Bill Amendment: MS HB1063 | 2026 | Regular Session
Bill Title: Ad valorem tax; add categories for energy projects and extend deadline for certain exemptions, extend deadlines and revise fee-in-lieu minimum for certain projects.
Status: 2026-03-28 - Died In Conference [HB1063 Detail]
Download: Mississippi-2026-HB1063-Senate_Committee_Amendment_No_1.html
Pending
COMMITTEE AMENDMENT NO 1 PROPOSED TO
House Bill No. 1063
BY: Committee
Amend by striking all after the enacting clause and inserting in lieu thereof the following:
SECTION 1. Section 27-31-46, Mississippi Code of 1972, is amended as follows:
27-31-46. (1) As used in this section, "project" means a facility, placed in operation after April 16, 2021, generating (a) energy through the use of a renewable energy source such as wind, water, biomass or solar, or (b) storing energy using battery energy storage systems, whether standalone or co-located with a generation facility.
(2) In any project with a capital investment from private sources of not less than One Hundred Million Dollars ($100,000,000.00), all property, whether real, personal or mixed, including fixtures and leaseholds utilized in the project, including, but not limited to, operational and environmental property utilized in the project, may be exempted by the county board of supervisors from ad valorem taxation up to an amount not to exceed fifty percent (50%) of the total assessed value of the project.
SECTION 2. Section 27-31-46.1, Mississippi Code of 1972, is amended as follows:
27-31-46.1. A project that
is eligible for an ad valorem tax exemption under Section 27-31-46, and for
which initial construction begins on or after July 1, 2022, but not later than
December 31, * * * 2036, may be allowed an exemption
from ad valorem taxation as provided in this section. For such a project, one-half
(1/2) of the true value of property of the project that is subject to a fee-in-lieu
of ad valorem taxes pursuant to an agreement under Section 27-31-104 may be
exempted by a county board of supervisors and/or municipal governing
authorities from ad valorem taxation for a period of ten (10) years from and
after the date of the expiration of such fee-in-lieu of ad valorem taxes. Any
exemption from ad valorem taxation allowed under this section must be
authorized by a county board of supervisors and/or municipal governing
authorities before July 1, * * * 2035.
SECTION 3. Section 27-31-101, Mississippi Code of 1972, is amended as follows:
[Through June
30, * * * 2029, this section shall
read as follows:]
27-31-101. (1) County boards of supervisors and municipal authorities are hereby authorized and empowered, in their discretion, to grant exemptions from ad valorem taxation, except state ad valorem taxation; however, such governing authorities shall not exempt ad valorem taxes for school district purposes on tangible property used in, or necessary to, the operation of the manufacturers and other new enterprises enumerated by classes in this section, except to the extent authorized in Sections 27-31-104 and 27-31-105(2), nor shall they exempt from ad valorem taxes the products of the manufacturers or other new enterprises or automobiles and trucks belonging to the manufacturers or other new enterprises operating on and over the highways of the State of Mississippi. The time of such exemption shall be for a period not to exceed a total of ten (10) years, which shall begin on the date of completion of the new enterprise for which the exemption is granted; however, boards of supervisors and municipal authorities, in lieu of granting the exemption for one (1) period of ten (10) years, may grant the exemption in a period of less than ten (10) years. When the initial exemption period granted is less than ten (10) years, the boards of supervisors and municipal authorities may grant a subsequent consecutive period or periods to follow the initial period of exemption, provided that the total of all periods of exemption shall not exceed ten (10) years. The date of completion of the new enterprise, from which the initial period of exemption shall begin, shall be the date on which operations of the new enterprise begin. The initial request for an exemption must be made in writing by June 1 of the year immediately following the year in which the date of completion of a new enterprise occurs. If the initial request for the exemption is not timely made, the board of supervisors or municipal authorities may grant a subsequent request for the exemption and, in such case, the exemption shall begin on the anniversary date of completion of the enterprise in the year in which the request is made and may be for a period of time extending not more than ten (10) years from the date of completion of the new enterprise. Any subsequent request for the exemption must be made in writing by June 1 of the year in which it is granted.
