Senate Bill 2901

AN ACT TO PROVIDE NOTICE AND HEARING PROCEDURES TO BE FOLLOWED BY COUNTIES AND MUNICIPALITIES INTENDING TO EXCEED THE REVENUE-NEUTRAL RATE IN THEIR LEVY OF AD VALOREM TAXES; TO PROVIDE THAT THESE PROCEDURES DO NOT APPLY TO SCHOOL DISTRICT MILLAGE RATES; TO REQUIRE THE REFUND OF ANY PROPERTY TAXES OVER-COLLECTED BASED ON THE AMOUNT OF THE LEVY IN EXCESS OF THE REVENUE-NEUTRAL RATE, IF SUCH PROCEDURES WERE NOT FOLLOWED; TO PROVIDE THAT THE DEPARTMENT OF REVENUE SHALL MONITOR COMPLIANCE WITH THIS ACT, AND TO AUTHORIZE THE DEPARTMENT TO PROMULGATE RULES AND REGULATIONS IN FURTHERANCE THEREOF; TO PROVIDE THAT, IF THE REVENUE-NEUTRAL RATE IS EXCEEDED IN VIOLATION OF THIS ACT, THE MILLAGE RATE FOR THE FOLLOWING YEAR SHALL REVERT TO THE NUMBER PREVIOUSLY IN EFFECT; TO SPECIFY THAT THE ACT DOES NOT APPLY TO ANY TAXING SUBDIVISION RECEIVING $5,000.00 OR LESS IN REVENUE FROM PROPERTY TAXES IN THE CURRENT YEAR; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) As used in this section:

(a) "Taxing subdivision" means any county or municipality of the state that levies an ad valorem tax on property;

(b) "Governing body" means the board of supervisors of a county or the governing authorities of a municipality; and

(c) "Revenue-neutral rate" means the millage rate for the current tax year that would generate the same property tax revenue as levied the previous tax year using the current tax year's total assessed valuation of all property that is not exempt from taxes. To calculate the revenue-neutral rate, the county tax assessor shall divide the property tax revenue for such taxing subdivision for the previous tax year by the total assessed valuation of all property that is not exempt from taxes in such taxing subdivision for the current tax year, and then multiply the quotient by one thousand (1,000) to express the rate in mills. The revenue-neutral rate shall be expressed to the third decimal place.

(2) On or before June 15 each year, the tax assessor shall calculate the revenue-neutral rate for each taxing subdivision and include such revenue-neutral rate on the notice of the estimated assessed valuation provided to each taxing subdivision for budget purposes. The chancery clerk, in the case of a county, or the city clerk, in the case of a municipality, shall modify the prescribed budget information form to show the revenue-neutral rate.

(3) No millage rate in excess of the revenue-neutral rate shall be levied by the governing body of any taxing subdivision unless a resolution or ordinance has been approved by the governing body according to the following procedure:

(a) The governing body shall publish notice of its proposed intent to exceed the revenue-neutral rate in the official county newspaper of the county where the taxing subdivision is located and on the website of the governing body, if the governing body maintains a website, at least fourteen (14) days in advance of the public hearing. The notice shall include, but not be limited to, its proposed millage rate, its revenue-neutral rate and the date, time and location of the public hearing.

(b) On or before July 15, the governing body shall notify the tax assessor of its proposed intent to exceed the revenue-neutral rate and provide the date, time and location of the public hearing and its proposed millage rate. The tax assessor shall notify each taxpayer with property in the taxing subdivision, by mail directed to the taxpayer's last known address, of the proposed intent to exceed the revenue-neutral rate at least fourteen (14) days in advance of the public hearing. Alternatively, the tax assessor may transmit the notice to the taxpayer by electronic means at least fourteen (14) days in advance of the public hearing, if such taxpayer and tax assessor have consented in writing to service by electronic means. Costs associated with the providing notice under this paragraph shall be borne by the taxing subdivision with payment due to the tax assessor by December 31. The tax assessor shall consolidate the required information for all taxing subdivisions relevant to the taxpayer's property on one (1) notice. The notice shall include, but not be limited to:

(i) The revenue-neutral rate;

(ii) The proposed property tax revenue needed to fund the proposed budget;

(iii) The proposed millage rate based upon the proposed budget and the current year's total assessed valuation of all property that is not exempt from taxes;

(iv) The millage rate and property tax of the taxing subdivision on the taxpayer's property from the previous year's tax statement;

(v) The proposed percent change in the millage rate between the previous year's millage rate and the proposed millage rate for the current year;

(vi) The appraised value and assessed value of the taxpayer's property for the current year;

(vii) The estimates of the tax for the current tax year on the taxpayer's property, based on the revenue-neutral rate and the proposed millage rate; and

(viii) The date, time and location of the public hearing.

(c) The public hearing to consider exceeding the revenue-neutral rate shall be held on or before September 15. The governing body shall provide interested taxpayers desiring to be heard an opportunity to present oral testimony within reasonable time limits and without unreasonable restriction on the number of individuals allowed to make public comment.

(d) A majority vote of the governing body, by the adoption of a resolution or ordinance to approve exceeding the revenue-neutral rate, shall be required prior to adoption of a proposed budget that will result in a millage rate in excess of the revenue-neutral rate. Such vote of the governing body shall be conducted at the public hearing after the governing body has heard from interested taxpayers.

(e) This subsection (3) shall not apply to school district millage rates.

(4) If the governing body of a taxing subdivision must conduct a public hearing to approve exceeding the revenue-neutral rate under this section, the governing body shall certify, on or before September 20, to the tax assessor the amount of ad valorem tax to be levied.

(5) The Department of Revenue shall monitor the compliance of taxing subdivisions with the requirements of this section and is authorized to promulgate rules and regulations in furtherance thereof. Any governing body subject to this section that does not comply with subsection (3) of this section shall refund to taxpayers, no later than March 1 of the year after the revenue-neutral rate was exceeded, any property taxes over-collected based on the amount of the levy in excess of the revenue-neutral rate. This subsection (5) shall not be construed as prohibiting any other remedies available under the law.

(6) If a taxing subdivision exceeds the revenue-neutral rate in violation of subsection (3) of this section, the millage rate for the following year shall revert to the rate in existence before the revenue-neutral rate was exceeded.

(7) This section shall not apply to any taxing subdivision that receives Five Thousand Dollars ($5,000.00) or less in revenue from property taxes in the current year.

SECTION 2. This act shall take effect and be in force from and after January 1, 2025.