Mississippi Senate Bill SB2139

Mississippi 2024 Regular Session

• Introduced: 1/25/24
• Refer: 1/25/24
• Failed: 5/14/24

Caption

City of West Point; extend repealer on authority to levy tax on hotels, motels and restaurants for tourism and parks & rec.

Impact

The enactment of SB 2139 would have a significant impact on the city’s ability to fund tourism-related activities and enhance local parks and recreational facilities. The tax revenue raised would be dedicated exclusively to these purposes, ensuring that the funds are not mixed with the city’s general fund revenues, thereby preventing potential misuse. The Board of Directors of the West Point/Clay County Community Growth Alliance would be responsible for managing these funds, which reinforces local governance over resource allocation and management.

Summary

Senate Bill 2139 seeks to amend Chapter 957 of the Local and Private Laws of 2012 concerning the City of West Point, Mississippi. The bill extends the repeal date of the provision allowing the city to levy a tax on the gross proceeds from hotel and motel room rentals and restaurant sales from July 1, 2024, to July 1, 2028. This tax is specifically aimed at generating funds to promote tourism and support local parks and recreation initiatives. The tax is limited to a maximum rate of one percent (1%) of gross proceeds for each hotel, motel, and restaurant, and it is applicable only within the city's jurisdiction.

Contention

While the tax provision is primarily a financial measure to stimulate local economic growth through tourism, there is the potential for contention among local businesses and residents about the implications of imposing taxes on hospitality services. The requirement for an election to approve the tax indicates a necessary democratic process, allowing citizens to have a say in the financial responsibilities imposed on businesses. This could lead to debates about the balance between supporting local initiatives and maintaining a favorable business environment within West Point.