• A bill in the Mississippi Legislature proposes a tax increase on hotels and restaurants in Jackson.
• The increased revenue would benefit the city’s tourism department, Visit Jackson.
• The hotel tax rate would increase by 1% and the restaurant tax rate by 0.5%.
• Legislators say the proposed rates would keep Jackson competitive with other cities in the region.

A bill making its way through the Mississippi Legislature would bump up tax rates on hotels, motels and restaurants in Jackson, with the revenue benefitting the city’s tourism department.

The proposal would increase the hotel tax rate by 1% and the restaurant tax rate by 0.5%, modest bumps, said bill sponsor Sen. Hillman Frazier, D-Jackson, that would go a long way for the Jackson Convention and Visitors Bureau, known as Visit Jackson.

“We’re trying to be very conservative here with this increase,” he said in a March 20 interview. “These changes are just enough to maintain operations.”

With inflation taking ever-growing bites out of profits and reduced state funds on the horizon as the income tax revenue decreases, Frazier said a minor tourism tax increase is necessary to keep Visit Jackson well-funded.

Hotels and motels currently have an 11% tax rate, most of which is attributed to the 7% sales tax. The convention center tax adds another 3%, and Visit Jackson nets 1%. Under Frazier’s bill, which has been co-authored by four other Jackson-area senators, Visit Jackson’s share would double.

For restaurants, the rate would increase from 9% to 9.5%, with Visit Jackson collecting 1.5% of that sum. The increased revenue, according to documents prepared by Visit Jackson and shared with legislators, would fund hotel-restaurant partnerships, collaborations with local farmers and culinary demonstrations at city events.

The rate changes, according to the documents, would yield the bureau around $2 million in additional revenue each year.

Taxes on the brain?: Mississippi House tax bills could save you money, help businesses

The crucial part of the bill, Frazier said, is that Jackson will remain competitive when compared to other cities in Mississippi and throughout the south.

The proposed 12% hotel tax rate falls below nearby New Orleans, which boasts a 16.2% tax and $3 nightly fee, and Birmingham, where the $3 nightly fee is accompanied by a 17.5% tax.

Neighboring Brandon, Flowood and Richland levy a 12% hotel tax and 9% restaurant tax, the documents read, nearly identical to the rates that Jackson would adopt with legislative consent.

Approval from other legislators may present a challenge, Frazier said, explaining that some lawmakers have opposed the provision in the past because it increases the amount they pay when they check into Jackson-area hotels during the session. His bill has passed two committees as of March 20 and faces a full vote in each chamber before it can become law.

“Visit Jackson does a very good job selling Jackson and bringing people here to visit,” Frazier said. “We need to give them the resources to keep doing what they’re doing.”

Host Minnesota was in trouble against No. 5 seed Ole Miss on Sunday, trailing 54-46 heading into the fourth quarter.

But it rallied to stun Mississippi with a late comeback capped by a game-winning bucket in the final second to secure a 65-63 win.

Advertisement

Minnesota tied the game at 61-61 with a Mara Braun 3 with 1:17 remaining.

LAUREL, Miss. (WDAM) – Mississippi Made is an arts and crafts festival hosted by Laurel Mercantile that includes makers from all over Mississippi.

About 60 vendors gathered on March 21 to display their creative art for local residents and tourists to enjoy.

“It’s relaxing out here. My husband loves art, and I was like ‘hey, the local artisans from the hometown show are going to be in Laurel, my parents live an hour away,’” said Brandy Haynes of Fort Worth, Texas.

“I said we could go see my parents, and I mentioned it to my son and his fiancée, and they were like ‘Oh, we’ll come along.’”

Not only were there vendors showing off their arts and crafts, but there were also vendors selling food that satisfied the taste buds.

“We started the farm two years ago and started going to local markets just kind of doing greens, corn, peas and then we got into making things,” said John Dew, co-owner of Dew Kissed Farms.

Members of the Laurel Mercantile are grateful for the turnout at the event and glad to be a part of people’s new experiences.

“I just want to thank the community for coming out and supporting. The weather was great today, and lots of footsteps,” said senior store manager Erica Crowder.

“It was great to see so many new faces coming to shop at our stores this week.”

Want more WDAM 7 news in your inbox? Click here to subscribe to our newsletter.

Copyright 2026 WDAM. All rights reserved.