MISSISSIPPI LEGISLATURE
2019 Regular Session
To: Education; Ways and Means
By: Representatives Shirley, Horne
AN ACT TO AMEND SECTIONS 37-57-104, 37-57-105 AND 37-57-107, MISSISSIPPI CODE OF 1972, TO DELETE THE AUTHORITY OF SCHOOL BOARDS TO INCREASE AD VALOREM TAXES LEVIED FOR SCHOOL DISTRICT PURPOSES BY MORE THAN TWO PERCENT OVER THE AMOUNT LEVIED IN THE PRECEDING YEAR ABSENT APPROVAL BY A MAJORITY VOTE IN A REFERENDUM ON THE PROPOSED TAX INCREASE; TO AMEND SECTION 27-39-207, MISSISSIPPI CODE OF 1972, IN CONFORMITY TO THE PROVISIONS OF THIS ACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 37-57-104, Mississippi Code of 1972, is amended as follows:
37-57-104. (1) Each school board shall submit to the levying authority for the school district a certified copy of an order adopted by the school board requesting an ad valorem tax effort in dollars for the support of the school district. The copy of the order shall be submitted by the school board when the copies of the school district's budget are filed with the levying authority pursuant to Section 37-61-9. Upon receipt of the school board's order requesting the ad valorem tax effort in dollars, the levying authority shall determine the millage rate necessary to generate funds equal to the dollar amount requested by the school board. For the purpose of calculating this millage rate, any additional amount that is levied pursuant to Section 37-57-105(1) to cover anticipated delinquencies and costs of collection or any amount that may be levied for the payment of the principal and interest on school bonds or notes shall be excluded from the limitation of fifty-five (55) mills provided for in subsection (2) of this section.
(2) (a) Except as otherwise provided under paragraph (b) or (c) of this subsection, if the millage rate necessary to generate funds equal to the dollar amount requested by the school board is greater than fifty-five (55) mills, and if this millage rate is higher than the millage then being levied pursuant to the school board's order requesting the ad valorem tax effort for the currently existing fiscal year, then the levying authority shall call a referendum on the question of exceeding, during the next fiscal year, the then existing millage rate being levied for school district purposes. The referendum shall be scheduled for not more than six (6) weeks after the date on which the levying authority receives the school board's order requesting the ad valorem tax effort.
When a referendum has been called, notice of the referendum shall be published at least five (5) days per week, unless the only newspaper published in the school district is published less than five (5) days per week, for at least three (3) consecutive weeks, in at least one (1) newspaper published in the school district. The notice shall be no less than one-fourth (1/4) page in size, and the type used shall be no smaller than eighteen (18) point and surrounded by a one-fourth-inch solid black border. The notice may not be placed in that portion of the newspaper where legal notices and classified advertisements appear. The first publication of the notice shall be made not less than twenty-one (21) days before the date fixed for the referendum, and the last publication shall be made not more than seven (7) days before that date. If no newspaper is published in the school district, then the notice shall be published in a newspaper having a general circulation in the school district. The referendum shall be held, as far as is practicable, in the same manner as other referendums and elections are held in the county or municipality. At the referendum, all registered, qualified electors of the school district may vote. The ballots used at the referendum shall have printed thereon a brief statement of the amount and purpose of the increased tax levy and the words "FOR INCREASING THE MILLAGE LEVIED FOR SCHOOL DISTRICT PURPOSES FROM (MILLAGE RATE CURRENTLY LEVIED) MILLS TO (MILLAGE RATE REQUIRED UNDER SCHOOL BOARD'S ORDER) MILLS," and "AGAINST INCREASING THE MILLAGE LEVIED FOR SCHOOL DISTRICT PURPOSES FROM (MILLAGE RATE CURRENTLY LEVIED) MILLS TO (MILLAGE RATE REQUIRED UNDER SCHOOL BOARD'S ORDER) MILLS." The voter shall vote by placing a cross (X) or checkmark (√) opposite his choice on the proposition.
