MS HB43

Authorizes counties and municipalities to impose a special sales tax of up to 1% on gross proceeds of sales or business income from activities taxed at 7% or more under Mississippi Sales Tax Law, subject to voter approval by 3/5 majority in a regular or general election.

Exempts from the special tax: sales already exempt under state law, restaurant food and beverages, hotel and motel lodging, unprepared food for human consumption, and cable TV/internet services.

Requires revenue from the special tax to be used solely for road/street repair and reconstruction projects or water/sewer/drainage projects, with initial construction not to exceed 4 years and no use for future maintenance.

Mandates counties and municipalities establish project plans approved by the Mississippi Development Authority before spending tax revenue, maintain separate accounting, and conduct annual independent audits.

Allows the special tax to be extended by voter approval with 3/5 majority and to be discontinued upon completion of funded projects; permits counties and municipalities to incur debt backed by special tax proceeds that is not subject to standard debt limitation laws.