City of Horn Lake; extend the repeal date on the tax on hotel and motel room rentals.

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To: Local and Private
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Gillespie Isom

COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 2929

AN ACT TO AMEND CHAPTER 922, LOCAL AND PRIVATE LAWS OF 2013, 1
AS LAST AMENDED BY CHAPTER 938, LOCAL AND PRIVATE LAWS OF 2022, TO 2
EXTEND THE REPEAL DATE ON THE LAW THAT AUTHORIZES THE GOVERNING 3
AUTHORITIES OF THE CITY OF HORN LAKE, MISSISSIPPI, TO LEVY A TAX 4
UPON HOTEL AND MOTEL ROOM RENTALS, WHICH SHALL BE USED TO PROMOTE 5
THE CITY'S TOURISM AND ECONOMIC DEVELOPMENT; AND FOR RELATED 6
PURPOSES. 7
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 8
SECTION 1. Chapter 922, Local and Private Laws of 2013, as 9
amended by Chapter 905, Local and Private Laws of 2018, as amended 10
by Chapter 938, Local and Private Laws of 2022, is amended as 11
follows: 12
Section 1. As used in this act, the following terms shall 13
have meanings ascribed in this section unless otherwise clearly 14
indicated by the context in which they are used: 15
(a) "City" means the City of Horn Lake, Mississippi. 16
(b) "Governing authorities" means the governing 17
authorities of the City of Horn Lake, 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 and which are known in the trade as such. The term "hotel" 22
or "motel" does not include any hospital, convalescent or nursing 23
home or sanitarium, or any hotel-like facility operated by or in 24
connection with a hospital or medical clinic providing rooms 25
exclusively for patients and their families. 26
Section 2. (1) For the purpose of providing funds to 27
promote the attributes of the city, and to promote the city's 28
tourism and economic development, the governing authorities, in 29
their discretion, are authorized to levy and collect from every 30
person, firm or corporation operating a hotel or motel in the city 31
a tax, which shall be in addition to all other taxes and 32
assessments imposed and which shall not exceed Two Dollars ($2.00) 33
per room rental upon each overnight room rental in all such hotels 34
or motels in the city, excluding charges for food, telephone, 35
laundry, beverages and similar charges. The tax shall not be 36
levied upon or collected on room rentals for day meetings where 37
the room does not serve as overnight sleeping accommodations. 38
(2) Persons, firms or corporations liable for the tax 39
imposed under subsection (1) of this section shall add the amount 40
of the tax to the sales price and shall collect, insofar as is 41
practicable, the amount of the tax due by him from the person 42
receiving the services or product at the time of payment therefor. 43
Section 3. Before any tax authorized under this act may be 44
imposed, the governing authorities shall adopt a resolution 45
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declaring its intention to levy the tax, setting forth the amount 46
of the tax to be imposed, the date upon which the tax shall become 47
effective and calling for an election to be held on the question. 48
The date of the election shall be fixed in the resolution. Notice 49
of the intention and the election shall be published once each 50
week for at least three (3) consecutive weeks in a newspaper 51
published or having a general circulation in the city, with the 52
first publication of the notice to be made not less than 53
twenty-one (21) days before the date fixed in the resolution for 54
the election and the last publication to be made not more than 55
seven (7) days before the election. At the election, all 56
qualified electors of the city, may vote, and the ballots used in 57
the election shall have printed thereon a brief statement of the 58
amount and purposes of the proposed tax levy and the words "FOR 59
THE TAX" and, on a separate line, "AGAINST THE TAX" and the voters 60
shall vote by placing a cross (X) or check (✓) opposite their 61
choice on the proposition. When the results of the election shall 62
have been canvassed and certified, the city may levy the tax if 63
sixty percent (60%) of the qualified electors who vote in the 64
election vote in favor of the tax. At least thirty (30) days 65
before the effective date of the tax, the governing authorities 66
shall furnish to the Department of Revenue a certified copy of the 67
resolution evidencing the tax. 68
Section 4. (1) On or before the fifteenth day of the month 69
preceding the date on which the city will begin to levy the tax 70
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authorized under Section 2 of this act, the governing authorities 71
shall give written notification to the Commissioner of Revenue of 72
