MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Ways and Means

By: Representative Endt

AN ACT TO AMEND SECTION 27-31-34, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE AD VALOREM TAX EXEMPTION FOR POSSESSORY AND LEASEHOLD INTERESTS OF LESSEES UNDER CERTAIN LEASE CONTRACTS, LEASES OR LEASEHOLDS SHALL NOT APPLY TO AD VALOREM TAXES FOR SCHOOL DISTRICT PURPOSES; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 27-31-34, Mississippi Code of 1972, is amended as follows:

27-31-34. (1) For purposes of this section, "state" means the State of Mississippi or any county, district, municipality or other political subdivision thereof.

Except as otherwise provided in this section, all lease contracts, leases or leaseholds in existence on or before the effective date of this act (a) to which the state is a party, (b) which provide that the leased premises and all facilities and replacements thereof are and shall be the property of the state, and (c) which provide a term or period of time for exemption from ad valorem taxation, shall, along with the possessory and leasehold interests as described under and originally created by such lease contract, lease or leasehold, be exempt from all ad valorem taxation for the term or period of time as stated in such lease contracts, leases or leaseholds and any extension or renewal thereof. Except as otherwise provided in this section, lease contracts, leases, or leaseholds meeting the requirements of subparts (a) and (b) above, which were entered into prior to July 1, 1984, and which do not contain an express term or period for exemption from ad valorem taxation, shall be exempt from all ad valorem taxation for the term of such lease contracts, leases, or leaseholds, including any option periods which may be exercised by the lessee. No lease contract, lease or leasehold shall be exempt from ad valorem taxes for school district purposes, regardless of when any such lease contract, lease or leasehold was created.

(2) It is the sense of the Legislature that the provisions of Section 112, Mississippi Constitution of 1890, allowing the Legislature to exempt, by general laws, particular species of property from taxation, in whole or in part, authorize the enactment of this section. Further, the provisions of this section shall not be construed as the surrender or abridgement by the state of the power to tax the property which is the subject of the contracts, leases or leaseholds referred to in subsection (1) of this section. This section affirms the power of the state to grant such an exemption when it is in the best interests of the state to do so.

(3) The provisions of this section shall not apply to:

(a) A leasehold interest in property belonging to the Pearl River Water Supply District; or

(b) Any civil action filed before April 16, 1993.

SECTION 2. This act shall take effect and be in force from and after January 1, 2000.