MS HB303

Authorizes municipalities and counties to impose a special sales tax of up to 1% on gross proceeds of sales or business income from activities taxed at 7% or more under Mississippi Sales Tax Law.

Requires approval by at least 3/5 of votes cast in a referendum before the tax can be levied, with notice published for at least three consecutive weeks before the vote.

Limits special sales tax revenue to funding capital projects including recreational complexes, senior centers, libraries, major street projects, water and sewage systems, and multipurpose buildings, subject to Mississippi Development Authority approval.

Allows municipalities and counties to incur indebtedness up to an amount that can be serviced by special sales tax proceeds, exempt from standard indebtedness limitations.

Requires discontinuation of the tax upon completion of funded projects and retirement of any related debt, but allows continuation beyond 10 years if approved by election; any remaining funds transfer to the general fund.