Restaurant tax goes into effect in Pascagoula

Restaurant tax goes into effect in Pascagoula
(Photo Source: WLOX News)

PASCAGOULA, MS (WLOX) - With the new year comes a new tax in Pascagoula. Justin Larsen barely realized it when he stopped by Lenny's Subs to grab lunch Monday.

"It's hardly noticeable and it'll do a lot for the community," Larsen said.

Pascagoula's prepared food tax went into effect New Year's Day, upping the charge from seven to nine percent. Larsen says he doesn't mind the extra fee - because it's for a good cause.

"I'm for it. I voted for it both times it came up for the vote. I think it's important for our city and for our children and for our communities," Larsen said.

It impacts convenience stores, bars, and restaurants including to-go food.

"I didn't notice it - I didn't pay much attention to it," said Michael Holliday, who works in Pascagoula.

The money collected will go entirely towards the city's Parks and Recreation Department's master plan, which includes upgrades to ball fields and existing rec buildings. The tax is expected to generate $800,000 to $1.2 million annually. And while those against the tax worry it will deter people from wanting to eat in Pascagoula, customers we spoke with said just the opposite.

"I won't refuse to eat lunch here because of a two percent increase in sales tax today," Holliday said.

"Enjoy our restaurants in Pascagoula and support your town," Larsen said.

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