If a majority of the registered, qualified electors of the school district who vote in the referendum vote in favor of the question, then the ad valorem tax effort in dollars requested by the school board shall be approved. However, if a majority of the registered, qualified electors who vote in the referendum vote against the question, the millage rate levied by the levying authority shall not exceed the millage then being levied pursuant to the school board's order requesting the ad valorem tax effort for the then currently existing fiscal year.
Nothing in this subsection shall be construed to require any school district that is levying more than fifty-five (55) mills pursuant to Sections 37-57-1 and 37-57-105 to decrease its millage rate to fifty-five (55) mills or less. Further, nothing in this subsection shall be construed to require a referendum in a school district where the requested ad valorem tax effort in dollars requires a millage rate of greater than fifty-five (55) mills but the requested dollar amount does not require any increase in the then existing millage rate. Further, nothing in this subsection shall be construed to require a referendum in a school district where, because of a decrease in the assessed valuation of the district, a millage rate of greater than fifty-five (55) mills is necessary to generate funds equal to the dollar amount generated by the ad valorem tax effort for the currently existing fiscal year.
(b) Provided, however, that if a levying authority is levying in excess of fifty-five (55) mills on July 1, 1997, the levying authority may levy an additional amount not exceeding three (3) mills in the aggregate for the period beginning July 1, 1997, and ending June 30, 2003, subject to the limitation on increased receipts from ad valorem taxes prescribed in Sections 37-57-105 and 37-57-107.
(c) If the levying authority for any school district lawfully has decreased the millage levied for school district purposes, but subsequently determines that there is a need to increase the millage rate due to a disaster in which the Governor has declared a disaster emergency or the President of the United States has declared an emergency or major disaster, then the levying authority may increase the millage levied for school district purposes up to an amount that does not exceed the millage rate in any one (1) of the immediately preceding ten (10) fiscal years without any referendum that otherwise would be required under this subsection.
(3) * * *
If the millage rate necessary to generate funds equal to the dollar
amount requested by the school board is equal to fifty-five (55) mills or less,
but the dollar amount requested by the school board exceeds the * * *
two percent
(2%) increase limitation provided for in Section 37-57-107, the school
board may exceed the * * * two percent (2%) increase limitation only after the
school board has determined the need for additional revenues and * * *
a
majority of the registered, qualified electors voting in a referendum
called by the levying authority have voted in favor of the increase. The
notice and manner of holding the referendum shall be as prescribed in
subsection (2) of this section for a referendum on the question of increasing
the millage rate in school districts levying more than fifty-five (55) mills
for school district purposes. The ballot shall contain the language
"FOR THE SCHOOL TAX INCREASE OVER TWO PERCENT (2%)" and "AGAINST
THE SCHOOL TAX INCREASE OVER TWO PERCENT (2%)." If a majority of the
registered, qualified electors of the school district who vote in the referendum
vote in favor of the question, then the increase requested by the school board
shall be approved. For the purposes of this subsection, the revenue sources
excluded from the increase limitation under Section 37-57-107 also shall be
excluded from the limitation described in this subsection in the same manner as
they are excluded under Section 37-57-107.
( * * *4) The aggregate receipts from ad
valorem taxes levied for school district purposes pursuant to Sections 37-57-1
and 37-57-105, excluding collection fees, additional revenue from the ad
valorem tax on any newly constructed properties or any existing properties
added to the tax rolls or any properties previously exempt which were not
assessed in the next preceding year, and amounts received by school districts
from the School Ad Valorem Tax Reduction Fund pursuant to Section 37-61-35,
shall be subject to the increase limitation under this section and Section 37-57-107.
( * * *5) The school board shall pay to the
levying authority all costs that are incurred by the levying authority in the
calling and holding of any election under this section.
( * * *6) The provisions of this section
shall not be construed to affect in any manner the authority of school boards
to levy millage for the following purposes:
(a) The issuance of bonds, notes and certificates of indebtedness, as authorized in Sections 37-59-1 through 37-59-45 and Sections 37-59-101 through 37-59-115;
(b) The lease of property for school purposes, as authorized under the Emergency School Leasing Authority Act of 1986 (Sections 37-7-351 through 37-7-359);
(c) The lease or lease-purchase of school buildings, as authorized under Section 37-7-301;
(d) The issuance of promissory notes in the event of a shortfall of ad valorem taxes and/or revenue from local sources, as authorized under Section 27-39-333; and
(e) The construction of school buildings outside the school district, as authorized under Section 37-7-401.
