City of Booneville; extend date of repeal on city's hotel, motel and restaurant tax.

Booneville extends hotel and restaurant tax authority

Effective upon passage, the law extends Booneville’s local hotel and restaurant tax authority until its repeal on July 1, 2029. The city can charge up to 2% on hotel and motel room rentals and up to 2% on restaurant sales. These taxes are added to other taxes, and businesses must collect them from customers when practical. Hotels and motels must have at least six guest rooms; listed school and medical facilities are excluded from the tax. The existing approval process requires support from at least 60% of qualified voters casting ballots, not a new statewide vote. The city must set the rate and start date by resolution and notify the state at least 30 days before collection begins. The state collects the tax, keeps 3% for collection costs, and sends the rest to Booneville by the following month’s 15th day. Money must support tourism, parks, and recreation—not general city spending, private property, legal fees, or salaries. Separate tax accounts require annual audits by an independent certified public accountant who does not audit the city’s general funds. Audit costs can come from the tax money, and reports go to city officials and state lawmakers representing Booneville.