A No Go – City’s Tourism Tax Rejected A Second Time
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Pollworkers (from left) Julia Cox, Ricky Pulley, Colleen Craven, Cindy Ross Felicia Johnson and Anita McGehee manned the precincts for Ward 1 and Ward 2 at the Casey Jones Railroad Museum for the special election.
WATER VALLEY – Voters in Water Valley narrowly rejected a proposed two percent tourism tax in a second special election held last Tuesday. With a 13 percent voter turnout, 164 votes were cast in favor of the tax and 116 against, failing to meet the 60 percent margin for the tax to pass. There are 2,046 registered in the City of Water Valley according to the circuit clerk’s office.
The vote marked the second time the special tax has been shot down following an earlier election held in March, 2022, that tallied 117 for the tax and 97 against – again failing to meet the 60 percent threshold required by state law.
The proposed tax would have added two percent to the cost of prepared food and drinks sold at restaurants and convenience stores located inside the city limits of Water Valley. Proceeds from the tax would have been earmarked for expenditures to benefit recreation, parks and tourism in the city.
The elections were triggered by a 2019 request from the Water Valley Board of Aldermen for legislation to authorize the referendum. Representative Tommy Reynolds introduced House Bill 1606 during the 2020 session, a local and private bill that was passed by the House and Senate and signed by the governor.
More than 100 cities, towns or counties across Mississippi have adopted similar tourism and economic development taxes including one municipality in Yalobusha County. The Town of Oakland adopted the two-percent tourism tax following an unprecedented unanimous vote in 2022. Eighty-nine votes were cast in Oakland in the special election, and all were in favor of adopted the tourism tax.
