Mississippi Extends Byhalia Hotel Tax Sunset to 2030

New law allows town to keep 2% hotel tax in place for 4 more years

Apr. 7, 2026 at 7:55pm

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A photorealistic studio still-life featuring a stack of hotel room keys, a hotel receipt, and a glass of whiskey on a clean, monochromatic background, symbolizing the business of hotel operations and local tax revenue.A conceptual still-life captures the financial implications of a town's extended hotel tax authority.Byhalia Today

The Mississippi Governor has signed a new law that extends the authorization for the Town of Byhalia to impose a 2% tax on hotel and motel room rentals. The previous sunset date of July 1, 2026 has been pushed back to July 1, 2030, giving the town an additional 4 years to collect the tax revenue.

Why it matters

The hotel tax provides an important source of revenue for the Town of Byhalia, allowing it to fund local infrastructure, tourism promotion, and other municipal services. Extending the sunset date gives the town more financial stability and predictability in its budgeting process.

The details

The new law, H.B. 1998, was enacted on April 1, 2026 and takes effect immediately. It amends the previous legislation that had authorized Byhalia to levy the 2% hotel tax, pushing the sunset date back by 4 years from the original July 1, 2026 expiration.

  • The previous hotel tax authorization was set to expire on July 1, 2026.
  • The new law extends the sunset date to July 1, 2030.

The players

Mississippi Governor

The Governor of the state of Mississippi signed the law extending the Byhalia hotel tax authorization.

Town of Byhalia

A municipality in Mississippi that is authorized to levy a 2% tax on hotel and motel room rentals within its jurisdiction.

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The takeaway

This extension of the Byhalia hotel tax provides the town with continued financial stability and the ability to plan its budget with more certainty over the next several years. It highlights the importance of local tax revenue sources for smaller municipalities in funding critical services and infrastructure.