City of Southaven; extend repeal date on restaurant tax.

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To: Local and Private
Legislation
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Hale

HOUSE BILL NO. 4003

AN ACT TO AMEND CHAPTER 955, LOCAL AND PRIVATE LAWS OF 2011, 1
AS LAST AMENDED BY CHAPTER 933, LOCAL AND PRIVATE LAWS OF 2022, TO 2
EXTEND THE REPEAL DATE FROM JULY 1, 2026, TO JULY 1, 2030, ON THE 3
LAW THAT AUTHORIZES THE CITY OF SOUTHAVEN, MISSISSIPPI, TO IMPOSE 4
A TAX UPON THE GROSS PROCEEDS OF SALES OF BEVERAGES AND PREPARED 5
FOOD AT RESTAURANTS WITHIN THE CITY; AND FOR RELATED PURPOSES. 6
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 7
SECTION 1. Chapter 955, Local and Private Laws of 2011, as 8
amended by Chapter 918, Local and Private Laws of 2014, as amended 9
by Chapter 908, Local and Private Laws of 2018, as amended by 10
Chapter 933, Local and Private Laws of 2022, is amended as 11
follows: 12
Section 1. As used in this act, the following terms shall 13
have the following meanings unless a different meaning is clearly 14
indicated by the context in which they are used: 15
(a) "City" means the City of Southaven, Mississippi. 16
(b) "Fiscal year" means the period from October 1 to 17
September 30 of each calendar year. 18
(c) "Governing authorities" means the Mayor and Board 19
of Aldermen of the City of Southaven, Mississippi. 20
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(d) "Restaurant" means and includes all places where 21
prepared food is sold through the use of facilities to accommodate 22
twenty-five (25) or more persons and includes hotel and motel 23
dining rooms. The term "restaurant" does not include any school, 24
hospital, convalescent or nursing home, or any restaurant-like 25
facility operated by or in connection with a school, hospital, 26
medical clinic, convalescent or nursing home providing food for 27
students, patients, visitors or their families. 28
Section 2. (1) For the purpose of providing funds to 29
promote tourism, parks and recreation, the governing authorities 30
are authorized, in their discretion, to levy and collect a tax 31
upon every person, firm or corporation operating a restaurant in 32
the city, at a rate not to exceed one percent (1%) of the gross 33
proceeds from the sales of beverages and prepared food at 34
restaurants. 35
(2) Persons, firms or corporations liable for the tax 36
imposed shall add the amount of tax to the sales price of goods 37
described in subsection (1) of this section and shall collect, 38
insofar as practicable, the amount of the tax due by them from the 39
person receiving the services or goods at the time of payment 40
thereof. 41
(3) The tax shall be collected and paid to the Department of 42
Revenue, on a form to be prescribed by the Department of Revenue 43
in the same manner that state sales taxes are computed, collected 44
and paid, and the full enforcement provisions and all other 45
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provisions of the Mississippi Sales Tax Law (Chapter 65, Title 27, 46
Mississippi Code of 1972) shall apply as necessary to the 47
implementation and administration of this act. 48
(4) The proceeds of the tax, less three percent (3%) thereof 49
which shall be retained by the Department of Revenue to defray the 50
cost of collection, shall be paid to the governing authorities on 51
or before the fifteenth day of the month in which collected. 52
(5) The proceeds of the tax collected under this act shall 53
not be considered by the city as general fund revenues, but shall 54
be dedicated solely for the purpose of carrying out the purposes 55
described in this section. 56
Section 3. Before any tax authorized under this act may be 57
imposed, the governing authorities shall adopt a resolution 58
declaring their intention to levy the tax, setting forth the 59
amount of the tax to be imposed, the date upon which the tax shall 60
become effective and calling for an election to be held on the 61
question. The date of the election shall be fixed in the 62
resolution. Notice of such intention and the election shall be 63
published once each week for at least three (3) consecutive weeks 64
in a newspaper published or having a general circulation in the 65
City of Southaven, with the first publication of the notice to be 66
made not less than twenty-one (21) days before the date fixed in 67
the resolution for the election and the last publication to be 68
made not more than seven (7) days before the election. At the 69
election, all qualified electors of the City of Southaven may 70
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vote, and the ballots used in the election shall have printed 71
thereon a brief statement of the amount and purposes of the 72
proposed tax levy and the words "FOR THE TAX" and, on a separate 73
line, "AGAINST THE TAX" and the voters shall vote by placing a 74
cross (X) or check (✓) opposite their choice on the proposition. 75
When the results of the election shall have been canvassed and 76
certified, the city may levy the tax if sixty percent (60%) of the 77
qualified electors who vote in the election vote in favor of the 78
tax. At least thirty (30) days before the effective date of the 79
tax provided in this section, the governing authorities shall 80
furnish to the Department of Revenue a certified copy of the 81
resolution evidencing the tax. 82
Section 4. Accounting for receipts and expenditures of the 83
funds herein described shall be made separately from the 84
accounting of receipts and expenditures of the general fund and 85
any other funds of the City of Southaven. The records reflecting 86
the receipts and expenditures of the funds prescribed in this act 87
shall be audited annually by an independent certified public 88
accountant, and the accountant shall make a written report of his 89
audit to the governing authorities. The audit shall be made and 90
completed as soon as practicable after the close of the fiscal 91
year, and expenses of the audit shall be paid from the funds 92
derived in accordance with this act. 93
Section 5. Before the tax authorized by this act may be 94
continued, as authorized under this House Bill No. 1471, 2018 95
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Regular Session, the governing authorities shall adopt a 96
resolution declaring their intention to levy the tax, setting 97
forth the amount of such tax and establishing the date on which 98
the tax initially shall be levied and collected. Notice of the 99
proposed tax shall be published once each week for at least three 100
(3) consecutive weeks in a newspaper having a general circulation 101
in the City of Southaven. The first publication of the notice 102
shall be made not less than twenty-one (21) days before the date 103
fixed in the resolution on which the tax initially is to be levied 104
and collected, and the last publication of the notice shall be 105
made not more than seven (7) days before such date. If, within 106
the time of giving notice, twenty percent (20%) or one thousand 107
five hundred (1,500), whichever is less, of the qualified electors 108
of the City of Southaven, file a written petition against the levy 109
of such tax, then the tax shall not be levied unless authorized by 110
a sixty percent (60%) majority of the qualified electors of the 111
City of Southaven, voting at an election to be called and held for 112
that purpose. At least thirty (30) days before the effective date 113
of the tax, the governing authorities shall furnish to the 114
Department of Revenue a certified copy of the resolution 115
evidencing such tax. 116
Section 6. Collections of revenue made pursuant to this 117
chapter from and after July 1, 2017, and until the effective date 118
of House Bill No. 1471, 2018 Regular Session, are hereby ratified 119
and confirmed and the expenditures that may have been made by the 120
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ST: City of Southaven; extend repeal date on
restaurant tax.
City of Southaven of such revenue that was paid to the city are 121
hereby ratified and confirmed. Any of such revenue paid to the 122
City of Southaven and held in escrow by the city may be expended 123
by the city for the purposes authorized in this chapter. 124
Section 7. This act shall be repealed from and after July 125
1, * * * 2030. 126
SECTION 2. This act shall take effect and be in force from 127
and after its passage. 128