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HB 4147

City of Leland; authorize a tax on hotels/motels, bars and restaurants for tourism and parks and recreation.

2026 Regular Session Introduced by John Hines

Leland can impose up to 2% local taxes on bars, restaurants, and hotels to fund tourism, parks, and recreation, only after a voter referendum and with a sunset in 2030.

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Bill Summary · HB 4147

Summary of HB 4147 (Mississippi, 2026 Session)

Purpose

HB 4147 authorizes the City of Leland to levy local taxes on specific businesses to fund tourism promotion, parks, and recreation within the city. The bill requires a local referendum before any tax can be imposed and sets parameters for administration, collection, and use of the revenue. The tax authorization is temporary, with a sunset provision.

Key Provisions

  • Tax Authorization and Rate

    • Allows governing authorities of the City of Leland to levy:
    • Up to 2% tax on gross proceeds of bars (on-premises alcohol sales).
    • Up to 2% tax on gross proceeds from restaurants (including beer/alcoholic beverages and prepared foods).
    • Up to 2% tax on gross room rentals for hotels and motels.
    • The taxes are intended to fund promotion of tourism, parks, and recreation within the city.

  • Tax Base and Scope

    • Defines:
    • “Bar” as establishments with an on-premises Alcoholic Beverage Control permit that sell beer/alcohol for on-premises consumption.
    • “Hotel” or “Motel” as establishments providing lodging to transient guests, including Airbnb and similar platforms, but excluding hospitals, nursing homes, and assisted living facilities.
    • “Restaurant” as places selling prepared foods and beverages for on-premises or off-premises consumption, with certain exemptions for schools, hospitals, and related facilities.

  • Administration and Collection

    • Taxpayers (bars, restaurants, hotels/motels) must add the tax to the sales price and collect it from customers at the point of sale, to the extent practicable.
    • Revenue collected is to be paid to the Mississippi Department of Revenue (DOR) using forms and procedures analogous to state sales taxes.
    • The DOR retains a portion to cover collection costs; the remainder is paid to the City of Leland.

  • Use of Proceeds

    • Funds generated by the tax are dedicated exclusively to tourism promotion, parks, and recreation in Leland and cannot be treated as general fund revenue.

  • Referendum and Implementation Timeline

    • Before imposition, the city must adopt a resolution of intent, specify the tax amount and effective date, and call for a municipal referendum.
    • Notice requirements: publication in a local newspaper for at least three consecutive weeks, beginning at least 21 days before the election and finishing publication no later than seven days before the election.
    • Ballot: voters decide “FOR THE TAX” or “AGAINST THE TAX.” A 60% supermajority of those voting is required for approval.
    • If approved, the city must provide the DOR with a certified copy of the resolution at least 30 days before the tax becomes effective.

  • Accounting and Auditing

    • Revenues and expenditures from the tax are to be accounted for separately from the city’s general fund.
    • An independent certified public accountant must audit the dedicated funds annually, with the audit report provided to the governing authorities. Audit costs are paid from the dedicated funds.

  • Sunset/Termination

    • The act is repealed automatically on July 1, 2030, unless renewed or extended.

  • Effective Date

    • Takes effect upon passage.

Affected Parties

  • Local government

    • City of Leland, including mayor and board of aldermen (governing authorities) who would implement the tax if approved.

  • Businesses

    • Bars, restaurants, and hotels/motels within City of Leland boundaries that would owe the new 2% tax on gross proceeds (subject to the referendum outcome).

  • Residents and Visitors

    • Indirectly affected as the tax would increase costs passed through to customers in the hospitality and dining sectors, with revenue dedicated to local tourism-related initiatives.

Timeline Highlights

  • Referendum required prior to imposition.
  • If referendum passes with at least 60% approval, tax would become effective on a date determined by city resolution (following required notice and DOR certification).

If you’d like, I can provide a quick comparison to similar local-option taxes in other Mississippi cities or outline potential fiscal forecasts based on hypothetical tourist/dining/hotel activity levels.

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

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