MS SB2506

Authorizes municipalities and counties to impose a special sales tax of up to 1% on goods and services currently taxed at 7% or more under Mississippi Sales Tax Law, but only if approved by at least 60% of voters in a referendum held on a general election date

Revenue from the special sales tax must be used exclusively for capital projects including recreational complexes, senior centers, community centers, auditoriums, libraries, major street projects, water and sewage systems, gas lines, and multipurpose buildings

Requires municipalities and counties to submit a detailed project plan to the Mississippi Development Authority for approval before expending any tax revenue, with initial construction limited to 4 years and no funds allowed for future maintenance

The Department of Revenue collects the tax and may retain 3% for administrative costs, with the remainder distributed monthly to the levying municipality or county in a separate fund

The special sales tax must be discontinued once projects are completed and any related debt is paid off, and cannot continue beyond 10 years without voter approval at another referendum; any debt incurred under this act is excluded from municipal and county debt limits