Bill > HB1654

This bill extends the authorization for the City of Pascagoula, Mississippi, to levy a tourism tax on prepared food sold in restaurants until July 1, 2029. The bill allows the city's governing authorities to impose a tax of up to 2% on the gross proceeds from restaurant food sales, with the revenue specifically dedicated to implementing a Comprehensive Parks and Recreation Master Plan adopted in 2012. Before implementing the tax, the city must hold a referendum where at least 60% of qualified voters must approve the measure. The tax would be collected by the Mississippi Department of Revenue using the same methods as state sales tax collection, and the funds must be accounted for separately from the city's general fund. Restaurants would be required to add the tax to their sales price and collect it from customers. The bill defines "restaurant" broadly to include dining rooms, cafes, lunch stands, and grocery stands selling prepared food, but excludes food service in schools, hospitals, and similar institutions. An independent certified public accountant must audit the tax revenues annually, with the audit expenses paid from the collected funds.

Government Affairs

https://billstatus.ls.state.ms.us/2025/pdf/history/HB/HB1654.xml