HB1665_S_Cmte_Amend

SECTION 1. (1) As used in this section, the following words and phrases shall have the meanings ascribed herein unless the context clearly requires otherwise:

(a) "Clerk" means the municipal clerk or county chancery clerk, as the case may be.

(b) "County" means Hinds County, Mississippi.

(d) "Developer" means any person, firm, corporation, partnership or other entity who constructs, repairs, renovates, operates and/or maintains and/or procures the construction, repair, renovation, operation and/or maintenance of property such as buildings and other facilities within the district.

(e) "District" means the Capitol Complex Improvement District created in Section 29-5-203, Mississippi Code of 1972.

(f) "Municipality" means the City of Jackson, Mississippi.

(g) "Tax Assessor" means the Hinds County, Mississippi, tax assessor.

(2) (a) The department shall establish a program to provide incentive payments for developers to develop property such as buildings and other facilities within the district and to place such developed property into use, which will increase the value of the property and promote economic development and the public interest within the district.

(b) A developer desiring to participate in the incentive program established under this section must submit an application to the department. The application must contain a development plan that provides:

(i) A description of:

1. The property to be developed,

2. The purpose or purposes for which the property is being used at the time the application is submitted,

3. The type of work the developer will perform as part of development of the property, the purpose or purposes for which the property will be placed into use after development, and whether the development of such property will be complete before being placed into use, or developed in phases and placed in use in phases before development is complete, and

(ii) Any other information requested by the department.

(c) The department shall review such application and determine whether the developer is eligible to participate in the incentive program. If the department approves the developer for participation in the program, it shall issue a certificate of participation to the developer for the development plan. The department shall also provide a copy of the certification of participation and development plan to the clerk.

(d) After receipt of a certificate of participation and development plan under paragraph (c) of this subsection, the tax assessor shall certify the assessed value of the property to be developed under the development plan according to its most recently determined assessed value. This assessed value shall be the original assessed value of the property for the purposes of this section. Each year thereafter, the tax assessor shall certify the assessed value of the property described in the development plan and this assessed value shall be known as the current assessed value of the property for the purposes of this section.

(3) (a) (i) Beginning with the first year that property in a development plan is developed and placed into use for which it is developed, whether completely or in phases, and subject to ad valorem taxation based on such use, any amount by which the current assessed value of the property exceeds the original assessed value shall be known as the enhanced assessed value of the property for the purposes of this section.

(ii) For property in a development plan that for which development is complete when the property is first placed into use after development, the tax assessor shall annually certify the amount of the enhanced assessed value of the property to the municipality and county for the first year that the property is placed into use and subject to ad valorem tax based on such use and for each of the next succeeding four (4) years. For each year of such years, the clerk shall annually remit to the department an amount equal to the revenue derived from the ad valorem tax levied for general fund purposes by the municipality or county, as the case may be, on the enhanced assessed value of the property.

(iii) For property in a development plan that is developed in phases and placed into use in phases:

1. a. The tax assessor shall annually certify the amount of the enhanced assessed value of the property to the municipality and county for the first year of such years that the property is placed into use and subject to ad valorem tax based on such use and for each of the next succeeding years that the property is developed and placed into use in phases until the development is complete and the property is placed into use for which it was developed, and

b. The clerk shall:

A. For the first year of the years described in subitem a of this item 1, remit to the department an amount equal to the revenue derived from the ad valorem tax levied for general fund purposes by the municipality or county, as the case may be, on the enhanced assessed value of the property for such year, and

B. For each year of the succeeding years after the first year described in subitem a of this item 1 through the first year after the development of the property is complete and the property is subject to ad valorem tax based on the use for which it was developed, remit to the department an amount equal to the revenue derived from the ad valorem tax levied for general fund purposes by the municipality or county, as the case may be, on the amount of any increase of the enhanced assessed value of the property for the applicable year from the enhanced assessed value of the property for the immediately preceding year.

2. After such property has completed development according to a development plan and has been placed into use for which it was developed, the tax assessor shall annually certify the amount of the enhanced assessed value of the property to the municipality and county for the first year that the property is placed into use and subject to ad valorem tax based on such use and for each of the next succeeding four (4) years. For each of such years, the clerk shall annually remit to the department an amount equal to the revenue derived from the ad valorem tax levied by the municipality or county, as the case may be, for general fund purposes on the enhanced assessed value of the property.

(iv) The department shall deposit the funds received from the clerk under this subsection (3) into the special fund created in subsection (4) of this section.

(4) (a) There is created a special fund in the State Treasury. The fund shall be maintained by the State Treasurer as a separate and special fund, separate and apart from the General Fund of the state. The fund shall consist of monies deposited therein under subsection of this section and monies from any other source designated for deposit into such fund. Monies in the fund shall be expended by the department, upon appropriation by the Legislature, to provide incentive payments to developers as provided in this section. Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned or investment earnings on amounts in the fund shall be deposited to the credit of the fund.

(b) The department shall allocate and distribute monies in the special fund that are derived from payments made by a clerk related to a certificate of approval for property that is developed according to a development plan and placed into use after development and use such monies for the purpose of making incentive payments as follows:

(i) For property that has completed development according to a plan and that has been first placed into use after development is complete, the department shall:

1. Disburse to the developer an incentive payment for an amount equal to the amount remitted to the department under subsection (3)(a)(ii) of this section for the first year of the five (5) year period described therein, and

2. Deposit an amount equal to the amount remitted to the department under subsection (3)(a)(ii) of this section for each of the next four (4) years into the Capitol Complex Improvement District Project Fund created in Section 29-5-215, Mississippi Code of 1972; and

(ii) For property that is developed according to a plan in phases and placed into use in phases:

1. The department shall disburse to the developer for each applicable year an amount equal to the amount remitted to the department under subsection (3)(a)(iii)1 of this section, and

2. After such property has completed development according to the plan and has been placed into use, the department shall deposit an amount equal to the amount remitted to the department under subsection (3)(a)(iii)2 of this section for each of the next four (4) years into Capitol Complex Improvement District Project Fund created in Section 29-5-215, Mississippi Code of 1972.

(5) The Department of Finance and Administration shall have all powers necessary to implement and administer the program established under this section, and the Department of Finance and Administration shall promulgate rules and regulations, in accordance with the Mississippi Administrative Procedures Law, necessary for the implementation of this section.

SECTION 2. This act shall take effect and be in force from and after July 1, 2024, and shall stand repealed on June 30, 2024.