Town of Raleigh; extend repealer on tax on sales of restaurants for promotion of tourism and parks and recreation.

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To: Local and Private
Legislation
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Tullos

COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 4170

AN ACT TO AMEND CHAPTER 913, LOCAL AND PRIVATE LAWS OF 2022, 1
BY EXTENDING THE DATE OF REPEAL FROM JULY 1, 2022, TO JULY 1, 2
2030, ON THE PROVISIONS OF LAW THAT AUTHORIZES THE GOVERNING 3
AUTHORITIES OF THE TOWN OF RALEIGH, 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 TOWN; AND FOR RELATED PURPOSES. 7
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 8
SECTION 1. Chapter 913, Local and Private Laws of 2002, 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) "Town" means the Town of Raleigh, Mississippi. 14
(b) "Governing authorities" means the governing 15
authorities of the Town of Raleigh, 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 town 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 town, the 28
governing authorities of the Town of Raleigh, 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 Town of Raleigh, 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
town, 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 town 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 town 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 town 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 town 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 town. 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 audit to the governing authorities. 90
The audit shall be made and completed as soon as practicable after 91
the close of the fiscal year, and expenses of the audit shall be 92
paid from the funds derived pursuant to this act. 93
(5) The proceeds of the tax may not be considered by the 94
town as general fund revenues but must be placed into a special 95
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ST: Town of Raleigh; extend repealer on tax on
sales of restaurants for promotion of tourism
and parks and recreation.
fund apart from the town general fund and any other funds and 96
expended by the town strictly for the purposes prescribed under 97
Section 2 of this act. 98
Section 5. This act shall be repealed from and after July 99
1, * * * 2030. 100
SECTION 2. This act shall take effect and be in force from 101
and after its passage. 102