City of Petal; extend repealer on hotel/motel and restaurant/bar tourism taxes.

Petal tourism tax authority extended to 2029

Effective on passage, the law extends Petal’s tourism tax authority from July 1, 2025, to July 1, 2029. The city can levy taxes up to 3%, on top of other taxes. Covered sales include bar sales, restaurant prepared food, and restaurant beer and alcohol sold for drinking on-site. Hotel and motel overnight room rentals are also covered, excluding food, telephone, laundry, beverages, and similar extra charges. Before imposing a tax, the city must set its rate and start date and hold a referendum. At least 60% of voters casting ballots must approve. Notice must run weekly for at least three straight weeks in a newspaper circulating in Forrest County. Public money cannot promote the referendum, and city employees cannot promote it during business hours. Businesses must add the tax to customers’ bills and collect it when paid, where practical. Mississippi’s Department of Revenue collects and enforces the tax under state sales-tax rules. It keeps 3% of collections for costs and sends the balance to Petal by the 15th of the collection month. The money must support tourism promotion and park and recreation operations and maintenance within Petal, not general city spending. Receipts and spending must stay separate from the general fund, with an annual independent CPA audit paid from tax proceeds.