MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Finance

By: Senator(s) Bryan

AN ACT TO EXEMPT FROM AD VALOREM TAXATION 50% OF THE TRUE VALUE OF CLASS IV PROPERTY OWNED OR USED BY A TELECOMMUNICATION PROVIDER IF ALL SUCH PROPERTY OWNED OR USED BY SUCH PROVIDER IS LOCATED IN MORE THAN SIX COUNTIES; TO CREATE THE TELECOMMUNICATION LOCAL DISTRIBUTION FUND INTO AN AMOUNT APPROPRIATED ANNUALLY BY THE LEGISLATURE EQUAL TO THE TAX LOSS SUSTAINED BY LOCAL TAXING DISTRICTS AS A RESULT OF THE EXEMPTION AUTHORIZED PURSUANT TO THIS ACT; TO PROVIDE THAT MONEY IN SUCH FUND SHALL BE PAID BY THE STATE TAX COMMISSION TO LOCAL TAXING DISTRICTS; TO PROVIDE FOR THE AMOUNT THAT SHALL BE PAID TO LOCAL TAXING DISTRICTS; AND FOR RELATED PURPOSES.

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

SECTION 1. From and after January 1, 2001, fifty percent (50%) of the true value of Class IV property, as defined in Section 112, Mississippi Constitution of 1890, owned or used by a telecommunication provider shall be exempt from ad valorem taxation if all the property owned or used by such provider is located in more than six (6) counties.

SECTION 2. (1) There is hereby created in the State Treasury a special fund to be known as the Telecommunications Local Distribution Fund, into which shall be deposited an amount appropriated annually by the Legislature equal to the tax loss sustained by the local taxing districts during the appropriate calendar year as a result of the exemption authorized in Section 1 of this act. The monies in the fund shall be used for the purpose of making payments to local taxing districts provided for in subsection (3) of this section.

(2) The Telecommunications Local Distribution Fund shall be administered by the State Tax Commission, and money in the fund shall be expended upon appropriation by the Legislature. Unexpended amounts remaining in the fund at the end of the state fiscal year shall not lapse into the State General Fund, and any interest earned on amounts in the fund shall be deposited to the credit of the fund.

(3) On or before October 1, 2000, and on or before October 1 of each year thereafter, money from the fund shall be paid by the State Tax Commission to each local taxing district in an amount not less than an amount equal to the estimated tax loss that such taxing district will sustain in the following calendar year as a result of the exemption authorized pursuant to Section 1 of this act.

(4) Funds received by local taxing districts from the payments made pursuant to this section shall be considered to be, and shall be used in the same manner as, the proceeds of ad valorem taxes on property.

(5) The State Tax Commission shall calculate all distributions that are required to be made pursuant to this section.

(6) As used in this section, the term "local taxing district" means any county, municipality, school district or other local entity that levies an ad valorem tax or for which an ad valorem tax is levied, to fund all or a portion of its budget.

SECTION 3. This act shall take effect and be in force from and after July 1, 1999.