City of Booneville; extend date of repeal on city's hotel, motel and restaurant tax.
SB3057 extends the sunset date for Booneville’s existing local hotel, motel, and restaurant tax from July 1, 2021 to July 1, 2029. The bill does not create a new tax; instead, it preserves the city’s authority to continue levying, at its discretion, an additional sales tax of up to 2% on hotel and motel room rentals and on restaurant sales within the City of Booneville. The stated purpose of the tax remains funding tourism promotion and parks and recreation in the city.
The bill keeps the structure of the existing local law in place. Any tax revenue collected must continue to be remitted through the Mississippi Department of Revenue, less a 3% collection fee, and then dedicated solely to the specified tourism and parks/recreation purposes. The measure also preserves the existing requirements for a city resolution, public notice, and voter approval before the tax may be imposed, along with separate accounting and annual independent audit requirements. It continues to prohibit use of the proceeds for private property, legal fees, or salaries.
In practical terms, the bill affects Booneville businesses in the hospitality and food-service sectors, as well as consumers who pay the tax if the city chooses to levy it. It also affects the city government by extending a local revenue tool that supports tourism-related and recreation-related spending. Because the bill is a local and private law amendment, its legal effect is narrowly targeted to Booneville rather than statewide.
The general sentiment reflected in the voting history appears strongly favorable: the Senate passed the bill 50-1. There is no committee transcript available here, but the overwhelming vote suggests broad support for continuing the city’s existing revenue authority. The bill’s narrow scope and continuation of an already authorized tax likely contributed to the lack of controversy.
The main point of potential contention is the continued imposition of an additional sales tax on hotels, motels, and restaurants, which can be viewed as a burden on local businesses and visitors. Another possible concern is the earmarking of revenues and the restrictions on how the money may be spent, though the bill already contains safeguards through voter approval, dedicated-use language, and audit requirements. No specific opposition arguments are provided in the available materials.
SB3057 amends a local and private act applicable only to Booneville, Mississippi, by extending the repeal date for the city’s authority to levy an additional hotel, motel, and restaurant sales tax until July 1, 2029. It preserves the existing tax framework, including the maximum 2% rate, collection through the Department of Revenue, dedicated use of proceeds for tourism and parks and recreation, and annual audit/reporting requirements. The bill affects Booneville’s municipal revenue authority, local lodging and restaurant businesses, and consumers subject to the tax if it is imposed.
The available voting record indicates strong support for the bill, with the Senate passing SB3057 by a 50-1 vote. No committee discussion is provided, but the near-unanimous vote suggests the measure was viewed as a routine extension of an existing local funding mechanism rather than a controversial policy change. The bill appears to have been treated as a narrow local matter with broad acceptance.
The primary substantive concern is the continuation of an additional local sales tax on hotel, motel, and restaurant transactions, which may be opposed by affected businesses or taxpayers who prefer lower costs. A secondary issue is the use of earmarked revenue for tourism and parks and recreation rather than general municipal purposes, although the bill already limits spending and requires audits. No specific objections from legislators or stakeholders are included in the record provided.