HB1153 (As Introduced) - 1997 Regular Session

MISSISSIPPI LEGISLATURE

1997 Regular Session

To: Ways and Means

By: Representative Weathersby

House Bill 1153

AN ACT TO AMEND SECTIONS 27-39-303 AND 27-39-317, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT IN THE CASE WHERE, BECAUSE OF AN INCREASE IN THE ASSESSED VALUATION OF A COUNTY, 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 BOARD OF SUPERVISORS OF SUCH COUNTY 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 PLUS CERTAIN INCREASE LIMITATIONS; 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; TO AMEND SECTIONS 37-57-105 AND 37-57-107, MISSISSIPPI CODE OF 1972, TO DELETE THE AUTHORITY OF SCHOOL BOARDS TO INCREASE AD VALOREM TAXES LEVIED FOR SCHOOL DISTRICT PURPOSES ABSENT APPROVAL IN A REFERENDUM ON THE PROPOSED TAX INCREASE; TO AMEND SECTION 27-39-207, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 27-39-303, Mississippi Code of 1972, is amended as follows:

27-39-303. The board of supervisors of any county is hereby empowered to levy ad valorem taxes on taxable property in the respective counties in any one (1) year, as shown by the assessment roll containing assessments of property made as of January 1 of the year, and the assessment of motor vehicles as made according to the provisions of the Motor Vehicle Ad Valorem Tax Law of 1958 (Section 27-51-1 et seq.) for all general county purposes, exclusive only of levies for roads and bridges and schools at the rate necessary to fund such purposes. In the case where, because of an increase in the assessed valuation of a county 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 board of supervisors of a county 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, plus, at the option of the board of supervisors, an increase subject to the limitations of Sections 27-39-320 and 27-39-321.

The board of supervisors of any county is further empowered to expend the proceeds of this levy for any purpose authorized for any other levy which the board of supervisors is authorized to make, excluding the levy for roads and bridges, and the board may authorize general fund expenditures for school purposes when necessary to meet the minimum local ad valorem tax effort required by Section 37-57-1, Mississippi Code of 1972.

The board of supervisors of any county is further empowered to distribute from the county general fund a portion of the county's share of payments made by the Tennessee Valley Authority to the state in lieu of taxes (a) to the school districts of said county and (b) for construction on the roads and bridges of said county in an amount which bears the same proportion to the total amount of the county's share as the millage for the school fund and road and bridge fund bears to the total millage levied by the county. In the event said in lieu payments are expended for capital improvements, said payments shall not be subject to the increase limitations specified in Section 27-39-321 or 37-57-107, Mississippi Code of 1972.

SECTION 2. Section 27-39-317, Mississippi Code of 1972, is amended as follows:

27-39-317. The board of supervisors of each county shall, at its regular meeting in September of each year, levy the county ad valorem taxes for the fiscal year, and shall, by order, fix the tax rate, or levy, for the county, for the road districts, if any, and for the school districts, if any, and for any other taxing districts; and the rates, or levies, for the county and for any district shall be expressed in mills or a decimal fraction of a mill. Said tax rates, or levies, shall determine the ad valorem taxes to be collected upon each dollar of valuation, upon the assessment rolls of the county, including the assessment of motor vehicles as provided by the Motor Vehicle Ad Valorem Tax Law of 1958, Section 27-51-1 et seq., for county taxes; and upon each dollar of valuation for the respective districts, as shown upon the assessment rolls of the county, including the assessment of motor vehicles as provided by the Motor Vehicle Ad Valorem Tax Law of 1958, Section 27-51-1 et seq.; except as to such values as shall be exempt, in whole or in part, from certain tax rates or levies. If the rate or levy for the county is an increase from the previous fiscal year, then the proposed rate or levy 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 county 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 board of supervisors of a county 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, plus, at the option of the board of supervisors, an increase subject to the limitations of Sections 27-39-320 and 27-39-321. If the board of supervisors of any county shall not levy the county taxes and the district taxes at its regular September meeting, the board shall levy the same on or before September 15 at an adjourned or special meeting, or thereafter, provided, however, that if such levy be not made on or before the fifteenth day of September then the tax collector or State Tax Commission may issue road and bridge privilege tax license plates 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 county ad valorem taxes, and may continue to so issue such plates until such levy is duly certified to him, and for twenty-four (24) hours thereafter.

