MISSISSIPPI LEGISLATURE

1998 Regular Session

To: Appropriations

By: Representative Howell

House Bill 274

AN ACT TO AMEND SECTION 27-33-77, MISSISSIPPI CODE OF 1972, TO INCREASE THE AMOUNT OF REIMBURSEMENT OF TAX LOSSES SUSTAINED BY COUNTIES BECAUSE OF HOMESTEAD EXEMPTION; TO INCREASE THE AMOUNT OF REIMBURSEMENT OF TAX LOSSES SUSTAINED BY MUNICIPALITIES BECAUSE OF THE HOMESTEAD EXEMPTION GRANTED TO HOMEOWNERS AGED SIXTY-FIVE AND OVER OR DISABLED; TO AMEND SECTION 27-33-79, 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 27-33-77, Mississippi Code of 1972, is amended as follows:

27-33-77. (1) Except as otherwise provided in subsection (2) of this section, beginning with the 1985 supplemental roll, and for each succeeding year's roll thereafter through the 1998 supplemental roll, the amount of tax loss to be reimbursed because of exemptions provided for in this article shall be Fifty Dollars ($50.00) each for county taxes exempted and school taxes exempted for a total of One Hundred Dollars ($100.00) per applicant qualifying for homestead exemption under this article.

(2) Beginning with the 1999 supplemental roll, ten percent (10%) of the unreimbursed homestead tax loss, after applying the provisions of subsection (1) of this section, shall be reimbursed to the county where the tax loss occurred. For each year thereafter, an additional ten percent (10%) of the unreimbursed homestead tax loss shall be reimbursed until each county is reimbursed one hundred percent (100%) of its homestead tax loss.

(3) The reimbursement received by the county shall be distributed by the county treasurer to the general fund. Such reimbursement may be pledged as security for any loan received by the county for the purpose of capital improvements as authorized under Section 57-1-303, or for the purpose of loans as authorized under Section 17-24-7, or for the purpose of water systems improvements as authorized under Section 41-3-16.

(4) Except as otherwise provided in subsection (5) of this section, tax losses sustained by municipalities because of exemptions granted to homeowners described in subsection (2) of Section 27-33-67 shall be reimbursed up to the amount of the actual exemption allowed, not to exceed Two Hundred Dollars ($200.00) per qualified applicant.

(5) Beginning with the 1999 supplemental roll, ten percent (10%) of the unreimbursed homestead tax loss, after applying the provisions of subsection (4) of this section, shall be reimbursed to the municipality where the tax loss occurred. For each year thereafter, an additional ten percent (10%) of the unreimbursed homestead tax loss shall be reimbursed until each municipality is reimbursed one hundred percent (100%) of its homestead tax loss.

SECTION 2. Section 27-33-79, Mississippi Code of 1972, is amended follows:

27-33-79. Notwithstanding the limitation imposed on reimbursement of tax losses in Section 27-33-77, no taxing unit shall be reimbursed more than one hundred six percent (106%), except as otherwise provided in this section, or less than the amount of the reimbursement made to the same taxing unit, for the next preceding year, unless such reimbursement is reduced as a result of a reduction in approved homestead applicants; however, for the 1986 calendar year, no taxing unit shall be reimbursed less than the amount of the reimbursement made to the same taxing unit for the 1985 calendar year. However, the limitation on reimbursement of tax losses imposed in this section shall not apply to the reimbursement of tax losses authorized in Section 27-33-77(2) and (5).

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