(2) Any board of supervisors or municipal authority which has granted an exemption for a period of less than ten (10) years may grant subsequent periods of exemption to run consecutively with the initial exemption period, or a subsequently granted exemption period, but in no case shall the total of the exemption periods granted for a new enterprise exceed ten (10) years. Any consecutive period of exemption shall be granted by entry of an order by the board or the authority granting the consecutive exemption on its minutes, reflecting the granting of the consecutive exemption period and the dates upon which such consecutive exemption period begins and expires. The entry of this order granting the consecutive period of exemption shall be made before the expiration of the exemption period immediately preceding the consecutive exemption period being granted.
(3) (a) The new enterprises for which any or all of the tangible property described in paragraph (b) of this subsection (3) may be exempt from ad valorem taxation, except state ad valorem taxation, ad valorem taxes for school district purposes, and ad valorem taxes on the products thereof or on automobiles and trucks belonging thereto and operating on and over the highways of the State of Mississippi, are enumerated as and limited to the following, as determined by the Department of Revenue:
(i) Warehouse and/or distribution centers;
(ii) Manufacturing, processors and refineries;
(iii) Research facilities;
(iv) Corporate regional and national headquarters meeting minimum criteria established by the Mississippi Development Authority;
(v) Movie industry studios meeting minimum criteria established by the Mississippi Development Authority;
(vi) Air transportation and maintenance facilities meeting minimum criteria established by the Mississippi Development Authority;
(vii) Recreational facilities that impact tourism meeting minimum criteria established by the Mississippi Development Authority;
(viii) Data/information processing enterprises meeting minimum criteria established by the Mississippi Development Authority;
(ix) Technology intensive enterprises or facilities meeting criteria established by the Mississippi Development Authority;
(x) Health care industry facilities as defined in Section 57-117-3;
(xi) Data centers as defined in Section 57-113-21;
(xii) Telecommunications
enterprises meeting minimum criteria established by the Mississippi Development
Authority. The term "telecommunications enterprises" means entities
engaged in the creation, display, management, storage, processing, transmission
or distribution for compensation of images, text, voice, video or data by wire
or by wireless means, or entities engaged in the construction, design,
development, manufacture, maintenance or distribution for compensation of
devices, products, software or structures used in the above activities.
Companies organized to do business as commercial broadcast radio stations,
television stations or news organizations primarily serving in-state markets
shall not be included within the definition of the term "telecommunications
enterprises"; * * *
(xiv) Battery energy storage system facilities.
The new enterprises enumerated in this paragraph (a) do not include medical cannabis establishments as defined in Section 41-137-3 of the Mississippi Medical Cannabis Act.
(b) An exemption from ad valorem taxes granted under this section may include any or all tangible property, real or personal, including any leasehold interests therein but excluding automobiles and trucks operating on and over the highways of the State of Mississippi, used in connection with, or necessary to, the operation of an enterprise enumerated in paragraph (a) of this subsection (3), whether or not such property is owned, leased, subleased, licensed or otherwise obtained by such enterprise, irrespective of the taxpayer to which any such leased property is assessed for ad valorem tax purposes. If an exemption is granted pursuant to this section with respect to any leasehold interest under a lease, sublease or license of tangible property used in connection with, or necessary to, the operation of an enterprise enumerated in paragraph (a) of this subsection (3), the corresponding ownership interest of the owner, lessor and sublessor of such tangible property shall similarly and automatically be exempt without any action being required to be taken by such owner, lessor or sublessor.
(4) Any exemption from ad valorem taxes granted under this section before March 28, 2019, and consistent herewith, is hereby ratified, approved and confirmed.
