MS HB1632

Authorizes municipalities to impose a special sales tax of up to 1% on gross proceeds of sales or income from activities taxed at 7% or more under Mississippi Sales Tax Law, or alternatively a 2% tourism tax on hotel room rentals and restaurant sales.

Requires adoption of a municipal resolution and approval by at least three-fifths of voters in a referendum before the tax can be imposed, with notice published for at least three consecutive weeks before the vote.

Revenue collected must be used solely for specified capital projects and tourism purposes including recreational complexes, senior centers, parks, streets, water/sewage systems, libraries, auditoriums, and multipurpose buildings.

Permits municipalities to incur indebtedness up to amounts that can be funded by the special sales tax proceeds, and requires a separate fund to account for tax revenue apart from the general municipal fund.

Requires discontinuation of the tax upon completion of funded projects or after 10 years unless voters approve continued levy, and allows Department of Revenue to retain 3% of collections for administrative costs.