MISSISSIPPI LEGISLATURE
2013 Regular Session
To: Education
By: Representative Moore
AN ACT TO AMEND SECTION 37-57-104, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE LEVYING AUTHORITY FOR A SCHOOL DISTRICT TO VETO THE SCHOOL BOARD'S REQUEST FOR AN INCREASE IN THE AD VALOREM TAX DOLLARS UP TO SEVEN PERCENT; TO AMEND SECTION 37-57-105, MISSISSIPPI CODE OF 1972, IN CONFORMITY TO THE PROVISIONS OF THIS ACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 37-57-104, Mississippi Code of 1972, is amended as follows:
37-57-104. (1) Each school board shall submit to the levying authority for the school district a certified copy of an order adopted by the school board requesting an ad valorem tax effort in dollars for the support of the school district. The copy of the order shall be submitted by the school board when the copies of the school district's budget are filed with the levying authority pursuant to Section 37-61-9. Upon receipt of the school board's order requesting the ad valorem tax effort in dollars, the levying authority shall determine the millage rate necessary to generate funds equal to the dollar amount requested by the school board. For the purpose of calculating this millage rate, any additional amount that is levied pursuant to Section 37-57-105(1) to cover anticipated delinquencies and costs of collection or any amount that may be levied for the payment of the principal and interest on school bonds or notes shall be excluded from the limitation of fifty-five (55) mills provided for in subsection (2) of this section.
(2) Millage requests
exceeding fifty-five (55) mills. (a) Except as otherwise provided
under paragraph (b) * * * of this subsection, if the millage rate necessary to generate
funds equal to the dollar amount requested by the school board is greater than
fifty-five (55) mills, and if this millage rate is higher than the millage then
being levied pursuant to the school board's order requesting the ad valorem tax
effort for the currently existing fiscal year, then the levying authority shall
call a referendum on the question of exceeding, during the next fiscal year,
the then existing millage rate being levied for school district purposes. The
referendum shall be scheduled for not more than six (6) weeks after the date on
which the levying authority receives the school board's order requesting the ad
valorem tax effort.
When a referendum has been called, notice of the referendum shall be published at least five (5) days per week, unless the only newspaper published in the school district is published less than five (5) days per week, for at least three (3) consecutive weeks, in at least one (1) newspaper published in the school district. The notice 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 notice may not be placed in that portion of the newspaper where legal notices and classified advertisements appear. The first publication of the notice shall be made not less than twenty-one (21) days before the date fixed for the referendum, and the last publication shall be made not more than seven (7) days before that date. If no newspaper is published in the school district, then the notice shall be published in a newspaper having a general circulation in the school district. The referendum shall be held, as far as is practicable, in the same manner as other referendums and elections are held in the county or municipality. At the referendum, all registered, qualified electors of the school district may vote. The ballots used at the referendum shall have printed thereon a brief statement of the amount and purpose of the increased tax levy and the words "FOR INCREASING THE MILLAGE LEVIED FOR SCHOOL DISTRICT PURPOSES FROM (MILLAGE RATE CURRENTLY LEVIED) MILLS TO (MILLAGE RATE REQUIRED UNDER SCHOOL BOARD'S ORDER) MILLS," and "AGAINST INCREASING THE MILLAGE LEVIED FOR SCHOOL DISTRICT PURPOSES FROM (MILLAGE RATE CURRENTLY LEVIED) MILLS TO (MILLAGE RATE REQUIRED UNDER SCHOOL BOARD'S ORDER) MILLS." The voter shall vote by placing a cross (X) or checkmark (√) opposite his choice on the proposition.
If a majority of the registered, qualified electors of the school district who vote in the referendum vote in favor of the question, then the ad valorem tax effort in dollars requested by the school board shall be approved. However, if a majority of the registered, qualified electors who vote in the referendum vote against the question, the millage rate levied by the levying authority shall not exceed the millage then being levied pursuant to the school board's order requesting the ad valorem tax effort for the then currently existing fiscal year.
Nothing in this subsection shall be construed to require any school district that is levying more than fifty-five (55) mills pursuant to Sections 37-57-1 and 37-57-105 to decrease its millage rate to fifty-five (55) mills or less. Further, nothing in this subsection shall be construed to require a referendum in a school district where the requested ad valorem tax effort in dollars requires a millage rate of greater than fifty-five (55) mills but the requested dollar amount does not require any increase in the then existing millage rate. Further, nothing in this subsection shall be construed to require a referendum in a school district where, because of a decrease in the assessed valuation of the district, a millage rate of greater than fifty-five (55) mills is necessary to generate funds equal to the dollar amount generated by the ad valorem tax effort for the currently existing fiscal year.
