Town of Byhalia; extend date of repeal on town's hotel/motel tax., the official text

MISSISSIPPI LEGISLATURE

2026 Regular Session

To: Local and Private Legislation

By: Representative Kinkade

House Bill 1998

(As Sent to Governor)

AN ACT TO AMEND CHAPTER 944, LOCAL AND PRIVATE LAWS OF 2010,
AS LAST AMENDED BY CHAPTER 909, LOCAL AND PRIVATE LAWS OF 2022, TO EXTEND THE
DATE OF REPEAL FROM JULY 1, 2026,  TO JULY 1, 2030, ON THE PROVISION OF LAW
THAT AUTHORIZES THE TOWN OF BYHALIA, MISSISSIPPI, TO IMPOSE A TAX AT A RATE NOT
TO EXCEED 2% UPON THE GROSS PROCEEDS OF ROOM RENTALS FOR HOTELS OR MOTELS IN
THE TOWN; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1.  Chapter
944, Local and Private Laws of 2010, as amended by Chapter 949, Local and
Private Laws of 2012, as amended by Chapter 909, Local and Private Laws of
2017, as amended by Chapter 909, Local and Private Laws of 2022, is amended as
follows:

Section 1.  As
used in this act, the following terms shall have the following meanings unless
a different meaning is clearly indicated by the context in which they are used:

(a)  "Governing
authorities" means the governing authorities of the Town of Byhalia,
Mississippi.

(b)  "Hotel"
or "motel" means any establishment engaged in the business of
furnishing or providing rooms intended or designed for dwelling, lodging or
sleeping purposes to transient guests, where the establishment consists of six
(6) or more guest rooms.  The term "hotel" or "motel" does
not include any hospital, convalescent or nursing home or sanitarium, or any
hotel-like facility operated by or in connection with a hospital or medical
clinic providing rooms exclusively for patients and their families.

Section 2.  (1)
For the purpose of providing funds to promote tourism and parks and recreation
in the Byhalia area, the governing authorities are authorized, in their
discretion, to levy and collect from the following persons a tax, which shall
be in addition to all of the taxes and assessments imposed upon every person,
firm or corporation operating a motel or hotel in the Town of Byhalia, at a
rate not to exceed two percent (2%) of the gross proceeds of room rentals for
each such hotel or motel.

(2)  Persons, firms or corporations
liable for the levy imposed under subsection (1) of this section shall add the
amount of the levy to the sales price of the rooms and products set out in
subsection (1) of this section and shall collect, insofar as is practicable,
the amount of the tax due by them from the person receiving the services or
product at the time of payment therefor.

(3)  The tax shall be
collected by and paid to the Mississippi Department of Revenue on a form
prescribed by the Department of Revenue in the manner that state sales taxes
are computed, collected and paid; and full enforcement provisions and all other
provisions of Chapter 65, Title 27, Mississippi Code of 1972, shall apply as
necessary to the implementation and administration of this act.

(4)  The proceeds of the
tax, less three percent (3%) thereof which shall be retained by the Department
of Revenue to defray the cost of collection, shall be paid to the governing
authorities on or before the fifteenth day of the month following the month in
which collected.

(5)  The proceeds of the tax
shall not be considered by the Town of Byhalia as general fund revenues but
shall be dedicated to and expended solely for the purposes specified in this
section.

Section 3.  Before
any tax authorized under this act may be imposed, the governing authorities
shall adopt a resolution declaring their intention to levy the tax, setting
forth the amount of the tax to be imposed, the date upon which the tax shall
become effective and calling for an election to be held on the question.  The
date of the election shall be fixed in the resolution.  Notice of such
intention and the election shall be published once each week for at least three
(3) consecutive weeks in a newspaper published or having a general circulation
in the Town of Byhalia, with the first publication of the notice to be made not
less than twenty-one (21) days before the date fixed in the resolution for the
election and the last publication to be made not more than seven (7) days
before the election.  At the election, all qualified electors of the Town of
Byhalia may vote, and the ballots used in the election shall have printed
thereon a brief statement of the amount and purposes of the proposed tax levy
and the words "FOR THE TAX" and, on a separate line, "AGAINST THE
TAX" and the voters shall vote by placing a cross (X) or check (ü) opposite their choice
on the proposition.  When the results of the election shall have been canvassed
and certified, the town may levy the tax if sixty percent (60%) of the
qualified electors who vote in the election vote in favor of the tax.  At least
thirty (30) days before the effective date of the tax provided in this section,
the governing authorities shall furnish to the Department of Revenue a
certified copy of the resolution evidencing the tax.

Section 4.
Accounting for receipts and expenditures of the funds herein described shall be
made separately from the accounting of receipts and expenditures of the general
fund and any other funds of the Town of Byhalia.  The records reflecting the
receipts and expenditures of the funds prescribed in this act shall be audited
annually by an independent certified public accountant, and the accountant
shall make a written report of his audit to the governing authorities.  The
audit shall be made and completed as soon as practicable after the close of the
fiscal year, and expenses of the audit shall be paid from the funds derived in
accordance with this act.

Section 5.  (a)
Collections of revenue made under this chapter from and after July 1, 2016, and
until the effective date of Senate Bill No. 2941, 2017 Regular Session, are
hereby ratified and confirmed and the expenditures that may have been made by
the town of such revenue that was paid to the town are hereby ratified and
confirmed.  Any of such revenue paid to the town and held in escrow by the town
may be expended by the town for the purposes authorized in this chapter.

(b)  Collections of
revenue made under this chapter from and after July 1, 2021, and until the
effective date of House Bill No. 1533, 2022 Regular Session, are hereby
ratified and confirmed and the expenditures that may have been made by the town
of such revenue that was paid to the town are hereby ratified and confirmed.
Any of such revenue paid to the town and held in escrow by the town may be
expended by the town for the purposes authorized in this chapter.

Section 6.  This act
shall be repealed from and after July 1, * * *2026 2030.

SECTION 2.  This act
shall take effect and be in force from and after its passage.