Video: Starkville Food/Beverage Tax Extended

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STARKVILLE, Miss. (WCBI) — It has been a huge financial success for the city of Starkville.

And now state lawmakers have re-upped the hospitality tax for the college town.

Gov. Phil Bryant signed this week legislation extending the city’s 2 percent food and beverage tax through June of 2018.

The tax, which was first authorized by voters 20 years ago is divided among Starkville Parks Commission (40 percent), Mississippi State University student groups (20 percent), the Oktibbeha County Economic Development Authority (15 percent), the Starkville Convention and Visitors Bureau (15) percent and city economic development projects (10 percent).

The reauthorization clarifies language to take into account the city is taking over management of the parks department from the parks authority.

The tax raises about $1.5 million a year to be divided among the groups.

City leaders originally sought a 10-year extension but legislators say they aren’t likely to approve such long-term extensions.