AN ACT TO AMEND CHAPTER 906, LOCAL AND PRIVATE LAWS OF 2018, AS AMENDED BY CHAPTER 904, LOCAL AND PRIVATE LAWS OF 2022, TO EXTEND THE DATE OF REPEAL ON THE PROVISION OF LAW THAT AUTHORIZES THE GOVERNING AUTHORITIES OF THE CITY OF RICHLAND, MISSISSIPPI, TO LEVY A 3% TAX UPON THE GROSS PROCEEDS OF ROOM RENTALS FROM HOTELS AND MOTELS WITHIN THE CITY FOR THE PURPOSE OF PROMOTING TOURISM AND PARKS AND RECREATION; AND FOR RELATED PURPOSES.
House Bill 4145 amends a prior local and private law governing the City of Richland, Mississippi, to extend the sunset date for the city’s authority to levy a 3% tax on gross proceeds from hotel and motel room rentals. The tax is dedicated to funding tourism promotion and parks and recreation in the city. The bill does not create a new tax; it continues an existing local lodging tax that was previously set to expire in 2026 by moving the repeal date to 2030.
The bill preserves the existing structure for administering the tax. Hotel and motel operators must collect the tax from customers, the Mississippi Department of Revenue administers and enforces collection, and the proceeds are remitted to the city after state retention of any authorized administrative amount. Revenues must be kept in a separate special fund, accounted for separately from the city’s general fund, and audited annually by an independent certified public accountant. The bill also retains the requirement that the city obtain voter approval before imposing the tax, with a 60% approval threshold among participating voters, and it allows the city to discontinue the tax later by resolution if no related debt remains outstanding.
HB4145 extends the legal life of Richland’s local hotel/motel tourism tax from July 1, 2026 to July 1, 2030. As a result, the city retains authority under Chapter 906, Local and Private Laws of 2018, as amended, to continue collecting the 3% lodging tax for tourism and parks and recreation purposes. The bill affects the City of Richland, hotel and motel operators within the city limits, the Mississippi Department of Revenue, and the city’s special revenue accounting and audit requirements.
The available record suggests the bill is routine and noncontroversial. There are no committee transcripts or recorded votes in the provided materials, and the bill’s purpose is narrowly focused on extending an existing local revenue source rather than creating a new tax or changing its rate. The caption and text indicate a straightforward local fiscal measure intended to preserve funding for tourism and recreation.
No specific points of contention are documented in the provided materials. Potential areas of concern inherent in the bill’s subject matter would be the continued burden on hotel and motel guests and operators, the use of lodging-tax revenue for local tourism and parks, and the extension of a tax that had been scheduled to expire. However, the bill text itself maintains the existing rate, purpose, and voter-approval framework, which may limit controversy.