MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Ways and Means

By: Representatives Reeves, Smith (39th)

AN ACT TO AMEND SECTIONS 27-39-203 AND 27-39-205, MISSISSIPPI CODE OF 1972, TO REVISE THE FORM OF THE NOTICE REQUIRED WHEN A TAXING ENTITY PROPOSES TO INCREASE AD VALOREM TAXES REVENUE; TO PROVIDE FOR THE CONTENTS OF SUCH NOTICE; TO AMEND SECTION 27-39-207, MISSISSIPPI CODE OF 1972, TO REVISE THE FORM OF THE NOTICE REQUIRED WHEN A SCHOOL DISTRICT INTENDS TO INCREASE ITS BUDGET BY REQUESTING AN INCREASE IN AD VALOREM TAX EFFORT IN DOLLARS TO SUPPORT THE SCHOOL DISTRICT; TO PROVIDE FOR THE CONTENTS OF SUCH NOTICE; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 27-39-203, Mississippi Code of 1972, is amended as follows:

27-39-203. (1) No taxing entity may budget an increased amount of ad valorem tax revenue as set forth in Section 112, Mississippi Constitution of 1890, exclusive of revenue from new growth, unless it advertises its intention to do so at the same time that it advertises its intention to fix its budget for the forthcoming fiscal year.

(2) (a) For taxing entities operating under an October 1 through September 30 fiscal year this advertisement may be combined with the advertisement required by Section 27-39-205 of this article. For taxing entities operating under a January 1 through December 31 fiscal year or a July 1 through June 30 fiscal year, the advertisement shall meet the size, type, placement and frequency requirements established under Section 27-39-205 of this article.

(b) The advertisement shall be in the following form:

The (name of the taxing entity) will hold a public hearing on the proposed budget for the next fiscal year on (date and time) at (meeting place) for the purpose of consideration of a proposed ad valorem tax revenue increase.

The (name of the taxing entity) is currently operating under a budget with projected total revenues of $_________, with $__________ (____ percent) of such revenues financed through ad valorem taxes. For the next fiscal year, the proposed budget has total projected revenues of $_________. Of the total amount of projected revenues for the next fiscal year, $__________ (____ percent) is proposed to be financed through ad valorem taxes.

For the proposed budget for the next fiscal year, the (name of the taxing entity) estimates that the ad valorem tax millage rate will (increase/decrease) by _____ mills from _____ mills to _____ mills.

All concerned citizens of (name of the taxing entity) are invited to attend the public hearing on the proposed ad valorem tax revenue increase.

A final decision on the proposed ad valorem tax revenue increase will be made on (date and time) in a public hearing to be held at (meeting place)."

(c) All taxing entities operating under the January 1 through December 31 fiscal year or a July 1 through June 30 fiscal year shall hold a public hearing at which the budget for the following fiscal year will be considered, regardless of whether that budget is being increased or decreased, and shall notify the county of the date, time and place of the public hearing. The county shall include that information with the tax notice.

SECTION 2. Section 27-39-205, Mississippi Code of 1972, is amended as follows:

27-39-205. (1) No tax rate in excess of the certified tax rate may be levied under Sections 21-33-45, 27-39-307, 27-39-317 and 27-39-320 until a resolution has been approved by the governing body of the taxing entity in accordance with the following procedure:

(a) The taxing entity shall advertise its intent to exceed the certified tax rate in a newspaper of general circulation in the county, except that a taxing entity collecting taxes in more than one (1) county may make the advertisement required under this section by publication in the county where the taxing entity's principal place of business is located. The advertisement shall be no less than one-fourth (1/4) page in size and the type used shall be no smaller than eighteen (18) point and surrounded by a one-fourth-inch solid black border. The advertisement may not be placed in that portion of the newspaper where legal notices and classified advertisements appear. It is the intent of the Legislature that the advertisement appear in a newspaper that is published at least five (5) days a week, unless the only newspaper in the county is published less than five (5) days a week. It is further the intent of the Legislature that the newspaper selected be one of general interest and readership in the community, and not one of limited subject matter. The advertisement shall be run once each week for the two (2) weeks preceding the adoption of the final budget. The advertisement shall state that the taxing entity will meet on a certain day, time and place fixed in the advertisement, which shall be not less than seven (7) days after the day the first advertisement is published, for the purpose of hearing comments regarding any proposed increase and to explain the reasons for the proposed increase. The meeting on the proposed increase may coincide with the hearing on the proposed budget of the taxing entity.

(b) The advertisement shall be in the following form:

The (name of the taxing entity) will hold a public hearing on the proposed budget for the next fiscal year on (date and time) at (meeting place) for the purpose of consideration of a proposed ad valorem tax revenue increase.

The (name of the taxing entity) is currently operating under a budget with projected total revenues of $_________, with $__________ (____ percent) of such revenues financed through ad valorem taxes. For the next fiscal year, the proposed budget has total projected revenues of $_________. Of the total amount of projected revenues for the next fiscal year, $__________ (____ percent) is proposed to be financed through ad valorem taxes.

