MISSISSIPPI LEGISLATURE

2006 Regular Session

To: Ways and Means

By: Representative Howell

House Bill 1620

AN ACT TO EXEMPT FROM AD VALOREM TAXATION ALL COMMODITIES, PRODUCTS, GOODS, WARES AND MERCHANDISE HELD FOR RESALE BY ANY MANUFACTURER, DISTRIBUTOR OR WHOLESALE OR RETAIL MERCHANT; TO BRING FORWARD SECTION 27-7-22.5, MISSISSIPPI CODE OF 1972, WHICH AUTHORIZES AN INCOME TAX CREDIT FOR MANUFACTURERS, DISTRIBUTORS, WHOLESALERS AND RETAIL MERCHANTS FOR A CERTAIN AMOUNT OF AD VALOREM TAXES PAID ON COMMODITIES, PRODUCTS, GOODS, WARES AND MERCHANDISE HELD FOR RESALE; TO BRING FORWARD SECTIONS 27-17-9 AND 27-17-365, MISSISSIPPI CODE OF 1972, WHICH PROVIDE FOR THE IMPOSITION OF VARIOUS LOCAL PRIVILEGE TAXES; TO BRING FORWARD SECTION 27-31-1, MISSISSIPPI CODE OF 1972, WHICH EXEMPTS VARIOUS TYPES OF PROPERTY FROM AD VALOREM TAXATION; TO BRING FORWARD SECTIONS 27-31-51, 27-31-53, 27-31-55, 27-31-57, 27-31-59 AND 27-31-61, MISSISSIPPI CODE OF 1972, WHICH PROVIDE THE LAWS GOVERNING FREE PORT WAREHOUSE AD VALOREM TAX EXEMPTIONS; TO BRING FORWARD SECTION 27-31-101, MISSISSIPPI CODE OF 1972, WHICH AUTHORIZES COUNTY BOARDS OF SUPERVISORS AND MUNICIPAL GOVERNING AUTHORITIES TO GRANT AD VALOREM TAX EXEMPTIONS FOR CERTAIN NEW ENTERPRISES; AND FOR RELATED PURPOSES.

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

     SECTION 1.  From and after January 1, 2007, all commodities, products, goods, wares and merchandise held for resale by any manufacturer, distributor or wholesale or retail merchant shall be exempt from ad valorem taxation.

     SECTION 2.  Section 27-7-22.5, Mississippi Code of 1972, is brought forward as follows:

     27-7-22.5.  (1)  For any manufacturer, distributor, wholesale or retail merchant who pays to a county, municipality, school district, levee district or any other taxing authority of the state or a political subdivision thereof, ad valorem taxes imposed on commodities, products, goods, wares and merchandise held for resale, a credit against the income taxes imposed under this chapter shall be allowed for the portion of the ad valorem taxes so paid in the amounts prescribed in subsection (2).

     (2)  The tax credit allowed by this section shall not exceed the amounts set forth in paragraphs (a) through (d) of this subsection; may be claimed only in the year in which the ad valorem taxes are paid; and may be claimed for each location where such commodities, products, goods, wares and merchandise are found and upon which the ad valorem taxes have been paid.

          (a)  For the 1994 taxable year, the tax credit for each location of the taxpayer shall not exceed the lesser of Two Thousand Dollars ($2,000.00) or the amount of income taxes due the State of Mississippi that are attributable to such location.

          (b)  For the 1995 taxable year, the tax credit for each location of the taxpayer shall not exceed the lesser of Three Thousand Dollars ($3,000.00) or the amount of income taxes due the State of Mississippi that are attributable to such location.

          (c)  For the 1996 taxable year, the tax credit for each location of the taxpayer shall not exceed the lesser of Four Thousand Dollars ($4,000.00) or the amount of income taxes due the State of Mississippi that are attributable to such location.

          (d)  For the 1997 taxable year and each taxable year thereafter, the tax credit for each location of the taxpayer shall not exceed the lesser of Five Thousand Dollars ($5,000.00) or the amount of income taxes due the State of Mississippi that are attributable to such location.

