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The city's Visitors and Convention Council became alarmed last month when hotel tax revenues were down more than $25,000 compared to the same time last year.
But Jon Maynard, president and CEO of the Greater Starkville Development Partnership, said he has talked with the State Tax Commission and the problem has been discovered.
Maynard says two hotels in Starkville changed ownership in recent months, and the hotels' tax revenues inadvertently were classified as food and beverage taxes. Subsequently, hotel tax revenues in the city seemingly dropped while food and beverage tax revenues increased.
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