MISSISSIPPI LEGISLATURE
2020 Regular Session
To: Ways and Means
By: Representative Lamar
AN ACT TO AMEND SECTIONS 27-35-301, 27-35-303, 27-35-305, 27-35-309, 27-35-311, 27-35-313 AND 27-35-325, MISSISSIPPI CODE OF 1972, TO REVISE CERTAIN PROVISIONS REGARDING THE ASSESSMENT OF RAILROAD AND OTHER PUBLIC SERVICE CORPORATION PROPERTY FOR THE PURPOSES OF AD VALOREM TAXATION; TO REVISE THE DATE BY WHICH RAILROADS AND OTHER PUBLIC SERVICE CORPORATIONS MUST FILE WITH THE DEPARTMENT OF REVENUE FOR AD VALOREM TAX ASSESSMENT PURPOSES SCHEDULES OF PROPERTY OWNED BY SUCH CORPORATIONS; TO REVISE THE TIME FOR WHICH THE DEPARTMENT OF REVENUE MAY GRANT AN EXTENSION FOR THE FILING OF SUCH SCHEDULES; TO REVISE THE LENGTH OF TIME THAT ASSESSMENTS MADE BY THE DEPARTMENT OF REVENUE OF SUCH PROPERTY SHALL REMAIN OPEN FOR OBJECTION; TO REVISE THE DATE BY WHICH RAILROADS AND OTHER PUBLIC SERVICE CORPORATIONS MUST FILE AN APPORTIONMENT OF THE ASSESSED VALUE OF PROPERTY OF SUCH CORPORATIONS; TO REVISE CERTAIN PROVISIONS REGARDING OBJECTIONS TO ASSESSMENTS MADE BY THE DEPARTMENT OF REVENUE; TO REVISE CERTAIN PROVISIONS REGARDING THE IMPOSITION OF A PENALTY AGAINST RAILROADS OR OTHER PUBLIC SERVICE CORPORATIONS FOR FAILURE TO FILE THE REQUIRED SCHEDULES OF PROPERTY FOR AD VALOREM TAX ASSESSMENT PURPOSES; TO AMEND SECTION 27-35-513, MISSISSIPPI CODE OF 1972, TO REVISE CERTAIN PROVISIONS REGARDING THE IMPOSITION OF A PENALTY AGAINST RAILROAD CAR COMPANIES FOR FAILURE TO FILE REQUIRED STATEMENTS WITH THE DEPARTMENT OF REVENUE FOR AD VALOREM TAX ASSESSMENT PURPOSES; TO AMEND SECTION 27-35-703, MISSISSIPPI CODE OF 1972, TO REVISE THE DATE BY WHICH AIRLINE COMPANIES MUST FILE WITH THE DEPARTMENT OF REVENUE FOR AD VALOREM TAX ASSESSMENT PURPOSES SCHEDULES OF AIRCRAFT OPERATED IN THIS STATE BY SUCH COMPANIES; TO REVISE THE LENGTH OF TIME THAT ASSESSMENTS MADE BY THE DEPARTMENT OF REVENUE OF SUCH AIRCRAFT SHALL REMAIN OPEN FOR OBJECTION; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-35-301, Mississippi Code of 1972, is amended as follows:
27-35-301. The * * * Department
of Revenue is constituted state * * * assessor of railroads and
other public service corporations, and * * * it shall, upon the receipt or
making of the schedules hereinafter provided for, assess the property of
railroads, telegraph, telephone, sleeping car, express, electric power and
light companies and other public service corporations liable to taxation in the
state, affixing its * * *
value for the purposes of ad valorem taxation so that such property
shall bear its just proportion of taxation, taking into consideration the value
of the franchise and the capital engaged in the business in this state. The
state * * *
assessor of railroads and other public service corporations may adopt other
and further rules necessary and proper to ascertain the value of property to be
assessed by * * *
it, including the value of the franchise and amount of capital engaged
in the business in this state. Provided, however, the * * * Department
of Revenue shall be * * *assessors the assessor of railroad and Class IV public
service property, but shall not be the * * * assessor of the types and
kinds of properties owned by the public service corporations and appraised and
assessed by county tax assessors pursuant to Sections 27-35-331 through 27-35-341.
