MississippiSB 29252026 Regular SessionSenateWALLET

City of Starkville; extend repeal date on economic development, tourism/convention tax.

Sponsored By: Bart Williams (Republican)

Signed by Governor

Local and Private LegislationLocal and Private

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Bill Overview

Analyzed Economic Effects

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

Stronger city oversight of tax funds

The city must approve or reject budgets from the VCC, EDA, Starkville parks, and MSU each year. The city can set rules for budgeting, record keeping, reporting, and audits. Each funded group must get a yearly independent audit and send the report to the city within 15 days of receiving it. Spending must follow Mississippi public purchasing and bidding laws. These funds are tracked in separate accounts, and after the first partial year, budgets follow the October 1–September 30 fiscal year.

Voter approval required and 2030 sunset

The law takes effect on passage, but the city can levy this tax only if a majority of voters approve it. The board must pass a resolution naming the amount and start month and send a certified copy to the Department of Revenue before the tax begins. All authorities under this act end on June 30, 2030.

2% tax on Starkville restaurant meals

A 2% city tax applies to prepared food and drinks sold by restaurants inside Starkville. The tax is based on the full purchase amount. Restaurants may add this charge to your bill at checkout.

Restaurants must collect and file tax

Restaurants must add the 2% city tax to the sales price and collect it at the time of payment, when practicable. They must file and pay the tax to the Mississippi Department of Revenue using the state form. State sales tax rules and enforcement, including audits and penalties, apply to this tax.

How Starkville spends the restaurant tax

The state keeps 3% of collections to cover costs. The rest is split each year: 40% to Starkville parks, 20% to Mississippi State University for student activities, 15% to the Economic Development Authority, 15% to the Visitors and Convention Council, and 10% to the City for development projects. This money is dedicated and cannot go into the city’s general fund.

Sponsors & Cosponsors

Sponsor

Bart Williams
Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 51 • No: 1

Senate vote • 3/19/2026

Passed