[From and after July
1, * * *
2029, this section shall read as follows:]
27-31-101. (1) County boards of supervisors and municipal authorities are hereby authorized and empowered, in their discretion, to grant exemptions from ad valorem taxation, except state ad valorem taxation; however, such governing authorities shall not exempt ad valorem taxes for school district purposes on tangible property used in, or necessary to, the operation of the manufacturers and other new enterprises enumerated by classes in this section, except to the extent authorized in Sections 27-31-104 and 27-31-105(2), nor shall they exempt from ad valorem taxes the products of the manufacturers or other new enterprises or automobiles and trucks belonging to the manufacturers or other new enterprises operating on and over the highways of the State of Mississippi. The time of such exemption shall be for a period not to exceed a total of ten (10) years, which shall begin on the date of completion of the new enterprise for which the exemption is granted; however, boards of supervisors and municipal authorities, in lieu of granting the exemption for one (1) period of ten (10) years, may grant the exemption in a period of less than ten (10) years. When the initial exemption period granted is less than ten (10) years, the boards of supervisors and municipal authorities may grant a subsequent consecutive period or periods to follow the initial period of exemption, provided that the total of all periods of exemption shall not exceed ten (10) years. The date of completion of the new enterprise, from which the initial period of exemption shall begin, shall be the date on which operations of the new enterprise begin. The initial request for an exemption must be made in writing by June 1 of the year immediately following the year in which the date of completion of a new enterprise occurs. If the initial request for the exemption is not timely made, the board of supervisors or municipal authorities may grant a subsequent request for the exemption and, in such case, the exemption shall begin on the anniversary date of completion of the enterprise in the year in which the request is made and may be for a period of time extending not more than ten (10) years from the date of completion of the new enterprise. Any subsequent request for the exemption must be made in writing by June 1 of the year in which it is granted.
(2) Any board of supervisors or municipal authority which has granted an exemption for a period of less than ten (10) years may grant subsequent periods of exemption to run consecutively with the initial exemption period, or a subsequently granted exemption period, but in no case shall the total of the exemption periods granted for a new enterprise exceed ten (10) years. Any consecutive period of exemption shall be granted by entry of an order by the board or the authority granting the consecutive exemption on its minutes, reflecting the granting of the consecutive exemption period and the dates upon which such consecutive exemption period begins and expires. The entry of this order granting the consecutive period of exemption shall be made before the expiration of the exemption period immediately preceding the consecutive exemption period being granted.
(3) (a) The new enterprises for which any or all of the tangible property described in paragraph (b) of this subsection (3) may be exempt from ad valorem taxation, except state ad valorem taxation, ad valorem taxes for school district purposes, and ad valorem taxes on the products thereof or on automobiles and trucks belonging thereto and operating on and over the highways of the State of Mississippi, are enumerated as and limited to the following, as determined by the Department of Revenue:
(i) Warehouse and/or distribution centers;
(ii) Manufacturing, processors and refineries;
(iii) Research facilities;
(iv) Corporate regional and national headquarters meeting minimum criteria established by the Mississippi Development Authority;
(v) Movie industry studios meeting minimum criteria established by the Mississippi Development Authority;
(vi) Air transportation and maintenance facilities meeting minimum criteria established by the Mississippi Development Authority;
(vii) Recreational facilities that impact tourism meeting minimum criteria established by the Mississippi Development Authority;
(viii) Data/information processing enterprises meeting minimum criteria established by the Mississippi Development Authority;
(ix) Technology intensive enterprises or facilities meeting criteria established by the Mississippi Development Authority;
(x) Data centers as defined in Section 57-113-21;
(xi)
Telecommunications enterprises meeting minimum criteria established by the
Mississippi Development Authority. The term "telecommunications
enterprises" means entities engaged in the creation, display, management,
storage, processing, transmission or distribution for compensation of images,
text, voice, video or data by wire or by wireless means, or entities engaged in
the construction, design, development, manufacture, maintenance or distribution
for compensation of devices, products, software or structures used in the above
activities. Companies organized to do business as commercial broadcast radio
stations, television stations or news organizations primarily serving in-state
markets shall not be included within the definition of the term
"telecommunications enterprises"; * * *
(xii) Controlled
environment agriculture enterprises meeting minimum criteria established by the
Mississippi Development Authority * * *; and
(xiii) Battery energy storage system facilities.
The new enterprises enumerated in this paragraph (a) do not include medical cannabis establishments as defined in Section 41-137-3 of the Mississippi Medical Cannabis Act.
