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SB 3264

City of Olive Branch; extend repealer on 1% hotel/motel tax and issuance of bonds for tourism and parks and recreation.

2025 Regular Session Introduced by David Parker

Extends Olive Branch's authority to levy a 1% hotel/motel tax and issue bonds repaid from tax receipts to fund tourism, parks, and recreation projects.

Approved by Governor
#localandprivate #localandprivatelegislation
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Bill Summary · SB 3264

Summary — SB 3264 (City of Olive Branch): Extend repealer on 1% hotel/motel tax and issuance of bonds for tourism and parks and recreation

Status: Approved by Governor (effective April 2, 2025)
Introduced: March 4, 2025
Classification: Local and Private legislation (applies only to City of Olive Branch)

Main purpose

SB 3264 extends the statutory authority for the City of Olive Branch to continue (1) imposing a 1% hotel/motel (occupancy) tax and (2) issuing bonds secured by revenue from that tax for tourism promotion and parks & recreation purposes. In short, it prolongs an existing local financing mechanism used to support tourism-related projects and park/recreation improvements.

Key provisions

  • Extends the existing repealer that would otherwise terminate Olive Branch’s authority to levy a 1% hotel/motel tax.
  • Extends the city’s authority to issue bonds payable from proceeds of that 1% tax to finance tourism development and parks & recreation capital projects and related costs.
  • Confines the authorization to the City of Olive Branch (local/private bill).
  • Likely preserves existing limitations and required uses tied to the tax proceeds and bond-funded projects (detailed limits, duration of extension, and any bond caps are contained in the bill text).

Note: The version summary provided does not include the specific length of the extension, any dollar limits on bonds, or detailed project eligibility language. Those specifics are in the bill text.

Who is affected

  • Hotel and motel operators in Olive Branch — continue to collect and remit the 1% occupancy tax to the city.
  • Visitors staying in local lodging — could see the same occupancy tax retained (the tax is typically added to room charges).
  • City of Olive Branch — retains a revenue stream and borrowing authority to fund tourism promotion and parks & recreation capital projects.
  • Local taxpayers / residents — may benefit from funded park and tourism improvements but also bear potential indirect costs if bonds are issued and repaid from local revenue streams.

Potential impacts

  • Preserves a local funding source for tourism marketing, attractions, and park/recreation capital improvements, supporting economic development and visitor services.
  • Enables the city to issue bonds to accelerate projects rather than relying solely on pay-as-you-go funding.
  • Fiscal impacts depend on the amount of bonds issued and project costs; revenues for debt service would be drawn from the 1% tax receipts rather than the city’s general fund (subject to the bill’s bond-coverage rules).

Legislative timeline / actions

  • 2025-03-04: Referred to Local and Private
  • 2025-03-11 & 03-20: Title sufficient reports (Do Pass)
  • 2025-03-12: Passed (Chamber unspecified)
  • 2025-03-13: Transmitted to House; Referred to Local and Private Legislation
  • 2025-03-24: Passed
  • 2025-03-25: Returned for enrolling
  • 2025-03-26: Enrolled bill signed
  • 2025-04-02: Approved by Governor (bill enacted)

Notes and next steps for readers

  • For precise details (length of repealer extension, authorized bond amounts, eligible projects, reporting/audit requirements, and any sunset conditions), consult the full enrolled bill text or the city’s summary/ordinances implementing the tax and bonds.
  • Local stakeholders (hoteliers, tourism groups, parks organizations, and city finance staff) should review implementing procedures and any public notices related to future bond issuances.

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

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