SB 3401

MISSISSIPPI LEGISLATURE
2026 Regular Session
To: Local and Private; Finance
By: Senator(s) Williams
Senate Bill 3401
(As Sent to Governor)
AN ACT TO AUTHORIZE THE GOVERNING AUTHORITIES OF THE TOWN OF
ACKERMAN, 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 TOWN; TO REQUIRE THAT AN ELECTION BE HELD ON THE QUESTION
OF WHETHER SUCH TAX MAY BE LEVIED; 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)� "Town"
means the Town of Ackerman, Mississippi.
��������� (b)� "Governing
authorities" means the mayor and the board of aldermen of the town.
��������� (c)� "Prepared
food" means food prepared on the premises of a restaurant.
��������� (d)�
"Restaurant" means all places within the corporate limits of 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
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 town, the governing authorities of the town, 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 town 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 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 (�)
opposite their choice on the proposition.� When the results of the election
shall 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)� 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 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 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.� This act
shall be repealed from and after July 1, 2030.
���� SECTION 6.� This act
shall take effect and be in force from and after its passage.