(b) An exemption from ad valorem taxes granted under this section may include any or all tangible property, real or personal, including any leasehold interests therein but excluding automobiles and trucks operating on and over the highways of the State of Mississippi, used in connection with, or necessary to, the operation of an enterprise enumerated in paragraph (a) of this subsection (3), whether or not such property is owned, leased, subleased, licensed or otherwise obtained by such enterprise, irrespective of the taxpayer to which any such leased property is assessed for ad valorem tax purposes. If an exemption is granted pursuant to this section with respect to any leasehold interest under a lease, sublease or license of tangible property used in connection with, or necessary to, the operation of an enterprise enumerated in paragraph (a) of this subsection (3), the corresponding ownership interest of the owner, lessor and sublessor of such tangible property shall similarly and automatically be exempt without any action being required to be taken by such owner, lessor or sublessor.
(4) Any exemption from ad valorem taxes granted under this section before March 28, 2019, and consistent herewith, is hereby ratified, approved and confirmed.
SECTION 4. Section 27-31-104, Mississippi Code of 1972, is amended as follows:
[Through June
30, * * *
2029, this section shall read as follows:]
27-31-104. (1) (a) County boards of supervisors and municipal authorities are each hereby authorized and empowered to enter into an agreement with an enterprise granting, and pursuant to such agreement grant a fee-in-lieu of ad valorem taxes, including ad valorem taxes levied for school purposes, for the following:
(i) Projects totaling over Sixty Million Dollars ($60,000,000.00) by any new enterprises enumerated in Section 27-31-101;
(ii) Projects by a private company (as such term is defined in Section 57-61-5) having a minimum capital investment of Sixty Million Dollars ($60,000,000.00);
(iii) Projects by a qualified business (as such term is defined in Section 57-117-3) meeting minimum criteria established by the Mississippi Development Authority;
(iv) Projects, in addition to those projects referenced in Section 27-31-105, totaling over Sixty Million Dollars ($60,000,000.00) by an existing enterprise that has been doing business in the county or municipality for twenty-four (24) months. For purposes of this subparagraph (iv), the term "existing enterprise" includes those enterprises enumerated in Section 27-31-101; or
(v) A private company (as such term is defined in Section 57-61-5) or entity defined in Section 77-3-3(d)(i) having a minimum capital investment of One Hundred Million Dollars ($100,000,000.00) from any source or combination of sources, provided that a majority of the capital investment is from private sources, when such project is located within a geographic area for which a Presidential Disaster Declaration was issued on or after January 1, 2014.
County boards of supervisors and municipal authorities may not enter into an agreement with an enterprise that is a medical cannabis establishment, as defined in Section 41-137-3 of the Mississippi Medical Cannabis Act, granting, and pursuant to such agreement grant a fee-in-lieu of ad valorem taxes.
(b) A fee-in-lieu of ad valorem taxes granted in accordance with this section may include any or all tangible property, real or personal, including any leasehold interests therein but excluding automobiles and trucks operating on and over the highways of the State of Mississippi, used in connection with, or necessary to, the operation of any enterprise, private company or business described in paragraph (a) of this subsection (1), as applicable, whether or not such property is owned, leased, subleased, licensed or otherwise obtained by such enterprise, private company or business, as applicable, irrespective of the taxpayer to which any such leased property is assessed for ad valorem tax purposes. If a fee-in-lieu of ad valorem taxes is granted pursuant to this section with respect to any leasehold interest under a lease, sublease or license of tangible property used in connection with, or necessary to, the operation of an enterprise, private company or business described in paragraph (a) of this subsection (1), as applicable, the corresponding ownership interest of the owner, lessor and sublessor of such tangible property shall similarly and automatically be exempt and subject to the fee-in-lieu granted in accordance herewith without any action being required to be taken by such owner, lessor or sublessor.
(2) A county board of supervisors may enter into a fee-in-lieu agreement on behalf of the county and any county school district, and a municipality may enter into such a fee-in-lieu agreement on behalf of the municipality and any municipal school district located in the municipality; however, if the project is located outside the limits of a municipality but within the boundaries of the municipal school district, then the county board of supervisors may enter into such a fee-in-lieu agreement on behalf of the school district granting a fee-in-lieu of ad valorem taxes for school district purposes.
(3) Any grant of a fee-in-lieu of ad valorem taxes shall be evidenced by a written agreement negotiated by the enterprise and the county board of supervisors and/or municipal authority, as the case may be, and given final approval by the Mississippi Development Authority as satisfying the requirements of this section.
