MS HB1601

Authorizes the City of Saltillo to impose a 2% tax on gross proceeds of hotel and motel room rentals and a 2% tax on gross proceeds of restaurant sales.

Tax revenue is dedicated solely to promoting tourism, economic development, infrastructure, parks and recreation purposes and kept separate from the city's general fund.

Tax implementation requires adoption of a resolution and approval by 60% of qualified voters in an election held during the November 2019 general election.

Department of Revenue collects and remits tax proceeds to the city after retaining 3% to cover collection costs, with payments due by the 15th of the following month.

Legislation expires July 1, 2023, and requires annual independent audits of all tax receipts and expenditures.