Town of Vaiden; authorize tax on restaurants for tourism and parks and recreation., the official text

MISSISSIPPI LEGISLATURE

2026 Regular Session

To: Local and Private; Finance

By: Senator(s) Chassaniol

Senate Bill 3392

(As Sent to Governor)

AN ACT TO AUTHORIZE THE GOVERNING AUTHORITIES OF THE TOWN OF
VAIDEN, MISSISSIPPI, TO LEVY A 2% TAX UPON THE GROSS PROCEEDS OF SALES OF
RESTAURANTS TO PROVIDE FUNDS FOR THE PROMOTION OF TOURISM AND PARKS AND
RECREATION; TO REQUIRE THAT THE LEVY OF THE TAX UNDER THIS ACT MAY BE IMPOSED
ONLY IF APPROVED AT AN ELECTION BY 60% OF THOSE VOTING; AND FOR RELATED
PURPOSES.

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

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)  "Governing
authorities" means the Mayor and Board of Aldermen of the Town of Vaiden,
Mississippi.

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

(c)
"Restaurant" means all places within the town 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 facilities 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, the
governing authorities, in their discretion, may levy, assess and collect a tax
from persons, firms or corporations specified in this subsection, 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
town where prepared food and drink are 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 any tax imposed under 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 town, 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 town 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
have been canvassed and certified, the town 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 town
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 town on or before the fifteenth day of the month following the month in
which collected.

(4)  The proceeds of the tax
shall not be considered by the town as general fund revenues but shall be
dedicated to and expended solely for the purposes of promoting tourism and
parks and recreation within the town.  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 town.
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 board
of supervisors.  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 town as general fund revenues but must be placed
into a special fund apart from the town general fund and any other funds and
expended by the town strictly for the purposes prescribed under Section 2 of
this act.

SECTION 5.  Any tax
authorized by this act may be discontinued by the adoption of a resolution by
the governing authorities.  The resolution shall be effective on the last day of
the month, and a certified copy shall be furnished to the Commissioner of
Revenue.

SECTION 6.  This act
shall replace Chapter 925, Local and Private Laws of 2018, which repealed on
July 1, 2022.

SECTION 7.  This act
shall stand repealed from and after July 1, 2030.

SECTION 8.  This act
shall take effect and be in force from and after its passage.