Mississippi Senate Bill SB3178

Mississippi 2022 Regular Session

• Introduced: 2/28/22
• Refer: 2/28/22
• Failed: 4/5/22

Caption

City of Jackson; extend repeal date on 1% restaurant, hotel and motel tax for Convention and Visitors Bureau.

Impact

The impact of SB3178 is significant for both local economies and the municipal administration of Jackson. The imposed tax, which is set at one percent (1%) on gross proceeds from qualifying businesses, directly feeds into the budget of the Jackson Convention and Visitors Bureau. This funding is exclusively allocated towards activities and programs designed to attract visitors, enhancing the city’s economic landscape through increased tourism and revenue generation while preventing these funds from being merged into general revenues.

Summary

Senate Bill 3178 amends previous legislation by extending the repeal date on provisions that create the Jackson Convention and Visitors Bureau and impose a tax on the gross proceeds of sales of restaurants, hotels, and motels. Originally established by local laws in 1999, this act is vital for generating revenue targeted at promoting Jackson as a destination for conventions and tourists. By extending this provision until July 1, 2026, the bill aims to secure funding that supports various promotional activities for the city.

Contention

Moreover, some points of contention surrounding the bill stem from the manner in which the tax is assessed and collected. Critics may raise concerns over whether sufficient transparency and accountability exist regarding the use of the tax proceeds. Requirements are set for organizations receiving funding to provide accounting reports on expenditures, which must be made public under the Mississippi Public Records Act. However, the continued reliance on a tax that may not have been subjected to an explicit electoral mandate raises questions about its legitimacy in the eyes of local taxpayers.