Ackerman can tax restaurant sales if local voters approve

Ackerman's mayor and board of aldermen may set a restaurant sales tax of up to 2% after local voters approve it. The tax covers restaurants inside Ackerman that sell food prepared there and drinks to the public, including takeout. At least 60% of qualified town voters who vote in the election must support the tax. Schools, hospitals, convalescent homes, and nursing homes are excluded. Food facilities run by or connected to these institutions or medical clinics are also excluded when serving students, patients, visitors, or their families. Restaurants must add the tax to food and drink prices and collect it from customers as far as practical. It is in addition to other taxes. Before imposing the tax, town leaders must announce its rate and start date and hold an election.

Ackerman must keep the tax money in a separate fund and spend it only on tourism, parks, and recreation. These rules apply to money collected if the restaurant tax is approved and imposed. The Mississippi Department of Revenue collects the tax under state sales tax rules and sends the proceeds to Ackerman, minus any amount it may retain under state law. An independent certified public accountant must audit the fund annually and report to town leaders. The tax fund pays the audit costs. The law takes effect upon passage and is repealed from and after July 1, 2030. The Department of Revenue must send the town its share by the 15th day of the month following collection.