MS SB3265

Authorizes the City of Water Valley to levy a tax not to exceed 1% on the gross proceeds of restaurant sales, with revenue dedicated to promoting tourism and parks and recreation.

Restaurants are defined as places serving prepared food and beverages for on-premises consumption, excluding schools, hospitals, nursing homes, and medical facilities.

Requires the governing authorities to adopt a resolution and hold a public election where at least 60% of qualified voters must approve the tax before implementation.

Tax collection is administered by the Mississippi Department of Revenue using state sales tax procedures, with 3% of proceeds retained by the Department for collection costs and the remainder paid to the city monthly.

Tax proceeds must be accounted for separately from general funds, approved through a dedicated budget, and independently audited annually; the authorization expires July 1, 2029.