Senate Bill 2198

AN ACT TO AMEND SECTION 37-59-107, MISSISSIPPI CODE OF 1972, TO INCREASE THE MAXIMUM AD VALOREM TAX LEVY FOR THE REPAYMENT OF SHORT-TERM NOTES ISSUED BY SCHOOL DISTRICTS; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 37-59-107, Mississippi Code of 1972, is amended as follows:

37-59-107. The levying authority for the school district shall annually levy a special tax on all of the taxable property of the school district on whose behalf the notes or certificates of indebtedness are issued in an amount which shall be sufficient to pay the principal of and interest upon such negotiable notes or certificates of indebtedness as the same shall respectively mature and accrue. Said tax shall be levied and collected at the same time and in the same manner as other taxes are collected and said tax shall be in addition to all other taxes authorized by law. It is expressly provided, however, that such annual tax levy shall not exceed five (5) mills on the dollar for the payment of all notes issued under the provisions of this article and all notes previously issued under the statutes hereby repealed. The special tax so levied shall be collected by the tax collector of the county at the same time and in the same manner as other taxes are collected, and the proceeds thereof shall be paid to the school district and shall be used exclusively for the payment of principal of and interest upon such negotiable notes or certificates of indebtedness.

SECTION 2. This act shall take effect and be in force from and after July 1, 2005.