MISSISSIPPI LEGISLATURE

1998 Regular Session

To: Municipalities

By: Senator(s) Rayborn, Hall

AN ACT TO AMEND SECTIONS 21-1-27, 21-1-29, 21-1-61, 21-33-1 AND 21-33-21, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT A MUNICIPALITY IS PROHIBITED FROM LEVYING AND COLLECTING TAXES IN NEWLY ANNEXED AREAS UNTIL AFTER THE MUNICIPALITY HAS BEGUN TO PROVIDE THE SERVICES TO THE ANNEXED AREA WHICH ARE LISTED IN THE ORDINANCE THAT THE MUNICIPALITY IS REQUIRED TO PASS; TO AMEND SECTION 21-33-45, 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 21-1-27, Mississippi Code of 1972, is amended as follows:

21-1-27. (1) The limits and boundaries of existing cities, towns and villages shall remain as now established until altered in the manner hereinafter provided. When any municipality shall desire to enlarge or contract the boundaries thereof by adding thereto adjacent unincorporated territory or excluding therefrom any part of the incorporated territory of such municipality, the governing authorities of such municipality shall pass an ordinance defining with certainty the territory proposed to be included in or excluded from the corporate limits, and also defining the entire boundary as changed. In the event the municipality desires to enlarge such boundaries, such ordinance shall in general terms describe the proposed improvements to be made in the annexed territory, the manner and extent of such improvements, and the approximate time within which such improvements are to be made; such ordinance shall also contain a statement of the municipal or public services which such municipality proposes to render in such annexed territory. The ordinance shall also state that the municipality will levy and collect taxes on only a reduced basis within the territory proposed to be annexed until after all services that the municipality proposed to render in the ordinance have begun to be provided. Taxes to be collected shall be only those taxes attributable to general obligation bond retirement, solid waste disposal and general revenue purposes only as authorized in Section 21-33-45. In the event the municipality shall desire to contract its boundaries, such ordinance shall contain a statement of the reasons for such contraction and a statement showing whereby the public convenience and necessity would be served thereby.

(2) Any incorporated municipality with a population greater than ten thousand (10,000) according to the 1990 United States Census may, in its discretion, adopt an ordinance of alternative annexation to incorporate a "buffer zone" into its corporate boundaries. Those areas incorporated into the corporate boundaries of an incorporated municipality as a "buffer zone" by means of alternative annexation shall be subject to all laws, ordinances, rules and regulations of the incorporated municipality, but shall receive limited municipal services and be subject to only a reduced basis municipal tax as provided in subsection (1) of this section.

(3) Upon annexation by alternative annexation as a "buffer zone," the newly incorporated area shall immediately receive municipal police and fire protection as provided in all other areas of the municipality. Solid waste collection shall begin once appropriate routes and scheduling are established, not to exceed ninety (90) days from the date of the annexation.

(4) Any area incorporated by alternative annexation shall receive municipal water and sewage service within a reasonable time.

(5) Residents of areas alternatively annexed shall be eligible to vote in municipal elections on the same basis as other residents of the municipality.

SECTION 2. Section 21-1-29, Mississippi Code of 1972, is amended as follows:

21-1-29. When any such ordinance shall be passed by the municipal authorities, such municipal authorities shall file a petition in the chancery court of the county in which such municipality is located; however, when a municipality wishes to annex or extend its boundaries across and into an adjoining county such municipal authorities shall file a petition in the chancery court of the county in which such territory is located. The petition shall recite the fact of the adoption of such ordinance and shall pray that the enlargement or contraction of the municipal boundaries, as the case may be, shall be ratified, approved and confirmed by the court. The petition shall also state that the municipality will not levy or collect taxes except on a reduced basis as provided in Section 21-1-27 within the territory proposed to be annexed until after those services that the municipality proposed to render in the ordinance have begun to be provided. There shall be attached to such petition, as exhibits thereto, a certified copy of the ordinance adopted by the municipal authorities and a map or plat of the municipal boundaries as they will exist in event such enlargement or contraction becomes effective.

SECTION 3. Section 21-1-61, Mississippi Code of 1972, is amended as follows:

21-1-61. In all cases where a municipality is created * * * under the provisions of this chapter, the property included within the municipal boundaries by such creation * * * shall become liable for and subject to municipal ad valorem taxation on the tax lien date next succeeding the effective date of the decree creating * * * such municipality. In all cases where the limits of an existing municipality are enlarged through annexation of an adjoining territory under the provisions of this chapter, the property included within the municipal boundaries by the enlargement will not become liable for and subject to municipal ad valorem taxation except on a reduced basis as provided in Section 21-1-27 until after the services which the municipality proposed to provide in the ordinance have begun to be provided.

SECTION 4. Section 21-33-1, Mississippi Code of 1972, is amended as follows:

21-33-1. Except as provided in Section 21-1-61, all lands and other taxable property subject to assessment, held by any person within the municipality, or in added territory, on the first day of January, shall be assessed, and ad valorem taxes thereon levied and collected for the ensuing year, excepting motor vehicles as defined by the "Motor Vehicle Ad Valorem Tax Law of 1958," Sections 27-51-1 through 27-51-49, Mississippi Code of 1972.

SECTION 5. Section 21-33-21, Mississippi Code of 1972, is amended as follows:

21-33-21. After the services that the municipality proposed to render in the ordinance have begun to be provided within the added territory as required under Section 21-1-61, the assessor shall, in the same manner and at the same time as municipal assessments are made, make an assessment of all taxable property in any added territory, and make the same a part of the assessment roll of the municipal separate school district.

SECTION 6. Section 21-33-45, Mississippi Code of 1972, is amended as follows:

21-33-45. (1) 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, for any territory that was annexed pursuant to Section 21-1-27(3) and for any other taxing districts of which the municipality may be a part. The rates or levies for the municipality, for any such territory that was annexed pursuant to Section 21-1-27(3) 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, to be collected upon each dollar of valuation upon the assessment rolls of the municipality for any territory that was annexed pursuant to Section 21-1-27(3), 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, territory annexed pursuant to Section 21-1-27(3) 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 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.

(2) The tax rate or levy on property in territory annexed pursuant to Section 21-1-27(3) shall be in an amount calculated to pay only for those municipal or public services that the municipality provides in such territory.

SECTION 7. This act shall take effect and be in force from and after July 1, 1998.