Town of Ackerman; authorize a tax on restaurants to promote tourism, parks and recreation.

S. B. No. 3401 *SS26/R1597* ~ OFFICIAL ~ L3/5
26/SS26/R1597
PAGE 1 (icj\kr)

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

By: Senator(s) Williams

SENATE BILL NO. 3401

AN ACT TO AUTHORIZE THE GOVERNING AUTHORITIES OF THE TOWN OF 1
ACKERMAN, MISSISSIPPI, TO LEVY A 2% TAX UPON THE GROSS PROCEEDS OF 2
SALES OF RESTAURANTS FOR THE PURPOSE OF PROVIDING FUNDS TO PROMOTE 3
TOURISM AND PARKS AND RECREATION WITHIN THE TOWN; TO REQUIRE THAT 4
AN ELECTION BE HELD ON THE QUESTION OF WHETHER SUCH TAX MAY BE 5
LEVIED; 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) "Town" means the Town of Ackerman, Mississippi. 11
(b) "Governing authorities" means the mayor and the 12
board of aldermen of the town. 13
(c) "Prepared food" means food prepared on the premises 14
of a restaurant. 15
(d) "Restaurant" means all places within the corporate 16
limits of the town where prepared food and beverages are sold for 17
consumption, whether such food is consumed on the premises or not. 18
The term "restaurant" does not include any school, hospital, 19
convalescent or nursing home, and restaurant-like facility 20
S. B. No. 3401 *SS26/R1597* ~ OFFICIAL ~
26/SS26/R1597
PAGE 2 (icj\kr)

operated by or in connection with a school, hospital, medical 21
clinic, convalescent or nursing home providing food for students, 22
patients, visitors or their families. 23
SECTION 2. (1) For the purpose of providing funds to 24
promote tourism and parks and recreation within the town, the 25
governing authorities of the town, in their discretion, may levy, 26
assess and collect a tax from persons, firms or corporations 27
specified in this subsection, a tax, which shall be in addition to 28
all other taxes or assessments imposed. The tax shall be imposed 29
upon every person, firm or corporation operating a restaurant in 30
the town where prepared food and drink is sold to the public, at a 31
rate not to exceed two percent (2%) of the gross proceeds of the 32
sales of such restaurant or business. 33
(2) Persons, firms, corporations or other entities liable 34
for the tax imposed under subsection (1) of this section shall add 35
the amount of the tax to the sales price of the food and beverages 36
and shall collect, insofar as practicable, the amount of the tax 37
due from the person purchasing the food or beverages at the time 38
of payment therefor. 39
SECTION 3. Before any tax authorized under this act may be 40
imposed, the governing authorities shall adopt a resolution 41
declaring their intention to levy the tax, setting forth the 42
amount of the tax to be imposed, the date upon which the tax shall 43
become effective and calling for an election to be held on the 44
question. The date of the election shall be fixed in the 45
S. B. No. 3401 *SS26/R1597* ~ OFFICIAL ~
26/SS26/R1597
PAGE 3 (icj\kr)

resolution. Notice of the intention and the election shall be 46
published once each week for at least three (3) consecutive weeks 47
in a newspaper published or having a general circulation in the 48
town, with the first publication of the notice to be made not less 49
than twenty-one (21) days before the date fixed in the resolution 50
for the election and the last publication to be made not more than 51
seven (7) days before the election. At the election, all 52
qualified electors of the town may vote, and the ballots used in 53
the election shall have printed thereon a brief statement of the 54
amount and purposes of the proposed tax levy and the words "FOR 55
THE TAX" and, on a separate line, "AGAINST THE TAX" and the voters 56
shall vote by placing a cross (X) or check (✓) opposite their 57
choice on the proposition. When the results of the election shall 58
have been canvassed and certified, the town may levy the tax if 59
sixty percent (60%) of the qualified electors who vote in the 60
election vote in favor of the tax. At least thirty (30) days 61
before the effective date of the tax, the governing authorities 62
shall furnish to the Department of Revenue a certified copy of the 63
resolution evidencing the tax. 64
SECTION 4. (1) On or before the fifteenth day of the month 65
preceding the date on which the town will begin to levy the tax 66
authorized under Section 2 of this act, the governing authorities 67
shall give written notification to the Commissioner of Revenue of 68
the date on which the tax will become effective. 69
S. B. No. 3401 *SS26/R1597* ~ OFFICIAL ~
26/SS26/R1597
PAGE 4 (icj\kr)

(2) The tax must be collected by and paid to the Department 70
of Revenue in the same manner that state sales taxes are computed, 71
collected and paid, and the full enforcement provisions and all 72
other provisions of Chapter 65, Title 27, Mississippi Code of 73
1972, will apply as necessary for the implementation of this act. 74
(3) Except for any amount retained by the Department of 75
Revenue under Section 27-3-58, Mississippi Code of 1972, the 76
revenue from the special tax collected under this act must be paid 77
to the town on or before the fifteenth day of the month following 78
the month in which collected. 79
(4) Accounting for receipts and expenditures of the revenue 80
from the tax shall be made separately from the accounting of 81
receipts and expenditures of the general fund and any other funds 82
of the town. The records reflecting the receipts and expenditures 83
of the revenue from the tax shall be audited annually by an 84
independent certified public accountant, and the accountant shall 85
make a written report of his audit to the governing authorities. 86
The audit shall be made and completed as soon as practicable after 87
the close of the fiscal year, and expenses of the audit shall be 88
paid from the funds derived pursuant to this act. 89
(5) The proceeds of the tax may not be considered by the 90
town as general fund revenues but must be placed into a special 91
fund apart from the town general fund and any other funds and 92
expended by the town strictly for the purposes prescribed under 93
Section 2 of this act. 94
S. B. No. 3401 *SS26/R1597* ~ OFFICIAL ~
26/SS26/R1597
PAGE 5 (icj\kr)
ST: Town of Ackerman; authorize a tax on
restaurants to promote tourism, parks and
recreation.
SECTION 5. This act shall be repealed from and after July 1, 95
2030. 96
SECTION 6. This act shall take effect and be in force from 97
and after its passage. 98