MS HB434

Authorizes county and municipal governing authorities to impose a special sales tax of up to 1% on gross proceeds of sales or business income taxed at 7% or more under Mississippi Sales Tax Law, subject to voter approval by at least 3/5 majority.

Exempts from the special tax: restaurants, hotels/motels, food for human consumption, cable TV services, and transactions exempt under existing Mississippi Sales Tax Law.

Requires elections for imposing or extending the tax to be held during regular or general elections, with notice published in newspapers and on government websites at least 21 days before voting.

Restricts use of revenue to road/street repair and reconstruction projects, or water/sewer/drainage projects, with initial construction limited to 4 years and revenue prohibited for future maintenance; requires Mississippi Development Authority approval of expenditures.

Allows counties and municipalities to incur debt supported by special sales tax proceeds without counting against existing debt limitations, and requires independent annual audits of tax revenue with reports to state legislature.