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HB 4183

City of Laurel; revise use of the proceeds from recreation and public improvement promotion tax.

2026 Regular Session Introduced by Omeria Scott

The bill restricts using recreation and public improvement tax and bond proceeds for fairground improvements, effective after 2026.

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Bill Summary · HB 4183

Summary of HB 4183 (2026) — Mississippi (City of Laurel; use of recreation and public improvement promotion tax)

Purpose and Intent

  • This bill amends prior local laws governing the City of Laurel to restrict how proceeds from the recreation and public improvement promotion tax, and certain related bond proceeds, can be used.
  • Specifically, it directs that, starting on the effective date of this act, the city may no longer use these tax proceeds or bond proceeds to fund construction and equipping improvements at the South Mississippi Fairground complex.

Key Provisions and Changes

  • Affected Legal Framework:

    • Amends Chapter 983, Local and Private Laws of 1996, as amended by Chapter 957, Local and Private Laws of 1998.
    • References the South Mississippi Fair Commission and the fairground complex (South Mississippi Fairground).

  • Tax and Revenue Provisions (Section 3):

    • Establishes a “recreation and public improvement promotion tax” in Laurel.
    • Tax rate: up to 2% of gross receipts from hotel/motel room rentals and from sales of foods/beverages at restaurants (including alcohol sold on premises).
    • Tax collection and remittance: collected like state sales tax, with 3% reserved to the Department of Revenue for collection costs; remainder to the city.
    • Use of proceeds prior to 2026: dedicated to constructing, operating, and maintaining the project (as defined in the act and the 1998 HB 1868 framework).
    • New restriction starting in 2026: proceeds shall cease being used for any project defined under Section 1(g)(ii) (i.e., the fairground improvements). In short, after the 2026 session, tax and bond proceeds cannot fund fairground projects.

  • Allocation and Oversight (Section 2):

    • The city authorities must allocate at least one-third of increased tax proceeds and at least one-third of bond proceeds to the Fair Commission for constructing and equipping improvements at the fairground complex, but this requirement is effectively repealed or altered by the 2026 change, limiting support for the fairground projects.
    • Requires adherence to public bidding and purchasing laws except as expressly provided.

  • Bonding and Debt (Sections 7–8):

    • Allows the city to issue revenue bonds or general obligation bonds to finance approved projects, with debt serviced by tax revenues from Section 3.
    • Bonds must be structured to align with life of improvements (not exceeding 30 years for some bond types) and are exempt from state debt limits when serviced by the tax revenues.
    • Bonds are described as payable solely from the tax revenues and other city securities provided, not from ad valorem taxes.

  • Tax Election and Timeline (Section 4):

    • Requirements for obtaining voter approval via resolutions, notices, and, if contested, a local election.
    • Establishes timing for effective levy and the notice requirements for bond issuance or tax changes.

  • Administrative and Fiscal (Sections 5–6):

    • Creates a separate budget cycle for tax receipts and expenditures.
    • Mandates separate accounting and annual audits for funds generated under this act.

Who Would Be Affected

  • The City of Laurel and its governing authorities (mayor and city council).
  • Taxpayers and visitors in Laurel who pay the recreation and public improvement promotion tax (hotels, motels, and restaurant-related sales).
  • The Fair Commission (South Mississippi Fair Commission) and the Fairground complex.
  • Bondholders and issuers of revenue or general obligation bonds tied to the tax revenues.

Procedural/Timelines

  • Effective date: The act takes effect upon passage.
  • Prior to tax/bond issuance, required resolutions, public notices, and potential referenda per Section 4.
  • Annual audits of funds dedicated under this act, with expenses paid from tax-derived funds.
  • If contested, elections determine tax levy or bond issuance authority; otherwise, approvals proceed per statutory deadlines.

Overall, HB 4183 restructures and ultimately restricts the use of recreation and public improvement tax and related bond proceeds for fairground improvements, while preserving authority to levy and issue bonds for eligible projects under existing or revised governance rules.

Compiled from official sources — confirm details with the bill’s official record.

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