City Wants More Say in Tax Spending | Jackson Free Press | Jackson, MS

City Wants More Say in Tax Spending

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Jackson Mayor Harvey Johnson Jr. wants a local chamber of commerce to hand some appointment powers to the city regarding a new commission overseeing infrastructure development.

Jackson Mayor Harvey Johnson Jr. wants the city to have more power to spend its own money.

Johnson opposes part of a new state law allowing the city to hold a referendum vote on a possible 1-percent tax increase on businesses' gross proceeds or gross income already taxed at a 7 percent tax rate under state law. The tax does not apply to retail sales of food at grocery stores and restaurants, or hotels or motels. Also exempt from the tax are television and internet service providers.

The city must use the revenue derived from the tax for police and fire services, emergency repairs for streets, and water infrastructure. A three-fifths majority of Jackson city voters must approve the referendum vote before the new tax can apply.

Johnson does not oppose the actual tax or its revenue, which he says is necessary. But the mayor does not approve of the make-up of a commission--also created by the new law--which would devise a plan for how the city spends the funds.

A local chamber of commerce, possibly the Greater Jackson Chamber Partnership (the law does not specify), gets to appoint four members of the commission. Although the four members must own businesses within the city, they do not have to be residents. The state governor, lieutenant governor and the speaker of the Mississippi House of Representatives each get to appoint a single member to the commission, leaving the mayor with the power to appoint the three remaining members.

Under a previous law, the commission had sign-off authority on every expenditure; however, a change enacted this legislative session removes that requirement., Johnson argues, however, that the commission still has too much power regarding where the city spends its own city-taxpayer-derived revenue.
"Although the commission is no longer vested with blanket power to approve all expenditure ties to local sales tax revenues, the commission is now charged with establishing a master plan for streets and roads, water, sewer and drainage," Johnson wrote in a May 2 statement.

Johnson wants more influence over the four commission members appointed by the "local chamber." Specifically, he is asking the chamber to give the city the power to appoint the chamber's four commission members.

"We asking to bring those appointees to the Jackson City Council, to give the city the appointment power," said city spokesman Chris Mims.
Mims said the chamber can give that power to the city if it adopts a resolution allowing it, and if the city of Jackson adopts an ordinance change allowing it to accept the chamber's resolution.

Sen. Walter Michel, R-Jackson, said he did not understand the mayor's drive to remove the commission, considering its role in making the referendum vote possible.

"The Jackson delegation had a knock-down drag-out fight to get it passed, and now you want to remove the oversight provision of the deal, and that was one of the things that allowed it to get the one-vote majority to get it passed," Michel said.

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