City of Petal; extend repealer on hotel/motel and restaurant/bar tourism taxes.
SB3058 extends the sunset date of a local and private law that authorizes the City of Petal, Mississippi, to levy special tourism-related taxes. Under the bill, Petal may continue to impose up to a 3% tax on gross proceeds from bars, restaurants, and hotel/motel overnight room rentals, with the revenue dedicated to promoting tourism and supporting parks and recreation within the city. The measure does not create a new tax structure; it preserves and extends the existing authority that was scheduled to expire on July 1, 2025, moving the repeal date to July 1, 2029.
The bill keeps in place the procedural requirements for adopting the tax, including a city resolution, public notice, and a referendum of Petal voters. The tax may only be levied if at least 60% of participating voters approve it, and the bill continues to require that the tax be collected through the Department of Revenue, separately accounted for, and audited annually. It also maintains the restriction that the proceeds cannot be treated as general fund revenue and must be used only for the specified tourism and parks/recreation purposes.
SB3058 amends Chapter 917 of the Local and Private Laws of 2021 by extending the repeal date for Petal’s special local tourism tax authority from July 1, 2025, to July 1, 2029. As a result, the City of Petal retains the legal ability to seek voter approval for and, if approved, collect the bar, restaurant, and hotel/motel tax for tourism promotion and parks and recreation projects. The bill affects local tax administration, the Mississippi Department of Revenue’s collection role, and businesses operating bars, restaurants, hotels, and motels in Petal.
The available voting history suggests broad support for the bill, with the Senate passing it 50-1 on March 12, 2025. No committee transcript is provided, so there is no recorded floor or committee debate to indicate substantial opposition or amendments. Overall, the bill appears to have been treated as a routine extension of an existing local revenue mechanism rather than a controversial policy change.
The main point of potential contention is the continuation of a local tax on hospitality-related businesses and their customers, including bars, restaurants, hotels, and motels. Any opposition would likely center on the burden of an added tax on tourism and dining, the use of referendum approval to authorize the levy, and the requirement that the tax revenue be restricted to tourism and parks/recreation rather than general municipal needs. The bill also preserves limits on campaign activity around the referendum, including a ban on using public funds to promote adoption of the tax.