City of Olive Branch; extend repealer on 1% hotel/motel tax and issuance of bonds for tourism and parks and recreation.

Olive Branch extends hotel tax authority

The law extends Olive Branch’s authority to tax overnight room rentals at up to 1% through June 30, 2029. It covers hotels and motels with at least six guest rooms, excluding hospitals and hospital-related lodging. Operators must include the tax in room prices and collect it from guests when they pay. Before imposing it, the city must set the rate and start date, and 60% of voters voting must approve. Election notices must run for three consecutive weeks, starting at least 21 days before and ending within seven days before voting. The city must notify the state revenue department at least 30 days before the tax starts. The department keeps a 3% collection fee and sends the rest to the city by the following month’s 15th day. Money is reserved for tourism, parks and recreation, with separate accounts and annual independent audits paid from tax funds. The city can issue general obligation bonds or take on other debt, limited by what tax proceeds can repay. These bonds do not count toward the city’s debt limit, and bond income is exempt from state tax. Beginning July 1, 2029, the tax can continue only as long as needed to repay bonds issued under the law.