MississippiHB 41702026 Regular SessionHouseWALLET

Town of Raleigh; extend repealer on tax on sales of restaurants for promotion of tourism and parks and recreation.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 2 costs, 1 mixed.

Tax funds only tourism and parks

All money from the restaurant tax goes into a separate special fund. The town must spend it only to promote tourism and for parks and recreation. An independent CPA must audit the fund each year and give a written report to town leaders. The audit costs are paid from the tax funds. These proceeds are not part of the town’s general fund.

Up to 2% tax on Raleigh dining

The Town of Raleigh can add a local tax of up to 2% to restaurant sales. It applies to prepared food and drinks sold by restaurants within the town limits. Sales by schools, hospitals, and nursing or convalescent homes are excluded. Restaurants must add the tax to the bill and collect it when you pay. This authority lasts through July 1, 2030.

Restaurants follow state collection rules

If the tax is imposed, the Mississippi Department of Revenue collects it like the state sales tax. Restaurants must follow the same filing and enforcement rules as state sales taxes. The Department may keep amounts allowed by law and sends the rest to the town by the 15th of the next month. The town must notify the Commissioner in writing by the 15th of the month before the tax starts.

Voters must approve any Raleigh restaurant tax

Before any tax starts, the town must pass a resolution and hold an election. The town must publish notice once a week for three weeks, with the first notice at least 21 days before and the last no more than 7 days before the vote. Ballots must show the amount and purpose and say FOR THE TAX or AGAINST THE TAX. At least 60% of voters who vote must approve. The town must give the Department of Revenue a certified copy of the resolution at least 30 days before the tax takes effect.

Sponsors & Cosponsors

Sponsor

Mark Tullos
Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 164 • No: 3

Senate vote • 3/29/2026

Passed

Yes: 48 • No: 2

House vote • 3/26/2026