

Allows municipalities to incur debt backed by projected special sales tax proceeds without such debt counting toward municipal bonding limits established in state law.