People eating and lodging in West Point may soon be paying a one percent tax increase. The Mississippi House of Representatives on Tuesday passed HB1672 which will allow the City of West Point to levy a tax on hotels, motels and restaurants if 60% of voters approve the tax in a referendum. The bill passed 97-14 and was sent to the Senate.
“If this is approved, it will be a one percent tax increase on restaurant and liquor store purchases and our hotels and motels,” West Point City Accountant Lisa Klutts said. “Our current hotel and restaurant tax is eight percent, which is one percent added on to the state’s seven percent sales tax.”
Klutts said the current hotel and restaurant tax has been used to pay for the bonds and the interest on the bonds issued for the Jesse W. Harmon SportsPlex. The new one percent will be a “tourism” tax and it will go the West Point/Clay Count Community Growth Alliance.
The tax would differ from Columbus’ tourism tax as it would be applied to all restaurants, not just ones grossing $325,000 and more.
“We get around $18,000 from our current hotel and restaurant tax,” Klutts said. “I never see how it is broken down; I just know when it is deposited.”
Should the bill pass the Senate, a public hearing would be held on the matter before it could be placed on a ballot.
Jeff Clark was previously a reporter for The Dispatch.
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