Any millage levied for the purposes specified in this subsection shall be excluded from the millage limitations established under this section.
SECTION 2. Section 37-57-105, Mississippi Code of 1972, is amended as follows:
37-57-105. (1) In addition to the taxes levied under Section 37-57-1, the levying authority for the school district, as defined in Section 37-57-1, upon receipt of a certified copy of an order adopted by the school board of the school district requesting an ad valorem tax effort in dollars for the support of the school district, shall, at the same time and in the same manner as other ad valorem taxes are levied, levy an annual ad valorem tax in the amount fixed in such order upon all of the taxable property of such school district, which shall not be less than the millage rate certified by the State Board of Education as the uniform minimum school district ad valorem tax levy for the support of the adequate education program in such school district under Section 37-57-1. Provided, however, that any school district levying less than the uniform minimum school district ad valorem tax levy on July 1, 1997, shall only be required to increase its local district maintenance levy in four (4) mill annual increments in order to attain such millage requirements. In making such levy, the levying authority shall levy an additional amount sufficient to cover anticipated delinquencies and costs of collection so that the net amount of money to be produced by such levy shall be equal to the amount which is requested by said school board. The proceeds of such tax levy, excluding levies for the payment of the principal of and interest on school bonds or notes and excluding levies for costs of collection, shall be placed in the school depository to the credit of the school district and shall be expended in the manner provided by law for the purpose of supplementing teachers' salaries, extending school terms, purchasing furniture, supplies and materials, and for all other lawful operating and incidental expenses of such school district, funds for which are not provided by adequate education program fund allotments.
The monies authorized to be received by school districts from the School Ad Valorem Tax Reduction Fund pursuant to Section 37-61-35 shall be included as ad valorem tax receipts. The levying authority for the school district, as defined in Section 37-57-1, shall reduce the ad valorem tax levy for such school district in an amount equal to the amount distributed to such school district from the School Ad Valorem Tax Reduction Fund each calendar year pursuant to said Section 37-61-35. Such reduction shall not be less than the millage rate necessary to generate a reduction in ad valorem tax receipts equal to the funds distributed to such school district from the School Ad Valorem Tax Reduction Fund pursuant to Section 37-61-35. Such reduction shall not be deemed to be a reduction in the aggregate amount of support from ad valorem taxation for purposes of Section 37-19-11. The millage levy certified by the State Board of Education as the uniform minimum ad valorem tax levy or the millage levy that would generate funds in an amount equal to a school district's district entitlement, as defined in Section 37-22-1(2)(e), shall be subject to the provisions of this paragraph.
In any county where there is located a nuclear generating power plant on which a tax is assessed under Section 27-35-309(3), such required levy and revenue produced thereby may be reduced by the levying authority in an amount in proportion to a reduction in the base revenue of any such county from the previous year. Such reduction shall be allowed only if the reduction in base revenue equals or exceeds five percent (5%). "Base revenue" shall mean the revenue received by the county from the ad valorem tax levy plus the revenue received by the county from the tax assessed under Section 27-35-309(3) and authorized to be used for any purposes for which a county is authorized by law to levy an ad valorem tax. For purposes of determining if the reduction equals or exceeds five percent (5%), a levy of millage equal to the prior year's millage shall be hypothetically applied to the current year's ad valorem tax base to determine the amount of revenue to be generated from the ad valorem tax levy. For the purposes of this section and Section 37-57-107, the portion of the base revenue used for the support of any school district shall be deemed to be the aggregate receipts from ad valorem taxes for the support of any school district. This paragraph shall apply to taxes levied for the 1987 fiscal year and for each fiscal year thereafter. If the Mississippi Supreme Court or another court finally adjudicates that the tax levied under Section 27-35-309(3) is unconstitutional, then this paragraph shall stand repealed.
