MS SB2952

Municipalities may 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, subject to voter approval requiring at least 3/5 of votes cast in favor.

Tax does not apply to sales exempted under Mississippi Sales Tax Law, restaurant food and beverage sales, hotel and motel room rentals, unprepared food for human consumption, or cable/subscription television services.

Revenue collected must be placed in a separate municipal fund and used only for road, street, water, sewer, and drainage projects including planning, design, easement acquisition, and professional services, with initial construction not exceeding 4 years.

Municipality must establish a plan for projects and obtain approval from the Mississippi Development Authority before expending any revenue; Department of Revenue retains 1% of tax proceeds for collection costs and independently audits expenditures annually.

Special tax must be discontinued upon completion of authorized projects and payment of any associated indebtedness, as determined by the Mississippi Development Authority; this act expires July 1, 2034.