North Miss. City Looks at Tourism Tax

BOONEVILLE, Miss. (WCBI) — Senate Bill 2966 would allow the city of Booneville to levy a tourism tax of up to two percent on prepared foods and beverages at restaurants and grocery stores.

The money would not go into the general fund, instead, it would be designated for specific projects.

“We will use it to help fund PCDA, Prentiss County Development Association, our Main Street Association, our parks and rec, grants, we can put some
money back for grants, to help pay matching funds on grants, which takes the burden off the general fund. If this works like it should we should be able to lower property taxes,” said Booneville Mayor Derrick Blythe.

The bill was filed by Senator JP Wilemon, and will need to advance through its originating committee, then to the Senate, the House and the Governor.

If that happens, aldermen would decide on the amount of the tax. A special election would be called.

The mayor estimates the two percent tourism tax could generate about $300,000 annually. If the proposal makes it through the House and Senate, Mayor Blythe promises a major informational campaign before any referendum.

Plus, Mayor Bltythe says the tourism tax would allow the city to benefit from thousands of students at NEMCC, who help local restaurants stay in business.

“Our food sales are phenomenal , compared to most places around us because of the college, so it’s an untapped resource that’s not going to hurt people that much, what are you talking, twenty cents on a ten dollar meal?” Mayor Blythe said.

To take effect,the tourism tax would need a 60 percent margin at the ballot box.

If everything is approved, the special election for the tourism tax could take place in the fall.