Columbia restaurants and hotels report business is running as usual since a tourism tax took effect July 1.
The 3 percent tax on dining and lodging was approved by 76 percent of voters in a May 6 referendum. The tax is to support tourism and park improvements as well as building a sportsplex.
Samantha Seal of Bogie’s said a couple of people asked her about the tax but no one has been bothered or concerned.
“Business has not declined because of the increase,” she said.
Nicole Peak at The Deck said there have been a couple of complaints but otherwise there has been no change.
Jose Garcia of Azteca also said he hasn’t noticed any difference in his business with the increase.
Shannon Stroud of Subway said there has been no change at all.
“Most people don’t even notice the change,” Sharon Russell, manager of the Magnolia Inn, said. She, too, also said that business has not been deterred by the tax increase.
The tourism tax is estimated to bring in about $750,000 a year. The first payment the city will receive will be in September. Businesses collect the money in July, it’s turned into the state in August and the state pays cities in September.
More than 70 counties and municipalities have implemented tourism taxes in Mississippi. The state Legislature passed a resolution in March to allow Columbia citizens to vote on it, with at least 60 percent voter approval required for it to pass.
One of the main goals of the sales tax increase is to build a sports complex with hopes of drawing in people from surrounding counties for youth baseball and other events. The location of the complex is still up in the air. Mayor Justin McKenzie said in a talk to the Columbia Rotary Club July 23 that he has spoken with the Marion County Board of Supervisors about studying the idea of having it at the Marion County Businessplex, but they have not brought it up for a vote. He said the option on city-owned land on RA Johnson Drive would bring people through Columbia more, making them more likely to stop at restaurants and businesses, and said use of that land would require reaching an agreement with the Columbia School District for adjacent property the school district owns.
In addition to the sportsplex, the sales tax will be used to enhance tourism downtown, such as last year’s Experience Christmas extravaganza and other downtown festivals.
The tax was approved through 2023 and would go up before the Legislature for renewal then, although it would not require another referendum.
Pictured Above: The lunch crowd goes through the line Tuesday at Subway. Staff from several Columbia restaurants say they haven’t seen any effect on business from the 3 percent tourism tax that took effect July 1. | Photo by Susan Amundson
