MS HB1590

Authorizes the City of Olive Branch to levy a sales tax of up to 1% on gross proceeds from hotel and motel room rentals, excluding charges for food, telephone, laundry, beverages, and day-use meetings.

Combined tax rate on hotel and motel room rentals cannot exceed 10% when including state sales tax and other local taxes levied by the city or DeSoto County.

Requires approval by election with at least 60% of qualified electors voting in favor before the tax can be imposed; notice must be published for three consecutive weeks with first publication at least 21 days before the election.

Tax proceeds, minus 3% retained by the Department of Revenue for collection costs, must be dedicated solely to road and bridge improvements including design, inspection, right-of-way acquisition, signalization, and storm water infrastructure.

Authorizes the city to issue general obligation bonds with terms not exceeding 20 years, with debt service funded by the hotel and motel tax; Sections 1-4 automatically repeal July 1, 2040, though tax may continue as needed to service bond debt.