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HB 4013

City of Moss Point; extend date of repeal on city's restaurant tax.

2026 Regular Session

Extends Moss Point’s 2% restaurant tax to July 1, 2030, directing proceeds to tourism, parks, and recreation after a favorable referendum.

Died In Committee
#localandprivatelegislation
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Bill Summary · HB 4013

Summary: HB 4013 (Mississippi, 2026) – City of Moss Point; extend date of repeal on city's restaurant tax

Purpose and intent

  • Extend the repeal date of the Moss Point restaurant tax from July 1, 2026, to July 1, 2030.
  • The tax is a local option levied on gross proceeds from the sale of prepared foods by restaurants within Moss Point, intended to fund tourism promotion, parks, and recreation.

Key provisions

Definitions (Section 1)

  • Clarifies terms for the act:
    • “City” = City of Moss Point.
    • “Governing authorities” = Moss Point city government.
    • “Prepared food” = food prepared on the premises of a restaurant.
    • “Restaurant” = includes a broad range of food-service operations (hotels, cafeterias, cafes, lunch stands, grocery/convenience stands) where prepared food/beverages are sold, regardless of consumption on or off premises.
    • Excludes school, hospital, convalescent/nursing home settings or restaurant-like facilities operated by these institutions for patients, students, families, etc.

Authorization and cap (Section 2)

  • The governing authorities may levy a local tax up to 2% of the gross proceeds from the sale of prepared food by all city restaurants.
  • Tax proceeds are dedicated to tourism promotion, parks, and recreation in Moss Point.

Referendum and adoption process (Section 3)

  • Before imposing the tax, the city must adopt a resolution stating:
    • Intention to levy the tax.
    • The tax rate (up to 2%).
    • The effective date.
    • A referendum date.
  • Publication requirements: notice published weekly for at least 3 consecutive weeks in a Jackson County newspaper, with specific timing for first and last publications (no less than 21 days before and no more than 7 days before the referendum).
  • Referendum voting: all qualified electors vote; ballot must include a brief statement of the tax amount and purposes, with options “FOR THE TAX” and “AGAINST THE TAX.”
  • Threshold for adoption: at least 60% of those voting must vote in favor for the tax to become effective.
  • Campaign finance: no public funds or city employee involvement in promoting the referendum during business hours.

Tax administration and receipts (Section 4)

  • Tax collection: applicable individuals and businesses add the tax to sales prices and collect at the point of sale where feasible.
  • Notice to state: the Moss Point governing authorities must notify the Mississippi Department of Revenue of the tax effective date by the 15th of the month preceding the start date.
  • Collection and remittance: tax collected by retailers is remitted to the Mississippi Department of Revenue, following state sales tax procedures.
  • Revenue sharing: proceeds (after any Department of Revenue retention) are paid to the city by the 15th of the month of collection.
  • Use of proceeds: funds are dedicated for tourism, parks, and recreation (not placed in the general fund).

Accounting and audit (Section 5)

  • Separate accounting from the general fund and other city funds.
  • Annual independent CPA audit of funds raised under this act, with the audit report delivered to the governing authorities.
  • Audit to be completed as soon as practicable after fiscal year end; audit expenses funded from the tax proceeds.

Sunset (Section 6)

  • Repeal date extended to July 1, 2030 (new sunset).

Effective date

  • The act takes effect upon passage.

Who and what is affected

  • Affects the City of Moss Point, its governing authorities, and restaurant operators within the city that sell prepared foods.
  • Affects consumers who purchase prepared foods in Moss Point (via potential 2% add-on).
  • Affects the Mississippi Department of Revenue (administration and collection) and the city’s budget for tourism, parks, and recreation.

Procedural/timeline notes

  • Referral history: Referred to Local and Private Legislation (Feb 19, 2026); status shows procedural actions in April 2026, including a legislative deadline process and committee status (Died In Committee on April 15, 2026, per action history).
  • If enacted, the extension would allow the city to continue leveraging restaurant tax revenues for tourism and recreation through mid-2030, provided a successful referendum with at least 60% in favor.

Bottom line

HB 4013 would extend Moss Point’s optional local tax on restaurant sales from 2026 to 2030, with the tax capped at 2% and dedicated to tourism, parks, and recreation, contingent upon a favorable referendum. The bill also codifies administration, auditing, and revenue allocation processes consistent with existing local fiscal practices.

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

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