MS HB155

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/motel room rentals and restaurant sales.

Requires approval by at least three-fifths of votes cast in a municipal referendum before the tax can be imposed, with notice published weekly for three consecutive weeks prior to the referendum.

Revenue from the special tax must be used solely for capital projects and/or tourism purposes including recreational complexes, senior centers, community centers, libraries, parks, street projects, water/sewage systems, and multipurpose buildings.

Tax revenue is collected by the Department of Revenue (which retains 3% for collection costs) and placed in a separate municipal fund; municipalities must submit project plans to the Mississippi Development Authority for approval before expenditure.

Special tax automatically discontinues when projects are completed and indebtedness is paid, but cannot continue longer than 10 years without voter approval for continued levy; municipalities may issue indebtedness up to amounts supportable by projected tax proceeds.