House Bill 1990

AN ACT TO AUTHORIZE COUNTY BOARDS OF SUPERVISORS TO ESTABLISH A MINIMUM AD VALOREM TAX REVENUE AMOUNT TO BE PRODUCED FROM PARCELS OF RESIDENTIAL PROPERTY; TO PROVIDE THAT IF AFTER THE ADOPTION OF THE ANNUAL MILLAGE RATE FOR A FISCAL YEAR, IT IS DETERMINED THAT SUCH MILLAGE RATE LEVIED UPON A PARCEL OF RESIDENTIAL PROPERTY WILL NOT PRODUCE THE REQUIRED MINIMUM AD VALOREM TAX REVENUE AMOUNT, THE COUNTY MAY LEVY AD VALOREM TAX AT AN ADDITIONAL MILLAGE UPON THE PROPERTY NECESSARY TO PRODUCE THE MINIMUM AD VALOREM TAX REVENUE AMOUNT; TO PROVIDE THAT IF A COUNTY LEVIES ADDITIONAL MILLAGE RATES ON PARCELS OF RESIDENTIAL PROPERTY DURING A FISCAL YEAR AND THE REVENUE PRODUCED BY THE ADDITIONAL MILLAGES DURING THE FISCAL YEAR, WHEN ADDED TO THE COUNTY'S BUDGETED AD VALOREM TAX REVENUES, RESULTS IN TOTAL AD VALOREM TAX REVENUE IN EXCESS OF THAT PROVIDED IN THE COUNTY BUDGET, THE BOARD OF SUPERVISORS SHALL USE THE EXCESS REVENUE FOR THE PURPOSE OF REDUCING AD VALOREM TAXES FOR THE NEXT FISCAL YEAR; TO BRING FORWARD SECTION 27-39-303, MISSISSIPPI CODE OF 1972, WHICH PROVIDES FOR GENERAL COUNTY AD VALOREM TAX LEVIES, FOR THE PURPOSES OF POSSIBLE AMENDMENT.

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

SECTION 1. A county board of supervisors may elect to establish a minimum ad valorem tax revenue amount to be produced from parcels of residential property. If after the adoption of the annual millage rate for a fiscal year, it is determined that such millage rate levied upon the assessed value of a parcel of residential property will not produce the required minimum ad valorem tax revenue amount, the county may levy ad valorem tax at an additional millage rate upon the property necessary to produce the minimum ad valorem tax revenue amount. If a county levies additional millage rates on parcels of residential property during a fiscal year and the revenue produced by additional millage levied during the fiscal year, when added to the county's budgeted ad valorem tax revenues, results in total ad valorem tax revenue in excess of that provided in the county budget, the board of supervisors shall use the excess revenue for the purpose of reducing ad valorem taxes for the next fiscal year.

SECTION 2. Section 27-39-303, Mississippi Code of 1972, is brought forward as follows:

27-39-303. The board of supervisors of any county is hereby empowered to levy ad valorem taxes on taxable property in the respective counties in any one (1) year, as shown by the assessment roll containing assessments of property made as of January 1 of the year, and the assessment of motor vehicles as made according to the provisions of the Motor Vehicle Ad Valorem Tax Law of 1958 (Section 27-51-1 et seq.) for all general county purposes, exclusive only of levies for schools at the rate necessary to fund such purposes.

The board of supervisors of any county is further empowered to expend the proceeds of this levy for any purpose authorized for any other levy which the board of supervisors is authorized to make. The board of supervisors may authorize general fund expenditures for road and bridge construction; provided that the expenditures do not exceed thirty percent (30%) of the general fund in any one (1) fiscal year; provided that any general fund expenditures shall be subject to the requirements of Section 65-15-21, Mississippi Code of 1972; and the board may authorize general fund expenditures for school purposes when necessary to meet the minimum local ad valorem tax effort required by Section 37-57-1, Mississippi Code of 1972.

The board of supervisors of any county is further empowered to distribute from the county general fund a portion of the county's share of payments made by the Tennessee Valley Authority to the state in lieu of taxes (a) to the school districts of said county and (b) for construction on the roads and bridges of said county in an amount which bears the same proportion to the total amount of the county's share as the millage for the school fund and road and bridge fund bears to the total millage levied by the county. In the event said in lieu payments are expended for capital improvements, said payments shall not be subject to the increase limitations specified in Section 27-39-321 or 37-57-107, Mississippi Code of 1972.

SECTION 3. This act shall take effect and be in force from and after July 1, 2024.