Town of Vaiden; authorize tax on restaurants for tourism and parks and recreation.

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To: Local and Private;
Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Chassaniol

SENATE BILL NO. 3392

AN ACT TO AUTHORIZE THE GOVERNING AUTHORITIES OF THE TOWN OF 1
VAIDEN, MISSISSIPPI, TO LEVY A 2% TAX UPON THE GROSS PROCEEDS OF 2
SALES OF RESTAURANTS TO PROVIDE FUNDS FOR THE PROMOTION OF TOURISM 3
AND PARKS AND RECREATION; TO REQUIRE THAT THE LEVY OF THE TAX 4
UNDER THIS ACT MAY BE IMPOSED ONLY IF APPROVED AT AN ELECTION BY 5
60% OF THOSE VOTING; AND FOR RELATED PURPOSES. 6
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 7
SECTION 1. As used in this act, the following terms have the 8
meanings ascribed to them in this section unless the context 9
clearly indicates otherwise: 10
(a) "Governing authorities" means the Mayor and Board 11
of Aldermen of the Town of Vaiden, Mississippi. 12
(b) "Prepared food" means food prepared on the premises 13
of a restaurant. 14
(c) "Restaurant" means all places within the town where 15
prepared food and beverages are sold for consumption, whether such 16
food is consumed on the premises or not. The term "restaurant" 17
does not include any school, hospital, convalescent or nursing 18
home, and restaurant-like facilities operated by or in connection 19
with a school, hospital, medical clinic, convalescent or nursing 20
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home providing food for students, patients, visitors or their 21
families. 22
SECTION 2. (1) For the purpose of providing funds to 23
promote tourism and parks and recreation, the governing 24
authorities, in their discretion, may levy, assess and collect a 25
tax from persons, firms or corporations specified in this 26
subsection, which shall be in addition to all other taxes or 27
assessments imposed. The tax shall be imposed upon every person, 28
firm or corporation operating a restaurant in the town where 29
prepared food and drink are sold to the public, at a rate not to 30
exceed two percent (2%) of the gross proceeds of the sales of such 31
restaurant or business. 32
(2) Persons, firms, corporations or other entities liable 33
for any tax imposed under this section shall add the amount of the 34
tax to the sales price of the food and beverages and shall 35
collect, insofar as practicable, the amount of the tax due from 36
the person purchasing the food or beverages at the time of payment 37
therefor. 38
SECTION 3. Before any tax authorized under this act may be 39
imposed, the governing authorities shall adopt a resolution 40
declaring their intention to levy the tax, setting forth the 41
amount of the tax to be imposed, the date upon which the tax shall 42
become effective and calling for an election to be held on the 43
question. The date of the election shall be fixed in the 44
resolution. Notice of the intention and the election shall be 45
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published once each week for at least three (3) consecutive weeks 46
in a newspaper published or having a general circulation in the 47
town, with the first publication of the notice to be made not less 48
than twenty-one (21) days before the date fixed in the resolution 49
for the election and the last publication to be made not more than 50
seven (7) days before the election. At the election, all 51
qualified electors of the town may vote, and the ballots used in 52
the election shall have printed thereon a brief statement of the 53
amount and purposes of the proposed tax levy and the words "FOR 54
THE TAX" and, on a separate line, "AGAINST THE TAX" and the voters 55
shall vote by placing a cross (X) or check (✓) opposite their 56
choice on the proposition. When the results of the election have 57
been canvassed and certified, the town may levy the tax if sixty 58
percent (60%) of the qualified electors who vote in the election 59
vote in favor of the tax. At least thirty (30) days before the 60
effective date of the tax, the governing authorities shall furnish 61
to the Department of Revenue a certified copy of the resolution 62
evidencing the tax. 63
SECTION 4. (1) On or before the fifteenth day of the month 64
preceding the date on which the town will begin to levy the tax 65
authorized under Section 2 of this act, the governing authorities 66
shall give written notification to the Commissioner of Revenue of 67
the date on which the tax will become effective. 68
(2) The tax must be collected by and paid to the Department 69
of Revenue in the same manner that state sales taxes are computed, 70
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collected and paid, and the full enforcement provisions and all 71
other provisions of Chapter 65, Title 27, Mississippi Code of 72
1972, will apply as necessary for the implementation of this act. 73
(3) Except for any amount retained by the Department of 74
Revenue under Section 27-3-58, Mississippi Code of 1972, the 75
revenue from the special tax collected under this act must be paid 76
to the town on or before the fifteenth day of the month following 77
the month in which collected. 78
(4) The proceeds of the tax shall not be considered by the 79
town as general fund revenues but shall be dedicated to and 80
expended solely for the purposes of promoting tourism and parks 81
and recreation within the town. Accounting for receipts and 82
expenditures of the revenue from the tax shall be made separately 83
from the accounting of receipts and expenditures of the general 84
fund and any other funds of the town. The records reflecting the 85
receipts and expenditures of the revenue from the tax shall be 86
audited annually by an independent certified public accountant, 87
and the accountant shall make a written report of his or her audit 88
to the board of supervisors. The audit shall be made and 89
completed as soon as practicable after the close of the fiscal 90
year, and expenses of the audit shall be paid from the funds 91
derived pursuant to this act. 92
(5) The proceeds of the tax may not be considered by the 93
town as general fund revenues but must be placed into a special 94
fund apart from the town general fund and any other funds and 95
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ST: Town of Vaiden; authorize tax on
restaurants for tourism and parks and
recreation.
expended by the town strictly for the purposes prescribed under 96
Section 2 of this act. 97
SECTION 5. Any tax authorized by this act may be 98
discontinued by the adoption of a resolution by the governing 99
authorities. The resolution shall be effective on the last day of 100
the month, and a certified copy shall be furnished to the 101
Commissioner of Revenue. 102
SECTION 6. This act shall replace Chapter 925, Local and 103
Private Laws of 2018, which repealed on July 1, 2022. 104
SECTION 7. This act shall stand repealed from and after July 105
1, 2030. 106
SECTION 8. This act shall take effect and be in force from 107
and after its passage. 108