the date on which the tax will become effective. 73
(2) The tax must be collected by and paid to the Department 74
of Revenue in the same manner that state sales taxes are computed, 75
collected and paid, and the full enforcement provisions and all 76
other provisions of Chapter 65, Title 27, Mississippi Code of 77
1972, will apply as necessary for the implementation of this act. 78
(3) Except for any amount retained by the Department of 79
Revenue under Section 27-3-58, Mississippi Code of 1972, the 80
revenue from the special tax collected under this act must be paid 81
to the city on or before the fifteenth day of the month following 82
the month in which collected. 83
(4) Accounting for receipts and expenditures of the revenue 84
from the tax shall be made separately from the accounting of 85
receipts and expenditures of the general fund and any other funds 86
of the city. The records reflecting the receipts and expenditures 87
of the revenue from the tax shall be audited annually by an 88
independent certified public accountant, and the accountant shall 89
make a written report of his audit to the governing authorities. 90
The audit shall be made and completed as soon as practicable after 91
the close of the fiscal year, and expenses of the audit shall be 92
paid from the funds derived pursuant to this act. 93
(5) The proceeds of the tax may not be considered by the 94
city as general fund revenues but must be placed into a special 95
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fund apart from the city general fund and any other funds and 96
expended by the city strictly for the purposes prescribed under 97
Section 2 of this act. 98
Section 5. Collections of revenue made pursuant to Chapter 99
1015, Local and Private Laws of 2004, as amended by Chapter 922, 100
Local and Private Laws of 2008, from and after July 1, 2011, and 101
until the effective date of this act, are hereby ratified and 102
confirmed, and the expenditures that may have been made by the 103
city of such revenue that was paid to the city is hereby ratified 104
and confirmed. Any of such revenue paid to the city and held in 105
escrow by the city may be expended by the city for the purposes 106
authorized in Chapter 1015, Local and Private Laws of 2004, as 107
amended by Chapter 922, Local and Private Laws of 2008, from and 108
after July 1, 2011. 109
Section 6. Before the tax authorized by this act may be 110
continued, as authorized under this House Bill No. 1472, 2018 111
Regular Session, the governing authorities shall adopt a 112
resolution declaring their intention to levy the tax, setting 113
forth the amount of such tax and establishing the date on which 114
the tax initially shall be levied and collected. Notice of the 115
proposed tax shall be published once each week for at least three 116
(3) consecutive weeks in a newspaper having a general circulation 117
in the City of Horn Lake. The first publication of the notice 118
shall be made not less than twenty-one (21) days before the date 119
fixed in the resolution on which the tax initially is to be levied 120
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ST: City of Horn Lake; extend the repeal date
on the tax on hotel and motel room rentals.
and collected, and the last publication of the notice shall be 121
made not more than seven (7) days before such date. If, within 122
the time of giving notice, twenty percent (20%) or one thousand 123
five hundred (1,500), whichever is less, of the qualified electors 124
of the City of Horn Lake, file a written petition against the levy 125
of such tax, then the tax shall not be levied unless authorized by 126
a sixty percent (60%) majority of the qualified electors of the 127
City of Horn Lake, voting at an election to be called and held for 128
that purpose. At least thirty (30) days before the effective date 129
of the tax, the governing authorities shall furnish to the 130
Department of Revenue a certified copy of the resolution 131
evidencing such tax. 132
Section 7. Collections of revenue made pursuant to this 133
chapter from and after July 1, 2017, and until the effective date 134
of House Bill No. 1472, 2018 Regular Session, are hereby ratified 135
and confirmed, and the expenditures that may have been made by the 136
City of Horn Lake of such revenue that was paid to the city are 137
hereby ratified and confirmed. Any of such revenue paid to the 138
City of Horn Lake and held in escrow by the city may be expended 139
by the city for the purposes authorized in this chapter. 140
Section 8. This act shall be repealed from and after July 141
1, * * * 2030. 142
SECTION 2. This act shall take effect and be in force from 143
and after its passage. 144