SB 2854 Mississippi Senate · 2025 Regular Session

Tourism project sales tax incentive program; revise various provisions of.

SB 2854 revises Mississippi's tourism project sales tax incentive program to increase minimum investment requirements for qualifying projects. It raises the minimum private investment for hotels to $50 million and for full-service hotels to $20 million, while reducing the allowable spending on retail facilities within resort developments to 30% of total investment. The bill extends the application deadline for the program to June 30, 2027, and allows the Mississippi Development Authority (MDA) more time to make incentive payments. This law directly affects tourism developers seeking tax incentives for large-scale projects like theme parks, hotels, and resort complexes, requiring higher upfront investments to qualify.

Issues: ✓ Budget & Taxes

Bill status signed all 5 stages cleared

Introduction

Feb 2025

Committee Review

Mar 2025

Senate Passage

Feb 2025

House Passage

Mar 2025

Signed into Law

Apr 2025

Introduced Feb 10, 2025 Signed Apr 10, 2025

Maddy AI version diff · 3 comparisons

What changed between versions

As Passed the upper → Current version · 6 edits

MODERATE

This bill increases minimum private investment requirements for tourism projects and resort developments, extends the application deadline for resort projects to June 30, 2027, and allows the Mississippi Development Authority to make incentive payments for up to 20 years instead of 15. The changes aim to attract larger, higher-quality tourism investments while providing longer-term financial support to approved projects.

Scope change

The bill expands the scope of tourism incentive eligibility by raising investment thresholds and extending the timeline for incentive payments, while also updating specific geographic and venue references for qualifying projects.

REQUIREMENT

Increased minimum private investment from $250,000 to $200,000 per guest room for certain tourism projects, and raised total project investment thresholds from $25 million to $20 million for specific venue locations.

Changed the minimum private investment for full-service hotels from $25 million to $20 million in certain counties, while keeping the $200,000-$250,000 per room requirement.

Removed the sunset provision that would repeal the act one day before its passage, allowing the legislation to remain in effect indefinitely.

DEFINITION

Updated venue references in qualifying project locations to include the Marty Stuart Congress of Country Music alongside the Grammy Museum Mississippi.

FISCAL

Added Section 57-26-3 to create a Tourism Project Sales Tax Incentive Fund and allow incentive payments to continue for up to 20 years instead of 15 years.

TIMELINE

Extended the application deadline for resort development projects from 2014 to June 30, 2027.

As Introduced → Committee Substitute · 7 edits

MODERATE

This bill amends Mississippi's tourism incentive program definitions to increase minimum private investment thresholds for hotels and resort developments, adjust the percentage of investment allowed for retail facilities, and extend the application deadline for resort projects to June 30, 2027. The changes aim to align the program with current economic realities while maintaining incentives for large-scale tourism investments.

Scope change

The bill expands the scope of eligible tourism projects by increasing investment thresholds and clarifies which facilities qualify under the tourism project definition, while also extending the application window for resort developments.

REQUIREMENT

Increased minimum private investment requirements for hotels from $25 million to $40-50 million and from $15-25 million to $40-50 million depending on location, with corresponding adjustments to per-room investment thresholds.

Increased minimum private investment for resort developments from $100 million to $200 million and reduced the allowable percentage for retail facilities from 40% to 30% of total investment.

Added new tourism project category for attractions in counties along the Mississippi River with specific infrastructure redevelopment requirements including two hotels, golf course, shooting range, convention center, and entertainment center.

TIMELINE

Extended the application deadline for resort development projects from June 30, 2014 to June 30, 2027.

DEFINITION

Added new definition for 'cultural retail attraction' requiring specific location, master-planned development, retail tenant count, and investment criteria.

Modified 'tourism project' definition to exclude facilities whose primary business is retail sales, with exceptions for pro shops, souvenir shops, gift shops, concessions, and cultural retail attractions.

Added new definition for 'retail activity' specifying businesses with upscale name brands or equivalents as determined by the MDA.

Floor votes · Senate Feb 7, 2025 · House Mar 6, 2025

How they voted

50–0

Passed · 1 other

Total votes 51

Feb 7, 2025

D Democratic16

16 Yea

100% Yea

R Republican35

34 Yea 1

97% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Apr 10, 2025

Signed into law

Approved by Governor

executive

Mar 31, 2025

Lower · Passed

Conference Report Adopted

lower

Mar 28, 2025

Upper · Passed

Conference Report Filed

upper

Mar 6, 2025

Lower · Passed

Passed As Amended

lower

Mar 6, 2025

Lower · Passed

Amended

lower

Mar 4, 2025

Lower · Passed

Title Suff Do Pass As Amended

lower

Feb 13, 2025

Committee

Referred To Ways and Means;Accountability, Efficiency, Transparency

lower

Feb 10, 2025

Introduced

Transmitted To House

upper

Feb 7, 2025

Upper · Passed

Passed

upper

Feb 4, 2025

Upper · Passed

Title Suff Do Pass Comm Sub

upper

Jan 20, 2025

Committee

Referred To Finance

upper

1 primary · 0 co-sponsors