(2) When the tax is levied upon the territory of any school district located in two (2) or more counties, the order of the school board requesting the levying of such tax shall be certified to the levying authority of each of the counties involved, and each of the levying authorities shall levy the tax in the manner specified herein. The taxes so levied shall be collected by the tax collector of the levying authority involved and remitted by the tax collector to the school depository of the home county to the credit of the school district involved as provided above, except that taxes for collection fees may be retained by the levying authority for deposit into its general fund.
(3) The aggregate receipts
from ad valorem taxes levied for school district purposes, excluding collection
fees, pursuant to this section and Section 37-57-1 shall be subject to the * * *
increase
limitation under Section 37-57-107 * * *.
SECTION 3. Section 37-57-107, Mississippi Code of 1972, is amended as follows:
37-57-107. (1) Beginning
with the tax levy for the * * * 2019 fiscal year and for each fiscal
year thereafter, the aggregate receipts from taxes levied for school district
purposes pursuant to Sections 37-57-105 and 37-57-1 shall not exceed the
aggregate receipts from those sources during any one (1) of the immediately
preceding three (3) fiscal years, as determined by the school board, plus an
increase not to exceed * * * two percent (2%). For the purpose of this
limitation, the term "aggregate receipts" when used in connection
with the amount of funds generated in a preceding fiscal year shall not include
excess receipts required by law to be deposited into a special account. The
additional revenue from the ad valorem tax on any newly constructed properties
or any existing properties added to the tax rolls or any properties previously
exempt which were not assessed in the next preceding year may be excluded from
the * * * two percent (2%) increase limitation set forth herein.
Taxes levied for payment of principal of and interest on general obligation
school bonds issued heretofore or hereafter shall be excluded from the * * *
two percent
(2%) increase limitation set forth herein. Any additional millage levied
to fund any new program mandated by the Legislature shall be excluded from the
limitation for the first year of the levy and included within such limitation
in any year thereafter. For the purposes of this section, the term "new
program" shall include, but shall not be limited to * * *: (a) * * * any additional millage levied and the revenue generated
therefrom, which is excluded from the limitation for the first year of the
levy, to support the * * * Early
Childhood Education Program, which shall be specified on the minutes of
the school board and of the governing body making such tax levy; (b) any
additional millage levied and the revenue generated therefrom which shall be
excluded from the limitation for the first year of the levy, for the purpose of
generating additional local contribution funds required for the adequate
education program for the 2003 fiscal year and for each fiscal year thereafter
under Section 37-151-7(2); and (c) any additional millage levied and the
revenue generated therefrom which shall be excluded from the limitation for the
first year of the levy, for the purpose of support and maintenance of any
agricultural high school which has been transferred to the control, operation
and maintenance of the school board by the board of trustees of the community
college district under provisions of Section 37-29-272.
(2) The * * *
two percent
(2%) increase limitation prescribed in this section may be increased an
additional amount only when the school board has determined the need for
additional revenues and has held an election on the question of raising the
limitation prescribed in this section. The limitation may be increased only if * * *
a
majority of those voting in the election shall vote for the proposed
increase. The resolution, notice and manner of holding the election shall be
as prescribed * * * under Section 37-57-104. Revenues collected for the
fiscal year in excess of the * * * two percent (2%)
increase limitation pursuant to an election shall be included in the tax base
for the purpose of determining aggregate receipts for which the * * *
two percent
(2%) increase limitation applies for subsequent fiscal years.
(3) Except as otherwise provided for excess revenues generated pursuant to an election, if revenues collected as the result of the taxes levied for the fiscal year pursuant to this section and Section 37-57-1 exceed the increase limitation, then it shall be the mandatory duty of the school board of the school district to deposit such excess receipts over and above the increase limitation into a special account and credit it to the fund for which the levy was made. It will be the further duty of such board to hold said funds and invest the same as authorized by law. Such excess funds shall be calculated in the budgets for the school districts for the purpose for which such levies were made, for the succeeding fiscal year. Taxes imposed for the succeeding year shall be reduced by the amount of excess funds available. Under no circumstances shall such excess funds be expended during the fiscal year in which such excess funds are collected.
(4) For the purposes of determining ad valorem tax receipts for a preceding fiscal year under this section, the term "fiscal year" means the fiscal year beginning October 1 and ending September 30.
