HB 731 (As Introduced) - 1997 Regular Session

MISSISSIPPI LEGISLATURE

1997 Regular Session

To: Ways and Means

By: Representative Guice

House Bill 731

AN ACT TO AMEND SECTIONS 21-33-45 AND 27-39-307, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT IN THE CASE WHERE, BECAUSE OF AN INCREASE IN THE ASSESSED VALUATION OF A MUNICIPALITY DUE TO A REAPPRAISAL DIRECTED BY THE STATE TAX COMMISSION, THE AD VALOREM TAX MILLAGE RATE FOR THE CURRENTLY EXISTING FISCAL YEAR WILL GENERATE FUNDS FOR THE NEXT FISCAL YEAR IN AN AMOUNT GREATER THAN THE DOLLAR AMOUNT GENERATED BY THE AD VALOREM TAX EFFORT FOR THE CURRENTLY EXISTING FISCAL YEAR, THE GOVERNING AUTHORITIES OF SUCH MUNICIPALITY SHALL BE REQUIRED TO REDUCE THE AD VALOREM TAX MILLAGE RATE FOR THE NEXT FISCAL YEAR SUCH THAT THE DOLLAR AMOUNT GENERATED BY THE AD VALOREM TAX EFFORT FOR THE NEXT FISCAL YEAR WILL NOT EXCEED THE DOLLAR AMOUNT GENERATED BY THE AD VALOREM TAX EFFORT FOR THE CURRENTLY EXISTING FISCAL YEAR; TO AMEND SECTIONS 27-39-203, 27-39-205, 27-39-320 AND 27-39-321, MISSISSIPPI CODE OF 1972, 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 21-33-45, Mississippi Code of 1972, is amended as follows:

21-33-45. The governing authorities of each municipality of this state shall, either at their regular meeting in September of each year or not later than ten (10) days after the final approval of the assessment rolls, levy the municipal ad valorem taxes for the fiscal year next succeeding, and shall, by resolution, fix the tax rate or levy for the municipality and for any other taxing districts of which the municipality may be a part. The rates or levies for the municipality or for any such taxing district shall be expressed in mills or a decimal fraction of a mill, which tax rates, or levies, shall determine the ad valorem taxes to be collected upon each dollar of valuation upon the assessment rolls of the municipality for municipal taxes, and to be collected upon each dollar of valuation as shown upon the assessment rolls of the municipality for each such taxing district, except as to such values as may be exempt, in whole or in part, from certain tax rates or levies. If the rates or levies for the municipality or taxing district are an increase from the previous fiscal year, then the proposed rate or levy increase shall be advertised in accordance with Sections 27-39-203 and 27-39-205. In the case where, because of an increase in the assessed valuation of a municipality due to a reappraisal directed by the State Tax Commission, the ad valorem tax millage rate for the currently existing fiscal year will generate funds for the next fiscal year in an amount greater than the dollar amount generated by the ad valorem tax effort for the currently existing fiscal year, the governing authorities of a municipality shall reduce the ad valorem tax millage rate for the next fiscal year by the necessary amount to ensure that the dollar amount generated by the ad valorem tax effort for the next fiscal year will not exceed the dollar amount generated by the ad valorem tax effort for the currently existing fiscal year.

In making the levy of taxes, the governing authorities shall specify in such resolution the levy for each purpose as follows:

(a) For general revenue purposes and for general improvements, as authorized by Section 27-39-307.

(b) For school purposes, including all maintenance levies, whether made against the property within such municipality, or within any taxing district embraced in such municipality, as authorized by Section 27-39-307 and Section 37-57-3 et seq.

(c) For municipal bonds and interest thereon, for school bonds and interest thereon, separately for municipal-wide bonds and for the bonds of each school district.

(d) For municipal-wide bonds and interest thereon, other than for school bonds.

(e) For loans, notes or any other obligation, and the interest thereon, if permitted by law.

(f) For special improvement or special benefit levies, as now authorized by law.

(g) For any other purpose for which a levy is lawfully made. If any municipal-wide levy is made for any general or special purpose under the provisions of any law other than Section 27-39-307 each such levy shall be separately stated in the resolution, and the law authorizing same shall be expressly stated therein.

