Although officials from the City of Petal have not yet received the first payment from the recently-implemented 3 percent additional sales tax at Petal restaurants, the Petal Board of Aldermen is expected to soon discuss the first possible use of those funds: the second half of a pay raise for the Petal Police Department.
In a Dec. 10 video address, Mayor Tony Ducker said the Petal Board of Aldermen will likely address the matter at its next board meeting, which will be held on Dec. 21. By that time, officials hope to know the amount of that first payment from the Mississippi Department of Revenue.
“It’s a recreation and tourism tax; the part that we talked about over the summer and over the spring was it actually freeing up money in the general fund that you could do other things with as well,” Ducker said. “We want to be able to give our departments – any department – the resources to do their job.
“We want to take care of our employees mentally, physically, and to the best extent, financially. Nobody’s getting rich, but we want to be as competitive as we can.”
The first half of the pay raise for the police department was instituted in August during the budget process.
The 3 percent tax increase was approved in early August, when 74 percent of voters voted in favor of the measure during a special election. Unofficial records from Petal City Hall showed that 457 residents voted in the election; of that, 344 voted for the measure and 113 voted against it. The tax required a 60 percent voter approval to pass.Under the new tax increase – which is expected to bring $750,000 in extra revenue to the city each year – an individual paying a $10 tab at a Petal restaurant will pay an extra 30 cents on that bill. The funds raised from the tax will go toward the city’s Parks and Recreation Department, which will allow the city to maintain that department at its current level.
That, in turn, will free up money in the city’s fund that could be used for measure such as the police department, fire department or infrastructure. The tax began to be collected in October.
“We can’t pay somebody with money that we don’t have,” Ducker said. “We can’t pave roads, clean ditches – I can’t do anything with money I don’t have.
“We’re going to be very conservative, and be very smart with your tax dollars, and stretch them as far as we can, so I think that’s very important. By the City of Petal, and the folks coming out and supporting that, they’re going to see the first peg – or first fruits, I guess – of that being passed.”
As the sales tax figures begin to come in, officials will evaluate those numbers and allow pay raises for other first responders in the city, such as the fire department.
“So it’s important to do things,” Ducker said. “It’s important to continue to support our restaurants – it’s important to support all of our Petal businesses.
“There are entities – national chains – that are looking at our numbers to see what they look like, if they want to come and move here. We’re going to have some great announcements – there’s things we can’t mention right now that we’ll be able to announce, hopefully, in the first part of the year. We’ve already got some paperwork in on some of them that you’ve already heard about, and that’ll be taking place in the spring.”
The restaurant tax will not affect property, or ad valorem taxes; as a city entity, Petal has not raised those taxes in more than a decade. The city’s millage rate - which is a unit of monetary value equal to one-tenth of a cent that determines the amount of property taxes residents pay - will remain at 46.21 mills.
The idea of a sales tax increase at Petal restaurants has been passed around for the last several months as an option to increase much-needed revenue for other city programs and departments without having to raise property taxes or cut personnel. The proposal for the special election passed both houses of the Mississippi Legislature in March, and the Petal Board of Aldermen voted unanimously on June 28 to set the date for the referendum.
A similar sales tax measure was passed in Hattiesburg in early 2019, when voters overwhelmingly approved an additional 1 percent sales tax at Hub City restaurants, hotels and motels. The funds from that measure are currently going toward several Parks and Recreation Department projects around the city, including a splash pad in Palmers Crossing, an extension of the walking trail at Duncan Lake and the addition of batting cages at Vernon Dahmer Park.
“People still go to Hattiesburg, and Hattiesburg has had this tax now for years,” former Mayor Hal Marx said in a previous story. “They’ve had a 2 percent tax for about the last 20 years, and then they added another percent just a year or two ago.
“I haven’t noticed any decrease in the number of people going out to eat in Hattiesburg. So I think people are willing to do it; I don’t think people are bothered as much by it as some opponents of it make it seem.”