(5) Beginning with the 2013-2014 school year, each school district in which a charter school is located shall pay to the charter school an amount for each student enrolled in the charter school equal to the ad valorem taxes levied per pupil for the support of the school district in which the charter school is located. The pro rata ad valorem taxes to be transferred to the charter school must include all levies for the support of the school district under Sections 37-57-1 (local contribution to the adequate education program) and 37-57-105 (school district operational levy) but may not include any taxes levied for the retirement of school district bonded indebtedness or short-term notes or any taxes levied for the support of vocational-technical education programs. Payments made pursuant to this subsection by a school district to a charter school must be made before the expiration of three (3) business days after the funds are distributed to the school district.
SECTION 4. Section 27-39-207, Mississippi Code of 1972, is amended as follows:
27-39-207. (1) Unless the increased revenue in a budget is derived solely from the expansion of a school district's ad valorem tax base, a school district shall not budget an increase in an ad valorem tax effort in dollars for support of the school district unless it first advertises its intention to do so at the same time that it advertises its intention to fix its budget for the next fiscal year.
(2) A request for an increase in ad valorem tax effort in dollars for the support of the school district pursuant to Sections 37-57-104, 37-57-105 and 37-57-107 shall not be levied until an order has been approved by the school board of the school district in accordance with the following procedure:
(a) The school board of the school district shall advertise its intent to increase its ad valorem tax effort in dollars in a newspaper of general circulation in the county. The advertisement shall be no less than one-fourth (1/4) page in size and the type used shall be no smaller than eighteen (18) point and surrounded by a one-fourth-inch solid black border. The advertisement shall not be placed in any portion of the newspaper where legal notices and classified advertisements appear. The advertisement shall appear in a newspaper that is published at least five (5) days a week, unless the only newspaper in the county is published less than five (5) days a week. The newspaper selected shall be one of general interest, readership and circulation in all areas of the community. The advertisement shall be published once each week for the two-week period preceding the adoption of the final budget. The advertisement shall provide that the school board of the school district will meet on a certain day, date, time and place fixed in the advertisement, which shall be no less than seven (7) days after the day the first advertisement is published. The meeting on the proposed increase may coincide with the hearing on the proposed budget of the school board of the school district.
(b) Except as provided for in subsection (1) of this section, if a school district is requesting an increase in ad valorem tax effort in dollars pursuant to Sections 37-57-104, 37-57-105 and 37-57-107, it shall be in the following form:
"NOTICE OF PROPOSED AD VALOREM TAX EFFORT
(Name of the school district)
The (name of the school district) will hold a public hearing on its proposed school district budget for fiscal year (insert the year) on (date and time) at (meeting place). At this meeting, a proposed ad valorem tax effort will be considered.
The (name of the school district) is now operating with a projected total budget revenue of $_________. Of that amount, ____ percent or $_________ of such revenue is obtained through ad valorem taxes. For next fiscal year, the proposed budget has total projected revenue of $_________. Of that amount, ____ percent or $_________ is proposed to be financed through a total ad valorem tax levy.
For the next fiscal year, the proposed increase in ad valorem tax effort by (name of the school district) may result in an increase in the ad valorem tax millage rate. Ad valorem taxes are paid on homes, automobile tags, business fixtures and equipment, and rental real property.
Any citizen of (name of the school district) is invited to attend this public hearing on the proposed ad valorem tax effort, and will be allowed to speak for a reasonable amount of time and offer tangible evidence before any vote is taken."
(3) The school board of the school district, after the hearing has been held in accordance with the above procedures, may adopt an order requesting the levying of an ad valorem tax effort in dollars in excess of the certified tax rate. If such order is not adopted on the day of the public hearing, the scheduled date, time and place for consideration and adoption of the order shall be announced at the public hearing.
(4) All hearings shall be open to the public. The school board of the school district shall permit all interested parties desiring to be heard an opportunity to present oral testimony within reasonable time limits and offer tangible evidence.
(5) Each school board of a school district shall notify the taxing entity of the date, time and place of its public hearing. No school board of a school district may schedule its hearing at the same time as another overlapping school district in the same county.
SECTION 5. This act shall take effect and be in force from and after July 1, 2019.