MS SB3121

City of McComb may levy a tourism tax of up to 3% on gross proceeds from hotel and motel room rentals (with 5+ guest rooms), excluding charges for telephone, laundry, and similar services.

Tax proceeds, minus 3% retained by Department of Revenue for collection costs, must be dedicated solely to promoting tourism, parks, and recreation in the city and cannot be used as general fund revenue.

Before imposing the tax, the city must adopt a resolution and hold an election requiring approval by 60% of qualified electors voting on the measure.

City must prepare and approve budgets for tax receipts and expenditures, with annual independent audits of tax funds kept separate from general funds.

Act automatically repeals on July 1, 2014, and is subject to review under the Voting Rights Act of 1965.