SECTION 2. Section 27-35-303, Mississippi Code of 1972, is amended as follows:
27-35-303. (1) Each
person, firm, company or corporation owning and/or operating a railroad, oil or
gas pipeline company, electric company or any other company listed in Section
27-35-301, owning property not situated wholly in one (1) county; and any
telephone company owning property in more than six (6) counties shall, on or before
the first * * *
day of April in each year, file with the * * * Department of Revenue
a complete schedule, under oath, on forms prescribed and furnished by the * * * Department of Revenue,
of all its property, real or personal, taxable and nontaxable, owned by it on
the first day of the preceding January, setting forth therein the value of the
whole, the total amount of capital stock, its par value and its actual value,
and the value of its franchise, the gross amount of receipts in the year
preceding; all real, personal or mixed property belonging to the company within
the state, not enumerated, with its value; a list of all lands in this state
owned, describing the same and giving the value thereof, the gross amount of
receipts the year preceding earned within and from this state; and if any of
said property is claimed to be exempt from taxation, it shall be separately
stated and valued, and the law cited under which the claim is made. It shall
not be necessary that a rendition on any motor vehicles be made as defined by
the "Motor Vehicle Ad Valorem Tax Law of 1958." In addition to these
required schedules, the * * *State Tax Commission Department of Revenue may require
each person, firm, company or corporation to file with the * * * Department of Revenue
a copy of any annual report or form required to be filed by him with any
federal regulatory agency. The * * * Department of Revenue
may grant an extension of up to * * * twenty (20) days for
the filing of the schedules required by this section.
(2) The * * * Department of Revenue
shall have the power to adopt, amend or repeal such rules and regulations as
necessary to implement tax duties assigned to it in this section.
SECTION 3. Section 27-35-305, Mississippi Code of 1972, is amended as follows:
27-35-305. If any company,
corporation, firm or person, who is required by law to render schedules of its,
their or his property to the * * * Department of Revenue,
as provided by Section 27-35-303, Mississippi Code of 1972, for the purposes of
assessment for taxation, shall fail, refuse or neglect to render the schedules,
as required, the Department of Revenue may impose on such company,
corporation, firm or person * * * a penalty * * * of ten percent (10%) of the
assessment as computed by the * * * department, and in case
of such failure, refusal or neglect, the * * * department shall make out
such schedules from the best information obtainable.
SECTION 4. Section 27-35-309, Mississippi Code of 1972, is amended as follows:
27-35-309. (1) The Department of Revenue shall, if practicable, on or before the first Monday of June of each year, make out for each person, firm, company or corporation listed in Section 27-35-303, Mississippi Code of 1972, an assessment of the company's property, both real and personal, tangible and intangible. The Department of Revenue shall apportion the assessment of value of each company's property according to the provisions of this article, except as provided in subsection (3) of this section, as follows:
(a) When the property of such public service company is located in more than one (1) county in this state, the Department of Revenue shall direct the company to apportion the assessed value between the counties and municipalities and all other taxing districts therein, in the proportion which the property located therein bears to the entire value of the property of such company as valued by the department, so that to each county, municipality and taxing district therein, there shall be apportioned such part of the entire valuation as will fairly equalize the relative value of the property therein located to the whole value thereof.
(b) When the property of such public utility required to be assessed by the provisions of this article is located in more than one (1) state, the assessed value thereof shall be apportioned by the Department of Revenue in such manner as will fairly and equitably determine the principal sum for the value thereof in this state, and after ascertaining such value it shall be apportioned by them as herein provided.
The assessment roll shall contain all the property of any such public service company, railroad, person, firm or corporation and the value thereof, and so made that each county, municipality, and taxing district shall receive its just share of taxes proportionately to the amount of property therein situated.
(2) (a) The assessment
when made shall remain open for * * * twenty (20) days in the
Office of the Department of Revenue, and be for such time subject to the
objections thereto which may be filed with the Executive Director of the Board of
Tax Appeals; but real estate belonging to railroads and which forms no part of
the road, and is wholly disconnected from its railroad business, shall not be
assessed by the Department of Revenue, but shall be assessed as other real
estate is assessed by the tax assessor of the county where situated.
(b) The apportionment
of the assessed value as required by this section shall be filed with the
Department of Revenue by such public service company on or before the * * * last day of
the objection period established in paragraph (a) of this subsection (2).
If such company shall fail, refuse or neglect to render the apportionment of
assessed value as required by this section, such company shall be subject to
the penalties provided for in Section 27-35-305. The filing of an objection by
such public service company shall not preclude such company from filing the
property apportionment as required by this section.
