A long-debated 2-percent restaurant sales tax is a stroke of a pen away from returning to Columbus.
The Mississippi Senate approved the tax bill by a 49-3 vote on Thursday, sending it to Gov. Phil Bryant’s desk to be signed into law. The House gave its approval with a 91-6 vote on Jan. 21.
The ease with which the Legislature handled the 2-percent tax issue this year starkly contrasts from what happened last year, when a debate between Rep. Jeff Smith and Sen. Chuck Younger, both Lowndes County Republicans, killed the effort to renew a county-wide tax that had been on the books since the 1980s. It expired on June 30.
Younger told The Dispatch on Thursday that if the governor signs the bill this month, it could go into effect by March 1 and will be effective through June 30, 2023.
“I’m … glad it passed,” Younger said. “And I don’t think the governor will have any trouble signing it. So I think we’re all looking forward to that.”
The new restaurant sales tax will only be collected in the Columbus city limits at businesses where annual prepared food and beverage sales are at least $100,000.
Columbus will receive $400,000 annually from collections, and Lowndes County $300,000, for recreation, while the Golden Triangle Development LINK will get $250,000 each year for economic development efforts.
The rest of the revenue will fund the Columbus-Lowndes Convention and Visitors Bureau’s tourism efforts.
The county-wide tax collected nearly $2 million in Fiscal Year 2017, with roughly $1.6 million going to CVB — about 90 percent of the organization’s budget.
CVB will receive about half its former allocation from the new tax this year, since the city and county are each getting a share. But the new law will restore cashflow to an organization that has downsized staff and used funds from its reserves since the old tax expired seven months ago.
“We have not missed a beat in Jackson,” said CVB Executive Director Nancy Carpenter. “It’s a good step forward for Columbus and for the CVB. We really appreciate our local delegation and representatives for getting this done in such an expeditious manner.”
City officials previously said they would use Columbus’ share toward a planned $1.6 million renovation project to Propst Park baseball fields and to complete the Sen. Terry Brown Amphitheater at The Island. The county plans to employ its funds toward building a regional sports complex west of Columbus.
“I’m just happy that it did pass,” Columbus Mayor Robert Smith said Thursday. “I hope the governor will go ahead and sign it.”
A bill to add another 1-percent to the restaurant tax is now being considered by the House Local and Private Committee, Rep. Smith told The Dispatch.
The city council approved a resolution asking for the additional tax, pledging to use it for operations and maintenance at the amphitheater, as well as for other street work and infrastructure maintenance.
Rep. Smith introduced the bill in January and said it will likely face scrutiny from both House and Senate committees before earning floor votes. But its chances of passing are greater now that the 2-percent tax has sailed through.
“It’s not in trouble, but whenever you’re talking about a tax bill, the Legislature is going to take a hard look at it,” Smith said of the 1-percent addition. “Nothing would be done on this bill without the CVB (2-percent restaurant bill) passing.”
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