If the governing authorities of any municipality shall not levy the municipal taxes and the district taxes at its regular September meeting, such governing authorities shall levy the same at an adjourned or special meeting not later than ten (10) days after the final approval of the assessment rolls. However, that if such levy be not made on or before September 15 then road and bridge privilege tax license plates may be issued by the tax collector or State Tax Commission, as the case may be, for motor vehicles as defined in the Motor Vehicle Ad Valorem Tax Law of 1958 (Section 27-51-1 et seq.), without collecting or requiring proof of payment of municipal ad valorem taxes until such levy is duly certified to him, and for twenty-four (24) hours thereafter.

In the case of a municipality operating under a special or private charter providing for or authorizing the assessment, levying and collection of ad valorem taxes prior to October in each year, ad valorem taxes for such municipality shall be levied at the time prescribed or authorized by such special or private charter, unless the governing authority of such municipality by resolution adopted and spread of record in its minutes elect to levy ad valorem taxes at the time prescribed hereinbefore in this section. In any event, however, all ad valorem taxes levied by any municipality in this state, shall be levied in the manner required herein regardless of the time when such taxes are levied.

SECTION 2. Section 27-39-307, Mississippi Code of 1972, is amended as follows:

27-39-307. Municipalities may levy ad valorem taxes upon all taxable property within such municipality for general revenue purposes and for general improvements. Further, the governing authorities of any municipality may make additional levies for special purposes as authorized by law. Any such levy which is an increase from the previous fiscal year must be advertised in accordance with Sections 2 and 3 of this act. In addition to funding municipal general purposes, the municipal general ad valorem tax levy may be used to supplement any municipal ad valorem tax levy for a special purpose authorized by law, excluding levies for schools, without regard to any statutory millage limitation on such special purpose tax levy; however, nothing herein contained shall be construed to exempt such tax levies from the limitation on total receipts under Section 27-39-321. In the case where, because of an increase in the assessed valuation of a municipality due to a reappraisal directed by the State Tax Commission, the ad valorem tax millage rate for the currently existing fiscal year will generate funds for the next fiscal year in an amount greater than the dollar amount generated by the ad valorem tax effort for the currently existing fiscal year, the governing authorities of a municipality shall reduce the ad valorem tax millage rate for the next fiscal year by the necessary amount to ensure that the dollar amount generated by the ad valorem tax effort for the next fiscal year will not exceed the dollar amount generated by the ad valorem tax effort for the currently existing fiscal year.

SECTION 3. Section 27-39-203, Mississippi Code of 1972, is amended as follows:

27-39-203. (1) Subject to the provisions of subsection (3) of this section, no taxing entity may budget an increased amount of ad valorem tax revenue as set forth in Section 112, Mississippi Constitution of 1890, exclusive of revenue from new growth, unless it advertises its intention to do so at the same time that it advertises its intention to fix its budget for the forthcoming fiscal year.

(2) (a) For taxing entities operating under an October 1 through September 30 fiscal year this advertisement may be combined with the advertisement required by Section 27-39-205 of this article. For taxing entities operating under a January 1 through December 31 fiscal year or a July 1 through June 30 fiscal year, the advertisement shall meet the size, type, placement and frequency requirements established under Section 27-39-205 of this article.

(b) The form of the advertisement shall be substantially as follows:

"NOTICE OF TAX INCREASE

The (name of the taxing entity) has proposed to increase its property tax revenue on all classes of property described in Section 112, Mississippi Constitution of 1890, by (percentage of increase of all classes showing the exact amount of percentage of increase for each class) percent, and to (increase/decrease) its total budget by (percentage of increase/decrease) percent.

All concerned citizens are invited to attend a public hearing on the tax increase and budget to be held on (date and time) at (meeting place).

A final decision on the proposed tax increase will be made on (date and time) in a public hearing to be held at (meeting place)."

(c) All taxing entities operating under the January 1 through December 31 fiscal year or a July 1 through June 30 fiscal year shall hold a public hearing at which the budget for the following fiscal year will be considered, regardless of whether that budget is being increased or decreased, and shall notify the county of the date, time and place of the public hearing. The county shall include that information with the tax notice.

