MS HB1564

Authorizes municipalities to impose a special sales tax up to 3% on gross proceeds of businesses in activities taxed at 7% or more under Mississippi Sales Tax Law.

Requires approval by at least three-fifths of voters in a referendum before the tax can be imposed; municipalities must publish notice for three consecutive weeks with first notice at least 21 days before the referendum.

Mandates that 50% of special sales tax proceeds be used to proportionately decrease the municipality's ad valorem tax levies; remaining proceeds may be used for any lawful municipal purposes.

Authorizes counties to impose the same 3% special sales tax on businesses outside municipal corporate boundaries, subject to identical referendum approval requirements and the 50% ad valorem tax reduction mandate.

Department of Revenue collects and distributes the tax to municipalities and counties on or before the 15th of each month following collection, retaining 3% for administrative costs; effective July 1, 2020.