* * *
( * * *b) If the levying authority for any
school district lawfully has decreased the millage levied for school district
purposes, but subsequently determines that there is a need to increase the
millage rate due to a disaster in which the Governor has declared a disaster
emergency or the President of the United States has declared an emergency or
major disaster, then the levying authority may increase the millage levied for
school district purposes up to an amount that does not exceed the millage rate
in any one (1) of the immediately preceding ten (10) fiscal years without any
referendum that otherwise would be required under this subsection.
(3) Millage requests
equal to or less than fifty-five (55) mills, up to seven percent (7%) increase.
If the millage rate necessary to generate funds equal to the dollar amount
requested by the school board is equal to fifty-five (55) mills or less, but
the dollar amount requested by the school board exceeds the next preceding
fiscal year's ad valorem tax effort in dollars by * * * an amount
not more than seven percent (7%) (as provided for under subsection (4) of this
section), the levying authority for the school district, in its discretion,
may veto the school board's request for the increased tax levy. If the levying
authority does not veto the request for the increased tax levy, then the
school board shall publish notice * * * of the increase at least
five (5) days per week, unless the only newspaper published in the school
district is published less than five (5) days per week, for at least three (3)
consecutive weeks in a newspaper published in the school district. The notice
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 notice may not be placed in that portion of the newspaper where
legal notices and classified advertisements appear. The first publication
shall be made not less than fifteen (15) days before the final adoption of the
budget by the school board. If no newspaper is published in the school
district, then the notice shall be published in a newspaper having a general
circulation in the school district. If at any time before the adoption of the
budget a petition signed by not less than twenty percent (20%) or fifteen
hundred (1500), whichever is less, of the registered, qualified electors of the
school district is filed with the school board requesting that a referendum be
called on the question of exceeding the next preceding fiscal year's ad valorem
tax effort in dollars by * * *more than four percent (4%), an amount not more than
seven percent (7%), then the school board shall adopt, not later than the
next regular meeting, a resolution calling a referendum to be held within the
school district upon the question. The referendum shall be called and held,
and notice thereof shall be given, in the same manner provided for in
subsection (2) of this section. The ballot shall contain the language
"FOR THE SCHOOL TAX INCREASE * * *" and "AGAINST
THE SCHOOL TAX INCREASE * * *." If a majority of the registered, qualified
electors of the school district who vote in the referendum vote in favor of the
question, then the increase requested by the school board shall be approved.
For the purposes of this subsection, the revenue sources excluded from the
increase limitation under Section 37-57-107 also shall be excluded from the
limitation described in this subsection in the same manner as they are excluded
under Section 37-57-107. * * *Provided However, * * * any increases requested by the
school board as a result of the required local contribution to the Mississippi
Adequate Education Program, as certified to the local school district by the
State Board of Education under Section 37-151-7(2), Mississippi Code of 1972,
shall not be subject to the * * * tax increase
limitations provided in this section.
(4) Millage requests equal to or less than fifty-five (55) mills, exceeding seven percent (7%) increase. If the millage rate necessary to generate funds equal to the dollar amount requested by the school board is equal to fifty-five (55) mills or less, but the dollar amount requested by the school board exceeds the seven percent (7%) increase limitation provided for in Section 37-57-107, the school board may exceed the seven percent (7%) increase limitation only after the school board has determined the need for additional revenues and three-fifths (3/5) of the registered, qualified electors voting in a referendum called by the levying authority have voted in favor of the increase. The notice and manner of holding the referendum shall be as prescribed in subsection (2) of this section for a referendum on the question of increasing the millage rate in school districts levying more than fifty-five (55) mills for school district purposes.
(5) The aggregate receipts from ad valorem taxes levied for school district purposes pursuant to Sections 37-57-1 and 37-57-105, excluding collection fees, additional revenue from the ad valorem tax on any newly constructed properties or any existing properties added to the tax rolls or any properties previously exempt which were not assessed in the next preceding year, and amounts received by school districts from the School Ad Valorem Tax Reduction Fund pursuant to Section 37-61-35, shall be subject to the increase limitation under this section and Section 37-57-107.
(6) The school board shall pay to the levying authority all costs that are incurred by the levying authority in the calling and holding of any election under this section.
(7) * * * This section shall not be
construed to affect in any manner the authority of school boards to levy
millage for the following purposes:
(a) The issuance of bonds, notes and certificates of indebtedness, as authorized in Sections 37-59-1 through 37-59-45 and Sections 37-59-101 through 37-59-115;
(b) The lease of property for school purposes, as authorized under the Emergency School Leasing Authority Act of 1986 (Sections 37-7-351 through 37-7-359);
(c) The lease or lease-purchase of school buildings, as authorized under Section 37-7-301;
(d) The issuance of promissory notes in the event of a shortfall of ad valorem taxes and/or revenue from local sources, as authorized under Section 27-39-333; and
(e) The construction of school buildings outside the school district, as authorized under Section 37-7-401.
