City of Senatobia; extend repeal date on hotel/motel and restaurant tourism tax.

Senatobia hotel and dining taxes extended

Effective upon passage, the law extends Senatobia’s local taxing authority from July 1, 2025, to July 1, 2029. The city can charge up to 2% on hotel and motel room rentals and, separately, up to 2% on restaurant sales. These taxes are added to other taxes, and businesses must collect them from customers when practical. Covered hotels and motels must have at least six guest rooms; covered restaurants sell prepared food and drinks for on-site use. Schools’ dining facilities and specified health-care facilities and their related lodging or dining operations are excluded. Before imposing a tax, the city must adopt a resolution, publish notice, and win approval from at least 60% of voters voting. The city must also notify the Mississippi Department of Revenue at least 30 days before the tax starts. The department collects the taxes and keeps 3% of collections for collection costs. The remaining money must support only parks, recreation, and tourism, not general city spending. The city must keep separate accounts and obtain annual independent audits, which these funds can pay for.