Town of Meadville; authorize tax on hotels, motels, and bed and breakfasts for tourism and parks and recreation.

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To: Local and Private;
Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Butler

SENATE BILL NO. 2262

AN ACT TO AUTHORIZE THE GOVERNING AUTHORITIES OF THE TOWN OF 1
MEADVILLE, MISSISSIPPI, TO LEVY A 3% TAX UPON THE GROSS PROCEEDS 2
FROM ROOM RENTALS OF HOTELS, MOTELS, AND BED AND BREAKFASTS WITHIN 3
THE TOWN, EXCLUDING THE GROSS PROCEEDS OF SUCH RENTALS OF 30 DAYS 4
OR LONGER, AND TO UTILIZE THE REVENUE FROM THE TAX TO PROMOTE 5
TOURISM AND PARKS AND RECREATION; TO REQUIRE THAT, BEFORE SUCH TAX 6
MAY BE LEVIED, AN ELECTION BE HELD ON THE QUESTION; AND FOR 7
RELATED PURPOSES. 8
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 9
SECTION 1. As used in this act, the following terms shall 10
have the following meanings unless a different meaning is clearly 11
indicated by the context in which they are used: 12
(a) "Governing authorities" means the governing 13
authorities of the Town of Meadville, Mississippi. 14
(b) "Hotel," "motel," or "bed and breakfast" means any 15
establishment engaged in the business of furnishing or providing 16
rooms intended or designed for dwelling, lodging or sleeping 17
purposes to transient guests, where the establishment consists of 18
six (6) or more guest rooms. The term "hotel," "motel," or "bed 19
and breakfast" does not include any hospital, convalescent or 20
nursing home, sanitarium or any hotel-like facility operated by or 21
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in connection with a hospital or medical clinic providing rooms 22
exclusively for patients and their families. 23
(c) "Town" means the Town of Meadville, Mississippi. 24
SECTION 2. (1) For the purpose of providing funds to 25
promote tourism and parks and recreation, the governing 26
authorities are authorized, in their discretion, to levy and 27
collect from the following persons a tax, which shall be in 28
addition to all of the taxes and assessments imposed. The tax 29
shall be imposed upon every person, firm or corporation operating 30
a motel, hotel, or bed and breakfast in the town, at a rate not to 31
exceed three percent (3%) of the gross proceeds of room rentals 32
for each such hotel, motel, or bed and breakfast, excluding the 33
gross proceeds of such rentals of thirty (30) days or longer. 34
(2) Persons, firms or corporations liable for the levy 35
imposed under subsection (1) of this section shall add the amount 36
of the levy to the sales price of the rooms and products set out 37
in subsection (1) of this section and shall collect, insofar as is 38
practicable, the amount of the tax due by them from the person 39
receiving the services or product at the time of payment therefor. 40
(3) The tax shall be collected by and paid to the Department 41
of Revenue on a form prescribed by the Department of Revenue in 42
the manner that state sales taxes are computed, collected and 43
paid; and full enforcement provisions and all other provisions of 44
Chapter 65, Title 27, Mississippi Code of 1972, shall apply as 45
necessary to the implementation and administration of this act. 46
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(4) The proceeds of the tax, less three percent (3%) thereof 47
which shall be retained by the Department of Revenue to defray the 48
cost of collection, shall be paid to the governing authorities on 49
or before the fifteenth day of the month following the month in 50
which collected. 51
(5) The proceeds of the tax shall not be considered by the 52
town as general fund revenues but shall be dedicated to and 53
expended solely for the purposes specified in this section. 54
SECTION 3. Before any tax authorized under this act may be 55
imposed, the governing authorities shall adopt a resolution 56
declaring their intention to levy the tax, setting forth the 57
amount of the tax to be imposed, the date upon which the tax shall 58
become effective, and calling for an election to be held on the 59
question. The date of the election shall be fixed in the 60
resolution. Notice of such intention shall be published once each 61
week for at least three (3) consecutive weeks in a newspaper 62
published or having a general circulation in the town, with the 63
first publication of the notice to be made not less than 64
twenty-one (21) days before the date fixed in the resolution for 65
the election and the last publication to be made not more than 66
seven (7) days before the election. At the election, all 67
qualified electors of the town may vote, and the ballots used in 68
the election shall have printed thereon a brief statement of the 69
amount and purposes of the proposed tax levy and the words "FOR 70
THE TAX" and, on a separate line, "AGAINST THE TAX," and the 71
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voters shall vote by placing a cross (X) or check (✓) opposite 72
their choice on the proposition. When the results of the election 73
have been canvassed and certified, the town may levy the tax if 74
sixty percent (60%) of the qualified electors who vote in the 75
election vote in favor of the tax. At least thirty (30) days 76
before the effective date of the tax provided in this section, the 77
governing authorities shall furnish to the Department of Revenue a 78
certified copy of the resolution evidencing the tax. 79
SECTION 4. Before the expenditure of the proceeds of the tax 80
authorized by this act, a budget reflecting the anticipated 81
receipts and expenditures shall be approved by the governing 82
authorities of the town. The first budget of receipts and 83
expenditures shall cover the period beginning with the effective 84
date of the tax and ending with the end of the town's fiscal year, 85
and thereafter, the budget shall be on the same fiscal basis as 86
the budget of the town. 87
SECTION 5. Accounting for receipts and expenditures of the 88
funds herein described shall be made separately from the 89
accounting of receipts and expenditures of the general fund and 90
any other funds of the town. The records reflecting the receipts 91
and expenditures of the funds prescribed in this act shall be 92
audited annually by an independent certified public accountant, 93
and the accountant shall make a written report of his or her audit 94
to the governing authorities. The audit shall be made and 95
completed as soon as practicable after the close of the fiscal 96
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ST: Town of Meadville; authorize tax on hotels,
motels, and bed and breakfasts for tourism and
parks and recreation.
year, and expenses of the audit shall be paid from the funds 97
derived in accordance with this act. 98
SECTION 6. This act shall be repealed from and after July 1, 99
2030. 100
SECTION 7. This act shall take effect and be in force from 101
and after its passage. 102