City of Clinton; extend repealer on authority for tax on restaurants to promote tourism, parks and recreation., the official text

MISSISSIPPI LEGISLATURE

2026 Regular Session

To: Local and Private

By: Senator(s) Frazier, Mumford, Norwood

Senate Bill 3158

(As Sent to Governor)

AN ACT TO AMEND CHAPTER 950, LOCAL AND PRIVATE LAWS OF 2022,
TO EXTEND THE REPEAL DATE ON THE AUTHORITY OF THE GOVERNING AUTHORITIES OF THE
CITY OF CLINTON, MISSISSIPPI, TO LEVY A 2% TAX UPON THE GROSS PROCEEDS OF SALES
OF RESTAURANTS FOR THE PURPOSE OF PROVIDING FUNDS TO PROMOTE TOURISM AND PARKS
AND RECREATION WITHIN THE CITY; AND FOR RELATED PURPOSES.

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

SECTION 1.  Chapter
950, 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 Clinton, Mississippi.

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

(c)  "Prepared
food" means food prepared on the premises of a restaurant.

(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.  The term "restaurant" does not
include any school; hospital; convalescent or nursing home; and restaurant-like
facility operated by or in connection with a school, hospital, medical clinic,
convalescent or nursing home providing food for students, patients, visitors or
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 Clinton, 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 Clinton,
Mississippi, where prepared food and drink is sold to the public, at a rate not
to exceed two percent (2%) 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)  Except for any amount
retained by the Department of Revenue under Section 27-3-58, Mississippi Code
of 1972, the revenue from the special tax collected under this act must be paid
to the city 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.  This act
shall be repealed from and after July 1, * * * 2026 2030.

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