Bill > HB1689

This bill extends the authorization for the City of Olive Branch, Mississippi, to levy a special hotel and motel tax and issue related bonds for tourism, parks, and recreation purposes. Specifically, the bill extends the date of repeal from July 1, 2026, to July 1, 2029. The legislation allows the city's governing authorities to impose a tax up to 1% on gross proceeds from overnight room rentals at hotels or motels with six or more guest rooms, subject to a voter referendum requiring 60% approval. The tax proceeds must be dedicated solely to promoting tourism and parks and recreation, with 3% retained by the Department of Revenue for collection costs. The city is authorized to issue general obligation bonds not exceeding the amount that can be serviced by the special sales tax, and these bonds would be exempt from state taxation. The bill requires separate accounting for the tax revenues, with annual independent audits, and ensures that the tax can continue to be levied as long as necessary to service any issued bonds. The tax can only be imposed after a public election and requires detailed procedural steps, including public notice and voter approval.

Government Affairs

https://billstatus.ls.state.ms.us/2025/pdf/history/HB/HB1689.xml