     (3)  Any amount of ad valorem taxes paid by a taxpayer that is applied toward the tax credit allowed in this section may not be used as a deduction by the taxpayer for state income tax purposes.  In the case of a taxpayer that is a partnership or S corporation, the credit may be applied only to the tax attributable to partnership or S corporation income derived from the taxpayer.

     SECTION 3.  Section 27-17-9, Mississippi Code of 1972, is brought forward as follows:

     27-17-9.  (1)  Every person desiring to engage in any business, or exercise any privilege hereinafter specified, if such business is located outside a municipality, shall first, before commencing the same, apply for, pay for and procure from the tax collector of the county in which such business is located, or if such business is located within a municipality, shall apply for, pay for and procure from the tax collector of the municipality, a privilege license authorizing him to engage in the business or exercise the privileges specified therein, and the amount of tax shown in subsection (2) of this section, except as otherwise specifically established in this chapter, is hereby imposed for the privilege of engaging or continuing in the business set out therein.

     (2)  (a)  The amount of a privilege license shall be Twenty Dollars ($20.00) annually for a business having three (3) or fewer employees.

          (b)  The amount of a privilege license shall be Thirty Dollars ($30.00) annually for a business having more than three (3) but fewer than eleven (11) employees.

          (c)  The amount of a privilege license shall be Thirty Dollars ($30.00) annually plus an additional assessment of Three Dollars ($3.00) for each employee over ten (10) employees, not to exceed a maximum payment of One Hundred Fifty Dollars ($150.00), for a business (other than a manufacturer) having eleven (11) or more employees.

          (d)  The amount of a privilege license shall be Eighty Dollars ($80.00) annually for a manufacturer having eleven (11) or more employees; manufacturers having ten (10) or fewer employees shall pay an annual privilege license pursuant to paragraph (a) or (b) of this subsection (2), whichever is applicable.

     SECTION 4.  Section 27-17-365, Mississippi Code of 1972, is brought forward as follows:

     27-17-365.  (1)  From October 1, 1984, through September 30, 1985, there shall be levied a tax upon each person operating a wholesale or retail store for the sale of goods, wares and merchandise, in an amount equal to the local privilege tax levied upon such person for the preceding year; however, any person acquiring a license under this section for the first time, prior to October 1, 1985, shall pay the tax at such time in accordance with subsection (2) of this section.  Any person who, between October 1, 1984, and April 3, 1985, paid a tax levied under this section in excess of the tax prescribed in this subsection shall be entitled to a refund of all such excess taxes paid.  Refunds shall be made by the tax collector at the request of the taxpayer upon a showing of proof of overpayment of taxes.

     (2)  Beginning October 1, 1985, and thereafter, there shall be levied a tax upon each person operating a wholesale or retail store for the sale of goods, wares and merchandise, as follows:

     Where the value of stock never exceeds $7,000.00 ..... $20.00

     Where the value of stock sometimes exceeds $7,000.00, but never exceeds $10,000.00 .................................. $25.00

     Where the value of stock sometimes exceeds $10,000.00, but never exceeds $12,000.00 .................................. $32.50

     Where the value of stock sometimes exceeds $12,000.00, but never exceeds $15,000.00 .................................. $40.00

     Where the value of stock sometimes exceeds $15,000.00, but never exceeds $20,000.00 .................................. $50.00

     Where the value of stock sometimes exceeds $20,000.00, but never exceeds $25,000.00 .................................. $62.50

     Where the value of stock sometimes exceeds $25,000.00, but never exceeds $30,000.00 .................................. $75.00

     Where the value of stock sometimes exceeds $30,000.00, but never exceeds $40,000.00 .................................. $92.50

     Where the value of stock sometimes exceeds $40,000.00, but never exceeds $50,000.00 ................................. $150.00

     Where the value of stock sometimes exceeds $50,000.00, but never exceeds $60,000.00 ................................. $200.00

