MISSISSIPPI LEGISLATURE

1997 Regular Session

To: Ways and Means

By: Representative Williams

AN ACT TO AMEND SECTION 27-31-105, MISSISSIPPI CODE OF 1972, TO REVISE THE PROCEDURE BY WHICH APPLICATIONS ARE MADE TO LOCAL GOVERNMENTS FOR AD VALOREM TAX EXEMPTIONS FOR ADDITIONS, EXPANSIONS OR EQUIPMENT REPLACEMENTS MADE WITH REFERENCE TO A NEW ENTERPRISE; TO PROVIDE THAT SUCH EXEMPTIONS MAY BE GRANTED IN CONSECUTIVE PERIODS OF LESS THAN TEN YEARS, NOT TO EXCEED A TOTAL OF TEN YEARS; AND FOR RELATED PURPOSES. 

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

SECTION 1. Section 27-31-105, Mississippi Code of 1972, is amended as follows:

27-31-105. (1) Any person, firm or corporation who owns or operates a manufacturing or other enterprise of public utility as enumerated in Section 27-31-101 and who makes additions to or expansions of the facilities or properties or replaces equipment used in connection with or necessary to the operation of such enterprise may be granted an exemption from ad valorem taxation, except state ad valorem taxation, upon each such addition to or expansion of the facility or property or replacement of equipment, within the discretion of the county board of supervisors and municipal authorities. Provided, however, said governing authorities shall not exempt ad valorem taxes for school district purposes on such additions or expansions of the facility or property, or replacement of equipment, except that this provision shall not apply to or affect any exemptions from ad valorem taxes for school district purposes which were granted under this section prior to the effective date of this chapter and such exemptions heretofore granted shall continue in force for the period of time for which they were granted, unless the grantor and grantee of the exemption agree otherwise. In order to obtain such exemptions upon additions to or expansions of the facilities or properties, or replacement of equipment, such person, firm or corporation shall follow the same procedure prescribed for obtaining an exemption on a new enterprise. * * * The time of each such exemption on each addition to or expansion of the facilities or properties or replacement of equipment shall commence from the date of the completion of each addition or expansion or replacement for which an exemption is granted, and shall extend for a period not to exceed ten (10) years thereafter; however, boards of supervisors and municipal authorities, in lieu of granting the exemption for one (1) period of ten (10) years, may grant the exemption in a period of less than ten (10) years. Any board of supervisors or municipal authority which has granted an exemption for a period of less than ten (10) years may grant subsequent periods of exemption to run consecutively with the initial exemption period, or a subsequently granted exemption period, but in no case shall the total of the exemption periods granted exceed ten (10) years. Any consecutive period of exemption shall be granted by entry of an order by the board or the authority granting the consecutive exemption on its minutes, reflecting the granting of the consecutive exemption period and the dates upon which such consecutive exemption period begins and expires. The entry of this order granting the consecutive period of exemption shall be made before the expiration of the exemption period immediately preceding the consecutive exemption period being granted.

(2) For expansions of facilities or properties or replacement of equipment, county boards of supervisors and municipal authorities may grant a fee in lieu of taxes in the same manner, to the same extent, and with the same qualifying threshold as provided for projects under Section 27-31-104, Mississippi Code of 1972.

SECTION 2. This act shall take effect and be in force from and after July 1, 1997.