(3) Any nuclear generating plant which is located in the state, which is owned or operated by a public utility rendering electric service within the state and not exempt from ad valorem taxation under any other statute and which is not owned or operated by an instrumentality of the federal government shall be exempt from county, municipal and district ad valorem taxes. In lieu of the payment of county, municipal and district ad valorem taxes, such public utility shall pay to the Department of Revenue a sum based on the assessed value of such nuclear generating plant in an amount to be determined and distributed as follows:
(a) The Department of Revenue shall annually assign an assessed value to any nuclear generating plant described in this subsection in the same manner as for ad valorem tax purposes by using accepted industry methods for appraising and assessing public utility property. The assessed value assigned shall be used for the purpose of determining the in-lieu tax due under this section and shall not be included on the ad valorem tax rolls of the situs taxing authority nor be subject to ad valorem taxation by the situs taxing authority nor shall the assessed value assigned be used in determining the debt limit of the situs taxing authority. However, the assessed value so assigned may be used by the situs taxing authority for the purpose of determining salaries of its public officials.
(b) On or before February 1, 1987, for the 1986 taxable year and on or before February 1 of each year through the 1989 taxable year, such utility shall pay to the Department of Revenue a sum equal to two percent (2%) of the assessed value as ascertained by the Department of Revenue, but such payment shall not be less than Sixteen Million Dollars ($16,000,000.00) for any of the four (4) taxable years; all such payments in excess of Sixteen Million Dollars ($16,000,000.00) for these four (4) taxable years shall be paid into the General Fund of the state. On or before February 1, 1991, for the 1990 taxable year and on or before February 1 of each year thereafter, such utility shall pay to the Department of Revenue a sum equal to two percent (2%) of the assessed value as ascertained by the Department of Revenue, but such payment shall not be less than Twenty Million Dollars ($20,000,000.00) for any taxable year for as long as such nuclear power plant is licensed to operate and is not being permanently decommissioned; all such payments in excess of Sixteen Million Dollars ($16,000,000.00) for taxable years 1990 and thereafter shall be paid as follows:
(i) An amount of Three Million Forty Thousand Dollars ($3,040,000.00) annually, beginning with fiscal year 1991, shall be transferred by the Department of Revenue to Claiborne County. Such payments may be expended by the Board of Supervisors of Claiborne County for any purpose for which a county is authorized by law to levy an ad valorem tax and shall not be included or considered as proceeds of ad valorem taxes for the purposes of the growth limitation on ad valorem taxes under Sections 27-39-305 and 27-39-321. However, should the Board of Supervisors of Claiborne County withdraw its support of the Grand Gulf Nuclear Station off-site emergency plan or otherwise fail to satisfy its off-site emergency plan commitments as determined by the Mississippi Emergency Management Agency and the Federal Emergency Management Agency, Five Hundred Thousand Dollars ($500,000.00) annually of the funds designated for Claiborne County as described by this subsection (i) shall be deposited in the Grand Gulf Disaster Assistance Fund as provided in Section 33-15-51.
(ii) An amount of One Hundred Sixty Thousand Dollars ($160,000.00) annually, beginning with fiscal year 1991, shall be transferred by the Department of Revenue to the City of Port Gibson, Mississippi. Such payments may be expended by the Board of Aldermen of the City of Port Gibson for any purpose for which a municipality is authorized by law to levy an ad valorem tax and shall not be included or considered as proceeds of ad valorem taxes for the purposes of the growth limitation on ad valorem taxes under Sections 27-39-305 and 27-39-321. However, should the Board of Aldermen of the City of Port Gibson withdraw its support of the Grand Gulf Nuclear Station off-site emergency plan or otherwise fail to satisfy its off-site emergency plan commitment, as determined by the Mississippi Emergency Management Agency and the Federal Emergency Management Agency, Fifty Thousand Dollars ($50,000.00) annually of the funds designated for the City of Port Gibson as described by this subsection (ii) shall be deposited in the Grand Gulf Disaster Assistance Fund as provided in Section 33-15-51.
(iii) The remaining balance of the payments in excess of Sixteen Million Dollars ($16,000,000.00) annually, less amounts transferred under (i) and (ii) of this subsection, beginning with fiscal year 1991, shall be allocated in accordance with subsection (3)(f) of this section.
(c) Pursuant to
certification by the Attorney General to the State Treasurer and the * * * Department of Revenue
that the suit against the State of Mississippi pending on the effective date of
House Bill 8, First Extraordinary Session of 1990, [Laws, 1990 Ex Session, Ch.