For the proposed budget for the next fiscal year, the (name of the taxing entity) estimates that the ad valorem tax millage rate will (increase/decrease) by _____ mills from _____ mills to _____ mills.

All concerned citizens of (name of the taxing entity) are invited to attend the public hearing on the proposed ad valorem tax revenue increase."

(c) The State Tax Commission shall adopt rules governing the joint use of one (1) advertisement under this section or Section 27-39-203 of this article by two (2) or more taxing entities and may, upon petition by any taxing entity, authorize either (i) the use of weekly newspapers in counties having both daily and weekly newspapers where the weekly newspaper would provide equal or greater notice to the taxpayer, or (ii) the use of a State Tax Commission-approved direct notice to each taxpayer if the cost of the advertisement would cause undue hardship and the direct notice is different and separate from that provided for in subsection (2).

(2) The governing body of the taxing entity, after the hearing has been held in accordance with the above procedures, may adopt a resolution levying a tax rate on classes of property designated by Section 112, Mississippi Constitution of 1890, in excess of the certified tax rate. If the resolution adopting the tax rate is not adopted on the day of the public hearing, the scheduled time and place for consideration and adoption of the resolution shall be announced at the public hearing. If the resolution is to be considered at a day and time that is more than two (2) weeks after the public hearing, the governing body shall advertise the date of the proposed adoption of the resolution in the same manner as provided under subsection (1).

(3) All hearings shall be open to the public. The governing body of the taxing entity shall permit all interested parties desiring to be heard an opportunity to present oral testimony within reasonable time limits.

(4) Each taxing entity shall notify the county or municipal governing body of the date, time and place of its public hearing. No taxing entity may schedule its hearing at the same time as another overlapping taxing entity in the same county, but all taxing entities in which the power to set tax levies is vested in the same governing authority may consolidate the required hearings into one (1) hearing. The county or municipal governing body shall resolve any conflicts in hearing dates and times after consultation with each affected taxing entity.

SECTION 3. Section 27-39-207, Mississippi Code of 1972, is amended as follows:

27-39-207. (1) No school district may budget an increase in an ad valorem tax effort in dollars for support of the school district unless it advertises its intention to do so at the same time that it advertises its intention to fix its budget for the forthcoming fiscal year.

(2) No request for an ad valorem tax effort in dollars for the support of the school district in excess of the certified tax rate pursuant to Sections 37-57-105 and 37-57-107 may be levied until an order has been approved by the school board of the school district in accordance with the following procedure:

(a) The school board of the school district shall advertise its intent to exceed the certified tax rate in a newspaper of general circulation in the county. The advertisement shall be no less than one-fourth (1/4) page in size and the type used shall be no smaller than eighteen (18) point and surrounded by a one-fourth-inch (1/4") solid black border. The advertisement may not be placed in that portion of the newspaper where legal notices and classified advertisements appear. It is the intent of the Legislature that the advertisement appear in a newspaper that is published at least five (5) days a week, unless the only newspaper in the county is published less than five (5) days a week. It is further the intent of the Legislature that the newspaper selected be one of general interest and readership in the community, and not one of limited subject matter. The advertisement shall be run once each week for the two (2) weeks preceding the adoption of the final budget. The advertisement shall state that the school board of the school district will meet on a certain day, time and place fixed in the advertisement, which shall be not less than seven (7) days after the day the first advertisement is published, for the purpose of hearing comments regarding any proposed increase and to explain the reasons for the proposed increase. The meeting on the proposed increase may coincide with the hearing on the proposed budget of the school board of the school district.

(b) The advertisement shall be in the following form:

The (name of the school district) will hold a public hearing on the proposed school district budget for the next fiscal year on (date and time) at (meeting place) for the purpose of consideration of a proposed ad valorem tax effort increase.

The (name of the school district) is currently operating under a budget with projected total revenues of $_________, with $__________ (____ percent) of such revenues financed through ad valorem taxes. For the next fiscal year, the proposed budget has total projected revenues of $_________. Of the total amount of projected revenues for the next fiscal year, $__________ (____ percent) is proposed to be financed through ad valorem taxes.

For the proposed budget for the next fiscal year, the (name of the school district) estimates that the ad valorem tax millage rate will (increase/decrease) by _____ mills from _____ mills to _____ mills.

All concerned citizens of (name of the school district) are invited to attend the public hearing on the proposed ad valorem tax effort increase.

A final decision on the proposed ad valorem tax effort increase will be made on (date and time) in a public hearing to be held at (meeting place)."

(3) The school board of the school district, after the hearing has been held in accordance with the above procedures, may adopt an order requesting the levying of an ad valorem tax effort in dollars in excess of the certified tax rate.

(4) All hearings shall be open to the public. The school board of the school district shall permit all interested parties desiring to be heard an opportunity to present oral testimony within reasonable time limits.

(5) Each school board of a school district shall notify the taxing entity of the date, time and place of its public hearing. No school board of a school district may schedule its hearing at the same time as another overlapping school district in the same county.

SECTION 4. This act shall take effect and be in force from and after July 1, 1999.