City of Leland; authorize a tax on hotels/motels, bars and restaurants for tourism and parks and recreation.

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To: Local and Private
Legislation
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Hines

HOUSE BILL NO. 4147

AN ACT TO AUTHORIZE THE GOVERNING AUTHORITIES OF THE CITY OF 1
LELAND, MISSISSIPPI, TO LEVY A 2% TAX UPON THE GROSS PROCEEDS FROM 2
THE SALES OF BARS AND RESTAURANTS AND UPON THE GROSS PROCEEDS FROM 3
ROOM RENTALS OF HOTELS AND MOTELS FOR THE PURPOSE OF PROVIDING 4
FUNDS FOR THE PROMOTION OF TOURISM, PARKS AND RECREATION WITHIN 5
THE CITY; TO REQUIRE THAT AN ELECTION BE HELD ON THE QUESTION OF 6
THE LEVYING OF SUCH TAX; AND FOR RELATED PURPOSES. 7
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 8
SECTION 1. As used in this act, the following terms shall 9
have the meanings ascribed to them in this section unless a 10
different meaning is clearly indicated by the context in which 11
they are used: 12
(a) "Bar" means all places, required by law to possess 13
an on-premises Alcoholic Beverage Control permit, where beer 14
and/or alcoholic beverages are sold for consumption on the 15
premises. 16
(b) "Governing authorities" means the mayor and the 17
board of aldermen of the City of Leland, Mississippi. 18
(c) "Hotel" or "motel" means any establishment engaged 19
in the business of furnishing or providing rooms intended or 20
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designed for dwelling, lodging or sleeping purposes to transient 21
guests on a daily, weekly or monthly basis and located within the 22
limits of the city. "Hotel" or "motel" includes Airbnb, Vacation 23
Rentals By Owner and similar establishments, but does not include 24
hospitals, nursing homes and assisted living facilities. 25
(d) "Restaurant" means all places where prepared food 26
and beverages, including beer and alcoholic beverages, are sold 27
for consumption, whether such food is consumed on the premises or 28
not. The term "restaurant" does not include any school, hospital, 29
convalescent or nursing home, or any restaurant-like facility 30
operated by or in connection with a school, hospital, medical 31
clinic, convalescent or nursing home providing food for students, 32
patients, visitors or their families. 33
SECTION 2. (1) For the purpose of providing funds to 34
promote tourism, parks and recreation within the City of Leland, 35
the governing authorities of the city are authorized, in their 36
discretion, to levy and collect from the following persons a tax, 37
which shall be in addition to all of the taxes and assessments 38
imposed. The tax shall be imposed on the following persons: 39
(a) A tax upon every person, firm or corporation 40
operating a bar in the City of Leland, at a rate not to exceed two 41
percent (2%) of the gross proceeds of the sales of such bar; 42
(b) A tax upon every person, firm or corporation 43
operating a restaurant in the City of Leland, at a rate not to 44
exceed two percent (2%) of the gross proceeds of the sales of beer 45
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and alcoholic beverages sold for consumption on the premises and 46
all prepared foods of such restaurant; and 47
(c) A tax upon every person, firm or corporation 48
operating a hotel or motel in the City of Leland, at a rate not to 49
exceed two percent (2%) of the gross proceeds of room rentals for 50
each such hotel or motel. 51
(2) Persons, firms or corporations liable for the levy 52
imposed under subsection (1) of this section shall add the amount 53
of the levy to the sales price of the products and services set 54
out in subsection (1) of this section and shall collect, insofar 55
as is practicable, the amount of the tax due by them from the 56
person receiving the services or product at the time of payment 57
therefor. 58
(3) Such tax shall be collected by and paid to the 59
Department of Revenue on a form prescribed by the Department of 60
Revenue in the manner that state sales taxes are computed, 61
collected and paid; and full enforcement provisions and all other 62
provisions of Chapter 65, Title 27, Mississippi Code of 1972, 63
shall apply as necessary to the implementation and administration 64
of this act. 65
(4) Except for any amount retained by the Department of 66
Revenue under Section 27-3-58, Mississippi Code of 1972, to defray 67
the cost of collection, the proceeds of the tax shall be paid to 68
the governing authorities of the City of Leland, on or before the 69
fifteenth day of the month in which collected. 70
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(5) The proceeds of such tax shall not be considered by the 71
City of Leland as general fund revenues but shall be dedicated to 72
and expended solely for the purposes specified in this section. 73
SECTION 3. Before any tax authorized under this act may be 74
imposed, the governing authorities shall adopt a resolution 75
declaring its intention to levy the tax, setting forth the amount 76
of such tax to be imposed, the date upon which such tax shall 77
become effective and calling for a referendum to be held on the 78
question. Notice of such intention shall be published once each 79
week for at least three (3) consecutive weeks in a newspaper 80
published or having a general circulation in the county, with the 81
first publication of such notice to be made not less than 82
twenty-one (21) days before the date fixed in the resolution for 83
the election and the last publication to be made not more than 84
seven (7) days before the election. At the election, all 85
qualified electors of the City of Leland may vote, and the ballots 86
used in such election shall have printed thereon a brief statement 87
of the amount and purposes of the proposed tax levy and the words 88
"FOR THE TAX" and, on a separate line, "AGAINST THE TAX," and the 89
voters shall vote by placing a cross (X) or check (✓) opposite 90
their choice on the proposition. When the results of the election 91
shall have been canvassed and certified, the city may levy the tax 92
if sixty percent (60%) of the qualified electors who vote in the 93
election vote in favor of the tax. At least thirty (30) days 94
before the effective date of the tax, the governing authorities 95
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ST: City of Leland; authorize a tax on
hotels/motels, bars and restaurants for tourism
and parks and recreation.
shall furnish to the Department of Revenue a certified copy of the 96
resolution evidencing the tax. 97
SECTION 4. Accounting for receipts and expenditures of the 98
funds described in this act must be made separately from the 99
accounting of receipts and expenditures of the general fund and 100
any other funds of the City of Leland. The records reflecting the 101
receipts and expenditures of the funds prescribed in this act 102
shall be audited annually by an independent certified public 103
accountant, and the accountant shall make a written report of his 104
or her audit to the governing authorities. The audit shall be 105
made and completed as soon as practicable after the close of the 106
fiscal year, and expenses of such audit shall be paid from the 107
funds derived pursuant to this act. 108
SECTION 5. This act shall be repealed from and after July 1, 109
2030. 110
SECTION 6. This act shall take effect and be in force from 111
and after its passage. 112