MS HB1438

Authorizes City of Petal governing authorities to levy a tax not exceeding 3% on gross sales of hotels, motels, bars, and restaurants to fund tourism promotion and parks and recreation improvements.

Tax applies to: bars (all alcoholic beverage sales), restaurants (beer, alcoholic beverages, and prepared foods consumed on premises), and hotels/motels (overnight room rentals excluding food, telephone, laundry, and beverages).

Requires a referendum with at least 60% voter approval before tax can be imposed; ballots must include tax amount and purposes with "FOR THE TAX" and "AGAINST THE TAX" options.

Department of Revenue retains 3% of collected proceeds for administration costs; remaining funds paid to City monthly and must be separately accounted for and audited annually by independent certified public accountant.

Tax proceeds are restricted to tourism, parks, and recreation purposes only and cannot be used as general fund revenues; authorization expires July 1, 2025.