     Where the value of stock sometimes exceeds $60,000.00, but never exceeds $70,000.00 ................................. $250.00

     Where the value of stock sometimes exceeds $70,000.00, but never exceeds $80,000.00 ................................. $300.00

     Where the value of stock sometimes exceeds $80,000.00, but never exceeds $90,000.00 ................................. $340.00

     Where the value of stock sometimes exceeds $90,000.00, but never exceeds $100,000.00 ................................ $380.00

     Where the value of stock sometimes exceeds $100,000.00, but never exceeds $125,000.00 ................................ $440.00

     Where the value of stock sometimes exceeds $125,000.00, but never exceeds $150,000.00 ................................ $560.00

     Where the value of stock sometimes exceeds $150,000.00, but never exceeds $175,000.00 ................................ $680.00

     Where the value of stock sometimes exceeds $175,000.00, but never exceeds $200,000.00 ................................ $800.00

     Where the value of stock sometimes exceeds $200,000.00, but never exceeds $225,000.00 ................................ $920.00

     Where the value of stock sometimes exceeds $225,000.00, but never exceeds $250,000.00 .............................. $1,040.00

     Where the value of stock sometimes exceeds $250,000.00, but never exceeds $300,000.00 .............................. $1,200.00

     Where the value of stock sometimes exceeds $300,000.00, but never exceeds $350,000.00 .............................. $1,360.00

     Where the value of stock sometimes exceeds $350,000.00, but never exceeds $400,000.00 .............................. $1,520.00

     Where the value of stock sometimes exceeds $400,000.00, but never exceeds $450,000.00 .............................. $1,680.00

     Where the value of stock sometimes exceeds $450,000.00 ...... ........................................................ $1,840.00

     In computing this tax the value of the stock shall be taken at its assessed value as determined for ad valorem taxation, and shall include goods held on consignment.

     (3)  A store shall be a place of business operated by a person dealing in goods, wares and merchandise and located in a permanent building, and if such person does not own the building he shall have a lease, or contract, under the terms of which he is given the right of occupancy for a period of not less than ninety (90) days.

     (4)  This section shall apply to cooperative associations selling merchandise for a profit.

     (5)  The issuance of a license herein provided shall be restricted to a person who maintains a store as defined in this section, open at reasonable hours, for sale to the public of such goods, wares or merchandise as may be handled.  The application for the license required by this chapter shall state that the conditions imposed by this section will be complied with.

     (6)  A license issued under the provisions of this section shall be revoked by the officer issuing it, if an investigation by him or at his instance, or on the complaint of any citizen of this state, that the conditions imposed by this section have not been, or, are not being complied with.

     SECTION 5.  Section 27-31-1, Mississippi Code of 1972, is brought forward as follows:

     27-31-1.  The following shall be exempt from taxation:

          (a)  All cemeteries used exclusively for burial purposes.

          (b)  All property, real or personal, belonging to the State of Mississippi or any of its political subdivisions, except property of a municipality not being used for a proper municipal purpose and located outside the county or counties in which such municipality is located.  A proper municipal purpose within the meaning of this section shall be any authorized governmental or corporate function of a municipality.

          (c)  All property, real or personal, owned by units of the Mississippi National Guard, or title to which is vested in trustees for the benefit of any unit of the Mississippi National Guard; provided such property is used exclusively for such unit, or for public purposes, and not for profit.

          (d)  All property, real or personal, belonging to any religious society, or ecclesiastical body, or any congregation thereof, or to any charitable society, or to any historical or patriotic association or society, or to any garden or pilgrimage club or association and used exclusively for such society or association and not for profit; not exceeding, however, the amount of land which such association or society may own as provided in Section 79-11-33.  All property, real or personal, belonging to any rural waterworks system or rural sewage disposal system incorporated under the provisions of Section 79-11-1.  All property, real or personal, belonging to any college or institution for the education of youths, used directly and exclusively for such purposes, provided that no such college or institution for the education of youths shall have exempt from taxation more than six hundred forty (640) acres of land; provided, however, this exemption shall not apply to commercial schools and colleges or trade institutions or schools where the profits of same inure to individuals, associations or corporations.  All property, real or personal, belonging to an individual, institution or corporation and used for the operation of a grammar school, junior high school, high school or military school.  All property, real or personal, owned and occupied by a fraternal and benevolent organization, when used by such organization, and from which no rentals or other profits accrue to the organization, but any part rented or from which revenue is received shall be taxed.

