A plan to create a dining and lodging tax in Columbia for tourism, parks and recreation or economic development will have to wait for at least another year.
Mayor Justin McKenzie said State Rep. Ken Morgan informed him Tuesday that the bill had died in committee after some questions were raised about language in it.
“It was really disappointing,” McKenzie said.
Aldermen decided Tuesday to not apply for a $100,000 grant for developing an overlook at Bluff Street Park that had a 50/50 match because the city was considering using proceeds from the tourism tax to pay that match.
Two similar but slightly different bills had been introduced in the House and Senate by Morgan and State Sen. Angela Hill, R-Picayune.
House Bill 1726 would have provided for up to a 2 percent tax on restaurants and hotels and could be used “to promote parks and recreation as well as economic development.” Senate Bill 3118 would have allowed a tax “not to exceed 3 percent” and proceeds would be used “to promote tourism and parks and recreation.”
Otherwise, the bills were mostly the same. Both were referred to their respective chamber’s Local and Private Committee, which handles laws affecting a particular municipality.
The tax would have applied to “gross proceeds of room rentals” for each hotel or motel in the city. It would also have applied to gross sales of each restaurant, which would apply to “any place where prepared food and beverages are sold for consumption” other than schools, hospitals or nursing homes.
If passed by the Legislature next year, the Columbia Board of Aldermen would adopt a resolution declaring its intent to impose the tax and calling for an election. Notice of the election would be published for three weeks in the newspaper before a referendum vote.
City voters would then cast ballots either “against the tax” or “for the tax.” At least 60 percent of those casting ballots in the election would have to vote for the tax for it to take effect.
