City of Verona; authorize a tax on restaurants to promote tourism, parks and recreation.

Verona can add a restaurant tax

The law authorizes Verona, Mississippi, to add a restaurant sales tax of up to 3%, on top of existing taxes. The city must set the rate and start date, and at least 60% of voters casting ballots must approve. The tax covers gross sales at restaurants selling food prepared on-site and beverages, including dine-in and takeout sales. Schools, hospitals, nursing and convalescent homes, and connected food facilities serving students, patients, visitors or families are excluded. Restaurants must add the tax to customers’ bills and collect it at payment when practical. Election notices must run weekly for at least three consecutive weeks in Verona newspapers. The first notice must appear at least 21 days before voting; the last, no more than seven days before. Ballots must state the tax amount and purposes and offer choices for or against the tax. The city must send its certified tax resolution to Mississippi’s Department of Revenue 30 days before the tax starts. The department collects and enforces the tax under state sales-tax rules. After any allowed state retention, collections go to Verona by the 15th of the following month. Verona must keep this money separate from its general fund and spend it only on tourism, parks and recreation. An independent certified public accountant must audit the fund annually, as soon as practical after each fiscal year ends. Tax proceeds pay audit costs. The law takes effect upon passage and is repealed July 1, 2029.