MISSISSIPPI LEGISLATURE
2025 Regular Session
To: Finance
By: Senator(s) Johnson
AN ACT TO AMEND SECTION 27-65-23.1, MISSISSIPPI CODE OF 1972, TO INCLUDE THE GROSS PROCEEDS OR GROSS INCOME OF THIRD-PARTY FACILITATORS WITHIN THE SCOPE OF ANY TAX LEVIED ON THE GROSS PROCEEDS OR GROSS INCOME FROM ROOM RENTALS OF HOTELS OR MOTELS UNDER THE AUTHORITY OF A LOCAL AND PRIVATE LAW; TO AMEND SECTION 41-49-3, MISSISSIPPI CODE OF 1972, TO CONFORM, WITHOUT PLACING THIRD-PARTY FACILITATORS UNDER STATE BOARD OF HEALTH REGULATIONS; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-65-23.1, Mississippi Code of 1972, is amended as follows:
27-65-23.1. (1) Subject to
the provisions of this section, for any tax levied and collected under the
authority of a local and private law of the State of Mississippi ("local
and private law"), that is levied or imposed on the gross proceeds or
gross income from room rentals of hotels or motels and is collected and paid to
the * * * department in the same or similar manner that
state sales taxes are collected and paid, the term "hotel" or
"motel" also shall include (regardless of how such term is defined in
the local and private law) any entity or individual engaged in the business of
furnishing, facilitating, arranging, brokering or providing one or more
rooms intended or designed for dwelling, lodging or sleeping purposes that at
any one time will accommodate transient guests * * * and
includes every building or other structure kept, used, maintained or advertised
as, or held out to the public to be, a place where sleeping accommodations are
supplied for pay or other consideration to transient guests regardless of the
number of rooms, units, suites or cabins available, excluding nursing homes or
institutions for the aged or infirm as defined in Section 43-11-1 and personal
care homes.
(2) When a tax is levied and collected under the authority of a local and private law of the State of Mississippi on the gross proceeds or gross income of hotels or motels and paid to the department in the same or similar manner that the state sales taxes are collected and paid, the gross proceeds or gross income of persons facilitating the rental of rooms by hotels, as defined in Section 41-49-3(b), by listing or advertising the availability of such rooms and, either directly or indirectly through agreements or arrangements with third parties, collecting payment from the customer and transferring that payment to the hotel, shall also be subject to tax under such local and private law.
( * * *3) If the definition of hotel or motel
provided in the local and private law authorizing the tax does not include the
entities described in subsection (1) of this section, then the provisions of
subsection (1) of this section shall not apply unless the county board of
supervisors or municipal governing authorities, as appropriate, authorized to
levy the tax under the local and private law, adopts a resolution declaring
their intention to include such entities for the purposes of the tax.
If the county board of supervisors or municipal governing authorities, as appropriate, adopts such a resolution, then at least thirty (30) days before the effective date of the levy of the tax upon the entities described in subsection (1) of this section, the county board of supervisors or municipal governing authorities, as appropriate, shall furnish to the State Tax Commission a certified copy of such resolution.
SECTION 2. Section 41-49-3, Mississippi Code of 1972, is amended as follows:
41-49-3. (1) The term "hotel" shall mean and include any entity or individual engaged in the business of furnishing or providing one or more rooms intended or designed for dwelling, lodging or sleeping purposes that at any one time will accommodate transient guests and that are known to the trade as such and includes every building or other structure kept, used, maintained or advertised as, or held out to the public to be, a place where sleeping accommodations are supplied for pay or other consideration to transient guests regardless of the number of rooms, units, suites or cabins available, excluding nursing homes or institutions for the aged or infirm as defined in Section 43-11-1.
(2) For purposes of sales taxes levied under Title 27, Mississippi Code of 1972, and any tax levied and collected under the authority of a local and private law of the State of Mississippi only, the term "hotel" shall include entities facilitating, arranging or brokering transient guest transactions. Entities that facilitate, arrange or broker transactions are those third-party entities that facilitate rentals of hotel accommodations described in this section by listing or advertising the availability of such accommodations and, either directly or indirectly through agreements with third parties, collecting payment from the customer and transmitting that payment to the property owner or manager, regardless of whether the property owner or manager would have been required to collect and remit the taxes had the sale not been made through the third-party entity.
SECTION 3. This act shall take effect and be in force from and after July 1, 2025.