Eupora’s new tourism tax brought in more than $15,000 during the first full month it was collected.
October was the first full month that establishments in the city assessed a 2% tax on the gross sales of room rentals and prepared food sales at restaurants.
Eupora’s tourism tax collections in October totaled $15,318. That amount is listed among “Diversions to Cities and Counties from Special Levies” on the Mississippi Department of Revenue’s website.
Although the special tax was not to take effect until Oct. 1, MDR data shows $4 was also collected in September. That makes for total collections so far of $15,322.
The tourism tax program defines restaurants as any establishment serving prepared food or beverage products that are altered from its original form, then sold. Room rentals at Eupora’s only motel, the Oak Tree Inn, are subject to the tax as are stays at Whites Creek Lake campground.
City voters passed a measure in July to impose the tax and the Eupora Board of Aldermen adopted a resolution in August stating its intent to levy the tax, which is in addition to the 7% retail sales tax.
Proceeds from the tourism tax are to go to selected parks and recreation improvements. An appointed committee is to oversee the funds and give recommendations to the mayor and Board of Aldermen for where the funds could best be applied.
The tourism tax has a three-month cycle: Month 1 is when the tax is collected by the retailer; Month 2 is when the tax is reported/paid to the Department of Revenue by the retailer and Month 3 is when the tax diversion is paid by the department to the cities/counties. Each monthly report is based on the month the tax is collected at MDR (Month 2).