          (e)  All property, real or personal, held and occupied by trustees of public schools, and school lands of the respective townships for the use of public schools, and all property kept in storage for the convenience and benefit of the State of Mississippi in warehouses owned or leased by the State of Mississippi, wherein said property is to be sold by the Alcoholic Beverage Control Division of the State Tax Commission of the State of Mississippi.

          (f)  All property, real or personal, whether belonging to religious or charitable or benevolent organizations, which is used for hospital purposes, and nurses' homes where a part thereof, and which maintain one or more charity wards that are for charity patients, and where all the income from said hospitals and nurses' homes is used entirely for the purposes thereof and no part of the same for profit.

          (g)  The wearing apparel of every person; and also jewelry and watches kept by the owner for personal use to the extent of One Hundred Dollars ($100.00) in value for each owner.

          (h)  Provisions on hand for family consumption.

          (i)  All farm products grown in this state for a period of two (2) years after they are harvested, when in the possession of or the title to which is in the producer, except the tax of one-fifth of one percent (1/5 of 1%) per pound on lint cotton now levied by the Board of Commissioners of the Mississippi Levee District; and lint cotton for five (5) years, and cottonseed, soybeans, oats, rice and wheat for one (1) year regardless of ownership.

          (j)  All guns and pistols kept by the owner for private use.

          (k)  All poultry in the hands of the producer.

          (l)  Household furniture, including all articles kept in the home by the owner for his own personal or family use; but this shall not apply to hotels, rooming houses or rented or leased apartments.

          (m)  All cattle and oxen.

          (n)  All sheep, goats and hogs.

          (o)  All horses, mules and asses.

          (p)  Farming tools, implements and machinery, when used exclusively in the cultivation or harvesting of crops or timber.

          (q)  All property of agricultural and mechanical associations and fairs used for promoting their objects, and where no part of the proceeds is used for profit.

          (r)  The libraries of all persons.

          (s)  All pictures and works of art, not kept for or offered for sale as merchandise.

          (t)  The tools of any mechanic necessary for carrying on his trade.

          (u)  All state, county, municipal, levee, drainage and all school bonds or other governmental obligations, and all bonds and/or evidences of debts issued by any church or church organization in this state, and all notes and evidences of indebtedness which bear a rate of interest not greater than the maximum rate per annum applicable under the law; and all money loaned at a rate of interest not exceeding the maximum rate per annum applicable under the law; and all stock in or bonds of foreign corporations or associations shall be exempt from all ad valorem taxes.

          (v)  All lands and other property situated or located between the Mississippi River and the levee shall be exempt from the payment of any and all road taxes levied or assessed under any road laws of this state.

          (w)  Any and all money on deposit in either national banks, state banks or trust companies, on open account, savings account or time deposit.

          (x)  All wagons, carts, drays, carriages and other horse drawn vehicles, kept for the use of the owner.

          (y)  (1)  Boats, seines and fishing equipment used in fishing and shrimping operations and in the taking or catching of oysters.

              (2)  All towboats, tugboats and barges documented under the laws of the United States, except watercraft of every kind and character used in connection with gaming operations.

          (z)  All materials used in the construction and/or conversion of vessels in this state; vessels while under construction and/or conversion; vessels while in the possession of the manufacturer, builder or converter, for a period of twelve (12) months after completion of construction and/or conversion, and as used herein the term "vessel" shall include ships, offshore drilling equipment, dry docks, boats and barges, except watercraft of every kind and character used in connection with gaming operations.

