1997 Regular Session
To: Ways and Means
By: Representative Endt
House Bill 533
AN ACT TO AMEND SECTION 27-31-7, MISSISSIPPI CODE OF 1972, TO REQUIRE LOCAL GOVERNING AUTHORITIES TO EXEMPT FROM AD VALOREM TAXATION THE VALUE OF PERSONAL PROPERTY OR PRODUCTS, UP TO THE MAXIMUM AMOUNT OF $100,000.00 IN PROPERTY VALUE, OWNED BY OR IN THE HANDS OF A MANUFACTURER, DISTRIBUTOR, WHOLESALE MERCHANT OR RETAILER; TO AMEND SECTION 27-35-1, MISSISSIPPI CODE OF 1972, WHICH PROVIDES FOR THE ATTACHMENT AND PREFERENCES OF AD VALOREM TAXES ON LAND AND CERTAIN PERSONAL PROPERTY TO EXTEND THE REPEALER AND TO CONFORM TO THE PROVISIONS OF THIS ACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-31-7, Mississippi Code of 1972, is amended as follows:
27-31-7. (1) The board of supervisors of any county or the governing authority of any municipality shall * * * exempt from ad valorem taxation, excepting ad valorem taxes for school district purposes, * * * the value of personal property or products, including finished goods, up to the maximum amount of One Hundred Thousand Dollars ($100,000.00) in property value, when such products or personal property are owned by or remaining in the hands of any manufacturer, or its subsidiary, or any distributor, * * * wholesale merchant or retailer, located within such county or municipality.
The time of the exemption described in this subsection shall be for a period not to exceed a total of ten (10) years, which shall commence from the date such exemption is granted. The granting of the exemption shall occur without any requirement that a request for the exemption * * * be made * * * to the board of supervisors or the municipal governing authority by the taxpayer.
The exemption granted herein shall be considered automatically when the county or municipal taxing authority determines the ad valorem tax liability of the entity receiving the exemption.
(2) The exemption granted herein shall be in addition to all other exemptions heretofore granted by the laws of the State of Mississippi.
(3) It is the sense of the Legislature that time limits imposed in Section 182, Mississippi Constitution of 1890, on the terms of certain ad valorem tax exemptions which may be granted to manufacturers and other new enterprises of public utility apply only to the physical plant of such manufacturers and enterprises and to any personal property necessary for the operation thereof; and any exemption for the finished products of such manufacturers and enterprises granted by the governing authorities of any county or municipality under this section after December 31, 1960, but prior to July 1, 1982, shall not be affected by the time limits established in subsequent amendments to this section after July 1, 1982, but shall remain in full force and effect subject to the original terms granted by such governing authorities.
SECTION 2. Section 27-35-1, Mississippi Code of 1972, is amended as follows:
27-35-1. (1) Taxes (state, county and municipal) assessed upon lands or personal property, excepting motor vehicles as defined by the Motor Vehicle Ad Valorem Tax Law of 1958, Sections 27-51-1 through 27-51-49, shall bind the same and be entitled to preference over all judgments, executions, encumbrances or liens whensoever created; and all such taxes assessed shall be a lien upon and bind the property assessed. Except as provided in subsection (3) of this section, the aforesaid tax lien shall attach to all land situated within this state on January 1 of each year, and upon any personal property so situated or brought into this state at any time prior to March 1 of each year except as hereinafter provided. A tax lien shall attach to that personal property listed in an ordinance duly adopted by a county or municipality and to all heavy duty equipment at any time of the year such property is brought into or situated in this state. Such personal property shall not be subject to tax in more than one (1) county; and such county in which said property was located at the earliest taxable date shall have priority in the collection of such taxes. Except as otherwise provided in Section 27-31-7, all taxes assessed on stock of goods or merchandise shall be based on the value of the inventory on January 1 of the tax year or the average monthly inventory during the preceding twelve (12) months from January 1 of each year and are specifically made a lien thereon regardless of changes in the items of which it may be composed; and no such property shall be exempt from distress or sale for taxes. It shall not be necessary to the validity of any assessment or of a sale of land for taxes that it shall be assessed to its true owner, but the taxes shall be a charge upon the land or personal property taxed and the sale shall be a proceeding against the thing sold and shall vest title in the purchaser without regard to who may own the land or other property when assessed, or when sold, or whether wrongfully assessed either to a person or to the state or any county, city, town or village, or subdivision of either. Provided, however, that the lien for municipal taxes shall be secondary and subordinate to the lien for state and county taxes.
(2) Heavy duty equipment shall mean any motor vehicle used primarily off the road for construction purposes whose gross weight exceeds sixteen thousand (16,000) pounds but shall not include inventory on hand for sale by duly licensed heavy equipment dealers.
(3) With respect to lands owned by the state, which lands are leased to private agricultural enterprises and taxable under Section 47-5-66, Mississippi Code of 1972, the tax lien provided for in this section shall attach and be enforceable in the same manner as are other tax liens at the time the crop is harvested.
(4) The provisions of this section shall be repealed from and after July 1, 1998.
SECTION 3. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the ad valorem tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the ad valorem tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act become effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.
SECTION 4. This act shall take effect and be in force from and after January 1, 1998.