(3) No municipality may increase its ad valorem tax millage rate in the case where, because of an increase in the assessed valuation of the municipality due to a reappraisal directed by the State Tax Commission, the ad valorem tax millage rate for the currently existing fiscal year will generate funds for the next fiscal year in an amount greater than the dollar amount generated by the ad valorem tax effort for the currently existing fiscal year. In such a case, the governing authorities of the municipality shall reduce the ad valorem tax millage rate for the next fiscal year by the necessary amount to ensure that the dollar amount generated by the ad valorem tax effort for the next fiscal year will not exceed the dollar amount generated by the ad valorem tax effort for the currently existing fiscal year.

SECTION 4. Section 27-39-205, Mississippi Code of 1972, is amended as follows:

27-39-205. (1) Subject to the provisions of subsection (5) of this section, no tax rate in excess of the certified tax rate may be levied under Sections 21-33-45, 27-39-307, 27-39-317 and 27-39-320 until a resolution has been approved by the governing body of the taxing entity in accordance with the following procedure:

(a) The taxing entity shall advertise its intent to exceed the certified tax rate in a newspaper of general circulation in the county, except that a taxing entity collecting taxes in more than one (1) county may make the advertisement required under this section by publication in the county where the taxing entity's principal place of business is located. The advertisement shall be no less than one-fourth (1/4) page in size and the type used shall be no smaller than eighteen (18) point and surrounded by a one-fourth-inch solid black border. The advertisement may not be placed in that portion of the newspaper where legal notices and classified advertisements appear. It is the intent of the Legislature that the advertisement appear in a newspaper that is published at least five (5) days a week, unless the only newspaper in the county is published less than five (5) days a week. It is further the intent of the Legislature that the newspaper selected be one of general interest and readership in the community, and not one of limited subject matter. The advertisement shall be run once each week for the two (2) weeks preceding the adoption of the final budget. The advertisement shall state that the taxing entity will meet on a certain day, time and place fixed in the advertisement, which shall be not less than seven (7) days after the day the first advertisement is published, for the purpose of hearing comments regarding any proposed increase and to explain the reasons for the proposed increase. The meeting on the proposed increase may coincide with the hearing on the proposed budget of the taxing entity.

(b) The form and content of the notice shall be as follows:

"NOTICE OF TAX INCREASE

All concerned citizens are invited to attend a public hearing on the tax increase to be held on (date and time) at (meeting place)."

(c) The State Tax Commission shall adopt rules governing the joint use of one (1) advertisement under this section or Section 27-39-203 of this article by two (2) or more taxing entities and may, upon petition by any taxing entity, authorize either (i) the use of weekly newspapers in counties having both daily and weekly newspapers where the weekly newspaper would provide equal or greater notice to the taxpayer, or (ii) the use of a State Tax Commission-approved direct notice to each taxpayer if the cost of the advertisement would cause undue hardship and the direct notice is different and separate from that provided for in subsection (2).

(2) The governing body of the taxing entity, after the hearing has been held in accordance with the above procedures, may adopt a resolution levying a tax rate on classes of property designated by Section 112, Mississippi Constitution of 1890, in excess of the certified tax rate. If the resolution adopting the tax rate is not adopted on the day of the public hearing, the scheduled time and place for consideration and adoption of the resolution shall be announced at the public hearing. If the resolution is to be considered at a day and time that is more than two (2) weeks after the public hearing, the governing body shall advertise the date of the proposed adoption of the resolution in the same manner as provided under subsection (1).

(3) All hearings shall be open to the public. The governing body of the taxing entity shall permit all interested parties desiring to be heard an opportunity to present oral testimony within reasonable time limits.

(4) Each taxing entity shall notify the county or municipal governing body of the date, time and place of its public hearing. No taxing entity may schedule its hearing at the same time as another overlapping taxing entity in the same county, but all taxing entities in which the power to set tax levies is vested in the same governing authority may consolidate the required hearings into one (1) hearing. The county or municipal governing body shall resolve any conflicts in hearing dates and times after consultation with each affected taxing entity.

(5) No municipality may increase its ad valorem tax millage rate in the case where, because of an increase in the assessed valuation of the municipality due to a reappraisal directed by the State Tax Commission, the ad valorem tax millage rate for the currently existing fiscal year will generate funds for the next fiscal year in an amount greater than the dollar amount generated by the ad valorem tax effort for the currently existing fiscal year. In such a case, the governing authorities of the municipality shall reduce the ad valorem tax millage rate for the next fiscal year by the necessary amount to ensure that the dollar amount generated by the ad valorem tax effort for the next fiscal year will not exceed the dollar amount generated by the ad valorem tax effort for the currently existing fiscal year.

