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HB 4011

City of Jackson; extend repealer on CVB, and authorize additional 1% hotel/motel tax 1/2% restaurant tax.

2026 Regular Session Introduced by Earle Banks and 8 co-sponsors

Extends the Jackson CVB funding through 2030 and authorizes voter-approved 1% hotel/motel and 1/2% restaurant taxes to fund tourism promotion.

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Bill Summary · HB 4011

Summary of HB 4011 (Session 2026, Mississippi)

Purpose and intent

HB 4011 seeks to extend the repeal date of the Jackson Convention and Visitors Bureau (CVB) and related tourism tax provisions, and to authorize an additional hotel/motel tax and a restaurant tax in the City of Jackson. The bill would push the current repeal date from July 1, 2026 to July 1, 2030, and would establish new tax rates to fund the CVB’s tourism promotion and convention activities. It also requires voter consideration for the new taxes.

Key provisions

  • Extension of repealer (end date):

    • Extends the statutory repeal date for the CVB and its funding provisions from July 1, 2026 to July 1, 2030.

  • Tax authority and rates (tourist and convention tax):

    • Maintains an existing framework for a “tourist and convention tax” within Jackson on:
    • A base tax of 1% on the gross proceeds of sales of:
      • Restaurants
      • Hotels and motels
      • Alcoholic beverages sold for on-premises consumption
    • An additional 1% tax on room rentals for hotels and motels
    • An additional 1/2% tax on sales of restaurants (including alcohol sold for on-premises consumption)
    • Net effect: two distinct components are authorized (1% base on restaurant/hotel/motel sales, plus 1% on hotel/motel room rentals and 1/2% on restaurant sales).

  • Election requirement:

    • Before imposing the taxes in Section 7(2)(a) (the 1% restaurant/hotel/motel component), the City of Jackson must adopt a resolution directing its intention to levy the tax and establish an effective date.
    • For the additional tax components, an election must be held to obtain voter authorization:
    • The city must hold an election on whether to levy the additional 1% hotel/motel tax and the 1/2% restaurant tax.
    • Elections are conducted under procedures similar to other local option taxes (notice requirements, eligibility, and a threshold to pass).

  • Allocation and use of proceeds:

    • Proceeds from the taxes must be dedicated solely for purposes designated by the Jackson CVB to promote tourism and conventions in Jackson.
    • The city cannot treat these funds as general fund revenues.

  • Financial administration and oversight:

    • Revenues collected are to be paid to the City of Jackson, then remitted to the CVB within 10 days of receipt.
    • A 3% administrative deduction is retained by the Mississippi Department of Revenue for collection costs.
    • The CVB must prepare a budget showing anticipated receipts and expenditures; the first budget covers the period from the tax’s effective date to the end of the city’s fiscal year.
    • Annual independent audits of the CVB’s receipts and expenditures are required, with audit reports available to the public.
    • The State Auditor may audit the CVB.

  • Governance of the CVB:

    • The CVB would be governed by a nine-member board after 2019, with specified composition (hotel/motel representatives, restaurant representatives, business community, arts, education, attractions, and at-large seats).
    • Members face standard conflicts-of-interest and removal provisions; bond requirements for appointed members are specified.

  • PEER review:

    • The Joint Legislative PEER Committee must conduct a review of the CVB’s operations, accounting, and practices. The review can involve private contractors, with cost limits and a mechanism to impound tax revenues if private contractors are not paid in a timely manner.

  • Effective date and sunset:

    • If enacted, the act would take effect upon passage.
    • The act is set to stand repealed on July 1, 2030, unless further extended or renewed by subsequent legislation.

Affected parties and scope

  • City of Jackson, Mississippi: Responsible for adopting resolutions, holding elections, and managing tax collection and remittance.
  • Jackson Convention and Visitors Bureau (CVB): Receives and administers the tax proceeds dedicated to tourism/conventions, with reporting, budgeting, and auditing requirements.
  • Taxpayers and businesses in Jackson: Businesses selling food, alcohol, and lodging within Jackson would be subject to the tourism/convention taxes if the electorate approves the new levies.
  • Public and oversight bodies: Public access to CVB audits and PEER review findings; state-level budget and audit oversight.

Procedural and timeline notes

  • The bill references multiple amendments to prior local laws dating back to 1999, with a final repeal date proposed for 2030.
  • Elections for the additional taxes would follow standard local-option tax procedures, including voter referenda if required by petitions and thresholds.
  • The PEER review timeline includes a deadline (in the version shown) for a report to be provided by December 15, 2018, indicating an older draft reference; if enacted, a current version would align with the legislature’s PEER review schedule.

Overall, HB 4011 aims to extend the life of the CVB’s funding mechanism and expand public support for Jackson’s tourism/conventions through targeted, electorally approved taxes, with structured governance, reporting, and oversight.

Compiled from official sources — confirm details with the bill’s official record.

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