MS SB2260

Authorizes Mississippi municipalities to impose a special sales tax of up to 1% on gross proceeds of sales or business income derived from activities taxed at 7% or more under state sales tax law.

Requires approval by at least 3/5 of votes cast in an election held during a regular or general election, with notice published in newspapers and on municipality websites for at least three consecutive weeks.

Tax revenue may only be used for road, street, water, sewer, and drainage projects with initial construction not exceeding 4 years, excluding future maintenance costs; all expenditures require Mississippi Development Authority approval.

Exempts restaurants, hotels/motels, food retail, cable services, and sales exempt under existing state sales tax law from the special tax.

Tax must be discontinued upon completion of authorized projects and repayment of any related indebtedness, as determined by the Mississippi Development Authority.