MS HB1565

Authorizes Starkville city governing authorities to levy up to 1% additional sales tax on hotel/motel room rentals and restaurant gross sales proceeds within the city limits.

Tax revenue, minus 3% retained by Department of Revenue for collection costs, must be dedicated solely to constructing, equipping, operating, leasing, and maintaining new and existing sports tournament and recreational facilities.

Requires city governing authorities to adopt a resolution and hold a public election where at least 60% of qualified electors voting must approve the tax, with notice published for three consecutive weeks before the election.

Authorizes city to issue general obligation bonds or incur other indebtedness with debt service funded by the special sales tax proceeds, exempt from state debt limitations and taxation.

Tax provisions expire July 1, 2029, allowing time to service debt; requires separate accounting and annual independent audits of tax fund receipts and expenditures.