Special tax levies granted to 12 Mississippi municipalities

• Lawmakers granted seven extensions and five new hotel-motel and/or restaurant taxes in cities and towns across the Magnolia State during the 2024 session.

Each legislative session, cities and towns across Mississippi seek permission from lawmakers to impose or extend certain local sales taxes above the 18.5% received from the state’s 7% sales tax. Those taxes could include special tax levies on hotels or restaurants for specific purposes such as building new recreational facilities or promoting tourism.

During the 2024 legislative session, special tax levies were granted for 12 municipalities in the Magnolia State, according to the Mississippi Department of Revenue.

Extensions granted

Those cities receiving extensions on their local taxes through July 1, 2028, include West Point, Pontotoc, Fulton, Carthage, and Winona. Houston and Florence received extensions through December 31, 2028.

West Point imposes a 1% hotel-motel tax and a 1% restaurant tax on the gross sales while Pontotoc and Carthage are authorized for 2% on both. Fulton’s hotel-motel tax is set at 3%, and Winona’s restaurant tax is 2%.

Houston imposes a 2% hotel-motel tax and a 2% restaurant tax. Florence has a 2% bar and restaurant tax.

The stated purposes for each of these local tax levies except Florence is to promote tourism and parks and recreation, with allowances being made for certain municipalities to pay bond indebtedness incurred in achieving that purpose. Florence’s local tax levy is said to be used to promote economic development and to construct recreational facilities.

New taxes

Five other municipalities were authorized to impose special tax levies after holding a local election to gain voters’ approval. Those include:

• Lucedale: 3% hotel-motel tax for parks and recreation capital improvement projects.

• Durant: 3% restaurant tax to promote tourism and parks and recreation.

• Amory: 3% hotel-motel tax and a 3% restaurant tax to promote tourism and parks and recreation.

• Walnut: 3% hotel-motel tax and a 3% restaurant tax to promote, construct, finance, operate, equip, lease, and maintain existing and new parks and recreation facilities and equipment.

• Ridgeland: 2% hotel-motel tax and a 1% restaurant tax for capital improvements for the enhancement of Freedom Ridge Park.

According to the Mississippi Department of Revenue’s June 2024 monthly sales tax collection report, Lucedale brought in a total of $292,000, with Durant at $40,000, Amory $234,000, Walnut $33,000 and Ridgeland $1.45 million.