          (aa)  Sixty-six and two-thirds percent (66-2/3%) of nuclear fuel and reprocessed, recycled or residual nuclear fuel by-products, fissionable or otherwise, used or to be used in generation of electricity by persons defined as public utilities in Section 77-3-3.

          (bb)  All growing nursery stock.

          (cc)  A semitrailer used in interstate commerce.

          (dd)  All property, real or personal, used exclusively for the housing of and provision of services to elderly persons, disabled persons, mentally impaired persons or as a nursing home, which is owned, operated and managed by a not-for-profit corporation, qualified under Section 501(c)(3) of the Internal Revenue Code, whose membership or governing body is appointed or confirmed by a religious society or ecclesiastical body or any congregation thereof.

          (ee)  All vessels while in the hands of bona fide dealers as merchandise and which are not being operated upon the waters of this state shall be exempt from ad valorem taxes.  As used in this paragraph, the terms "vessel" and "waters of this state" shall have the meaning ascribed to such terms in Section 59-21-3.

          (ff)  All property, real or personal, owned by a nonprofit organization that:  (i) is qualified as tax exempt under Section 501(c)(4) of the Internal Revenue Code of 1986, as amended; (ii) assists in the implementation of the national contingency plan or area contingency plan, and which is created in response to the requirements of Title IV, Subtitle B of the Oil Pollution Act of 1990, Public Law 101-380; (iii) engages primarily in programs to contain, clean up and otherwise mitigate spills of oil or other substances occurring in the United States coastal or tidal waters; and (iv) is used for the purposes of the organization.

          (gg)  If a municipality changes its boundaries so as to include within the boundaries of such municipality the project site of any project as defined in Section 57-75-5(f)(iv)1, all real and personal property located on the project site within the boundaries of such municipality that is owned by a business enterprise operating such project, shall be exempt from ad valorem taxation for a period of time not to exceed thirty (30) years upon receiving approval for such exemption by the Mississippi Major Economic Impact Authority.  The provisions of this subsection shall not be construed to authorize a breach of any agreement entered into pursuant to Section 21-1-59.

          (hh)  All leases, lease contracts or lease agreements (including, but not limited to, subleases, sublease contracts and sublease agreements), and leaseholds or leasehold interests (including, but not limited to, subleaseholds and subleasehold interests), of or with respect to any and all property (real, personal or mixed) constituting all or any part of a facility for the manufacture, production, generation, transmission and/or distribution of electricity, and any real property related thereto, shall be exempt from ad valorem taxation during the period as the United States is both the title owner of the property and a sublessee of or with respect to the property; however, the exemption authorized by this paragraph (hh) shall not apply to any entity to whom the United States sub-subleases its interest in the property nor to any entity to whom the United States assigns its sublease interest in the property.  As used in this paragraph, the term "United States" includes an agency or instrumentality of the United States of America.  This paragraph (hh) shall apply to all assessments for ad valorem taxation for the 2003 calendar year and each calendar year thereafter.

          (ii)  All property, real, personal or mixed, including fixtures and leaseholds, used by Mississippi nonprofit entities qualified, on or before January 1, 2005, under Section 501(c)(3) of the Internal Revenue Code to provide support and operate technology incubators for research and development start-up companies, telecommunication start-up companies and/or other technology start-up companies, utilizing technology spun-off from research and development activities of the public colleges and universities of this state, State of Mississippi governmental research or development activities resulting therefrom located within the State of Mississippi.

          (jj)  All property, real, personal or mixed, including fixtures and leaseholds, of start-up companies (as described in paragraph (ii) of this section) for the period of time, not to exceed five (5) years, that the start-up company remains a tenant of a technology incubator (as described in paragraph (ii) of this section).

