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To: Local and Private
Legislation
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Representative Bell (21st)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 4059
AN ACT TO AMEND CHAPTER 915, LOCAL AND PRIVATE LAWS of 2022, 1
TO EXTEND THE REPEAL DATE FROM JULY 1, 2026, TO JULY 1, 2036, ON 2
THE PROVISION OF LAW THAT AUTHORIZES THE GOVERNING AUTHORITIES OF 3
THE CITY OF FULTON, MISSISSIPPI, TO LEVY AN ADDITIONAL SALES TAX 4
OF NOT MORE THAN THREE PERCENT TAX UPON THE GROSS PROCEEDS OF THE 5
SALES OF RESTAURANTS; FOR THE PURPOSE OF PROVIDING FUNDS TO 6
PROMOTE TOURISM, PARKS AND RECREATION WITHIN THE CITY, TO 7
AUTHORIZE THE CITY TO ISSUE GENERAL OBLIGATION BONDS OR INCUR 8
OTHER INDEBTEDNESS IN AN AGGREGATE PRINCIPAL AMOUNT NOT IN EXCESS 9
OF AN AMOUNT FOR WHICH DEBT SERVICE IS CAPABLE OF BEING FUNDED BY 10
THE PROCEEDS OF THE SPECIAL SALES TAX LEVIED UNDER THIS ACT; AND 11
FOR RELATED PURPOSES. 12
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 13
SECTION 1. Chapter 915, Local and Private Laws of 2022, is 14
amended as follows: 15
Section 1. As used in this act, the following terms have the 16
meanings ascribed to them in this section unless the context 17
clearly indicates otherwise: 18
(a) "City" means the City of Fulton, Mississippi. 19
(b) "Governing authorities" means the governing 20
authorities of the City of Fulton, Mississippi. 21
(c) "Prepared food" means food prepared or beverages 22
prepared by a restaurant in the City of Fulton that is (i) ready 23
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to be consumed without any further food preparation, alteration or 24
repackaging on site; and (ii) prepared, provided, sold or served 25
by a restaurant using any cooking, packaging or food preparation 26
technique. Prepared food may be eaten either on or off a 27
restaurant's premises. 28
(d) "Restaurant" means all places within the corporate 29
limits of the city where prepared food and beverages are sold for 30
consumption, whether such food is consumed on the premises or not. 31
Such places include food trucks, lunch stands, cafes, cafeterias, 32
delicatessens, drive-in restaurants, carry out restaurants, 33
caterers, concession stands, hotel and motel dining rooms, 34
convenience stores, grocery stores, restaurants and similar 35
businesses. The term "restaurant" does not include any school, 36
hospital, medical clinic, convalescent or nursing home providing 37
food for students, patients, visitors and their families. 38
Section 2. (1) For the purpose of providing funds to 39
promote tourism and parks and recreation within the city, the 40
governing authorities of the City of Fulton, Mississippi, in their 41
discretion, may levy, assess and collect a tax from persons, firms 42
or corporations specified in this subsection, a tax, which shall 43
be in addition to all other taxes or assessments imposed. The tax 44
shall be imposed upon every person, firm or corporation operating 45
a restaurant in the City of Fulton, Mississippi, where prepared 46
food and drink is sold to the public, at a rate not to exceed 47
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three percent (3%) of the gross proceeds of the sales of such 48
restaurant or business. 49
(2) Persons, firms, corporations or other entities liable 50
for the tax imposed under subsection (1) of this section shall add 51
the amount of the tax to the sales price of the food and beverages 52
and shall collect, insofar as practicable, the amount of the tax 53
due from the person purchasing the food or beverages at the time 54
of payment therefor. 55
Section 3. Before any tax authorized under this act may be 56
imposed, the governing authorities shall adopt a resolution 57
declaring their intention to levy the tax, setting forth the 58
amount of the tax to be imposed, the date upon which the tax shall 59
become effective and calling for an election to be held on the 60
question. The date of the election shall be fixed in the 61
resolution. Notice of the intention and the election shall be 62
published once each week for at least three (3) consecutive weeks 63
in a newspaper published or having a general circulation in the 64
city, with the first publication of the notice to be made not less 65
than twenty-one (21) days before the date fixed in the resolution 66
for the election and the last publication to be made not more than 67
