Leland tourism tax proposal advances after split vote
Special to The Leland Progress
A proposed tourism tax for the city of Leland is moving to the Mississippi Legislature following a split vote by the Leland Board of Alderpersons during its March 3 meeting.
The measure, which would authorize an additional 2 percent tourism tax within the city, passed after Mayor John Lee cast the tie-breaking vote.
Before discussion of the resolution, Alderperson Nancy Jo King made a motion to add Jacob Venuti back to the agenda after he had been removed earlier by the mayor. The board agreed to allow Venuti to speak prior to discussion of the tourism tax proposal.
Venuti addressed the board and audience about existing taxes related to tourism and hospitality in Washington County. According to Venuti, restaurants, hotels and motels already contribute a 1 percent tourism tax to the county, while hotels and motels also pay an additional 2 percent county tax.
He urged the board to consider the cumulative tax burden businesses and customers already face.
Venuti said that if the proposed city tourism tax were approved, it would add another 2 percent on top of the county taxes, the state’s 7 percent sales tax and common credit-card processing fees paid by businesses.
Venuti also raised concerns that the resolution did not include a specific plan outlining how the tax revenue would be used. He said approving the measure without a clear funding plan would be premature.
King said she agreed with Venuti’s concerns. She told the board she had spoken with local restaurant and motel owners earlier in the day and that those she contacted expressed opposition to the additional tax.
“I believe we need to support our small local businesses and increase the tax base by encouraging more businesses to come into Leland,” King said during the meeting.
How tourism taxes currently work
Washington County currently collects a 1 percent tourism tax on restaurants, hotels and motels. In addition, hotels and motels pay a separate 2 percent county tax.
During the March 3 meeting, discussion of the proposed city tourism tax focused primarily on lodging taxes.
If enacted, the tax would be added on top of existing state and county taxes on lodging. A hotel or motel stay in Leland could include:
- 7 percent Mississippi state sales tax
- 1 percent Washington County tourism tax
- 2 percent Washington County hotel and motel tax
- 2 percent proposed Leland tourism tax
Together, those taxes would total 12 percent on lodging, before any credit-card processing fees typically paid by businesses.
Tourism taxes such as these are commonly used by municipalities to support tourism promotion, marketing efforts and other initiatives intended to attract visitors and strengthen local economic activity.
Mayor Lee later moved the board to consider the tourism tax resolution.
The vote split the board evenly.
Alderpersons Barbara Brooks and Johnny Jones voted in favor of the resolution. King and Alderperson Michael Street voted against it. Alderperson Deon Morris was absent from the meeting.
With the vote tied 2–2, Lee cast the deciding vote in favor of the measure.
The resolution now moves to the Mississippi Legislature for consideration. If approved by lawmakers, the measure would authorize the city to levy the additional tourism tax.
King said she plans to continue monitoring the proposal as it moves through the legislative process.
What exactly would Leland’s proposed tourism tax apply to?
That question will likely be clarified as the measure moves through the legislative process and as the city outlines how the tax would be implemented if approved.
