§ 25-2. Convention and tourism promotion tax.

(a)

Definitions. As used in this section, the following words shall have the meanings ascribed to them in this section unless otherwise clearly indicated by context in which they are used:

Bureau means the Tupelo Convention and Visitors Bureau.

Hotel or motel means and includes any establishment engaged in the business of furnishing or providing rooms intended or designed for dwelling, lodging or sleeping purposes to transient guests, where such establishment consists of ten (10) or more guestrooms and does not encompass any hospital, convalescent or nursing home or sanitarium, or any hotel-like facility operated by or in connection with a hospital or medical clinic providing rooms exclusively for patients and their families.

Restaurant means and includes all places where food and beverages are sold for consumption, whether such food is consumed on the premises or not.

(b)

Levied. For the purpose of providing funds for the promotion of tourism and conventions and the economic development of the city, there is hereby levied, assessed and shall be collected from every person engaging in or doing business in the city as specified herein a tax which may be cited as a "convention and tourism promotion tax" which shall be in addition to all other taxes now imposed, as hereinafter provided.

(c)

Funds to be supplemental to city funding. The funds derived from this tax will be supplemental to the funding received from the city in the form of bureau staffing, office facilities and operational overhead.

(d)

Amount. Such tax shall be in an amount of two (2) percent of gross income of hotels, motels and restaurants.

(e)

Collection. Persons liable for the tax imposed herein shall add the amount of tax to the sales price or gross income and in addition thereto shall collect, insofar as practicable, the amount of the tax due by him from the person receiving the services or goods at the time of payment therefor.

(f)

Payment to state. The tax levied by this section shall be collected by and paid to the state tax commission on a form prescribed by the state tax commission, in the same manner that state sales taxes are computed, collected and paid; and the full enforcement provisions of MCA 1972 Chapter 65, Title 27, shall apply as necessary to the implementation and administration of this section.

(g)

Payment to city. The proceeds of the tax levied by this section shall be paid to the city on or before the fifteenth day of the month following the month in which they were collected.

(h)

Use of proceeds. The proceeds of the tax levied by this section shall not be considered by the city as general fund revenues but shall be dedicated solely for the purpose of carrying out programs and activities which are designated by the bureau and which are designed to attract conventions and tourists into the city.

(i)

Budgeting of proceeds. Before the expenditure of funds herein prescribed, a budget reflecting the anticipated receipts and expenditures for such purposes as promotion, advertising and operation shall be approved by the mayor and board of aldermen. The budget shall be on the same fiscal basis as the budget of the city.

(j)

Accounting. Accounting for receipts and expenditures of the funds herein described shall be made separately from the accounting of receipts and expenditures of the general fund and any other funds of the city. The records reflecting the receipts and expenditures of the funds prescribed herein shall be audited annually by an independent certified public accountant, and the accountant shall make a written report of his audit to the mayor and board of aldermen, the director of finance and to the bureau. Such audit shall be made and completed as soon as practical after the close of the fiscal year, and the expenses of such audit may be paid from the funds pursuant to paragraphs (b) through (h) of this section.

(Ord. of 6-27-85, §§ 1, 5, 7, 8; Res. of 4-17-90, §§ 2, 5)

Cross reference

Convention and visitors bureau, § 2-71 et seq.