MISSISSIPPI LEGISLATURE

1998 Regular Session

To: Ways and Means

By: Representative Simpson

AN ACT TO AMEND SECTION 27-31-50, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE GOVERNING AUTHORITIES OF ANY MUNICIPALITY AND THE BOARD OF SUPERVISORS OF ANY COUNTY TO ADOPT AN ORDINANCE OR RESOLUTION, AS APPROPRIATE, PROVIDING FOR THE PARTIAL EXEMPTION FROM MUNICIPAL OR COUNTY AD VALOREM TAXATION, AS APPROPRIATE, OF REAL PROPERTY ON WHICH ANY STRUCTURE OR OTHER IMPROVEMENT THAT IS NOT LESS THAN TWENTY-FIVE YEARS OF AGE HAS UNDERGONE SUBSTANTIAL REHABILITATION, RENOVATION OR REPLACEMENT FOR RESIDENTIAL USE; TO REMOVE THE RESTRICTION THAT LIMITED SUCH AUTHORITY TO CERTAIN MUNICIPALITIES IN THE STATE; AND FOR RELATED PURPOSES. 

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

SECTION 1. Section 27-31-50, Mississippi Code of 1972, is amended as follows:

27-31-50. (1) The governing authority of any incorporated municipality and the board of supervisors of any county may adopt an ordinance or resolution, as appropriate, providing for the partial exemption from municipal or county ad valorem taxation, as appropriate, of real property on which any structure or other improvement that is not less than twenty-five (25) years of age has undergone substantial rehabilitation, renovation or replacement for residential use, subject to such conditions and other restrictions authorized in this section. The ordinance or resolution, as appropriate, may restrict such exemption to real property located within certain areas as may be determined by the governing authority or board of supervisors, as appropriate, and prescribed by the ordinance or resolution, as appropriate. The governing authority of a municipality or board of supervisors of a county, as appropriate, shall establish criteria for determining whether real property qualifies for the partial exemption provided for in this section, shall require the structures or improvements to be older than twenty-five (25) years of age and may place such other restrictions and conditions on such property as may be prescribed by ordinance or resolution, as appropriate. The ordinance or resolution, as appropriate, may also provide for the partial exemption from municipal or county ad valorem taxation, as appropriate, of multifamily residential units which have been substantially rehabilitated by replacement for multifamily use. Any replacement structure shall not exceed the total square footage of the replaced structures by more than thirty percent (30%).

(2) The partial exemption provided by an ordinance or resolution, as appropriate, adopted pursuant to this section may be (a) in an amount equal to the increase in the assessed value of the property resulting from the rehabilitation, renovation or replacement of the structure as determined by the tax assessor, or (b) an amount of not more than fifty percent (50%) of the cost of the rehabilitation, renovation or replacement. The exemption may commence upon completion of the rehabilitation, renovation or replacement or on January 1 of the year following completion of the rehabilitation, renovation or replacement and shall last for a period of time not to exceed ten (10) years. The ordinance or resolution, as appropriate, may prescribe a shorter time period for the length of the exemption, or reduce the amount of the exemption in annual steps over the length of the exemption or a portion thereof.

(3) The governing authority of a municipality or board of supervisors of a county, as appropriate, may assess a fee not to exceed Fifty Dollars ($50.00) for processing an application requesting the exemption provided for in this section. No property shall be eligible for the exemption unless the appropriate building permits have been acquired and the tax assessor has verified that the rehabilitation, renovation or replacement indicated on the application has been completed.

SECTION 2. 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 3. This act shall take effect and be in force from and after July 1, 1998.