City of Starkville; extend repeal date on economic development, tourism/convention tax.

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To: Local and Private
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Williams

SENATE BILL NO. 2925

AN ACT TO AMEND CHAPTER 950, LOCAL AND PRIVATE LAWS OF 1994, 1
AS LAST AMENDED BY CHAPTER 905, LOCAL AND PRIVATE LAWS OF 2022, TO 2
EXTEND THE REPEAL DATE ON THE CITY OF STARKVILLE'S ECONOMIC 3
DEVELOPMENT, TOURISM AND CONVENTION TAX; AND FOR RELATED PURPOSES. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 5
SECTION 1. Chapter 950, Local and Private Laws of 1994, as 6
amended by Chapter 1014, Local and Private Laws of 2004, as 7
amended by Chapter 929, Local and Private Laws of 2015, as amended 8
by Chapter 915, Local and Private Laws of 2018, as amended by 9
Chapter 905, Local and Private Laws of 2022, is amended as 10
follows: 11
Section 1. The following words shall have the meaning 12
ascribed to them in this section unless the context clearly 13
indicates otherwise: 14
(a) "City" means the City of Starkville, Mississippi. 15
(b) "EDA" means the Oktibbeha County Economic 16
Development Authority, a governmental subdivision of Oktibbeha 17
County, created by the Board of Supervisors of Oktibbeha County, 18
pursuant to Chapter 880, Local and Private Laws of 1984. 19
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(c) "Fiscal year" means the period from October 1 to 20
September 30 of each calendar year. 21
(d) "Governing authority" means the Mayor and Board of 22
Aldermen of the City of Starkville, Mississippi. 23
(e) "Gross income" means the total revenue generated by 24
a restaurant from the sale of prepared or prepackaged food, 25
alcoholic and nonalcoholic beverages. 26
(f) "Restaurant" means and includes all places where 27
prepared food and beverages are sold for consumption either upon 28
or off the premises and is to include catering activities for 29
prepared food sold from within the city limits of Starkville, 30
Mississippi. "Restaurant" as defined herein does not include any 31
school, hospital, convalescence or nursing home or any 32
restaurant-like facility operated by or in connection therewith 33
providing food for students, teachers, patients, visitors and 34
their families. 35
(g) "Starkville parks" means the various public parks 36
and recreational facilities located within the City of Starkville, 37
Mississippi, that are acquired, constructed and/or managed by the 38
governing authorities or a commission designated by the governing 39
authority. 40
(h) "VCC" means the Visitors and Convention Council 41
organized and created by Chapter 854, Local and Private Laws of 42
1986. 43
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Section 2. (1) Subject to provisions of subsection (2) of 44
this section, the governing authority is authorized, in its 45
discretion, to provide funds for the purposes provided for in 46
subsection (3) of this section. The tax authorized under this act 47
shall be levied, assessed and collected upon the gross revenue of 48
every restaurant operating within the city and shall be cited as 49
an "Economic Development, Tourism and Convention Tax" and shall be 50
in addition to all other taxes now imposed, as hereinafter 51
provided: 52
(a) The tax shall be a sum equal to two percent (2%) of 53
the gross income of restaurants derived from retail sales of 54
prepared food, alcoholic and nonalcoholic beverages. 55
(b) Persons, firms or corporations liable for the tax 56
imposed shall add the amount of the tax to the sales price of 57
goods described in subsection (1)(a) of this section and, in 58
addition, shall collect, insofar as practicable, the amount of the 59
tax due by them from the person receiving the services or goods at 60
the time of payment therefor. 61
(c) The tax shall be collected and paid to the 62
Department of Revenue, on a form to be prescribed by the 63
Department of Revenue, in the same manner that state sales taxes 64
are computed, collected and paid; and the full enforcement 65
provisions and all other provisions of the Mississippi Sales Tax 66
Law shall apply as necessary to the implementation and 67
administration of this act. 68
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(d) The proceeds of the tax, less three percent (3%) to 69
be retained by the Department of Revenue to defray the cost of 70
collections, shall be paid to the City of Starkville, to be placed 71
into a special fund created apart and separate from any other city 72
fund, on or before the fifteenth day of the month following the 73
month during which the tax is collected and shall on or before the 74
fifteenth day of the following month be delivered to the 75
appropriate entities as provided by subsection (3) of this 76
section. 77
(2) Before the tax authorized by this act may be imposed, 78
the governing authority shall adopt a resolution declaring its 79
intention to levy the tax and establish the amount of the tax levy 80
