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SB 2930

City of Southaven; extend repeal date on restaurant tax.

2026 Regular Session

Extends the local 1% restaurant tax in Southaven, directing proceeds to tourism, parks, and recreation with strict administration, audits, and voter-approved continuations.

Died In Committee
#localandprivate
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Bill Summary · SB 2930

Summary of Senate Bill 2930 (2026, Mississippi)

Overview

  • Jurisdiction: Mississippi
  • Session: 2026
  • Bill: SB 2930
  • Committee: Local and Private
  • Purpose: Extend the repeal date for a local option restaurant tax in the City of Southaven and clarify administration and use of the tax proceeds.

Main Purpose

The bill extends the period during which Southaven may impose a tax on the gross proceeds of sales of beverages and prepared food at restaurants, and it sets forth how the tax would be governed, collected, and dedicated to specific purposes (tourism, parks and recreation).

Key Provisions

1) Tax Authorization and Rate

  • The City of Southaven may levy a tax on the gross proceeds of beverages and prepared food sold at restaurants within the city.
  • Tax rate: up to 1% of the gross proceeds.
  • Eligible taxpayers: persons, firms, or corporations operating restaurants in the city.

2) Uses of Tax Proceeds

  • Proceeds are dedicated for tourism promotion, parks, and recreation.
  • City must not treat the tax receipts as general fund revenues; they are restricted to the specified purposes.

3) Collection and Administration

  • Tax shall be collected by the taxpayer at the point of sale and remitted to the Mississippi Department of Revenue (MDOR) using forms similar to state sales taxes.
  • The MDOR will retain 3% of collections to defray collection costs.
  • Net proceeds (after the 3% retention) are paid to the City on or before the 15th day of the month in which collected.
  • MDOR enforcement provisions applicable to state sales taxes apply as needed.

4) Auditing and Accounting

  • Revenues and expenditures related to this tax must be accounted for separately from the city’s general fund.
  • Annual audits by an independent certified public accountant are required.
  • The audit report must be provided to the City’s governing authorities.
  • Audit must be completed as soon as practicable after the fiscal year ends; audit costs are paid from the tax-derived funds.

5) Election and Continuation

  • Before continuation or renewal of the tax, the City must adopt a resolution declaring intent to levy, specify the amount, and set a levy/collection date.
  • Notice requirements for intent to levy: publish in a newspaper for at least three consecutive weeks (first publication at least 21 days before, last publication no more than 7 days before).
  • If a majority of qualified electors voting on the proposition approve (60% required), the tax may be levied.
  • The City must provide the MDOR with a certified copy of the resolution at least 30 days before the tax becomes effective.
  • If a petition against the levy is filed (20% of qualified electors or 1,500, whichever is less), a subsequent election must approve the tax by a 60% majority.

6) Retroactivity and Pre-Effective Revenue

  • Statutory provisions ratify and confirm revenue collected from July 1, 2017, through the effective date of the act (as it relates to prior authorization/usage), and permit funds held in escrow to be spent for authorized purposes.

7) Repeal Date Extension

  • The central purpose is to extend the repeal date for the restaurant tax in Southaven beyond its current expiration, enabling ongoing collection for tourism and parks/recreation through the specified mechanisms.

Affected Parties

  • Primary: City of Southaven (governing authorities and municipal accounting/auditing bodies)
  • Taxpayers: Restaurant operators within Southaven (hotels/dining rooms included if they operate as a restaurant under the defined terms)
  • State agency: Mississippi Department of Revenue (collection and administration)

Timelines and Process

  • Election timing and notice requirements are outlined (three consecutive weeks of notice; 21 days minimum before, 7 days max before election).
  • Election results require at least 60% approval by voters for the tax to be imposed.
  • Tax effectiveness requires certification to the MDOR 30 days prior to the effective date.
  • The bill contains a repeal date target of July 1, 2030 (as stated in the repeal section, subject to extension by future actions).

Status

  • Action history shows referral to Local and Private and a note that the bill died in committee (as of the provided history on 2026-04-15).

Potential Impact

  • Provides a mechanism for ongoing funding of tourism promotion, parks, and recreation in Southaven through a local restaurant tax.
  • Enforces transparent accounting and independent audits to ensure funds are used for stated purposes.
  • Requires voter approval (60% threshold) to authorize initial levy and potential continuation.
  • Creates a path to extend the tax beyond existing repeal dates, subject to future legislative action and local elections.

If you would like, I can provide a side-by-side comparison with the prior repeal date or extract specific fiscal implications and potential revenue ranges based on assumed restaurant activity.

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

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