MS HB1645

Imposes a 1% tax on gross sales of taxable items in Hattiesburg, Mississippi, excluding hotels, motels, beverages, packaged liquor, motor vehicles, restaurants, groceries, and prescription drugs.

Tax collection administered by the Department of Revenue using state sales tax procedures, with 3% of proceeds retained by the department for collection costs and remainder paid to the city.

Requires approval by 60% of qualified city electors voting at a special election on August 12, 2014, before the tax can be imposed.

Revenues must be deposited in a special city fund and used exclusively for infrastructure projects including sanitary systems, drainage, street improvements, bridges, and water course management.

Tax automatically terminates on September 30, 2043, or earlier if total collections exceed $300 million; revenues cannot be used for debt service or bond security.