HB 589 Summary

• Authorizes county and municipal governing authorities to impose a special sales tax of up to 1% on gross proceeds of sales or gross income from activities taxed at 7% or more under Mississippi Sales Tax Law, subject to voter approval by three-fifths majority.

• Exempts restaurants, hotels and motels, cable/subscription TV services, and certain food items from the special sales tax; also excludes sales already exempted under existing Mississippi Sales Tax Law.

• Requires revenue from the special sales tax to be used exclusively for road and street repair/reconstruction projects and water, sewer, and drainage projects, with initial construction not exceeding four years and no use for future maintenance.

• Mandates establishment of a project plan submitted to the Mississippi Development Authority for approval before any revenue expenditure; requires independent annual audits and discontinuation of the tax upon project completion and debt retirement.

• Amends state law to exclude indebtedness incurred under this act from existing county and municipal debt limitations, allowing counties and municipalities to incur debt up to the amount supportable by special sales tax proceeds.