MS HB1472

Authorizes municipalities and counties to impose a special sales tax of up to 1% on gross proceeds from activities taxed at 7% or more under Mississippi Sales Tax Law, subject to voter approval by 3/5 referendum.

Requires governing authorities to adopt a resolution specifying the tax rate, capital projects, and effective date, with at least three weeks of newspaper notice before the referendum.

Restricts use of tax revenue to capital projects including recreational complexes, senior centers, libraries, major street projects, water and sewage systems, gas lines, and multipurpose buildings, with Mississippi Development Authority approval required.

Allows municipalities and counties to incur indebtedness up to an amount that can be serviced by the special sales tax proceeds, exempt from normal debt limitations; tax must be discontinued upon project completion and cannot continue beyond 10 years without voter approval.

Department of Revenue collects the tax and retains 3% of proceeds for administrative costs; tax revenue placed in separate fund and exempts qualifying indebtedness from municipal and county debt ceiling calculations.