seven (7) days before the election. At the election, all 68
qualified electors of the city may vote, and the ballots used in 69
the election shall have printed thereon a brief statement of the 70
amount and purposes of the proposed tax levy and the words "FOR 71
THE TAX" and, on a separate line, "AGAINST THE TAX" and the voters 72
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shall vote by placing a cross (X) or check (✓) opposite their 73
choice on the proposition. When the results of the election shall 74
have been canvassed and certified, the city may levy the tax if 75
sixty percent (60%) of the qualified electors who vote in the 76
election vote in favor of the tax. At least thirty (30) days 77
before the effective date of the tax, the governing authorities 78
shall furnish to the Department of Revenue a certified copy of the 79
resolution evidencing the tax. 80
Section 4. (1) On or before the fifteenth day of the month 81
preceding the date on which the city will begin to levy the tax 82
authorized under Section 2 of this act, the governing authorities 83
shall give written notification to the Commissioner of Revenue of 84
the date on which the tax will become effective. 85
(2) The tax must be collected by and paid to the Department 86
of Revenue in the same manner that state sales taxes are computed, 87
collected and paid, and the full enforcement provisions and all 88
other provisions of Chapter 65, Title 27, Mississippi Code of 89
1972, will apply as necessary for the implementation of this act. 90
(3) The proceeds of the tax, less three percent (3%) thereof 91
which shall be retained by the Department of Revenue to defray the 92
cost of collection, shall be paid to the governing authorities on 93
or before the fifteenth day of the month following the month in 94
which collected. 95
(4) Accounting for receipts and expenditures of the revenue 96
from the tax shall be made separately from the accounting of 97
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receipts and expenditures of the general fund and any other funds 98
of the city. The records reflecting the receipts and expenditures 99
of the revenue from the tax shall be audited annually by an 100
independent certified public accountant, and the accountant shall 101
make a written report of his or her audit to the governing 102
authorities. The audit shall be made and completed as soon as 103
practicable after the close of the fiscal year, and expenses of 104
the audit shall be paid from the funds derived pursuant to this 105
act. 106
(5) The proceeds of the tax may not be considered by the 107
city as general fund revenues but must be placed into a special 108
fund apart from the city general fund and any other funds and 109
expended by the city strictly for the purposes prescribed under 110
Section 2 of this act. 111
Section 5. (1) For the purpose of providing funds to 112
promote tourism and parks and recreation within the city, and for 113
related purposes, as described in Section 2 of this act, the 114
governing authorities are authorized to issue bonds or incur other 115
indebtedness in an aggregate principal amount that is not in 116
excess of the amount for which debt service is capable of being 117
paid by the proceeds of the tax levied pursuant to this act. 118
(2) Except as otherwise provided in this section, bonds 119
issued pursuant to this section shall be issued in accordance with 120
the provisions of Sections 21-33-301 et seq., Mississippi Code of 121
1972, Sections 17-21-51 et seq., Mississippi Code of 1972, 122
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ST: City of Fulton; extend repeal date on
restaurant tax and authorize issuance of bonds
for tourism and parks and recreation.
Sections 31-25-1 et seq., Mississippi Code of 1972, or as allowed 123
by other applicable law. Bonds authorized to be issued pursuant 124
to this section shall not be included in the limitation on 125
indebtedness imposed in Sections 21-33-301 et seq., Mississippi 126
Code of 1972, as amended, or any other limitation on indebtedness 127
of the city. Bonds issued pursuant to the provisions of this 128
section and interest income therefrom shall be exempt from all 129
taxation by the State of Mississippi. 130
Section * * * 6. This act shall be repealed from and after 131
July 1, * * * 2036. 132
SECTION 2. This act shall take effect and be in force from 133
and after its passage. 134