MS HB1359

Creates two special funds—Hotel Renovation Projects Sales Tax Incentive Fund and Restaurant Renovation Projects Sales Tax Incentive Fund—administered by the Mississippi Development Authority to provide incentive payments for qualifying renovation projects.

Hotels must have minimum expenditures of $2,000,000 with at least $10,000 per guest room, while restaurants must have minimum expenditures of $100,000 with at least $10,000 for kitchen and food preparation areas to qualify as approved projects.

Approved participants receive incentive payments equal to 25% of sales tax revenue collected from their projects (after certain diversions), with maximum payments capped at 20% of approved project costs and ceasing after 10 years or when 20% of project costs have been paid, whichever is earlier.

Amends Section 27-65-75 to direct 25% of sales tax revenue from qualifying hotel and restaurant projects to the respective incentive funds, effective August 15, 2014, after deductions for municipal distributions and education funds.

Requires applicants to submit $1,000 application fee and project plans to the MDA Executive Director for certification as an approved participant, with all project costs verified by independent third-party auditors.