Town of Walnut; authorize tax on hotels/motels, restaurants for parks and recreational facilities.
Impact
If passed, the tax will supplement existing state and local sales taxes, which would not exceed a total rate of 10% for room rentals and restaurant sales. The governing authorities will be required to call for an election where residents can vote on the levy of this special tax. A 60% majority from the qualified electors voting will be necessary to enable the town to implement the new tax. The revenues generated will be dedicated solely to recreation and park-related uses and will not be classified as general fund revenues.
Summary
House Bill 1722 proposes to authorize the Town of Walnut, Mississippi, to levy a special tax of up to 3% on gross sales from hotels, motels, and restaurants within the town. The bill's objective is to generate revenue specifically allocated for the promotion, construction, financing, operation, and maintenance of parks and recreational facilities. The bill also allows for the issuance of bonds related to this funding, which can be paid back using the revenue generated from this special tax.
Contention
Some notable aspects of the bill include provisions to ensure transparency and proper financial oversight through annual independent audits of the funds generated by the special tax. Furthermore, to enable the town to refund or refinance existing debts related to parks and recreation, debt service must be within the limits of what can be generated by this tax. This introduces potential long-term financial implications, which might generate discussions around fiscal responsibility and local governance.