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HB 4146

City of Richland; extend repealer on bar and restaurant tourism tax.

2026 Regular Session Introduced by Lance Varner

Richland may renew a local 2% tax on bar and restaurant gross sales to fund tourism, parks, and recreation, with voter approval, dedicated use, audits, and a sunset in 2030.

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Bill Summary · HB 4146

Summary of Bill HB 4146 (2026) – Mississippi

Jurisdiction: City of Richland, Mississippi
Committee: Local and Private Legislation
Sponsor: Rep. Varner (and co-sponsor Rep. Lance Varner)
Session: 2026

Main purpose and intent

HB 4146 seeks to extend the repealer of a local option tax that the City of Richland may impose on gross sales from bars and restaurants. Specifically, it preserves the authority of Richland’s governing authorities to levy up to a 2% tax on:
- gross sales of bars (for tourism-related purposes) and
- gross sales of restaurants (for tourism, parks, and recreation purposes).

The bill amends and extends the repealer date to allow continued or renewed use of the tax for the stated purposes, after prior construction of a multipurpose building and related conditions are satisfied.

Key provisions and changes

  • Section 2 — Tax authorization and uses

    • After completing the multipurpose building project and obtaining voter approval, Richland’s governing authorities may levy a local tax up to 2% on:
    • (a) Bar operators: up to 2% of gross proceeds of sales.
    • (b) Restaurant operators: up to 2% of gross proceeds of beer and alcoholic beverages sold for on-site consumption plus all prepared foods.
    • Tax proceeds must be collected in a manner similar to state sales taxes, with oversight by the Mississippi Department of Revenue.
    • Net proceeds: after 3% is retained by the Department of Revenue for collection costs, the remainder goes to Richland for the specified purposes.
    • Funds are to be dedicated and not treated as general fund revenues; they must be used only for the listed purposes (promotion of tourism, parks, and recreation, and repayment/defrayment related to the multipurpose building project).

  • Section 3 — Referendum and election process

    • Before imposing the tax, the city must adopt a resolution declaring intent, specify the tax amount and effective date, and call for a referendum.
    • The referendum must follow a defined ballot process (votes on “FOR THE ECONOMIC AND COMMUNITY DEVELOPMENT TAX” vs. “AGAINST THE ECONOMIC AND COMMUNITY DEVELOPMENT TAX”).
    • If approved by a majority vote, the tax may be levied starting January 1 of the following year (subject to election results).

  • Section 5 — Repeal timing and flexibility

    • The authority to collect the tax for the specified purposes remains in effect until:
    • All construction costs for the multipurpose building are paid, or
    • The debt is fully satisfied (or an equivalent amount is on deposit in a dedicated account to cover indebtedness).
    • After satisfaction, the governing authorities may reallocate the tax to promote tourism, parks, and recreation, subject to another voter-approved election.

  • Section 4 and 6 — Accounting, auditing, and sunset

    • Funds raised under the act must be accounted for separately from other city funds and audited annually by an independent CPA, with the audit paid from the taxed funds.
    • The act includes a sunset/repeal provision: it shall be repealed on July 1, 2030, unless extended or amended.

Who is affected

  • Primary: City of Richland and its governing authorities.
  • Taxpayers and local businesses in Richland that operate bars and restaurants (subject to the 2% tax on gross sales outlined above).
  • Mississippi Department of Revenue (administrative collection and enforcement).
  • Residents and visitors who benefit from financed tourism, parks, and recreation programs funded by the tax proceeds.

Procedural and timeline notes

  • Referendum-based: A local election is required to levy the tax, with specified notice and ballot procedures.
  • Initial effective date depends on the election outcome; if approved, tax collection would begin on January 1 following certification.
  • Sunset date: July 1, 2030, unless extended or repealed by subsequent legislation.

Overall assessment

HB 4146 is a targeted extension and reauthorization of a local option tax intended to fund tourism-related development and municipal recreation facilities in Richland. It preserves a 2% cap on both bar and restaurant gross sales taxes and couples tax revenue with strict local use requirements, audit transparency, and voter-approved authorization. The bill maintains a built-in sunset and debt-coverage conditions tied to the multipurpose building project.

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

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