Notwithstanding the requirements of this section, in the event the State Tax Commission orders the county to make an adjustment to the tax roll pursuant to Section 27-35-113, the county shall have a period of thirty (30) days from the date of the commission's final determination to adjust the millage in order to collect the same dollar amount of taxes as originally levied by the board.

In making the levy of taxes, the board of supervisors shall specify, in its order, the levy for each purpose, as follows:

(a) For general county purposes (current expense and maintenance taxes), as authorized by Section 27-39-303.

(b) For roads and bridges, as authorized by Section 27-39-305.

(c) For schools, including the countywide minimum education program levy and the levy for each school district including special municipal separate school districts, but not including other municipal separate school districts, and for an agricultural high school, county high school or junior college (current expense and maintenance taxes), as authorized by Chapter 57, Title 37, Mississippi Code of 1972, and any other applicable statute. The levy for schools shall apply to the assessed value of property in the respective school districts, including special municipal separate school districts, but not including other municipal separate school districts, and a distinct and separate levy shall be made for each school district, and the purpose for each levy shall be stated.

(d) For road bonds and the interest thereon, separately for countywide bonds and for the bonds of each road district.

(e) For school bonds and the interest thereon, separately for countywide bonds and for the bonds of each school district.

(f) For countywide bonds, and the interest thereon, other than for road bonds and school bonds.

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

(h) For any other purpose for which a levy is lawfully made.

The order shall state all of the purposes for which the general county levy is made, using the administrative items suggested by the State Department of Audit of Mississippi under the county budget law in its uniform system of accounts for counties, but the rate or levy for any item or purpose need not be shown; and if a countywide levy is made for any general or special purpose under the provisions of any law other than Section 27-39-303, each such levy shall be separately stated.

During the month of February of each year, if the order or resolution of the board of trustees of any school district of said county or partly in said county, is filed with it requesting the levying of ad valorem taxes for the support and maintenance of such school district for the following fiscal year, then the board of supervisors of every such county in the state shall notify, in writing, within thirty (30) days, the county superintendent of education of such county, the levy or levies it intends to make for the support and maintenance of such school districts of such county at its regular meeting in September following, and the county superintendent of education and the trustees of all such school districts shall be authorized to use such expressed intention of the board of supervisors in computing the support and maintenance budget or budgets of such school district or districts for the ensuing fiscal school 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 county may increase its ad valorem tax millage rate in the case where, because of an increase in the assessed valuation of the county 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 board of supervisors of the county 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, plus, at the option of the board of supervisors, an increase subject to the limitations of Sections 27-39-320 and 27-39-321.

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 county may increase its ad valorem tax millage rate in the case where, because of an increase in the assessed valuation of the county 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 board of supervisors of the county 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, plus, at the option of the board of supervisors, an increase subject to the limitations of Sections 27-39-320 and 27-39-321.

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.

(5) No county may increase its ad valorem tax millage rate in the case where, because of an increase in the assessed valuation of the county 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 plus the maximum increase allowed in this section. In such a case, the board of supervisors of the county 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 plus the maximum increase allowed in this section.

(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 county may increase its ad valorem tax millage rate in the case where, because of an increase in the assessed valuation of the county 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 plus the maximum increase allowed in this section. In such a case, the board of supervisors of the county 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 plus the maximum increase allowed in this section.

SECTION 7. Section 37-57-105, Mississippi Code of 1972, is amended as follows:

37-57-105. (1) In addition to the taxes levied under Section 37-57-1, the levying authority for the school district, as defined in Section 37-57-1, upon receipt of a certified copy of an order adopted by the school board of the school district requesting an ad valorem tax effort in dollars for the support of the school district, shall, at the same time and in the same manner as other ad valorem taxes are levied, levy an annual ad valorem tax in the amount fixed in such order, subject to the increase limitation prescribed in Section 37-57-107, upon all of the taxable property of such school district, which shall not be less than a millage rate necessary to generate funds equal to the "district entitlement" as defined in Section 37-22-1(2)(e) or the millage rate certified by the State Board of Education as the uniform minimum school district ad valorem tax levy, whichever is less, including the amount of millage levied for the support of the minimum education program in such school district under Section 37-57-1. * * * However, * * * any school district levying less than the uniform minimum school district ad valorem tax levy on July 1, 1989, or a millage rate necessary to generate funds equal to the "district entitlement" shall only be required to increase its local district maintenance levy in four (4) mill annual increments in order to attain such millage requirements. In making such levy, the levying authority shall levy an additional amount sufficient to cover anticipated delinquencies and costs of collection so that the net amount of money to be produced by such levy shall be equal to the amount which is requested by said school board. The proceeds of such tax levy, excluding levies for the payment of the principal of and interest on school bonds or notes and excluding levies for costs of collection, shall be placed in the school depository to the credit of the school district and shall be expended in the manner provided by law for the purpose of supplementing teachers' salaries, extending school terms, purchasing furniture, supplies and materials, and for all other lawful operating and incidental expenses of such school district, funds for which are not provided by minimum program fund allotments.

