Two bills extending Starkville’s 2 percent food and beverage tax are heading to their respective Miss. House and Senate local and private committees for discussion.
Separate bills were filed Tuesday seeking an extension to the key revenue stream that funds park improvements, economic development, tourism initiatives and student-related activities.
The House version, authored by state Reps. Gary Chism, R-Columbus, and Tyrone Ellis, D-Starkville, moves the tax’s repeal date from June 30 to the same day in 2018, while state Sen. Gary Jackson’s, R-French Camp, SB 2919 omits repeal date outright.
HB 1664 also includes provisions for a reverse referendum on the tax, provided 1,500 qualified electors challenge the proposal after Starkville issues a resolution of intent continuing the levy. A subsequent paragraph invalidates a challenge, however, if revenues are contractually pledged toward debt service incurred before the law takes effect.
“It’s the (Miss. House Local and Private Committee) chairman’s prerogative on how many years until it comes back up, and under (state Rep. Joseph L. Warren, D-Mount Olive), a three-year repeater is consistent,” Chism added. “We’re not going to remove a repeal date. We always want a way to come back and revisit bills like this just in case something goes awry.”
Chism, who represents a portion of Oktibbeha County, said he is confident representatives will approve the House measure, while Jackson said he filed his own version as a safety net in case lawmakers scrap the legislation.
Jackson’s district also includes portions of Oktibbeha County and Starkville.
“I’m not much on taxes, but (special municipal levies for economic development and tourism) became a trend in the past decades. There are a lot of operations within the city, county and Mississippi State University that get a lot of good out of the funding,” Jackson said. “Just look at (Starkville Parks and Recreation). It’s amazing what they do with soccer and baseball tournaments, specifically how many people come into town for those. The returns are certainly there.”
If both chambers pass their own respective versions and later amend or strike their counterpart’s bill, a conference committee will form to iron out the differences.
State lawmakers passed a local and private bill two decades ago allowing Starkville to impose a 2 percent economic development, tourism and convention tax on the sale of prepared food and beverages, both alcoholic and non-alcoholic. Residents would go on to approve the tax in a referendum.
A second bill was passed in 2004 that amended the entities receiving distributions from the tax 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.
A small portion of the total proceeds is retained by the Mississippi Department of Revenue to defray collection costs.
Neither bill attempts to change the current funding breakdown.
Last year, aldermen introduced a resolution asking lawmakers to extend the levy through June 30, 2020, but the legislative request was tabled until this year.
“There has been no policy over the course of the last 20 years that has been as impactful as the 2 percent food and beverage tax in moving our city forward,” Mayor Parker Wiseman previously said.
A new resolution of support was approved by the board in February. The board amended its language from 2014’s version by only seeking an extension for an additional term.
In light of the upcoming Starkville Parks Commission takeover, the new resolution also gives the city the right to administer the board’s 2 percent allocations. SPC, a board independent of aldermen’s control, will become an advisory group this year as Parks’ day-to-day operations become a function of the city.
“Starkville’s 2 percent tax is critical to the quality of life that we experience in our community. From events, such as Bulldog Bash and Pumpkinpalooza, to efforts in recruiting industry and recreational components within our park system, the money has created an atmosphere that recirculates additional funds back into the city,” said Jennifer Gregory, Greater Starkville Development Partnership’s CEO.
SCVB is a sub-group within the Partnership’s umbrella of services, which includes managing OCEDA.
“(The tax) is crucial to our community moving forward, and we appreciate our local representation advocating for the renewal of this local funding mechanism,” she added.
Carl Smith covers Starkville and Oktibbeha County for The Dispatch. Follow him on Twitter @StarkDispatch
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