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 REVISE THE DEFINITION OF "HOTEL" OR "MOTEL," FOR PURPOSES OF THE MISSISSIPPI SALES TAX LAW AS APPLIED TO TAXES LEVIED AND COLLECTED UNDER THE AUTHORITY OF A LOCAL AND PRIVATE LAW, TO REMOVE THE REQUIREMENT OF BEING KNOWN TO THE TRADE, AND TO INCLUDE THIRD-PARTY FACILITATORS; TO AMEND SECTION 41-49-3, MISSISSIPPI CODE OF 1972, TO CONFORM; 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 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. The
term "hotel" or "motel" shall also include any third-party
entity that facilitates, arranges or brokers any peer-to-peer transaction in
the rental of any hotel or motel accommodation, as otherwise described in this
subsection, by listing or advertising the availability of such accommodation
and, either directly or indirectly through an agreement with a third party,
collecting payment from the customer and transmitting the payment to the
property owner or manager, regardless of whether the property owner or manager
would have been required to collect and remit sales tax had the sale not been
made through the third-party facilitator.
(2) 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 * * * department a
certified copy of such resolution.
SECTION 2. Section 41-49-3, Mississippi Code of 1972, is amended as follows:
41-49-3. 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
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.
SECTION 3. This act shall take effect and be in force from and after July 1, 2025.