     SECTION 6.  Section 27-31-51, Mississippi Code of 1972, is brought forward as follows:

     27-31-51.  (1)  As used in Sections 27-31-51 through 27-31-61:

          (a)  "Warehouse" or "storage facility" shall not apply to caves or cavities in the earth, whether natural or artificial;

          (b)  "Governing authorities" means the board of supervisors of the county wherein the warehouse or storage facility is located or the governing authorities of the municipality wherein the warehouse or storage facility is located, as the case may be;

          (c)  "Tax assessor" means the tax assessor of each taxing jurisdiction in which the warehouse or storage facility may be located.

     (2)  All warehouses, public or private, or other storage facilities in the State of Mississippi regularly engaged in the handling and storage of personal property in structures or in places adopted for such handling and storage which is consigned or transferred to such warehouse or storage facility for storage and handling shall be eligible for licensing under the provisions of Sections 27-31-51 through 27-31-61 as a "free port warehouse."

     (3)  Such licenses shall be issued by the governing authorities to such warehouse or storage facility as will qualify under the definition of "free port warehouse" as herein defined, upon application by the warehouse or storage facility operator.

     SECTION 7.  Section 27-31-53, Mississippi Code of 1972, is brought forward as follows:

     [Through June 30, 2013, this section shall read as follows:]  27-31-53.  All or a portion of the assessed value of personal property in transit through this state which is (1) moving in interstate commerce through or over the territory of the State of Mississippi, or (2) which was consigned or transferred to a licensed "free port warehouse," public or private, within the State of Mississippi for storage in transit to a final destination outside the State of Mississippi, whether specified when transportation begins or afterward, may, in the discretion of the board of supervisors of the county wherein the warehouse or storage facility is located, and in the discretion of the governing authorities of the municipality wherein the warehouse or storage facility is located, as the case may be, and for such period of time as the respective governing body may prescribe, be exempt from all ad valorem taxes imposed by the respective county or municipality and the property exempted therefrom shall not be deemed to have acquired a situs in the State of Mississippi for the purposes of such taxation.  The governing authorities may exempt all or a portion of the assessed value of such property.  Such property shall not be deprived of such exemption because while in a warehouse the property is bound, divided, broken in bulk, labeled, relabeled or repackaged.

     [From and after July 1, 2013, this section shall read as follows:]

     27-31-53.  All personal property in transit through this state which is (1) moving in interstate commerce through or over the territory of the State of Mississippi, or (2) which was consigned or transferred to a licensed "free port warehouse," public or private, within the State of Mississippi for storage in transit to a final destination outside the State of Mississippi, whether specified when transportation begins or afterward, may, in the discretion of the board of supervisors of the county wherein the warehouse or storage facility is located, and in the discretion of the governing authorities of the municipality wherein the warehouse or storage facility is located, as the case may be, and for such period of time as the respective governing body may prescribe, be exempt from all ad valorem taxes imposed by the respective county or municipality and the property exempted therefrom shall not be deemed to have acquired a situs in the State of Mississippi for the purposes of such taxation.  Such property shall not be deprived of exemption because while in a warehouse the property is bound, divided, broken in bulk, labeled, relabeled or repackaged.

     SECTION 8.  Section 27-31-55, Mississippi Code of 1972, is brought forward as follows:

     [Through June 30, 2013, this section shall read as follows:]

     27-31-55.  Each licensed "free port warehouse" shall file with the tax assessor of each taxing jurisdiction in which such warehouse or storage facility may be located an inventory of all personal property consigned or transferred to such warehouse or storage facility and located therein on January 1 of each year.  Such inventory shall be submitted on such forms and in such manner as the tax assessor may prescribe and shall contain a separate statement of all property eligible for exemption under Sections 27-31-51 through 27-31-61 and a separate statement of all property consigned or transferred to such warehouse or storage facility.  Such inventory shall be submitted by not later than March 31 of each year.  Exemption shall be allowed for all eligible property in the amount authorized by the governing authorities, but accurate records shall be kept of all personal property shipped from any such warehouse or storage facility, together with the point of final destination of the same, and reports thereof shall be filed with such taxing authorities of this state and in such form and manner as the tax assessor may prescribe.  At the conclusion of each calendar year each licensee under Sections 27-31-51 through 27-31-61 shall calculate the actual percentage of all personal property consigned or transferred to the warehouse or storage facility which was shipped to a final destination outside the state in relation to the total of all such personal property shipped to any destination during such year.  Such percentage reduced proportionately by any partial exemption authorized by the governing authorities shall then be applied to the total value of all property contained in the inventory of such warehouse or storage facility as of January 1 of such year which was consigned or transferred to such warehouse or storage facility.  If the result thus obtained shall be less than the value of property for which exemption was allowed, then the amount of such difference shall be deducted from the amount of the exemption previously allowed and taxes shall be levied and collected thereon by the tax collecting officers concerned.

