City of Louisville; extend the hotel and motel tax repeal date to July 1, 2029.

Louisville hotel tax authority lasts longer

Effective upon passage, the law moves Louisville’s hotel tax repeal date from July 1, 2021, to July 1, 2029. The city keeps the option—not a requirement—to tax room-rental proceeds at up to 2%, on top of existing taxes. At least 60% of voters voting must approve the tax, and the city must first appoint its three-member advisory board. Covered hotels and motels have six or more guest rooms serving temporary guests; hospitals, nursing facilities, and hospital-related patient lodging are excluded. Operators collect the tax from guests at payment when practical and remit it through the Mississippi Department of Revenue. The department keeps 3% of tax collections for collection costs and sends the balance to Louisville by the next month’s 15th day. The money must stay separate from the general fund and support only tourism and economic development, including parks and recreation. Spending requires a written advisory board recommendation, and an independent accountant must audit the fund annually at the fund’s expense. The law also confirms collections from July 1, 2016, until the effective date of 2017 Senate Bill 3065, and allows previously escrowed money to fund authorized uses.