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

H. B. No. 1998 *HR43/R2337* ~ OFFICIAL ~ L3/5
26/HR43/R2337
PAGE 1 (OM\KP)

To: Local and Private
Legislation
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Kinkade

HOUSE BILL NO. 1998

AN ACT TO AMEND CHAPTER 944, LOCAL AND PRIVATE LAWS OF 2010, 1
AS LAST AMENDED BY CHAPTER 909, LOCAL AND PRIVATE LAWS OF 2022, TO 2
EXTEND THE DATE OF REPEAL FROM JULY 1, 2026, TO JULY 1, 2030, ON 3
THE PROVISION OF LAW THAT AUTHORIZES THE TOWN OF BYHALIA, 4
MISSISSIPPI, TO IMPOSE A TAX AT A RATE NOT TO EXCEED 2% UPON THE 5
GROSS PROCEEDS OF ROOM RENTALS FOR HOTELS OR MOTELS IN THE TOWN; 6
AND FOR RELATED PURPOSES. 7
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 8
SECTION 1. Chapter 944, Local and Private Laws of 2010, as 9
amended by Chapter 949, Local and Private Laws of 2012, as amended 10
by Chapter 909, Local and Private Laws of 2017, as amended by 11
Chapter 909, Local and Private Laws of 2022, is amended as 12
follows: 13
Section 1. As used in this act, the following terms shall 14
have the following meanings unless a different meaning is clearly 15
indicated by the context in which they are used: 16
(a) "Governing authorities" means the governing 17
authorities of the Town of Byhalia, Mississippi. 18
(b) "Hotel" or "motel" means any establishment engaged 19
in the business of furnishing or providing rooms intended or 20
H. B. No. 1998 *HR43/R2337* ~ OFFICIAL ~
26/HR43/R2337
PAGE 2 (OM\KP)

designed for dwelling, lodging or sleeping purposes to transient 21
guests, where the establishment consists of six (6) or more guest 22
rooms. The term "hotel" or "motel" does not include any hospital, 23
convalescent or nursing home or sanitarium, or any hotel-like 24
facility operated by or in connection with a hospital or medical 25
clinic providing rooms exclusively for patients and their 26
families. 27
Section 2. (1) For the purpose of providing funds to 28
promote tourism and parks and recreation in the Byhalia area, the 29
governing authorities are authorized, in their discretion, to levy 30
and collect from the following persons a tax, which shall be in 31
addition to all of the taxes and assessments imposed upon every 32
person, firm or corporation operating a motel or hotel in the Town 33
of Byhalia, at a rate not to exceed two percent (2%) of the gross 34
proceeds of room rentals for each such hotel or motel. 35
(2) Persons, firms or corporations liable for the levy 36
imposed under subsection (1) of this section shall add the amount 37
of the levy to the sales price of the rooms and products set out 38
in subsection (1) of this section and shall collect, insofar as is 39
practicable, the amount of the tax due by them from the person 40
receiving the services or product at the time of payment therefor. 41
(3) The tax shall be collected by and paid to the 42
Mississippi Department of Revenue on a form prescribed by the 43
Department of Revenue in the manner that state sales taxes are 44
computed, collected and paid; and full enforcement provisions and 45
H. B. No. 1998 *HR43/R2337* ~ OFFICIAL ~
26/HR43/R2337
PAGE 3 (OM\KP)

all other provisions of Chapter 65, Title 27, Mississippi Code of 46
1972, shall apply as necessary to the implementation and 47
administration of this act. 48
(4) The proceeds of the tax, less three percent (3%) thereof 49
which shall be retained by the Department of Revenue to defray the 50
cost of collection, shall be paid to the governing authorities on 51
or before the fifteenth day of the month following the month in 52
which collected. 53
(5) The proceeds of the tax shall not be considered by the 54
Town of Byhalia as general fund revenues but shall be dedicated to 55
and expended solely for the purposes specified in this section. 56
Section 3. Before any tax authorized under this act may be 57
imposed, the governing authorities shall adopt a resolution 58
declaring their intention to levy the tax, setting forth the 59
amount of the tax to be imposed, the date upon which the tax shall 60
become effective and calling for an election to be held on the 61
question. The date of the election shall be fixed in the 62
resolution. Notice of such intention and the election shall be 63
published once each week for at least three (3) consecutive weeks 64
in a newspaper published or having a general circulation in the 65
Town of Byhalia, with the first publication of the notice to be 66
made not less than twenty-one (21) days before the date fixed in 67
the resolution for the election and the last publication to be 68
made not more than seven (7) days before the election. At the 69
election, all qualified electors of the Town of Byhalia may vote, 70
H. B. No. 1998 *HR43/R2337* ~ OFFICIAL ~
26/HR43/R2337
PAGE 4 (OM\KP)

and the ballots used in the election shall have printed thereon a 71
brief statement of the amount and purposes of the proposed tax 72
levy and the words "FOR THE TAX" and, on a separate line, "AGAINST 73
THE TAX" and the voters shall vote by placing a cross (X) or check 74
(✓) opposite their choice on the proposition. When the results 75
of the election shall have been canvassed and certified, the town 76
may levy the tax if sixty percent (60%) of the qualified electors 77
who vote in the election vote in favor of the tax. At least 78
thirty (30) days before the effective date of the tax provided in 79
this section, the governing authorities shall furnish to the 80
Department of Revenue a certified copy of the resolution 81
evidencing the tax. 82
Section 4. Accounting for receipts and expenditures of the 83
funds herein described shall be made separately from the 84
accounting of receipts and expenditures of the general fund and 85
any other funds of the Town of Byhalia. The records reflecting 86
the receipts and expenditures of the funds prescribed in this act 87
shall be audited annually by an independent certified public 88
accountant, and the accountant shall make a written report of his 89
audit to the governing authorities. The audit shall be made and 90
completed as soon as practicable after the close of the fiscal 91
year, and expenses of the audit shall be paid from the funds 92
derived in accordance with this act. 93
Section 5. (a) Collections of revenue made under this 94
chapter from and after July 1, 2016, and until the effective date 95
H. B. No. 1998 *HR43/R2337* ~ OFFICIAL ~
26/HR43/R2337
PAGE 5 (OM\KP)
ST: Town of Byhalia; extend date of repeal on
town's hotel/motel tax.
of Senate Bill No. 2941, 2017 Regular Session, are hereby ratified 96
and confirmed and the expenditures that may have been made by the 97
town of such revenue that was paid to the town are hereby ratified 98
and confirmed. Any of such revenue paid to the town and held in 99
escrow by the town may be expended by the town for the purposes 100
authorized in this chapter. 101
(b) Collections of revenue made under this chapter from 102
and after July 1, 2021, and until the effective date of House Bill 103
No. 1533, 2022 Regular Session, are hereby ratified and confirmed 104
and the expenditures that may have been made by the town of such 105
revenue that was paid to the town are hereby ratified and 106
confirmed. Any of such revenue paid to the town and held in 107
escrow by the town may be expended by the town for the purposes 108
authorized in this chapter. 109
Section 6. This act shall be repealed from and after July 110
1, * * * 2030. 111
SECTION 2. This act shall take effect and be in force from 112
and after its passage. 113