67-4-1402 - Levy of tax authorized.

67-4-1402. Levy of tax authorized.

(a)  Each municipality in this state is authorized to levy by ordinance a privilege tax upon the privilege of occupancy in any hotel of each transient in an amount not to exceed five percent (5%) of the consideration charged by the operator.

(b)  (1)  No ordinance authorizing such privilege tax shall take effect unless it is approved by a two-thirds (2/3) vote of the municipal legislative body at two (2) consecutive, regularly scheduled meetings, or unless it is approved by a majority of the number of qualified voters of the municipality voting in an election on the question of whether or not the tax should be levied.

     (2)  If there is a petition of ten percent (10%) of the qualified voters who voted in the municipality in the last gubernatorial election that is filed with the county election commission within thirty (30) days of final approval of such ordinance by the municipal legislative body, then the county election commission shall call an election on the question of whether or not the tax should be levied in accordance with the provisions of this section.

     (3)  The municipal legislative body shall direct the county election commission to call such election, to be held in a regular election or in a special election for the purpose of approving or rejecting such tax levy. The municipality shall pay the cost of any special election.

     (4)  The ballots used in such election shall have printed on them the substance of such ordinance and the voters shall vote for or against its approval.

     (5)  The votes cast on the question shall be canvassed and the results proclaimed by the county election commission and certified by it to the municipal legislative body.

     (6)  The qualifications of voters voting on the question shall be the same as those required for participation in general elections.

     (7)  All laws applicable to general elections shall apply to the determination of the approval or rejection of this tax levy.

[Acts 1988, ch. 982, § 3.]