This bill establishes provisions for municipalities to issue flood recovery revenue bonds aimed at rebuilding, repairing, replacing, and hardening municipal properties damaged by floods. It introduces a new municipal flood recovery gross receipts tax, which can be imposed by eligible municipalities at a rate not exceeding one-fourth percent of gross receipts from businesses operating within the municipality. The revenue generated from this tax will be dedicated solely to the payment of the flood recovery revenue bonds until they are fully discharged. Additionally, the bill provides a governmental gross receipts tax deduction for services and tangible personal property sold to eligible municipalities for flood recovery purposes, effective until July 1, 2028.

The bill amends existing laws to include definitions and provisions related to flood recovery revenue bonds and the new municipal flood recovery gross receipts tax. It specifies that eligible municipalities must have a population greater than 45,000 and be located in a class B county with a net taxable value exceeding $1.5 billion. The legislation also includes a delayed repeal of the tax deduction provision, set to take effect on July 1, 2028, and declares an emergency for immediate implementation of the act.

Statutes affected:
introduced version: 3-31-1, 3-31-1.1