     [From and after July, 2013, this section shall read as follows:]

     27-31-55.  Each licensed "free port warehouse" shall file with the tax assessor of each taxing jurisdiction in which such warehouse or storage facility may be located an inventory of all personal property consigned or transferred to such warehouse or storage facility and located therein on January 1 of each year.  Such inventory shall be submitted on such forms and in such manner as the tax assessor may prescribe and shall contain a separate statement of all property eligible for exemption under Sections 27-31-51 through 27-31-61 and a separate statement of all property consigned or transferred to such warehouse or storage facility.  Such inventory shall be submitted by not later than March 31 of each year.  Exemption shall be allowed for all eligible property, but accurate records shall be kept of all personal property shipped from any such warehouse or storage facility, together with the point of final destination of the same, and reports thereof shall be filed with such taxing authorities of this state and in such form and manner as the tax assessor may prescribe.  At the conclusion of each calendar year each licensee under Sections 27-31-51 through 27-31-61 shall calculate the actual percentage of all personal property consigned or transferred to the warehouse or storage facility which was shipped to a final destination outside the state in relation to the total of all such personal property shipped to any destination during such year.  Such percentage shall then be applied to the total value of all property contained in the inventory of such warehouse or storage facility as of January 1 of such year which was consigned or transferred to such warehouse or storage facility.  If the result thus obtained shall be less than the value of property for which exemption was allowed, then the amount of such difference shall be deducted from the amount of the exemption previously allowed and taxes shall be levied and collected thereon by the tax collecting officers concerned.

     SECTION 9.  Section 27-31-57, Mississippi Code of 1972, is brought forward as follows:

     27-31-57.  The tax assessor shall have full power and authority to require the keeping of all records and the making of all reports necessary to the accomplishment of the purpose of Sections 27-31-51 through 27-31-61, and all books and records of any licensee shall be subject to the inspection of duly authorized agents of the ad valorem taxing authorities of the jurisdiction or jurisdictions wherein such licensee is located.  The violation by the licensee of any of the terms and provisions of Sections 27-31-51 through 27-31-61 shall authorize the revocation of the license of any licensee by the tax assessor.  In the event any license shall be revoked, then the exemption provided for therein shall thereby be annulled for the year in which such license may be revoked.

     SECTION 10.  Section 27-31-59, Mississippi Code of 1972, is brought forward as follows:

     27-31-59.  Each licensee shall pay to the governing authorities for each license which may be issued or renewed a fee in the amount of Ten Dollars ($10.00) for each issuance or renewal thereof.

     SECTION 11.  Section 27-31-61, Mississippi Code of 1972, is brought forward as follows:

     27-31-61.  The exemption granted in Sections 27-31-51 through 27-31-61 shall be in addition to all other exemptions heretofore granted by the laws of the State of Mississippi.

     SECTION 12.  Section 27-31-101, Mississippi Code of 1972, is brought forward 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.

     (2)  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.

     (3)  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;

          (h)  Data/information processing enterprises meeting minimum criteria established by the Mississippi Development Authority;

          (i)  Technology intensive enterprises or facilities meeting criteria established by the Mississippi Development Authority; and

          (j)  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 13.  Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the ad valorem tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the ad valorem tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.

     SECTION 14.  This act shall take effect and be in force from and after January 1, 2007.