City of Clinton; extend repeal date on restaurant tax.

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To: Local and Private
Legislation
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Mansell

HOUSE BILL NO. 4012

AN ACT TO AMEND CHAPTER 950, LOCAL AND PRIVATE LAWS OF 2022, 1
BY EXTENDING THE DATE OF REPEAL FROM JULY 1, 2026, TO JULY 1, 2
2030, ON THE PROVISION OF LAW THAT AUTHORIZES THE GOVERNING 3
AUTHORITIES OF THE CITY OF CLINTON, MISSISSIPPI, TO LEVY A 2% TAX 4
UPON THE GROSS PROCEEDS OF SALES OF RESTAURANTS FOR THE PURPOSE OF 5
PROVIDING FUNDS TO PROMOTE TOURISM AND PARKS AND RECREATION WITHIN 6
THE CITY; AND FOR RELATED PURPOSES. 7
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 8
SECTION 1. Chapter 950, Local and Private Laws of 2022, is 9
amended as follows: 10
Section 1. As used in this act, the following terms have the 11
meanings ascribed to them in this section unless the context 12
clearly indicates otherwise: 13
(a) "City" means the City of Clinton, Mississippi. 14
(b) "Governing authorities" means the governing 15
authorities of the City of Clinton, Mississippi. 16
(c) "Prepared food" means food prepared on the premises 17
of a restaurant. 18
(d) "Restaurant" means all places within the corporate 19
limits of the city where prepared food and beverages are sold for 20
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consumption, whether such food is consumed on the premises or not. 21
The term "restaurant" does not include any school; hospital; 22
convalescent or nursing home; and restaurant-like facility 23
operated by or in connection with a school, hospital, medical 24
clinic, convalescent or nursing home providing food for students, 25
patients, visitors or their families. 26
Section 2. (1) For the purpose of providing funds to 27
promote tourism and parks and recreation within the city, the 28
governing authorities of the City of Clinton, Mississippi, in 29
their discretion, may levy, assess and collect a tax from persons, 30
firms or corporations specified in this subsection, a tax, which 31
shall be in addition to all other taxes or assessments imposed. 32
The tax shall be imposed upon every person, firm or corporation 33
operating a restaurant in the City of Clinton, Mississippi, where 34
prepared food and drink is sold to the public, at a rate not to 35
exceed two percent (2%) of the gross proceeds of the sales of such 36
restaurant or business. 37
(2) Persons, firms, corporations or other entities liable 38
for the tax imposed under subsection (1) of this section shall add 39
the amount of the tax to the sales price of the food and beverages 40
and shall collect, insofar as practicable, the amount of the tax 41
due from the person purchasing the food or beverages at the time 42
of payment therefor. 43
Section 3. Before any tax authorized under this act may be 44
imposed, the governing authorities shall adopt a resolution 45
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declaring their intention to levy the tax, setting forth the 46
amount of the tax to be imposed, the date upon which the tax shall 47
become effective and calling for an election to be held on the 48
question. The date of the election shall be fixed in the 49
resolution. Notice of the intention and the election shall be 50
published once each week for at least three (3) consecutive weeks 51
in a newspaper published or having a general circulation in the 52
city, with the first publication of the notice to be made not less 53
than twenty-one (21) days before the date fixed in the resolution 54
for the election and the last publication to be made not more than 55
seven (7) days before the election. At the election, all 56
qualified electors of the city may vote, and the ballots used in 57
the election shall have printed thereon a brief statement of the 58
amount and purposes of the proposed tax levy and the words "FOR 59
THE TAX" and, on a separate line, "AGAINST THE TAX" and the voters 60
shall vote by placing a cross (X) or check (✓) opposite their 61
choice on the proposition. When the results of the election shall 62
have been canvassed and certified, the city may levy the tax if 63
sixty percent (60%) of the qualified electors who vote in the 64
election vote in favor of the tax. At least thirty (30) days 65
before the effective date of the tax, the governing authorities 66
shall furnish to the Department of Revenue a certified copy of the 67
resolution evidencing the tax. 68
Section 4. (1) On or before the fifteenth day of the month 69
preceding the date on which the city will begin to levy the tax 70
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authorized under Section 2 of this act, the governing authorities 71
shall give written notification to the Commissioner of Revenue of 72
the date on which the tax will become effective. 73
(2) The tax must be collected by and paid to the Department 74
of Revenue in the same manner that state sales taxes are computed, 75
collected and paid, and the full enforcement provisions and all 76
other provisions of Chapter 65, Title 27, Mississippi Code of 77
1972, will apply as necessary for the implementation of this act. 78
(3) Except for any amount retained by the Department of 79
Revenue under Section 27-3-58, Mississippi Code of 1972, the 80
revenue from the special tax collected under this act must be paid 81
to the city on or before the fifteenth day of the month following 82
the month in which collected. 83
(4) Accounting for receipts and expenditures of the revenue 84
from the tax shall be made separately from the accounting of 85
receipts and expenditures of the general fund and any other funds 86
of the city. The records reflecting the receipts and expenditures 87
of the revenue from the tax shall be audited annually by an 88
independent certified public accountant, and the accountant shall 89
make a written report of his or her audit to the governing 90
authorities. The audit shall be made and completed as soon as 91
practicable after the close of the fiscal year, and expenses of 92
the audit shall be paid from the funds derived pursuant to this 93
act. 94
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ST: City of Clinton; extend repeal date on
restaurant tax.
(5) The proceeds of the tax may not be considered by the 95
city as general fund revenues but must be placed into a special 96
fund apart from the city general fund and any other funds and 97
expended by the city strictly for the purposes prescribed under 98
Section 2 of this act. 99
Section 5. This act shall be repealed from and after July 100
1, * * * 2030. 101
SECTION 2. This act shall take effect and be in force from 102
and after its passage. 103