(4) The minimum sum
allowable as a fee-in-lieu shall not be less than one-third (1/3), or one-tenth
(1/10) if the project is also a project eligible for an ad valorem tax
exemption under Section 27-31-46 and a fee-in-lieu agreement is entered into
before July 1, * * * 2035, of the ad valorem levy,
including ad valorem taxes for school district purposes, and except as
otherwise provided, the sum allowed shall be apportioned between the county or
municipality, as appropriate, and the school districts in such amounts as may
be determined by the county board of supervisors or municipal governing authority,
as the case may be, however, except as otherwise provided in this section, from
the sum allowed the apportionment to school districts shall not be less than
the school districts' pro rata share based upon the proportion that the millage
imposed for the school districts by the appropriate levying authority bears to
the millage imposed by such levying authority for all other county or municipal
purposes. Any fee-in-lieu agreement entered into under this section shall
become a binding obligation of the parties to the agreement, be effective upon
its execution by the parties and approval by the Mississippi Development
Authority and, except as otherwise provided in Section 17-25-23 or Section 57-75-33,
or any other provision of law, continue in effect for a period not to exceed
thirty (30) years commencing on the date that the fee-in-lieu granted
thereunder begins in accordance with the agreement; however, no particular
parcel of land, real property improvement or item of personal property shall be
subject to a fee-in-lieu for a duration of more than ten (10) years. Any such
agreement shall be binding, according to its terms, on future boards of
supervisors of the county and/or governing authorities of a municipality, as
the case may be, for the duration of the agreement.
(5) The fee-in-lieu may be
a stated fraction or percentage of the ad valorem taxes otherwise payable or a
stated dollar amount. If the fee is a fraction or percentage of the ad valorem
tax levy, it shall be annually computed on all ad valorem taxes otherwise
payable, including school taxes, as the same may vary from year to year based
upon changes in the millage rate or assessed value and shall not be less than
one-third (1/3) of that amount or one-tenth (1/10) of that amount if the project
is also a project eligible for an ad valorem tax exemption under Section 27-31-46
and a fee-in-lieu agreement is entered into before July 1, * * * 2035.
If the fee is a stated dollar amount, said amount shall be the higher of the
sum provided for fixed payment or (a) one-third (1/3) of the total of all ad
valorem taxes otherwise payable as annually determined during each year of the
fee-in-lieu or (b) if the project is also a project eligible for an ad valorem
tax exemption under Section 27-31-46 and a fee-in-lieu agreement is entered
into before July 1, * * * 2035, one-tenth (1/10) of the total
of all ad valorem taxes otherwise payable as annually determined during each
year of the fee-in-lieu.
(6) Notwithstanding Section 27-31-111, the parties to a fee-in-lieu may agree on terms and conditions providing for the reduction, suspension, termination or reinstatement of a fee-in-lieu agreement or any fee-in-lieu period granted thereunder upon the cessation of operations by project for twelve (12) or more consecutive months or due to other conditions set forth in the agreement.
(7) For a project as defined in Section 57-75-5(f)(xxi) and located in a county that is a member of a regional economic development alliance created under Section 57-64-1 et seq., the members of the regional economic development alliance may divide the sum allowed as a fee-in-lieu in a manner as determined by the alliance agreement, and the boards of supervisors of the member counties may then apportion the sum allowed between school district purposes and all other county purposes.
(8) For a project as defined in Section 57-75-5(f)(xxvi), the board of supervisors of the county in which the project is located may negotiate with the school district in which the project is located and apportion to the school district an amount of the fee-in-lieu that is agreed upon in the negotiations different than the amount provided for in subsection (3) of this section.
(9) For a project as defined in Section 57-75-5(f)(xxviii), the annual amount of the fee-in-lieu apportioned to the county shall not be less than the amount necessary to pay the debt service on bonds issued by the county pursuant to Section 57-75-37(3)(c).
