State lawmakers extended Starkville’s 2 percent food and beverage tax through June 30, 2018, this week, and the move’s associated legislation now awaits Gov. Phil Bryant’s signature.
The House and Senate both concurred Tuesday on HB 1664, which extends the city’s 2 percent tax on the sale of prepared food and beverages, both alcoholic and nonalcoholic.
“The 2 percent food and beverage tax has transformed the economic vitality and quality of life of our community,” said Mayor Parker Wiseman. “I am pleased that the Legislature has given us the opportunity to continue to use the tax to move Starkville forward through 2018.”
The Legislature passed a local and private bill two decades ago allowing Starkville to impose the 2 percent economic development, tourism and convention tax, and residents would go on to approve it in a local referendum.
Lawmakers passed a second bill in 2004 that amended the entities receiving distributions and extended the levy through this summer.
Tax receipts were divided between Starkville Parks Commission (40 percent), Mississippi State University student groups (20 percent), the Oktibbeha County Economic Development Authority (15 percent) and the Starkville Convention and Visitors Bureau (15) percent. The remaining 10 percent returns to the city for use toward economic development projects, initiatives and opportunities.
The same breakdown is written in HB 1664, but clarifying language was needed as the city takeover of SPC is implemented. The Parks board was previously responsible for allocating and approving its 2 percent expenditures for capital improvements.
Aldermen first introduced a resolution last year asking for the levy’s extension through 2020, but the request was tabled until this year, when the law rolls off the books.
A new resolution of support was approved in February. It amended the city’s 2014 resolution with language seeking the extension for an additional term.
State Rep. Gary Chism, R-Columbus, previously told The Dispatch short extensions, not blanket requests like the 10-year extension, should become the status quo for tax requests this term.
“We’re not going to remove a repeal date,” he said of the Senate’s version of the bill, which did not include a cutoff date. “We always want to come back and revisit bills like this just in case something goes awry.”
Carl Smith covers Starkville and Oktibbeha County for The Dispatch. Follow him on Twitter @StarkDispatch
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