MS SB2145

Authorizes 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 Mississippi Sales Tax Law.

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

Revenue from the special sales tax must be placed in a separate fund and used exclusively to pay indebtedness or obligations for capital projects including recreational complexes, libraries, streets, water/sewage systems, and community centers.

Allows municipalities to incur indebtedness up to the amount that can be funded by special sales tax proceeds, which is exempt from standard municipal debt limitations under Mississippi Code Section 21-33-303.

Tax must be discontinued upon retirement of all indebtedness or payment of all project obligations, with any remaining funds transferred to the municipal general fund; Department of Revenue retains 3% of collected proceeds for administrative costs.