City of Starkville; extend repeal date on economic development, tourism/convention tax., the official text

MISSISSIPPI LEGISLATURE

2026 Regular Session

To: Local and Private

By: Senator(s) Williams

Senate Bill 2925

(As Sent to Governor)

AN ACT TO AMEND CHAPTER 950, LOCAL AND PRIVATE LAWS OF 1994,
AS LAST AMENDED BY CHAPTER 905, LOCAL AND PRIVATE LAWS OF 2022, TO EXTEND THE
REPEAL DATE ON THE CITY OF STARKVILLE'S ECONOMIC DEVELOPMENT, TOURISM AND
CONVENTION TAX; AND FOR RELATED PURPOSES.

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

SECTION 1.  Chapter
950, Local and Private Laws of 1994, as amended by Chapter 1014, Local and
Private Laws of 2004, as amended by Chapter 929, Local and Private Laws of
2015, as amended by Chapter 915, Local and Private Laws of 2018, as amended by Chapter
905, Local and Private Laws of 2022, is amended as follows:

Section 1.  The following
words shall have the meaning ascribed to them in this section unless the
context clearly indicates otherwise:

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

(b)  "EDA"
means the Oktibbeha County Economic Development Authority, a governmental
subdivision of Oktibbeha County, created by the Board of Supervisors of
Oktibbeha County, pursuant to Chapter 880, Local and Private Laws of 1984.

(c)  "Fiscal
year" means the period from October 1 to September 30 of each calendar
year.

(d)  "Governing
authority" means the Mayor and Board of Aldermen of the City of
Starkville, Mississippi.

(e)  "Gross income"
means the total revenue generated by a restaurant from the sale of prepared or
prepackaged food, alcoholic and nonalcoholic beverages.

(f)
"Restaurant" means and includes all places where prepared food and
beverages are sold for consumption either upon or off the premises and is to
include catering activities for prepared food sold from within the city limits
of Starkville, Mississippi.  "Restaurant" as defined herein does not
include any school, hospital, convalescence or nursing home or any restaurant-like
facility operated by or in connection therewith providing food for students,
teachers, patients, visitors and their families.

(g)  "Starkville
parks" means the various public parks and recreational facilities located
within the City of Starkville, Mississippi, that are acquired, constructed
and/or managed by the governing authorities or a commission designated by the
governing authority.

(h)  "VCC"
means the Visitors and Convention Council organized and created by Chapter 854,
Local and Private Laws of 1986.

Section 2.  (1)
Subject to provisions of subsection (2) of this section, the governing
authority is authorized, in its discretion, to provide funds for the purposes
provided for in subsection (3) of this section.  The tax authorized under this
act shall be levied, assessed and collected upon the gross revenue of every
restaurant operating within the city and shall be cited as an "Economic
Development, Tourism and Convention Tax" and shall be in addition to all
other taxes now imposed, as hereinafter provided:

(a)  The tax shall be a
sum equal to two percent (2%) of the gross income of restaurants derived from
retail sales of prepared food, alcoholic and nonalcoholic beverages.

(b)  Persons, firms or
corporations liable for the tax imposed shall add the amount of the tax to the
sales price of goods described in subsection (1)(a) of this section and, in

addition, shall collect, insofar
as practicable, the amount of the tax due by them from the person receiving the
services or goods at the time of payment therefor.

(c)  The tax shall be
collected and paid to the Department of Revenue, on a form to be
prescribed by 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 the Mississippi Sales Tax Law shall
apply as necessary to the implementation and administration of this act.

(d)  The proceeds of
the tax, less three percent (3%) to be retained by the Department of
Revenue to defray the cost of collections, shall be paid to the City of
Starkville, to be placed into a special fund created apart and separate from
any other city fund, on or before the fifteenth day of the month following the
month during which the tax is collected and shall on or before the fifteenth
day of the following month be delivered to the appropriate entities as provided
by subsection (3) of this section.

(2)  Before the tax
authorized by this act may be imposed, the governing authority shall adopt a
resolution declaring its intention to levy the tax and establish the amount of
the tax levy and the date on which the tax initially shall be levied and
collected.  This date shall be the first day of a particular month.  The
adoption of this tax shall be made by the governing authority by placing the
issue upon a ballot to be determined by the qualified electors in the City of
Starkville.  The tax shall not be levied unless authorized by the vote of a
majority of the qualified electors in the city voting at an election to be
called and held for that purpose.  Before the effective date of the tax levy
approved as herein provided, the governing authority shall furnish to the
Chairman of the Department of Revenue a certified copy of the resolution
evidencing such a tax levy.

(3)  Fifteen percent (15%)
of the proceeds derived from the tax collected under this act shall be
distributed by the governing authority to the EDA to be expended by the EDA
solely for economic and community development.  Fifteen percent (15%) of the
proceeds derived from the tax collected under this act shall be distributed by
the governing authority to the VCC to be expended by the VCC solely to enhance
community development and for the expansion of tourism and conventions.  Ten
percent (10%) of the proceeds derived from the tax collected under this act
shall be retained and expended by the governing authority solely for economic
and community development projects, initiatives or opportunities.  Forty
percent (40%) of the proceeds derived from the tax collected under this act
shall be distributed annually by the governing authority to Starkville parks to
be expended for park and recreational improvements.  Twenty percent (20%) of
the proceeds derived from the tax collected under this act shall be distributed
by the governing authority to Mississippi State University to be expended by
the university solely to enhance student-related activities.

(4)  The proceeds of the tax
collected under this act shall not be considered by the city as general fund revenues,
but shall be dedicated solely for the purpose of carrying out those programs
and activities which are designed by the governing authority through concurrent
contracts with the VCC, EDA, Starkville parks and Mississippi State University
or through interlocal agreements as provided by Section 17-13-17, Mississippi
Code of 1972, as amended.

Section 3.  (1)  The
governing authority shall retain the right to approve or disapprove budgets of
the agencies funded under this act with respect to funds approved and disbursed
to the agencies under this act.  A detailed budget of funds requested by the
VCC, EDA, Starkville parks and Mississippi State University shall be
submitted to the city with each year's request for funds.

(2)  The governing authority
shall retain the right to prescribe such requirements with respect to
budgeting, establishment of funds, management, record keeping, reporting and
audit as may be necessary for the proper protection of funds approved and
disbursed under this act.

Section 4.  The
books of the entities receiving funds disbursed under this act shall be audited
annually by an independent certified public accountant or the State Auditor.  A
copy of each audit report shall be filed with the governing authority within
fifteen (15) calendar days after receipt thereof by entities.  No expenditure,
purchase or transaction shall be made or authorized in violation of the laws of
the State of Mississippi governing public purchasing, bidding, contracting or
auditing.

Section 5.  (1)  The
first budget of receipts and expenditures under the provisions of this act
shall cover the period beginning with the effective date of the tax and ending
with the end of the fiscal year and, thereafter, the budget shall be on the
fiscal-year basis provided herein.

(2)  Accounting for receipts
and expenditures of the funds herein described shall be made separately from
the accounting of receipts and expenditures of the general fund and other funds
of the City of Starkville.  The record reflecting receipts and expenditures of
the funds described herein shall be audited by an independent certified public
accountant and such accountant shall make a written report of the audit to the
governing authority.  Such audit shall be made and completed as soon as practicable
after the close of the fiscal year and the expenses of such audit may be paid
from funds derived under Section 2 of this act.

Section 6.  This act
shall stand repealed from and after June 30, * * * 2026 2030.

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