Hotels; revise definition for purposes of local and private sales taxes, and conform for health regulations.

Hotel booking platforms face broader taxes

Beginning July 1, 2025, Mississippi includes room-booking businesses as hotels for state sales taxes and qualifying local hotel taxes. This covers businesses that advertise rooms, collect guest payments, and send payments to owners or managers, including through third-party agreements. Their room-rental proceeds face applicable taxes even when the owner would not owe tax on a direct booking. Where local tax definitions exclude these businesses, counties or cities must adopt a resolution to include them. A certified copy must reach the State Tax Commission at least 30 days before the levy takes effect. Covered local taxes are paid to the Mississippi Department of Revenue in the same or a similar way as state sales taxes. Nursing homes and qualifying institutions for older or infirm people remain excluded. Tax status alone does not place booking businesses under State Board of Health rules. The law sets no tax rate; any increase in guest prices depends on businesses passing costs along.