City of Hattiesburg; extend repeal date on hotel, motel and restaurant tax.

Hattiesburg extends hotel and restaurant tax authority

Effective upon passage, the law extends Hattiesburg’s local hotel, motel, and restaurant tax authority until its July 1, 2030 repeal. The city can levy additional taxes up to 1% on overnight room rental proceeds and up to 1% on restaurant gross income. Room charges for food, telephone, laundry, beverages, and similar services are excluded. Hotels and motels with 10 or fewer rental units and restaurants with annual gross sales under $100,000 are exempt. School and healthcare food services serving students, patients, visitors, and their families are also excluded. Before imposing a tax, the city must adopt a resolution setting the rate, start date, and election. At least 60% of qualified voters voting must approve it. Election notices must run weekly for three consecutive weeks, starting at least 21 days before the vote. The last notice must run no more than seven days before the vote. The city must send a certified resolution to the Mississippi Department of Revenue before the tax starts. The department collects the taxes using state sales-tax procedures and enforcement rules, keeps 3%, and pays the city by the following month’s 15th day. Net revenue funds tourism, parks, and recreation; up to 50% may go to University of Southern Mississippi athletic facility improvements. Receipts and spending must stay separate from city general funds and receive an annual independent CPA audit, paid from these funds. The city can also receive and spend money from any source for these purposes.