MS HB701

Authorizes Mississippi 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 state sales tax law, or alternatively a 2% tourism tax on hotel/motel room rentals and restaurant sales.

Requires approval by at least three-fifths of votes cast in a municipal referendum before tax can be imposed; notice must be published weekly for at least 3 consecutive weeks with first notice at least 21 days before the referendum date.

Revenue must be used solely for capital projects (recreational complexes, senior centers, community centers, auditoriums, libraries, parks, streets, water/sewage systems, gas lines, multipurpose buildings) or tourism purposes, with initial construction not to exceed 4 years.

Department of Revenue collects the tax, retains 3% for administrative costs, and remits remaining proceeds to the municipality by the 15th of the following month; revenue placed in separate fund and expended only for specified projects.

Tax must be discontinued upon project completion and debt retirement as determined by Mississippi Development Authority, but cannot continue more than 10 years without voter approval for continuation requiring a simple majority vote.