Bill > SB3265

This bill authorizes the City of Water Valley, Mississippi, to levy a 1% tax on restaurant sales, with the revenue specifically dedicated to promoting tourism and parks and recreation. The bill defines a restaurant as a place selling prepared food and beverages for on-premises consumption, excluding institutional facilities like schools and hospitals. To implement the tax, the city must first hold a public election where 60% of voters must approve the measure. If approved, restaurants will collect the tax and remit it to the Mississippi Department of Revenue, which will retain 3% for collection costs and forward the remaining funds to the city. The city is required to create a separate budget for these funds, keep distinct accounting records, and have the revenues independently audited annually. Restaurants will be required to add the tax to customer bills and collect it at the point of sale. The tax is set to be automatically repealed on July 1, 2029, and can only be used for the specified tourism and parks and recreation purposes, not as part of the city's general fund revenues. The bill provides a comprehensive framework for implementing, collecting, and managing this specialized local tax.

Government Affairs

https://billstatus.ls.state.ms.us/2025/pdf/history/SB/SB3265.xml