House Bill 390 Summary

• Creates the Hotel Renovation Projects Sales Tax Incentive Fund administered by the Mississippi Development Authority to provide incentive payments to hotel owners for repair and renovation projects meeting minimum standards of $500,000 in costs with at least $10,000 per guest room.

• Provides incentive payments equal to 20% of sales tax revenue collected from hotel guest room and conference room rentals, with payments made semiannually in January and July, capped at 20% of approved project costs.

• Requires the MDA to issue certificates to approved participants and prohibits issuance of new certificates after July 1, 2019; applicants must pay a $1,000 application fee and submit detailed project plans.

• Incentive payments cease upon the earlier of either 20% of approved project costs being paid to the participant or 10 years after payments begin; remaining fund balance reverts to the State General Fund when a project ceases receiving payments.

• Amends Section 27-65-75 to divert 20% of qualifying hotel sales tax revenue into the new fund after standard diversions to education and roads, effective August 15, 2016.