Any millage levied for the purposes specified in this subsection shall be excluded from the millage limitations established under this section.
SECTION 2. Section 37-57-105, Mississippi Code of 1972, is amended as follows:
37-57-105. (1) In addition
to the taxes levied under Section 37-57-1, the levying authority for the school
district, as defined in Section 37-57-1, upon receipt of a certified copy of an
order adopted by the school board of the school district requesting an ad
valorem tax effort in dollars for the support of the school district, shall, at
the same time and in the same manner as other ad valorem taxes are levied, levy
an annual ad valorem tax in the amount fixed in such order upon all of the
taxable property of such school district, which shall not be less than the
millage rate certified by the State Board of Education as the uniform minimum
school district ad valorem tax levy for the support of the adequate education
program in such school district under Section 37-57-1. * * * However, * * * any school district levying less than the
uniform minimum school district ad valorem tax levy on July 1, 1997, shall only
be required to increase its local district maintenance levy in four (4) mill
annual increments in order to attain such millage requirements. In making such
levy, the levying authority shall levy an additional amount sufficient to cover
anticipated delinquencies and costs of collection so that the net amount of
money to be produced by * * *such the levy shall be equal to the amount which
is requested by * * *
the school board. The proceeds of * * * the tax levy, excluding
levies for the payment of the principal of and interest on school bonds or
notes and excluding levies for costs of collection, shall be placed in the
school depository to the credit of the school district and shall be expended in
the manner provided by law for the purpose of supplementing teachers' salaries,
extending school terms, purchasing furniture, supplies and materials, and for
all other lawful operating and incidental expenses of * * * the school district, funds
for which are not provided by adequate education program fund allotments.
The monies authorized to be
received by school districts from the School Ad Valorem Tax Reduction Fund
pursuant to Section 37-61-35 shall be included as ad valorem tax receipts. The
levying authority for the school district, as defined in Section 37-57-1, shall
reduce the ad valorem tax levy for * * * the school district in an amount
equal to the amount distributed to * * * the school district from the
School Ad Valorem Tax Reduction Fund each calendar year * * *
as prescribed
under Section 37-61-35. * * * The reduction shall not be less
than the millage rate necessary to generate a reduction in ad valorem tax
receipts equal to the funds distributed to such school district from the School
Ad Valorem Tax Reduction Fund pursuant to Section 37-61-35. * * *
In any county where there is
located a nuclear generating power plant on which a tax is assessed under
Section 27-35-309(3), * * *
the required levy and revenue produced thereby may be reduced by the
levying authority in an amount in proportion to a reduction in the base revenue
of any such county from the previous year. * * * The reduction shall be allowed only
if the reduction in base revenue equals or exceeds five percent (5%). "Base
revenue" shall mean the revenue received by the county from the ad valorem
tax levy plus the revenue received by the county from the tax assessed under
Section 27-35-309(3) and authorized to be used for any purposes for which a
county is authorized by law to levy an ad valorem tax. For purposes of
determining if the reduction equals or exceeds five percent (5%), a levy of
millage equal to the * * * preceding year's millage shall be hypothetically applied to
the current year's ad valorem tax base to determine the amount of revenue to be
generated from the ad valorem tax levy. For the purposes of this section and
Section 37-57-107, the portion of the base revenue used for the support of any
school district shall be deemed to be the aggregate receipts from ad valorem
taxes for the support of any school district. This paragraph shall apply to
taxes levied for the 1987 fiscal year and for each fiscal year thereafter. If
the Mississippi Supreme Court or another court finally adjudicates that the tax
levied under Section 27-35-309(3) is unconstitutional, then this paragraph
shall stand repealed.
(2) When the tax is levied upon the territory of any school district located in two (2) or more counties, the order of the school board requesting the levying of such tax shall be certified to the levying authority of each of the counties involved, and each of the levying authorities shall levy the tax in the manner specified herein. The taxes so levied shall be collected by the tax collector of the levying authority involved and remitted by the tax collector to the school depository of the home county to the credit of the school district involved as provided above, except that taxes for collection fees may be retained by the levying authority for deposit into its general fund.
(3) The aggregate receipts
from ad valorem taxes levied for school district purposes, excluding collection
fees, pursuant to this section and Section 37-57-1 shall be subject to the
increased limitation under Section 37-57-107 * * *.
SECTION 3. This act shall take effect and be in force from and after July 1, 2013.