City of Louisville; extend the hotel and motel tax repeal date to July 1, 2029.
Summary
SB3063 extends the existing local and private law authorizing the City of Louisville, Mississippi, to levy a hotel and motel occupancy tax of up to 2% on gross room rental proceeds. The tax is dedicated to tourism promotion and parks and recreation within the city, and the bill keeps the current structure for collection through the Mississippi Department of Revenue, monthly remittance to the city, and separate accounting and annual independent audit requirements.
The bill also preserves the requirement that the city’s governing authorities first adopt a resolution and hold a local election before imposing the tax, with approval by 60% of participating voters. It continues the requirement that the city establish a three-member Tourism and Economic Advisory Board and obtain a written recommendation from that board before spending the tax revenue. The measure primarily changes the sunset provision by extending the repeal date from July 1, 2021, to July 1, 2029, thereby keeping the authority in place for several more years.
Impact
SB3063 does not create a new tax; it extends the life of an existing local tax authority for the City of Louisville and continues the statutory framework governing how the tax is imposed, collected, audited, and spent. It affects hotel and motel operators in Louisville, transient guests who pay the tax, the Mississippi Department of Revenue as collector, and the city’s governing authorities and advisory board as administrators of the revenue. The bill also preserves prior ratification language for collections and expenditures made under the chapter.
Sentiment
The bill appears to have been generally favorable in the Senate, passing on March 12, 2025 by a wide margin of 50 yeas to 1 nay. The available record does not include committee debate or testimony, so there is no detailed transcript evidence of support or opposition. The strong vote suggests broad acceptance of continuing the local tourism-related revenue source for Louisville.
Contention
The main policy issue is the continued use of a local hotel and motel occupancy tax, which can be viewed as a tourism-development tool but also as an added cost on lodging businesses and visitors. The bill retains the requirement for local voter approval before the tax can be imposed, which reflects a built-in safeguard and potential point of local contention. Another possible area of concern is the advisory board structure and the requirement that expenditures receive a written recommendation before funds are spent, which limits direct discretion by city officials.