REPORT OF CONFERENCE COMMITTEE

H.B. No. 614: Ad valorem taxes; revise form and contents of notice required when a taxing entity or school district proposes to increase.

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

27-39-203. (1) 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 will be increased or decreased from the current budget or will remain the same as the current budget, 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.

(2) Unless the increased revenue in a budget is derived solely from the expansion of a taxing entity's ad valorem tax base, a taxing entity shall not budget an increased amount of * * * revenue derived from the classes of ad valorem property described in Section 112, Mississippi Constitution of 1890, * * * unless it first advertises its intention to do so at the same time that it advertises its intention to fix its budget for the next fiscal year.

(3) (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 * * *. For all taxing entities * * *, the advertisement shall meet the size, type, placement and frequency requirements established under Section 27-39-205 * * *.

(b) When the advertisement is required, it shall be in the following form:

The (name of the taxing entity) will hold a public hearing on its proposed budget for fiscal year (insert the year) on (date and time) at (meeting place). At this meeting, a proposed ad valorem tax revenue increase in the proposed budget will be considered.

The (name of the taxing entity) is now operating with projected total budget revenue of $_________. (____ percent) or $__________ of such revenue is obtained through ad valorem taxes. For next fiscal year, the proposed budget has total projected revenue of $_________. Of that amount, (____ percent) or $______, is proposed to be financed through a total ad valorem tax levy.

This increase in ad valorem tax revenue means that you will pay more in ad valorem taxes on your home, automobile tag, utilities, business fixtures and equipment and rental real property.

Any citizen of (name of the taxing entity) is invited to attend this public hearing on the proposed ad valorem tax revenue increase in the budget and will be allowed to speak for a reasonable amount of time and offer tangible evidence before any vote is taken."

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

27-39-205. (1) A tax rate in excess of the certified tax rate shall not 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. A taxing entity collecting taxes in more than one (1) county shall make the advertisement required under this section by publication in each county where the taxing entity collects taxes. 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 shall not be placed in any portion of the newspaper where legal notices and classified advertisements appear. * * * The advertisement shall 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. * * * The newspaper selected shall be one of general interest, readership and circulation in all areas of the community * * *. The advertisement shall be published once each week for the two-week period preceding the adoption of the final budget. The advertisement shall provide that the taxing entity will meet on a certain day, date, time and place fixed in the advertisement, which shall be no less than seven (7) days after the day the first advertisement is published * * *. The meeting on the proposed increase may coincide with the hearing on the proposed budget of the taxing entity.

(b) When the advertisement is required it shall be in the following form:

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

The (name of the taxing entity) is now operating with projected total budget revenue of $_________. (____ percent) or $_________, of such revenue is obtained through ad valorem taxes. For next fiscal year, the proposed budget has total projected revenue of $_________. Of that amount, (____ percent) or $_______, is proposed to be financed through a total ad valorem tax levy.

For next fiscal year, the (name of the taxing entity) plans to increase your ad valorem tax millage rate by _____ mills from _____ mills to _____ mills. This increase means that you will pay more in ad valorem taxes on your home, automobile tag, utilities, business fixtures and equipment and rental real property.

Any citizen of (name of the taxing entity) is invited to attend this public hearing on the proposed ad valorem tax increase, and will be allowed to speak for a reasonable amount of time and offer tangible evidence before any vote is taken."

(2) * * * After the hearing has been held in accordance with the above procedures, the governing body of the taxing entity 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 date, time and place for consideration and adoption of the resolution shall be announced at the public hearing and the governing body shall advertise the date, time and place 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 and offer tangible evidence.

(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) Unless the increased revenue in a budget is derived solely from the expansion of a school district's ad valorem tax base, a school district shall not budget an increase in an ad valorem tax effort in dollars for support of the school district unless it first advertises its intention to do so at the same time that it advertises its intention to fix its budget for the next fiscal year.

(2) A 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 shall not 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 shall not be placed in any portion of the newspaper where legal notices and classified advertisements appear. The advertisement shall 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. * * * The newspaper selected shall be one of general interest, readership and circulation in all areas of the community * * *. The advertisement shall be published once each week for the two-week period preceding the adoption of the final budget. The advertisement shall provide that the school board of the school district will meet on a certain day, date, time and place fixed in the advertisement, which shall be no less than seven (7) days after the day the first advertisement is published * * *. The meeting on the proposed increase may coincide with the hearing on the proposed budget of the school board of the school district.

(b) When the advertisement is required, it shall be in the following form:

The (name of the school district) will hold a public hearing on its proposed school district budget for fiscal year (insert the year) on (date and time) at (meeting place). At this meeting, a proposed ad valorem tax effort increase will be considered.

The (name of the school district) is now operating with projected total budget revenue of $_________. (____ percent) or $_________, of such revenue is obtained through ad valorem taxes. For next fiscal year, the proposed budget has total projected revenue of $_________. Of that amount, (____ percent) or $_______, is proposed to be financed through a total ad valorem tax levy.

For the next fiscal year, the (name of the school district) plans to increase your ad valorem tax millage rate by _____ mills from _____ mills to _____ mills. (This portion of the notice shall not be required if the school district does not propose an increase in the ad valorem tax millage rate.)

This increase in ad valorem tax revenue means that you will pay more in ad valorem taxes on your home, automobile tag, utilities, business fixtures and equipment and rental real property.

Any citizen of (name of the school district) is invited to attend this public hearing on the proposed ad valorem tax increase, and will be allowed to speak for a reasonable amount of time and offer tangible evidence before any vote is taken."

(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. If such order is not adopted on the day of the public hearing, the scheduled date, time and place for consideration and adoption of the order shall be announced at the public hearing.

(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 and offer tangible evidence.

(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 its passage.

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 TAX 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; TO REVISE WHEN SUCH NOTICE IS REQUIRED; AND FOR RELATED PURPOSES.