City of Ridgeland; authorize to levy tax on restaurants, hotels and motels to promote tourism, parks and recreation.

Ridgeland restaurant and hotel taxes fund park

The law authorizes Ridgeland to add taxes of up to 1% on restaurant sales and 2% on hotel or motel room rentals. These taxes are in addition to existing taxes. Covered restaurants sell prepared food and had at least $100,000 in gross sales or income in the previous calendar year. Establishments owned, operated, or controlled by the same person or corporation count together toward that threshold. Covered hotels and motels serve daily or weekly guests and have more than 10 rental units. Before levying either tax, the city must set its rate and start date by resolution and call an election. The required election date is June 3, 2025, and at least 60% of votes cast must favor the tax. The city must publish notice weekly for at least three consecutive weeks. It must send the certified resolution to the state revenue department at least 30 days before the tax starts. Businesses must add the tax to prices and collect it when customers pay, as far as practical. The state revenue department collects the tax using state sales-tax procedures and enforcement rules. After any allowed state retention, receipts go to Ridgeland by the 15th of the month after collection. The money funds only Freedom Ridge Park, Phase II capital improvements, not the city's general fund. The city must keep separate records and obtain an annual independent certified public accountant's audit, paid from tax receipts. The accountant must give city leaders a written report. The law took effect upon passage, but tax collection requires voter approval and the city's other required steps. The law ends on the first day of the month after the final payment for the improvements.