Senate Bill 2702

AN ACT TO AUTHORIZE THE BOARD OF TRUSTEES OF SCHOOL DISTRICTS LOCATED IN THE COUNTIES THAT COMPRISE THE THREE RIVERS PLANNING AND DEVELOPMENT DISTRICT TO PLEDGE A PORTION OF THE NEW AD VALOREM TAX REVENUE FROM ANY INCREASE IN THE ASSESSED VALUE OF PROPERTY AS A RESULT OF A NEW ENTERPRISE THAT IS GRANTED AN AD VALOREM TAX EXEMPTION UNDER SECTION 27-31-101; TO PROVIDE THAT THE PURPOSE OF THE PLEDGE SHALL BE TO REIMBURSE LOCAL GOVERNMENTS FOR COSTS RELATED TO THE LOCATION OF A NEW ENTERPRISE; TO PROVIDE THAT THE BOARD OF TRUSTEES OF THE SCHOOL DISTRICT MAY PLEDGE NOT MORE THAN 40% OF THE ANNUAL INCREASE IN AD VALOREM TAX REVENUE THAT IT RECEIVES AS A RESULT OF ANY INCREASE IN THE ASSESSED VALUE; TO PROVIDE THAT THE PLEDGE OF REVENUE SHALL BE EFFECTIVE UNTIL THE LOCAL GOVERNMENTS ARE FULLY REIMBURSED FOR THE APPROVED COST OF THE PROJECT BUT IN NO EVENT LONGER THAN THE DURATION OF THE TAX EXEMPTION FOR THE NEW ENTERPRISE; TO PROVIDE THAT THE PLEDGE SHALL BE IRREVOCABLE; AND FOR RELATED PURPOSES.

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

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

(a) "Approved cost" means an itemized breakdown of the local government costs related to the location of a new enterprise as approved by the board of trustees of the participating school district and the governing body of the local governments involved.

(b) "Local government" means county boards of supervisors and municipal authorities that are authorized to grant a tax exemption under Section 27-31-101.

(c) "Project" means a new enterprise enumerated in Section 27-31-101 with a capital investment of more than Ten Million Dollars ($10,000,000.00) and less than One Hundred Million Dollars ($100,000,000.00).

(d) "School district" means any public school district located in the counties that comprise the Three Rivers Planning and Development District.

(2) For the purposes authorized in this section, the board of trustees of any school district may pledge a portion of the new ad valorem tax revenue from any increase in the assessed value of property as a result of a project that is granted an ad valorem tax exemption under Section 27-31-101.

(3) The county tax assessor shall certify the assessed value of the real and personal property located on the project site prior to the initiation of the new enterprise project. Property taxable at the time of the certification shall be included in the assessed value at its most recently determined valuation. Each year after the completion of the project, the county tax assessor shall certify the amount by which the assessed value of the real property on which the project is located, including personal property located on the real property, has increased or decreased from the original assessed value.

(4) The board of trustees of the school district may pledge not more than forty percent (40%) of the annual increase in ad valorem tax revenue that it receives as a result of any increase in the assessed value of the real and personal property located on the project site to reimburse local governments for approved costs.

(5) The pledge of revenue authorized by this section shall be effective until the local governments are fully reimbursed for the approved cost of the project but in no event shall the pledge be longer than the duration of the tax exemption for the new enterprise that is granted under Section 27-31-101. A pledge made under this section shall be irrevocable.

(6) The school district shall annually pay the amount of the pledge to the local governments. The funds received by the local governments shall be utilized to reimburse approved costs.

SECTION 2. This act shall take effect and be in force from and after July 1, 2018.