The monies authorized to be received by school districts from the School Ad Valorem Tax Reduction Fund pursuant to Section 37-61-35 shall be included as ad valorem tax receipts. The levying authority for the school district, as defined in Section 37-57-1, shall reduce the ad valorem tax levy for such school district in an amount equal to the amount distributed to such school district each calendar year from the School Ad Valorem Tax Reduction Fund pursuant to said Section 37-61-35. Such reduction shall not be less than the millage rate necessary to generate a reduction in ad valorem tax receipts equal to the funds distributed to such school district from the School Ad Valorem Tax Reduction Fund pursuant to Section 37-61-35. Such reduction shall not be deemed to be a reduction in the aggregate amount of support from ad valorem taxation for purposes of Section 37-19-11. The millage levy certified by the State Board of Education as the uniform minimum ad valorem tax levy or the millage levy that would generate funds in an amount equal to a school district's district entitlement, as defined in Section 37-22-1(2)(e), shall be subject to the provisions of this paragraph.

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 and Section 37-57-107, the portion of the base revenue used for the support of any school district shall be deemed to be the aggregate receipts from ad valorem taxes for the support of any school district. 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.

(2) When the tax is levied upon the territory of any school district located in two (2) or more counties, the order of the school board requesting the levying of such tax shall be certified to the levying authority of each of the counties involved, and each of the levying authorities shall levy the tax in the manner specified herein. The taxes so levied shall be collected by the tax collector of the levying authority involved and remitted by the tax collector to the school depository of the home county to the credit of the school district involved as provided above, except that taxes for collection fees may be retained by the levying authority for deposit into its general fund.

* * *

SECTION 8. Section 37-57-107, Mississippi Code of 1972, is amended as follows:

37-57-107. (1) Except as otherwise authorized pursuant to an election held under subsection (2) of this section, beginning with the tax levy for the * * * 1998 fiscal year, the aggregate receipts from taxes levied for school district purposes, excluding collection fees, pursuant to Sections 37-57-105 and 37-57-1 shall not exceed the aggregate receipts from those sources during * * * the immediately preceding * * * fiscal year * * *. For the purpose of this limitation, the term "aggregate receipts" when used in connection with the amount of funds generated in a preceding fiscal year shall not include excess receipts required by law to be deposited into a special account, and shall not include amounts received by school districts from the School Ad Valorem Tax Reduction Fund pursuant to Section 37-61-35. 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 may be excluded from the * * * limitation set forth herein. Taxes levied for payment of principal of and interest on general obligation school bonds issued heretofore or hereafter shall be excluded from the * * * 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. For the purposes of this section, the term "new program" shall include, but shall not be limited to: (a) the Early Childhood Education Program required to commence with the 1986-1987 school year as provided by Section 37-21-7 and any additional millage levied and the revenue generated therefrom, which is excluded from the limitation for the first year of the levy, to support the mandated Early Childhood Education Program, which shall be specified on the minutes of the school board and of the governing body making such tax levy; (b) any additional millage levied and the revenue generated therefrom which shall be excluded from the limitation for the first year of the levy, for the purpose of generating additional local contribution funds required for the minimum education program for the 1987 fiscal year and for each fiscal year thereafter through the 1996 fiscal year under Section 37-19-35; (c) any additional millage levied and the revenue generated therefrom which shall be excluded from the limitation for the first and each subsequent year of the levy, for the purpose of generating additional local contributions mandated under Section 37-57-105 requiring the board of trustees of a school district to reach the millage levy certified by the State Board of Education as the uniform minimum school district ad valorem tax levy or the millage levy which would generate funds in an amount equal to a school district's "district entitlement" as defined in Section 37-22-1(2)(e); and (d) any additional millage levied and the revenue generated therefrom which shall be excluded from the limitation for the first year of the levy, for the purpose of support and maintenance of any agricultural high school which has been transferred to the control, operation and maintenance of the school board by the board of trustees of the community college district under provisions of Section 37-29-272.

