2005 Regular Session
By: Senator(s) Chaney, Michel, Clarke, Flowers, Dearing, King, White
AN ACT TO AMEND SECTION 27-31-101, MISSISSIPPI CODE OF 1972, TO AUTHORIZE BOARDS OF SUPERVISORS AND MUNICIPAL AUTHORITIES TO GRANT AD VALOREM TAX EXEMPTIONS FOR NEW ENTERPRISES UNDER CERTAIN CIRCUMSTANCES WHEN THE INITIAL REQUEST FOR EXEMPTION IS NOT TIMELY MADE; 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; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-31-101, Mississippi Code of 1972, is amended as follows:
27-31-101. (1) County boards of supervisors and municipal authorities are hereby authorized and empowered, in their discretion, to grant exemptions from ad valorem taxation, except state ad valorem taxation; * * * however, such governing authorities shall not exempt ad valorem taxes for school district purposes on tangible property used in, or necessary to, the operation of the manufacturers and other new enterprises * * * enumerated by classes in this section, except to the extent authorized in Sections 27-31-104 and 27-31-105(2), nor shall they exempt from ad valorem taxes the products of the manufacturers or other new enterprises or automobiles and trucks belonging to the * * * manufacturers or other new enterprises operating on and over the highways of the State of Mississippi. The time of such exemption shall be for a period not to exceed a total of ten (10) years which shall begin on the date of completion of the new enterprise for which the exemption is granted; however, boards of supervisors and municipal authorities, in lieu of granting the exemption for one (1) period of ten (10) years, may grant the exemption in a period of less than ten (10) years. When the initial exemption period granted is less than ten (10) years, the boards of supervisors and municipal authorities may grant a subsequent consecutive period or periods to follow the initial period of exemption, provided that the total of all periods of exemption shall not exceed ten (10) years. The date of completion of the new enterprise, from which the initial period of exemption shall begin, shall be the date on which operations of the new enterprise begin. The initial request for an exemption must be made in writing by June 1 of the year immediately following the year in which the date of completion of a new enterprise occurs. If the initial request for the exemption is not timely made, the board of supervisors or municipal authorities may grant a subsequent request for the exemption and, in such case, the exemption shall begin on the anniversary date of completion of the enterprise in the year in which the request is made and may be for a period of time extending not more than ten (10) years from the date of completion of the new enterprise. Any subsequent request for the exemption must be made in writing by June 1 of the year in which it is granted.
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(2) Any exemption from ad valorem taxes heretofore granted to existing enterprises shall continue in full force and effect but only as to tangible property heretofore included in the exemption but not as to tangible property that may be later added as an addition or improvement to the exempt tangible property.
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(3) Any board of supervisors or municipal authority which has granted an exemption for a period of less than ten (10) years may grant subsequent periods of exemption to run consecutively with the initial exemption period, or a subsequently granted exemption period, but in no case shall the total of the exemption periods granted for a new enterprise exceed ten (10) years. Any consecutive period of exemption shall be granted by entry of an order by the board or the authority granting the consecutive exemption on its minutes, reflecting the granting of the consecutive exemption period and the dates upon which such consecutive exemption period begins and expires. The entry of this order granting the consecutive period of exemption shall be made before the expiration of the exemption period immediately preceding the consecutive exemption period being granted.
(4) The new enterprises which may be exempt are enumerated as and limited to the following, as determined by the State Tax Commission:
(a) Warehouse and/or distribution centers;
(b) Manufacturing, processors and refineries;
(c) Research facilities;
(d) Corporate regional and national headquarters meeting minimum criteria established by the Department of Economic and Community Development;
(e) Movie industry studios meeting minimum criteria established by the Mississippi Development Authority;
(f) Air transportation and maintenance facilities meeting minimum criteria established by the Mississippi Development Authority;
(g) Recreational facilities that impact tourism meeting minimum criteria established by the Mississippi Development Authority; and
(h) Telecommunications enterprises meeting minimum criteria established by the Mississippi Development Authority. The term "telecommunications enterprises" means entities engaged in the creation, display, management, storage, processing, transmission or distribution for compensation of images, text, voice, video or data by wire or by wireless means, or entities engaged in the construction, design, development, manufacture, maintenance or distribution for compensation of devices, products, software or structures used in the above activities. Companies organized to do business as commercial broadcast radio stations, television stations or news organizations primarily serving in-state markets shall not be included within the definition of the term "telecommunications enterprises."
SECTION 2. (1) Notwithstanding any other provisions of law to the contrary, 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 3. This act shall take effect and be in force from and after its passage.