Mississippi Senate Bill SB3085

Mississippi 2022 Regular Session

• Introduced: 2/17/22
• Refer: 2/17/22
• Failed: 2/23/22

Caption

City of Jackson hotel/motel occupancy tax; increase from 75¢ to $2.00 per day for each occupied room.

Impact

This amendment to the Mississippi Code of 1972, specifically Section 31-31-11, represents a clear legislative effort to enhance municipal funding mechanisms through the accommodation sector. By allowing an increase in the occupancy tax, the bill seeks to ensure that funds collected can support the debt associated with previously issued bonds while also facilitating ongoing maintenance and potential renovations of related facilities. The increased tax is expected to generate significant revenue that can be earmarked for particular purposes, potentially enhancing the visitor experience and supporting city operations.

Summary

Senate Bill 3085 introduces an increase in the occupancy tax for hotels and motels located in the City of Jackson, changing the rate from 75 cents to $2.00 per day for each occupied room. The bill aims to provide additional funding necessary for maintaining facilities and paying a portion of the debt service on bonds issued for improvements or constructions related to the city’s hospitality infrastructure. This tax increase is intended to bolster local revenue streams for specific municipal obligations and enhancements related to the tourism and hospitality sectors.

Contention

While the intent behind the bill is to address funding shortfalls for specific local projects, there may be concerns about how the increased tax will be received by hotels, motels, and their customers. Stakeholders in the hospitality industry could view this as an additional financial burden that may discourage visitors or impact local business competitiveness. The debate may center around balancing the need for funding municipal projects against the economic pressures placed on businesses operating within the city's jurisdiction. How effectively the local governing authorities communicate these changes to the public and the business community will be crucial in mitigating pushback from those potentially affected.