SECTION 5. Section 27-39-320, Mississippi Code of 1972, is amended as follows:

27-39-320. (1) The Legislature finds and determines that legislation requiring a specific levy or requiring consent of some other governing body to reduce the levy was intended to raise a certain amount of revenue for specific purposes. Upon this determination and notwithstanding the provisions of any statute which requires a definite levy to be made or which requires that a levy may not be reduced except by the consent of some other governing authority, the amount of such levy shall be deemed to be an amount necessary to produce the revenues received in the next preceding year plus, subject to the provisions of subsection (5) of this section, at the option of the taxing authority, an increase not to exceed ten percent (10%) of such revenues.

(2) In any county where there is located a nuclear generating power plant on which a tax is assessed under Section 27-35-309(3), such required levy and revenue produced thereby may be reduced by the levying authority in an amount in proportion to a reduction in the base revenue of any such county from the previous year. Such reduction shall be allowed only if the reduction in base revenue equals or exceeds five percent (5%). "Base revenue" shall mean the revenue received by the county from the ad valorem tax levy plus the revenue received by the county from the tax assessed under Section 27-35-309(3) and authorized to be used for any purposes for which a county is authorized by law to levy an ad valorem tax. For purposes of determining if the reduction equals or exceeds five percent (5%), a levy of millage equal to the prior year's millage shall be hypothetically applied to the current year's ad valorem tax base to determine the amount of revenue to be generated from the ad valorem tax levy. For the purposes of this section, the portion of base revenue used to fund the purpose for which a specific levy is required shall be deemed to be the total receipts from ad valorem taxes for such purpose. This paragraph shall apply to taxes levied for the 1987 fiscal year and for each fiscal year thereafter. If the Mississippi Supreme Court or another court finally adjudicates that the tax levied under Section 27-35-309(3) is unconstitutional, then this paragraph shall stand repealed.

(3) Subject to the provisions of subsection (5) of this section, with respect to ad valorem taxes levied on or after October 1, 1980, no county or municipality shall levy those mills heretofore required by law to be levied to an extent that such levy shall produce more than the total receipts produced from such levy in the next preceding year, plus, at the option of the taxing authority, an increase not to exceed ten percent (10%) of such receipts. Such total receipts shall be deemed to include the total avails of such levy either collected from the property owner or by reimbursement by the state. The revenues produced from any newly constructed properties or any existing properties added to the tax rolls or any properties previously exempt which were not assessed in the next preceding year may be excluded from the limitation set forth herein.

(4) Subject to the provisions of subsection (5) of this section, the ten percent (10%) increase limitation prescribed in this section may be increased by an additional amount by the board of supervisors of any county if the aggregate receipts from all county levies to which this section and Sections 27-39-305 and 27-39-321 apply do not exceed one hundred ten percent (110%) of the aggregate receipts from all such levies during any one (1) of the immediately preceding three (3) fiscal years, as determined by the board of supervisors.

(6) The limitations set forth in this section shall apply to the mandatory tax levied by Section 27-39-329.

SECTION 6. Section 27-39-321, Mississippi Code of 1972, is amended as follows:

27-39-321. (1) Subject to the provisions of subsection (8) of this section, with respect to ad valorem taxes levied for each fiscal year, no political subdivision may levy ad valorem taxes in any fiscal year which would render in total receipts from all levies an amount more than the receipts from that source during any one (1) of the immediately preceding three (3) fiscal years, as determined by the levying governing authority, plus, at the option of the taxing authority, an increase not to exceed ten percent (10%) of such receipts. The additional revenue from the ad valorem tax on any newly constructed properties or any existing properties added to the tax rolls or any properties previously exempt, which were not assessed in the next preceding year and cost incurred and paid in the next preceding year in connection with reappraisal may be excluded from the ten percent (10%) increase limitation set forth herein. Taxes levied for school district purposes under any statute and taxes levied for the maintenance and/or construction of roads and bridges under Section 27-39-305 shall be excluded from the ten percent (10%) increase limitation set forth herein. Taxes levied for payment of principal of and interest on general obligation bonds issued heretofore or hereafter shall be excluded from the ten percent (10%) increase limitation set forth herein. Any additional millage levied to fund any new program mandated by the Legislature shall be excluded from the limitation for the first year of the levy and included within such limitation in any year thereafter. The limitation imposed under this paragraph shall not apply to those mandatory levies enumerated in Sections 27-39-320 and 27-39-329.

