House Bill 1624

AN ACT TO AMEND SECTIONS 19-29-39 AND 27-31-36, MISSISSIPPI CODE OF 1972, TO EXEMPT FROM AD VALOREM TAXATION ANY LEASE OR OTHER CONTRACT ENTERED INTO BY A RAILROAD AUTHORITY PROVIDING A LEASEHOLD OR OTHER INTEREST TO A PERSON IN RAILROAD PROPERTIES AND FACILITIES OWNED OR CONTROLLED BY THE RAILROAD UPON A FINDING MADE BY THE RAILROAD AUTHORITY THAT THE EXEMPTION OF SUCH INTEREST IS NECESSARY TO ASSIST WITH OR MAKE POSSIBLE THE REPAIR, REHABILITATION OR RECONSTRUCTION OF THE RAILROAD PROPERTIES AND FACILITIES; TO PROVIDE THAT THE EXEMPTION MAY BE FOR A PERIOD NOT TO EXCEED A TOTAL OF TEN YEARS; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 19-29-39, Mississippi Code of 1972, is amended as follows:

19-29-39. Any property in this state acquired by an authority for railroad purposes pursuant to the provisions of this chapter, and any income derived by the authority from the ownership, operation or control thereof shall be exempt from taxation to the same extent as other property belonging to political subdivisions of this state. In addition, any lease or other contract entered into by a railroad authority providing a leasehold or other interest to a person in railroad properties and facilities owned or controlled by the railroad authority shall be exempt from ad valorem taxation upon a finding made by the railroad authority that the exemption of such interest from ad valorem taxation is necessary to assist with or make possible the repair, rehabilitation and/or reconstruction of the railroad properties and facilities. Such exemption may be for a period not to exceed a total of ten (10) years.

SECTION 2. Section 27-31-36, Mississippi Code of 1972, is amended as follows:

27-31-36. All railroad properties and facilities in this state owned by a limited liability company or other entity that is wholly owned by a railroad authority created under Section 19-29-1 et seq. shall be exempt from ad valorem taxation to the same extent as property belonging to such a railroad authority. In addition, any lease or other contract entered into by such a limited liability company or railroad authority providing a leasehold or other interest to a person in railroad properties and facilities owned or controlled by the railroad authority shall be exempt from ad valorem taxation upon a finding made by the railroad authority that the exemption of such interest from ad valorem taxation is necessary to assist with or make possible the repair, rehabilitation and/or reconstruction of the railroad properties and facilities. Such exemption may be for a period not to exceed a total of ten (10) years. For the purposes of this section, the term "railroad properties and facilities" means and has the same definition as that term has in Section 19-29-5. For the purposes of this section, the term "person" means and has the same definition as that term has in Section 19-29-5.

SECTION 3. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the ad valorem tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the ad valorem tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.

SECTION 4. This act shall take effect and be in force from and after January 1, 2018.