City of Brookhaven; extend repeal date on the tax upon room rentals of hotels, motels and bed-and-breakfast establishments.

Brookhaven extends room tax authority to 2029

Effective on passage, this law moves Brookhaven’s room tax repeal date from July 1, 2025, to July 1, 2029. The city retains authority to tax room rentals and related products at up to 2%. Covered hotels, motels, and bed-and-breakfasts must have at least six guest rooms; hospitals and specified medical lodging facilities are excluded. Before imposing the tax, the city must hold a publicized election and win approval from at least 60% of voters voting. The tax is added to customers’ bills. Mississippi’s Department of Revenue collects it, keeps 3% for collection costs, and sends the rest to Brookhaven by the following month’s 15th day. The city’s share must support tourism, parks, and recreation—not general city spending. The city must keep separate accounts and obtain an annual independent audit paid from these funds.