City of Fulton; extend repeal date on restaurant tax and authorize issuance of bonds for tourism and parks and recreation., the official text

MISSISSIPPI LEGISLATURE

2026 Regular Session

To: Local and Private Legislation

By: Representative Bell (21st)

House Bill 4059

(As Sent to Governor)

AN ACT TO AMEND CHAPTER 915, LOCAL AND PRIVATE LAWS of 2022,
TO EXTEND THE REPEAL DATE FROM JULY 1, 2026, TO JULY 1, 2036, ON THE PROVISION
OF LAW THAT AUTHORIZES THE GOVERNING AUTHORITIES OF THE CITY OF FULTON,
MISSISSIPPI, TO LEVY AN ADDITIONAL SALES TAX OF NOT MORE THAN THREE PERCENT TAX
UPON THE GROSS PROCEEDS OF THE SALES OF RESTAURANTS; FOR THE PURPOSE OF
PROVIDING FUNDS TO PROMOTE TOURISM, PARKS AND RECREATION WITHIN THE CITY, TO
AUTHORIZE THE CITY TO ISSUE GENERAL OBLIGATION BONDS OR INCUR OTHER INDEBTEDNESS
IN AN AGGREGATE PRINCIPAL AMOUNT NOT IN EXCESS OF AN AMOUNT FOR WHICH DEBT
SERVICE IS CAPABLE OF BEING FUNDED BY THE PROCEEDS OF THE SPECIAL SALES TAX
LEVIED UNDER THIS ACT; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1.  Chapter
915, Local and Private Laws of 2022, is amended as follows:

Section 1.  As used
in this act, the following terms have the meanings ascribed to them in this
section unless the context clearly indicates otherwise:

(a)  "City"
means the City of Fulton, Mississippi.

(b)  "Governing
authorities" means the governing authorities of the City of Fulton,
Mississippi.

(c)  "Prepared
food" means food prepared or beverages prepared by a restaurant in the
City of Fulton that is (i) ready to be consumed without any further food
preparation, alteration or repackaging on site; and (ii) prepared, provided,
sold or served by a restaurant using any cooking, packaging or food preparation
technique.  Prepared food may be eaten either on or off a restaurant's
premises.

(d)  "Restaurant"
means all places within the corporate limits of the city where prepared food
and beverages are sold for consumption, whether such food is consumed on the
premises or not. Such places include food trucks, lunch stands, cafes,
cafeterias, delicatessens, drive-in restaurants, carry out restaurants,
caterers, concession stands, hotel and motel dining rooms, convenience stores,
grocery stores, restaurants and similar businesses.  The term "restaurant"
does not include any school, hospital, medical clinic, convalescent or nursing
home providing food for students, patients, visitors and their families.

Section 2.  (1)  For
the purpose of providing funds to promote tourism and parks and recreation
within the city, the governing authorities of the City of Fulton, Mississippi,
in their discretion, may levy, assess and collect a tax from persons, firms or
corporations specified in this subsection, a tax, which shall be in addition to
all other taxes or assessments imposed.  The tax shall be imposed upon every
person, firm or corporation operating a restaurant in the City of Fulton,
Mississippi, where prepared food and drink is sold to the public, at a rate not
to exceed three percent (3%) of the gross proceeds of the sales of such
restaurant or business.

(2)  Persons, firms,
corporations or other entities liable for the tax imposed under subsection (1)
of this section shall add the amount of the tax to the sales price of the food
and beverages and shall collect, insofar as practicable, the amount of the tax
due from the person purchasing the food or beverages at the time of payment
therefor.

Section 3.  Before
any tax authorized under this act may be imposed, the governing authorities
shall adopt a resolution declaring their intention to levy the tax, setting
forth the amount of the tax to be imposed, the date upon which the tax shall
become effective and calling for an election to be held on the question.  The
date of the election shall be fixed in the resolution.  Notice of the intention
and the election shall be published once each week for at least three (3)
consecutive weeks in a newspaper published or having a general circulation in
the city, with the first publication of the notice to be made not less than twenty-one
(21) days before the date fixed in the resolution for the election and the last
publication to be made not more than seven (7) days before the election.  At
the election, all qualified electors of the city may vote, and the ballots used
in the election shall have printed thereon a brief statement of the amount and
purposes of the proposed tax levy and the words "FOR THE TAX" and, on
a separate line, "AGAINST THE TAX" and the voters shall vote by
placing a cross (X) or check (ü)
opposite their choice on the proposition.  When the results of the election
shall have been canvassed and certified, the city may levy the tax if sixty
percent (60%) of the qualified electors who vote in the election vote in favor
of the tax.  At least thirty (30) days before the effective date of the tax,
the governing authorities shall furnish to the Department of Revenue a
certified copy of the resolution evidencing the tax.

Section 4.  (1)  On or
before the fifteenth day of the month preceding the date on which the city will
begin to levy the tax authorized under Section 2 of this act, the governing
authorities shall give written notification to the Commissioner of Revenue of
the date on which the tax will become effective.

(2)  The tax must be
collected by and paid to the Department of Revenue in the same manner that
state sales taxes are computed, collected and paid, and the full enforcement
provisions and all other provisions of Chapter 65, Title 27, Mississippi Code
of 1972, will apply as necessary for the implementation of this act.

(3)  The proceeds of the
tax, less three percent (3%) thereof which shall be retained by the Department
of Revenue to defray the cost of collection, shall be paid to the governing
authorities on or before the fifteenth day of the month following the month in
which collected.

(4)  Accounting for receipts
and expenditures of the revenue from the tax shall be made separately from the
accounting of receipts and expenditures of the general fund and any other funds
of the city.  The records reflecting the receipts and expenditures of the
revenue from the tax shall be audited annually by an independent certified
public accountant, and the accountant shall make a written report of his or
her audit to the governing authorities.  The audit shall be made and
completed as soon as practicable after the close of the fiscal year, and
expenses of the audit shall be paid from the funds derived pursuant to this
act.

(5)  The proceeds of the tax
may not be considered by the city as general fund revenues but must be placed
into a special fund apart from the city general fund and any other funds and
expended by the city strictly for the purposes prescribed under Section 2 of
this act.

Section
5.  (1)
For the purpose of providing funds to promote tourism and parks and
recreation within the city, and for related purposes, as described in Section 2
of this act, the governing authorities are authorized
to issue bonds or incur other indebtedness in an aggregate principal amount
that is not in excess of the amount for which debt service is capable of being
paid by the proceeds of the tax levied pursuant to this act.

(2)
Except as otherwise provided in this section, bonds issued pursuant to this
section shall be issued in accordance with the provisions of Sections 21-33-301
et seq., Mississippi Code of 1972, Sections 17-21-51 et seq., Mississippi Code
of 1972, Sections 31-25-1 et seq., Mississippi Code of 1972, or as allowed by
other applicable law.  Bonds authorized to be issued pursuant to this section
shall not be included in the limitation on indebtedness imposed in Sections 21-33-301
et seq., Mississippi Code of 1972, as amended, or any other limitation on
indebtedness of the city.  Bonds issued pursuant to the provisions of this
section and interest income therefrom shall be exempt from all taxation by the
State of Mississippi.

Section * * * 5 6.  This act shall be repealed
from and after July 1, * * *2026
2036.

SECTION 2.  This act
shall take effect and be in force from and after its passage.