Proposal would let Leland tax local dining and lodging after voter approval

The proposal would let Leland’s mayor and aldermen set a tax of up to 2% on covered sales and room rentals. The tax could cover bars, restaurants, and hotels or motels in Leland, including vacation rentals. Restaurants would be taxed on prepared food and on beer and alcoholic drinks sold for on-site consumption. The city would first need voter approval: at least 60% of qualified voters who vote must support the tax. Businesses would add the tax to the price and collect it from customers when practicable. The city would set an effective date and send a certified copy of its resolution to the state Department of Revenue at least 30 days before that date.

The proposal would require Leland to keep the tax money separate and spend it only on tourism, parks, and recreation. These rules would apply to proceeds from the proposed tax. The Department of Revenue could keep an amount to cover its collection costs. An independent certified public accountant would audit the records each year after the fiscal year ends.