MISSISSIPPI LEGISLATURE

2001 Regular Session

To: Finance

By: Senator(s) Johnson (19th)

AN ACT TO PROHIBIT GOVERNING AUTHORITIES OF MUNICIPALITIES FROM LEVYING DEVELOPMENT IMPACT FEES FOR DEVELOPMENT OR EXPANSION OF PUBLIC FACILITIES WITHOUT THE APPROVAL OF THE LEGISLATURE; TO EXEMPT MUNICIPALITIES THAT WERE IMPOSING DEVELOPMENT IMPACT FEES PRIOR TO JULY 1, 2001; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) As used in this section:

(a) "Capital improvements" means improvements with a useful life of ten (10) years or more, by new construction or other action, which increase the service capacity of a public facility.

(b) "Development impact fee" means a charge or assessment, for the payment of money, imposed by a municipality or town, as a condition of development approval to fund or pay for the proportionate share of the costs of capital improvements for new or expanded public facilities necessitated by and attributable to the new development. This term shall not include:

(i) A charge or fee to pay the administrative, plan review, or inspection costs associated with permits required for development;

(ii) Connection or hookup charges;

(iii) Availability charges for drainage, sewer, water, or transportation charges for services provided directly to the development; or

(iv) Amounts collected from a developer in a transaction in which the governmental entity has incurred expenses in constructing capital improvements for the development if the owner or developer has agreed to be financially responsible for the construction or installation of the capital improvements.

(2) Except as otherwise provided in subsection (4) of this section, the governing authorities of a municipality may not impose a development impact fee to fund capital improvements or new developments on the residents of the municipality without prior approval of the Legislature.

(3) If the Legislature finds that an equitable program for planning and financing public facilities is needed to serve new growth and development, is necessary in order to promote and accommodate orderly growth and development and to protect the public health, safety and general welfare of the citizens of the State of Mississippi, then the authority to impose a development impact fee may be granted.

(4) This section shall not apply to any municipality that imposed development impact fees prior to January 1, 2001; provided, however, that such fees shall not be greater than the amount imposed for such fees by such municipality on December 31, 2000.

SECTION 2. This act shall take effect and be in force from and after January 1, 2001.