12, eff June 26, 1990], in the Chancery Court for the First Judicial District
of Hinds County, Mississippi, styled Albert Butler et al v. the Mississippi
State Tax Commission et al, has been voluntarily dismissed with prejudice as to
all plaintiffs at the request of the complainants and that no attorney's fees
or court costs have been assessed against the state and each of the parties,
including Claiborne County and each municipality and school district located in
the county, have signed and delivered to the Attorney General a full and
complete release in favor of the State of Mississippi and its elected officials
of all claims that have been asserted or may be asserted in the suit pending on
the effective date of House Bill 8, First Extraordinary Session of 1990, [Laws,
1990 Ex Session, Ch. 12, eff June 26, 1990], in the Chancery Court for the
First Judicial District of Hinds County, Mississippi, styled Albert Butler et
al v. the Mississippi State Tax Commission et al, and the deposit into the
State General Fund of in-lieu payments and interest thereon due the state under
subsection (3)(b) of this section but placed in escrow because of the lawsuit
described above, the state shall promptly transfer to the Board of Supervisors
of Claiborne County out of the State General Fund an amount of Two Million
Dollars ($2,000,000.00) which shall be a one-time distribution to Claiborne
County from the state. Such payment may be expended by the Board of
Supervisors of Claiborne County for any purposes for which a county is
authorized by law to levy an ad valorem tax and shall not be included or
considered as proceeds of ad valorem taxes for the purposes of the growth
limitation on ad valorem taxes for the 1991 fiscal year under Sections 27-39-321
and 27-39-305.
(d) After distribution of the one-time payment to Claiborne County as set forth in subsection (3)(c) of this section, the Department of Revenue upon certification that the pending lawsuit as described in subsection (3)(c) of this section has been voluntarily dismissed shall promptly deposit an amount of Five Hundred Thousand Dollars ($500,000.00) into the Grand Gulf Disaster Assistance Trust Fund as provided for in Section 33-15-51, which shall be a one-time payment, to be utilized in accordance with the provisions of such section.
(e) After distribution of the one-time payment to Claiborne County as set forth in subsection (3)(c) of this section and the payment to the Grand Gulf Disaster Assistance Trust Fund as set forth in subsection (3)(d) of this section, the Department of Revenue upon certification that the pending lawsuit as described in subsection (3)(c) of this section has been voluntarily dismissed shall promptly distribute ten percent (10%) of the remainder of the prior payments remaining in escrow to the General Fund of the state and the balance of the prior payments remaining in escrow shall be distributed to the counties and municipalities in this state wherein such public utility has rendered electric service in the proportion that the amount of electric energy consumed by the retail customers of such public utility in each county, excluding municipalities therein, and in each municipality, for the next preceding fiscal year bears to the total amount of electric energy consumed by all retail customers of such public utility in the State of Mississippi for the next preceding fiscal year. The payments distributed to the counties and municipalities under this paragraph (e) may be expended by such counties and municipalities for any lawful purpose and shall not be included or considered as proceeds of ad valorem taxes for the purposes of the growth limitation on ad valorem taxes under Sections 27-39-321 and 27-39-305.
(f) After distribution of the payments for fiscal year 1991 as set forth in Section 19-9-151 and distribution of the payments as provided for in subsection (3)(b) of this section, the Department of Revenue shall distribute ten percent (10%) of the remainder of the payments to the General Fund of the state and the balance to the counties and municipalities in this state wherein such public utility renders electric service in the proportion that the amount of electric energy consumed by the retail customers of such public utility in each county, excluding municipalities therein, and in each municipality for the next preceding fiscal year bears to the total amount of electric energy consumed by all retail customers of such public utility in the State of Mississippi for the next preceding fiscal year.
(g) No county, including municipalities therein, shall receive in excess of twenty percent (20%) of the funds distributed under paragraph (f) of this subsection.
(h) The revenues received by counties and municipalities under paragraph (f) of this subsection shall not be included or considered as proceeds of ad valorem taxes for the purposes of the growth limitation on ad valorem taxes under Sections 27-39-305 and 27-39-321.
SECTION 5. Section 27-35-311, Mississippi Code of 1972, is amended as follows:
27-35-311. (1) It shall be the duty of the Board of Tax Appeals to hear and determine objections to assessments made by the Department of Revenue for ad valorem tax purposes. They may, if they think objections just, sustain the same and amend assessments, if necessary accordingly.
