(The Center Square) — Mississippi’s tourism project incentive program will likely continue if Gov. Tate Reeves signs a bill that extends the program until 2027.
Senate Bill 2695 would reauthorize the program, which would’ve ended on July 1 without legislative action. The bill would add some transparency to the program, as
The bill is due from the governor on April 21 and he can either sign it into law or allow it to become law without his signature.
The bill is sponsored by state Sen. Lydia Graves Chassaniol, R-Winona.
The Tourism Project Sales Tax Incentive Fund is administered by the Mississippi Development Authority and redirects sales taxes paid at a tourism project back to the developer to cover a percentage of the construction costs. The developer can receive 80% of the eligible sales tax paid by the property for 15 years or until those collections add up to 30% of the project’s construction costs.
According to the latest report from the MDA, officials have approved $454 million in incentives since 2013, but have only issued $32 million in payments.
Among the projects that have received the incentive include:
- DeSoto MidSouth Tourism Project, an outlet mall in Southaven, has received $26.6 million of the $28.7 million it was authorized.
- The Island View Beach Tower Hotel in Gulfport has received nearly $1.5 million out of the $25.5 million in incentives.
- The Iron Horse Grill & Museum has received nearly $1.4 million of the $1.93 million the state authorized in incentives.
The biggest amount, $210 million, is earmarked for a new development on the site of the old Broadwater Resort in Biloxi; there’s been no construction since the 2020 announcement.
The most recent analysis of the program by the state Institutes of Higher Learning in 2019 said “the Mississippi Tourism Incentive Program generates a substantial negative return on the state’s investment.”
The report also said that “the sheer size of this potential general fund burden deserves some attention.” When the report was written, the amount of total incentives that could’ve been paid by taxpayers was $394 million.
The MDA is required by law to perform a cost-benefit analysis by one of the state’s public universities, the IHL’s University Research Center, or some other entity approved by the agency.
