State legislature records indicate Bryant signed the bill last week, allowing city officials to move forward with placing the proposal on the ballot.
If approved by voters, the tax would add a 2 percent additional charge on motels and hotels and on food purchased in restaurants. The bill requires the funds generated by the tax to be used “to promote tourism and parks and recreation in the city”.
City aldermen will consider the adoption of a resolution at their next meeting setting a referendum on the bill for the June 6 municipal general election and outlining how funds from the tax are to be spent, said Mayor Derrick Blythe.
Sixty percent of those voting in the election must vote in favor of the tax for it to take effect.
Funds from the tax must be kept separate from the city’s general fund and cannot be spent on payment of any legal fees or salaries.
The bill also requires all records of revenue and expenditures from the funds generated by the tax to be audited each year by an independent certified public accountant other than the one who audits the city’s general fund. The report of the audit must be provided to the city as well as to each member of the state House of Representatives and Senate representing the city.