(2) Any objection shall be
in writing and filed with the Executive Director of the Board of Tax Appeals
within the * * *
twenty-day period set out in Section 27-35-309(2)(a). At the time of
filing the objection with the Executive Director of the Board of Tax Appeals,
the taxpayer shall specify in detail the relief requested and present the
basis of any arguments against the Department of Revenue's assessment. The
taxpayer shall also file a copy of his written objection with the
Department of Revenue.
SECTION 6. Section 27-35-313, Mississippi Code of 1972, is amended as follows:
27-35-313. So soon as the
assessment rolls have remained subject to objection for * * * twenty (20) days, and when
all objections, if any, are disposed of, the assessment rolls shall be approved
by the Department of Revenue, and a certified copy of the assessment rolls
shall be sent immediately to the clerks of the board of supervisors of the
respective counties, who shall file and preserve it as a record.
SECTION 7. Section 27-35-325, Mississippi Code of 1972, is amended as follows:
27-35-325. The Department of
Revenue is hereby authorized and empowered and it shall be its duty to assess
any property required to be assessed by the Department of Revenue as the state
assessor of railroads, which it discovers escaping taxation in former years by
reason of not being assessed; and to assess or cause to be assessed and taxed,
any such property which it discovers escaping taxation by reason of not being
assessed in or for the benefit of any road district, school district, or other
taxing district or municipality, although the property may have been assessed
and taxed for state and general county taxes; however, the right to so assess
property shall expire at the end of seven (7) years from the date when the
right so to do first accrued. When any property is discovered escaping
assessment and taxation which, under the law, is required to be assessed by the
Department of Revenue as state assessor of railroads, the Department of Revenue
shall assess the same for such purpose and for the years it has escaped
taxation, and shall give notice by United States mail, or otherwise, by the
Commissioner of Revenue of the Department of Revenue to the owner of the
property, or agent, of such owner, showing what property has escaped assessment
and for what years, and all other proper information, and the owner shall have * * * twenty (20) days in which to
file objections. The Department of Revenue shall deal with the assessment in
all respects with the same powers as if made at the time regular assessment of
such property is made, and shall have power to require such information as it
may desire for the correct determination of all questions before it. When any
objection is heard and determined, the Board of Tax Appeals shall by order
approve or disapprove, or may modify the assessment, and make it final. If no
objection is made in regard to the assessment or if the assessment is approved
or modified by the Board of Tax Appeals, the Department of Revenue shall
certify it to the clerk of the board of supervisors of the county or counties
where the property is located, and such assessment shall be dealt with by the
clerk and tax collector as is required in cases of assessments when made at the
regular time. In all cases where suit is necessary, it shall be the duty of
the Attorney General to represent the Department of Revenue whenever requested
to do so.
SECTION 8. Section 27-35-513, Mississippi Code of 1972, is amended as follows:
27-35-513. If any company
shall fail, or refuse, to make and file any statements required by law or any
other statement demanded by the * * * Department of Revenue
on or before the time required by Section 27-35-509, Mississippi Code of 1972,
such company * * *
may be assessed a penalty of * * * ten percent (10%) on the tax as computed
by the * * * Department of Revenue, and in case of such
failure, neglect or refusal, the * * * department may make out
an assessment against the company or companies, from the best information available.
SECTION 9. Section 27-35-703, Mississippi Code of 1972, is amended as follows:
27-35-703. (1) The department shall annually assess, adjust, equalize and apportion the valuation of all aircraft of each airline company of a type or model operated in this state by such airline company by such type or model. Such aircraft shall be valued by the department in the same manner as other personal property in the state is valued.
(2) Each airline company
shall file with the department, on or before the first * * * day of April of each year, a
complete schedule of all aircraft of a type or model operated in this state by
such company. Such schedule shall be made under oath on forms prescribed and
furnished by the department. If any airline company shall fail, refuse or
neglect to file the required schedules, such company may be penalized in the
manner provided for in Section 27-35-305.
(3) The assessment when
made and completed shall remain open for * * * twenty (20) days for inspection
in the offices of the Department of Revenue and be subject to objections by the
airline companies for the same time period. The Board of Tax Appeals shall
hear all objections, and it may increase or decrease any assessment if such
action appears to be necessary and proper.
(4) Any objection shall be
in writing and filed with the Executive Director of the Board of Tax Appeals
within the * * *
twenty-day period set out in subsection (3) of this section for
objections. At the time of filing the objection with the Executive Director of
the Board of Tax Appeals, the taxpayer shall also file a copy of his written
objection with the Department of Revenue.
SECTION 10. This act shall take effect and be in force from and after January 1, 2021.