(2) The limitation of this section may be increased only as provided in subsection (3) or (4) of this section or when the governing body of a political subdivision has determined the need for additional revenues, adopts a resolution declaring its intention so to do and has held an election on the question of raising the limitation prescribed in this section. The notice calling for an election shall state the purposes for which the additional revenues shall be used, the amount of the tax levy to be imposed for such purposes and period of time for which such tax levy shall be made; however, such tax levy shall not be made for more than five (5) successive years. The limitation may be increased under this subsection only if the proposed increase is approved by a majority of those voting. Subject to specific provisions of this paragraph to the contrary, the publication of notice and manner of holding the election shall be as prescribed by law for the holding of elections for the issuance of bonds by the political subdivision. Revenues derived from any taxes levied pursuant to such election shall be excluded from the tax base for the purpose of determining aggregate receipts for which the ten percent (10%) increase limitation applies.

(3) Subject to the provisions of subsection (8) of this section, as an alternative to the procedure provided in subsection (2) of this section, the ten percent (10%) increase limitation prescribed in this section may be increased by an additional amount by the board of supervisors of any county without an election thereon if the aggregate receipts from all county levies to which this section and Sections 27-39-305 and 27-39-320 apply do not exceed one hundred ten percent (110%) of the aggregate receipts from all such levies during any one (1) of the immediately preceding three (3) fiscal years, as determined by the board of supervisors.

(4) Subject to the provisions of subsection (8) of this section, as an alternative to the procedure provided in subsections (2) and (3) of this section, the board of supervisors of any county or the governing authorities of any municipality may, without an election thereon, increase the ad valorem tax levy to which this section applies by the greater of:

(a) An ad valorem tax levy that does not result in an aggregate levy to which this section applies in excess of twenty (20) mills; or

(b) An ad valorem tax levy that is not in excess of any aggregate levy to which this section applies in any one (1) of the immediately preceding ten (10) fiscal years.

(5) In any county where there is located a nuclear generating power plant on which a tax is assessed under Section 27-35-309(3), the term "total receipts" as used in this section shall be the portion of the "base revenue" as defined in Section 27-39-320 which is used for General Fund purposes.

(6) If a shortfall occurs in revenues from sources other than ad valorem taxes and oil and gas severance taxes budgeted for the county or municipal general fund during the 1987 fiscal year, then the county or municipality, as the case may be, may levy a special ad valorem tax for the 1988 fiscal year in an amount the avails of which shall not exceed such shortfall; provided, however, that the aggregate receipts from all ad valorem levies for the county or municipal general fund for the 1988 fiscal year shall not exceed the aggregate receipts from this source for the immediately preceding fiscal year plus an increase not to exceed twenty percent (20%).

(7) If a shortfall occurs in revenues from oil and gas severance taxes budgeted for the county or municipal general fund during the 1987 fiscal year, then the county or municipality, as the case may be, may levy a special ad valorem tax for the 1988 fiscal year in an amount the avails of which shall not exceed such shortfall. The avails of such special ad valorem tax shall not be included within the ten percent (10%) increase limitation. The ad valorem taxes levied to offset the shortfall shall be deemed to be ad valorem tax receipts produced in the 1988 fiscal year for the purposes of determining the limitation on receipts for the succeeding fiscal years.

(8) No municipality may increase its ad valorem tax millage rate in the case where, because of an increase in the assessed valuation of the municipality due to a reappraisal directed by the State Tax Commission, the ad valorem tax millage rate for the currently existing fiscal year will generate funds for the next fiscal year in an amount greater than the dollar amount generated by the ad valorem tax effort for the currently existing fiscal year. In such a case, the governing authorities of the municipality shall reduce the ad valorem tax millage rate for the next fiscal year by the necessary amount to ensure that the dollar amount generated by the ad valorem tax effort for the next fiscal year will not exceed the dollar amount generated by the ad valorem tax effort for the currently existing fiscal year.

SECTION 7. This act shall take effect and be in force from and after January 1, 1997.