and the date on which the tax initially shall be levied and 81
collected. This date shall be the first day of a particular 82
month. The adoption of this tax shall be made by the governing 83
authority by placing the issue upon a ballot to be determined by 84
the qualified electors in the City of Starkville. The tax shall 85
not be levied unless authorized by the vote of a majority of the 86
qualified electors in the city voting at an election to be called 87
and held for that purpose. Before the effective date of the tax 88
levy approved as herein provided, the governing authority shall 89
furnish to the Chairman of the Department of Revenue a certified 90
copy of the resolution evidencing such a tax levy. 91
(3) Fifteen percent (15%) of the proceeds derived from the 92
tax collected under this act shall be distributed by the governing 93
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authority to the EDA to be expended by the EDA solely for economic 94
and community development. Fifteen percent (15%) of the proceeds 95
derived from the tax collected under this act shall be distributed 96
by the governing authority to the VCC to be expended by the VCC 97
solely to enhance community development and for the expansion of 98
tourism and conventions. Ten percent (10%) of the proceeds 99
derived from the tax collected under this act shall be retained 100
and expended by the governing authority solely for economic and 101
community development projects, initiatives or opportunities. 102
Forty percent (40%) of the proceeds derived from the tax collected 103
under this act shall be distributed annually by the governing 104
authority to Starkville parks to be expended for park and 105
recreational improvements. Twenty percent (20%) of the proceeds 106
derived from the tax collected under this act shall be distributed 107
by the governing authority to Mississippi State University to be 108
expended by the university solely to enhance student-related 109
activities. 110
(4) The proceeds of the tax collected under this act shall 111
not be considered by the city as general fund revenues, but shall 112
be dedicated solely for the purpose of carrying out those programs 113
and activities which are designed by the governing authority 114
through concurrent contracts with the VCC, EDA, Starkville parks 115
and Mississippi State University or through interlocal agreements 116
as provided by Section 17-13-17, Mississippi Code of 1972, as 117
amended. 118
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Section 3. (1) The governing authority shall retain the 119
right to approve or disapprove budgets of the agencies funded 120
under this act with respect to funds approved and disbursed to the 121
agencies under this act. A detailed budget of funds requested by 122
the VCC, EDA, Starkville parks and Mississippi State University 123
shall be submitted to the city with each year's request for funds. 124
(2) The governing authority shall retain the right to 125
prescribe such requirements with respect to budgeting, 126
establishment of funds, management, record keeping, reporting and 127
audit as may be necessary for the proper protection of funds 128
approved and disbursed under this act. 129
Section 4. The books of the entities receiving funds 130
disbursed under this act shall be audited annually by an 131
independent certified public accountant or the State Auditor. A 132
copy of each audit report shall be filed with the governing 133
authority within fifteen (15) calendar days after receipt thereof 134
by entities. No expenditure, purchase or transaction shall be 135
made or authorized in violation of the laws of the State of 136
Mississippi governing public purchasing, bidding, contracting or 137
auditing. 138
Section 5. (1) The first budget of receipts and 139
expenditures under the provisions of this act shall cover the 140
period beginning with the effective date of the tax and ending 141
with the end of the fiscal year and, thereafter, the budget shall 142
be on the fiscal-year basis provided herein. 143
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ST: City of Starkville; extend repeal date on
economic development, tourism/convention tax.
(2) Accounting for receipts and expenditures of the funds 144
herein described shall be made separately from the accounting of 145
receipts and expenditures of the general fund and other funds of 146
the City of Starkville. The record reflecting receipts and 147
expenditures of the funds described herein shall be audited by an 148
independent certified public accountant and such accountant shall 149
make a written report of the audit to the governing authority. 150
Such audit shall be made and completed as soon as practicable 151
after the close of the fiscal year and the expenses of such audit 152
may be paid from funds derived under Section 2 of this act. 153
Section 6. This act shall stand repealed from and after June 154
30, * * * 2030. 155
SECTION 2. This act shall take effect and be in force from 156
and after its passage. 157