City of Senatobia; extend repeal date on hotel/motel and restaurant tourism tax.
Summary
HB 1809 extends the sunset date for a local and private law authorizing the City of Senatobia to levy a tourism-related tax on hotel and motel room rentals and on restaurant sales. The bill does not create a new tax; it preserves the city’s existing authority to continue imposing a tax of up to 2% on gross proceeds from hotel/motel room rentals and up to 2% on restaurant sales, subject to local approval requirements.
The revenue generated by the tax must continue to be used only for parks and recreation development and tourism purposes. The bill also keeps in place the existing administrative framework: the tax is collected through the Department of Revenue, the city must account for the funds separately from its general fund, and the receipts and expenditures must be audited annually by an independent CPA. The only substantive change in the bill is the extension of the repeal date from July 1, 2025, to July 1, 2029.
Impact
HB 1809 amends Chapter 913 of the Local and Private Laws of 2014, as previously amended, by extending the life of Senatobia’s hotel/motel and restaurant tourism tax authority for four additional years. This preserves the city’s ability to continue using a dedicated local revenue stream for parks, recreation, and tourism, while leaving the tax rate, collection method, voter-approval process, and audit requirements unchanged. The bill affects hotel and motel operators, restaurants, local taxpayers, and the City of Senatobia, but only within that municipality.
Sentiment
The bill appears to have been broadly supported and noncontroversial. It passed the House 110-1 and the Senate 50-1, indicating strong bipartisan agreement to continue the existing local tax authority. The lack of committee transcript discussion suggests there was little public dispute or debate recorded in the available materials.
Contention
The main point of potential contention is the continuation of a local tax on hospitality and restaurant businesses, which ultimately may be passed on to consumers. However, the bill does not raise the tax rate or expand the tax base; it simply extends an existing authority that is already subject to local election approval and dedicated-use restrictions. Any disagreement would likely center on whether Senatobia should keep relying on this tourism tax rather than on broader general-fund revenues.