(2) If a * * * school board has determined the need for additional revenues, the school board may adopt an order requesting that the levying authority, as defined in Section 37-57-1, call and hold * * * an election on the question of exceeding the limitation prescribed in this section. However, before the order requesting the election is adopted, the school board shall advertise its intention to do so and shall hold a public meeting on the proposed increase in accordance with Section 27-39-207. The order, 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 * * * school boards. The ballot shall contain the language "For the School Tax Increase" and "Against the School Tax Increase" and shall state the specific amount of the proposed tax increase. The results of the election shall be certified to the school board. If three-fifths (3/5) or more of the qualified electors voting in the election vote in favor of the question, then the stated increase requested by the school board shall be approved. Revenues collected for the fiscal year in excess of the * * * limitation pursuant to an election shall be included in the tax base for the purpose of determining aggregate receipts for which the * * * limitation applies for subsequent fiscal years.

(3) Except as otherwise provided for excess revenues generated pursuant to an election, if revenues collected as the result of the taxes levied for the fiscal year pursuant to this section and Section 37-57-1 exceed the * * * limitation, then it shall be the mandatory duty of the school board of the school district to deposit such excess receipts over and above the * * * limitation into a special account and credit it to the fund for which the levy was made. It will be the further duty of such board to hold said funds and invest the same as authorized by law. Such excess funds shall be calculated in the budgets for the school districts for the purpose for which such levies were made, for the succeeding fiscal year. Taxes imposed for the succeeding year shall be reduced by the amount of excess funds available. Under no circumstances shall such excess funds be expended during the fiscal year in which such excess funds are collected.

(4) For the purposes of determining ad valorem tax receipts for a preceding fiscal year under this section, the term "fiscal year" means the fiscal year beginning October 1 and ending September 30.

SECTION 9. Section 27-39-207, Mississippi Code of 1972, is amended as follows:

27-39-207. (1) No school district may budget an increase in an ad valorem tax effort in dollars for support of the school district unless it advertises its intention to request an election on the increase at the same time that it advertises its intention to fix its budget for the forthcoming fiscal year.

(2) No request for an election on an ad valorem tax effort in dollars for the support of the school district in excess of the certified tax rate pursuant to Sections 37-57-105 and 37-57-107 may be made until an order has been approved by the school board of the school district in accordance with the following procedure:

(a) The school board of the school district shall advertise its intent to request an election on exceeding the certified tax rate in a newspaper of general circulation in the county. 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 school board of the school district 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 school board of the school district.

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

"NOTICE OF TAX INCREASE

The (name of the school district) has proposed to increase the part of its total budget that is attributed to an increase in ad valorem tax by (percentage of increase) percent and/or its total budget by (percentage of increase) percent by certified copy of an order to be adopted by the school board of the school district and certified to the taxing entity which is the levying authority for the school district as defined in Section 37-57-1 requesting an election on an increase of the ad valorem tax effort in dollars for the support of the school district. The proposal of the school district is to increase its ad valorem tax effort by (estimate of dollars) and/or by (estimate increase of millage rate) and to increase its budget by (estimate of dollars) and by (estimate increase of millage rate).

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

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

(3) The school board of the school district, after the hearing has been held in accordance with the above procedures, may adopt an order requesting an election on the levying of an ad valorem tax effort in dollars in excess of the certified tax rate.

(4) All hearings shall be open to the public. The school board of the school district shall permit all interested parties desiring to be heard an opportunity to present oral testimony within reasonable time limits.

(5) Each school board of a school district shall notify the taxing entity of the date, time and place of its public hearing. No school board of a school district may schedule its hearing at the same time as another overlapping school district in the same county.

SECTION 10. 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 becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.

SECTION 11. The Attorney General of the State of Mississippi is hereby directed to submit this act, immediately upon approval by the Governor, or upon approval by the Legislature subsequent to a veto, to the Attorney General of the United States or to the United States District Court for the District of Columbia in accordance with the provisions of the Voting Rights Act of 1965, as amended and extended.

SECTION 12. This act shall take effect and be in force from and after the date it is effectuated under Section 5 of the Voting Rights Act of 1965, as amended and extended.