House Bill 1832, 2004 Regular Session
A 1% tax is imposed on the gross proceeds of restaurant sales, sales of food and beverages in hotels and motels, including but not limited to, sales of beer and alcoholic beverages sold to be consumed on the premises. A 3% tax on the gross proceeds of hotels and motels, and a 3% tax of the gross proceeds of sales at the convention center by caterers. This levy is in addition to all other taxes now imposed. Effective October 1, 1995. Levy remains in effect until the debt has been paid.
“Hotel” or “motel” means a place of lodging that at any one time will accommodate transient guests on a daily or weekly basis and that is known to the trade as such. Such terms does not include a place of lodging with 10 or less rental units. Hotel or motel includes any establishment furnishing bed and breakfast accommodations to transient persons.
“Municipality” means any municipality in the State of Mississippi with a population of one hundred fifty thousand (150,000) or more according to the most recent federal decennial census.
"Restaurant" means and includes all places where prepared food is sold and whose annual gross proceeds of sales or gross income for the preceding calendar year equals or exceeds One Hundred Thousand Dollars ($100,000.00). The term "restaurant" shall not include any nonprofit organization that is exempt from 6645 federal income taxation under Section 501(c)(3) of the Internal Revenue Code. For the purpose of calculating gross proceeds of sales or gross income, the sales or income of all establishments owned, operated or controlled by the same person, persons or corporation shall be aggregated.