City of Clinton; extend repealer on authority for tax on restaurants to promote tourism, parks and recreation.

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To: Local and Private
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Frazier, Mumford, Norwood

SENATE BILL NO. 3158

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