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SB 2854

Tourism project sales tax incentive program; revise various provisions of.

2025 Regular Session Introduced by Josh Harkins

SB 2854 tightens eligibility and costs verification for Mississippi’s tourism incentive: only large, verified private investments qualify, excluding most gaming and retail.

Approved by Governor
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Bill Summary · SB 2854

SB 2854 — Tourism Project Sales Tax Incentive Program (Summary)

Status: Approved by Governor (Apr 10, 2025)
Introduced: Mar 14, 2025 — Enrolled and signed Apr 3, 2025
Primary sponsors: Kidani, Wakai, McKelvey, Chang, Fevella, Harkins
Companion bill: HB 2084

Purpose

SB 2854 revises definitions and eligibility criteria for Mississippi’s tourism project sales tax incentive program (amending Section 57-26-1 et seq.). The intent is to clarify what constitutes a qualifying “tourism project” or “resort development,” set minimum private-investment thresholds for various project types, tighten documentation requirements for approved project costs, and refine exclusions (notably gaming and retail).

Key provisions and changes

  • Clarifies key terms: “approved project costs,” “approved participant,” and “MDA” (Mississippi Development Authority).
  • Requires all approved project costs to be verified by an independent third party approved by the MDA; the approved participant pays verification costs. Verified costs are treated as the actual project costs and may not be increased thereafter.
  • Defines eligible “tourism project” categories and minimum private-investment thresholds:
    • Theme/water/entertainment parks, museums, marinas, convention centers, professional sports facilities, spas, etc.: minimum private investment $10,000,000.
    • Hotel (general): minimum private investment $50,000,000 and at least $250,000 private investment per guest room (included in $50M).
    • Full‑service hotel: minimum private investment $25,000,000, minimum of 25 guest rooms, and $250,000 per room; special $200,000 per-room threshold in specified counties/districts.
    • Public golf course: $10,000,000.
    • Large, specialized projects (e.g., 2,000‑acre river county development): $100,000,000 with specified redevelopment components.
    • “Cultural retail attraction”: minimum private investment $50,000,000.
    • “Resort development”: minimum private investment $200,000,000, including a hotel of at least 200 rooms at $200,000 per room; up to 30% of the investment may be used for retail housing.
  • Exclusions and limitations:
    • Licensed gaming establishments are excluded unless the non‑gaming tourism development exceeds the development required by the State Gaming Commission and is not part of the licensed gaming operation.
    • Primary retail facilities are excluded, though ancillary retail (pro shops, gift shops, concessions) and cultural retail attractions can be included.
  • Leaves MDA authority to approve projects and determine amenity requirements.

Who is affected

  • Private developers and investors of large tourism/hospitality projects (hotels, parks, resorts, cultural attractions).
  • Local governments and tourism agencies (may benefit from new projects; responsible for coordination).
  • MDA (administration, approval, verification oversight).
  • State revenue (sales tax incentives may reduce short-term state sales tax receipts in exchange for long-term economic development).

Potential impacts

  • Encourages large-scale private tourism investment by clarifying eligibility and thresholds.
  • Creates stronger cost-verification and accountability (third‑party verification).
  • Limits program access to substantial projects, potentially focusing benefits on major developments and resort-scale investments.
  • Fiscal tradeoff: projected reduction in sales tax revenue from qualifying projects balanced against potential job creation, visitor spending, and longer-term tax base expansion.

Procedural timeline (selected)

  • Conference report adopted: Mar 31, 2025
  • Enrolled bill signed: Apr 3, 2025
  • Approved by Governor: Apr 10, 2025

For full statutory language and exact amendment text, refer to the enrolled bill as adopted by the Legislature and signed into law.

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

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