2005 Regular Session
To: Ways and Means
By: Representative Compretta, Davis
AN ACT TO AUTHORIZE THE GOVERNING AUTHORITIES OF ANY MUNICIPALITY, IN THEIR DISCRETION, TO DEFER FOR A PERIOD OF UP TO THREE YEARS AD VALOREM TAX ON REAL PROPERTY AND/OR INVENTORY LEVIED UPON ANY NEW CAPITAL INVESTMENTS IN LAND, BUILDINGS OR DEPRECIABLE FIXED ASSETS AND IMPROVEMENTS WITHIN THE MUNICIPALITY MADE BY CERTAIN SMALL BUSINESSES OR ENTITIES MEETING CERTAIN NEW INVESTMENT AND EMPLOYMENT CRITERIA; TO AMEND SECTION 27-41-1, MISSISSIPPI CODE OF 1972, IN CONFORMITY WITH THE PROVISIONS OF THIS ACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) The governing authorities of any municipality, in their discretion, may defer for a period of up to three (3) years ad valorem tax on real property and/or inventory, including ad valorem taxes imposed on commodities, products, goods, wares and merchandise held for resale, with the exception of school ad valorem taxes, levied upon any new capital investments in land, buildings, or depreciable fixed assets and improvements within the municipality made by any business or entity having less than fifty (50) employees whenever the new investment of such business or entity is at least One Hundred Thousand Dollars ($100,000.00), in the aggregate, and such new investment provides for the employment of at least five (5) new employees.
(2) The deferral of taxes provided for under subsection (1) of this section may be authorized by resolution duly adopted and entered upon the minutes of the governing authorities of the municipality following receipt of an application filed with the governing authorities by the business or entity describing in detail:
(a) The total dollar amount of new capital investments proposed to be made;
(b) The property for which ad valorem taxation deferral is requested;
(c) A timetable for completion of the new capital investment project;
(d) A demonstration that the business or entity is financially sound and is likely to fulfill its commitments; and
(e) Any other information that the governing authorities of the municipality may require.
SECTION 2. Section 27-41-1, Mississippi Code of 1972, is amended as follows:
27-41-1. Except as may otherwise be provided in Section 27-41-2, or Section 1 of House Bill No. ____, 2005 Regular Session, all state, county, school, road, levee and other taxing districts and municipal ad valorem taxes, except ad valorem taxes levied for county or district or municipal bonds and other evidences of indebtedness for money borrowed, and interest thereon, heretofore or hereafter assessed or levied shall be due, payable and collectible by the tax collector and shall be paid on or before the first day of February next succeeding the date of the assessment and levying of such taxes. All taxes levied for county and district and municipal bonds and interest thereon, or betterment or improvement assessments, shall be paid by each person assessed therewith on or before the first day of February next succeeding the date of the assessment and levying of the same, at the time of payment of the state and county ad valorem taxes, except as otherwise hereinafter provided in this chapter. The tax collector shall begin to accept payment for such ad valorem taxes or assessments not later than December 26 of the year prior to the year in which such taxes are required to be paid.
Any county may, by an order spread upon the minutes of the board of supervisors, allow the acceptance of partial payments for ad valorem taxes. Any municipality wherein municipal taxes are not collected by the county may, by an order spread upon the minutes of the governing authority of said municipality, allow the acceptance of partial payments for ad valorem taxes. If said partial payments are allowed by the county or municipality, said partial payments shall be made as follows:
(a) One-half (1/2) of all ad valorem taxes due shall be paid on or before February 1.
(b) One-fourth (1/4) of all ad valorem taxes, interest and penalty due shall be paid on or before May 1.
(c) One-fourth (1/4) of all ad valorem taxes, interest and penalty due shall be paid on or before July 1.
If any unpaid balance exists on August 1, then the lands shall be sold at the land sale on the last Monday in August for said unpaid balance.
All ad valorem taxes, however, assessed against motor vehicles as prescribed by the Motor Vehicle Ad Valorem Tax Law of 1958, for any and all purposes and in any and all jurisdictions, shall be paid in full on the date such taxes are due and payable.
SECTION 3. This act shall take effect and be in force from and after July 1, 2005.