City of Pascagoula; extend tourism tax levied on prepared food sold at restaurants.
Summary
SB 3274 extends the sunset date for an existing local and private law authorizing the City of Pascagoula to levy a special tax of up to 2% on the gross proceeds from prepared food sold by restaurants in the city. The tax is a local restaurant or prepared-food tax, and the revenue must be used only to implement the city’s Comprehensive Parks and Recreation Master Plan. The bill does not create a new tax; it continues the city’s current authority by moving the repeal date from July 1, 2025, to July 1, 2029.
Before the tax may be imposed, the city must adopt a resolution, publish notice, and hold a referendum in which at least 60% of voting electors approve the tax. The bill also keeps in place restrictions on use of public funds to promote the referendum and requires the tax to be collected and administered through the Mississippi Department of Revenue in the same manner as state sales taxes. The proceeds must be separately accounted for, audited annually, and cannot be treated as general fund revenue.
Impact
The bill amends Chapter 923 of the Local and Private Laws of 2013, as previously amended, solely to extend the expiration date of Pascagoula’s authority to levy the restaurant prepared-food tax. It preserves the existing statutory framework governing the tax rate, referendum requirement, collection procedures, dedicated use of revenues, and audit requirements. The practical effect is to allow the city to continue funding parks and recreation improvements through this local revenue source for an additional four years, subject to the same voter-approval conditions and administrative rules already in law.
Sentiment
Based on the bill text and available context, the measure appears routine and noncontroversial. There are no recorded committee transcripts or roll-call votes indicating opposition or debate, and the caption frames the bill as a straightforward extension of an existing local tax authority. The overall sentiment is therefore best characterized as neutral to supportive, with the bill presented as a continuation of an established funding mechanism for city recreation projects.
Contention
The main policy issue embedded in the bill is the continued use of a restaurant tax to fund parks and recreation improvements, which may be of concern to restaurant operators and consumers who bear the cost. However, the bill retains the existing safeguard that the tax cannot be imposed without a local referendum and a supermajority vote of 60% of participating electors. No specific objections, amendments, or competing viewpoints are reflected in the available legislative history, so any contention appears limited to the general question of local taxation rather than the bill’s mechanics.