(10) For any county and/or municipality that enters into a fee-in-lieu agreement for a project as defined in Section 57-75-5(f)(xxxiii), the minimum sum allowable as a fee-in-lieu for the project shall not be less than one-third (1/3); provided that such allowed sum of each annual fee-in-lieu payment may be first apportioned between the county or municipality, as appropriate, and the school districts in any such amounts as may be determined by the county board of supervisors or municipal governing authority, as the case may be, to either: (a) first allocate and remit to the Mississippi Major Economic Impact Authority or the Mississippi Development Authority, as applicable, such portion of each annual fee-in-lieu payment to repay to the Mississippi Major Economic Impact Authority or the Mississippi Development Authority, as applicable, funds advanced thereby to such county and/or municipality or to other public agency, as defined in Section 57-75-37(7)(a)(ii), to fund public improvements and related costs for the project pursuant to an agreement entered into in accordance with Section 57-75-37(7)(c)(iii); or (b) first allocate and remit to the enterprise owning and/or operating the project such portion of each annual fee-in-lieu payment payable thereto pursuant to an agreement entered into in accordance with Section 57-75-37(7)(d)(iv). The balance of any annual fee-in-lieu amount remaining after such initial allocation and remittance to the Mississippi Major Economic Impact Authority, Mississippi Development Authority or enterprise owning and/or operating the project, as applicable, shall then be apportioned in accordance with subsection (4) of this section or as otherwise authorized by state law.
(11) Any fee-in-lieu of ad valorem taxes granted under this section before March 28, 2019, and consistent herewith, is hereby ratified, approved and confirmed.
[From and after July
1, * * *
2029, this section shall read as follows:]
27-31-104. (1) (a) County boards of supervisors and municipal authorities are each hereby authorized and empowered to enter into an agreement with an enterprise granting, and pursuant to such agreement grant a fee-in-lieu of ad valorem taxes, including ad valorem taxes levied for school purposes, for the following:
(i) Projects totaling over Sixty Million Dollars ($60,000,000.00) by any new enterprises enumerated in Section 27-31-101;
(ii) Projects by a private company (as such term is defined in Section 57-61-5, Mississippi Code of 1972) having a minimum capital investment of Sixty Million Dollars ($60,000,000.00);
(iii) Projects, in addition to those projects referenced in Section 27-31-105, totaling over Sixty Million Dollars ($60,000,000.00) by an existing enterprise that has been doing business in the county or municipality for twenty-four (24) months. For purposes of this subparagraph (iii), the term "existing enterprise" includes those enterprises enumerated in Section 27-31-101; or
(iv) A private company (as such term is defined in Section 57-61-5) or entity defined in Section 77-3-3(d)(i) having a minimum capital investment of One Hundred Million Dollars ($100,000,000.00) from any source or combination of sources, provided that a majority of the capital investment is from private sources, when such project is located within a geographic area for which a Presidential Disaster Declaration was issued on or after January 1, 2014.
County boards of supervisors and municipal authorities may not enter into an agreement with an enterprise that is a medical cannabis establishment, as defined in Section 41-137-3 of the Mississippi Medical Cannabis Act, granting, and pursuant to such agreement grant a fee-in-lieu of ad valorem taxes.
(b) A fee-in-lieu of ad valorem taxes granted in accordance with this section may include any or all tangible property, real or personal, including any leasehold interests therein but excluding automobiles and trucks operating on and over the highways of the State of Mississippi, used in connection with, or necessary to, the operation of any enterprise, private company or business described in paragraph (a) of this subsection (1), as applicable, whether or not such property is owned, leased, subleased, licensed or otherwise obtained by such enterprise, private company or business, as applicable, irrespective of the taxpayer to which any such leased property is assessed for ad valorem tax purposes. If a fee-in-lieu of ad valorem taxes is granted pursuant to this section with respect to any leasehold interest under a lease, sublease or license of tangible property used in connection with, or necessary to, the operation of an enterprise, private company or business described in paragraph (a) of this subsection (1), as applicable, the corresponding ownership interest of the owner, lessor and sublessor of such tangible property shall similarly and automatically be exempt and subject to the fee-in-lieu granted in accordance herewith without any action being required to be taken by such owner, lessor or sublessor.
(2) A county board of supervisors may enter into a fee-in-lieu agreement on behalf of the county and any county school district, and a municipality may enter into such a fee-in-lieu agreement on behalf of the municipality and any municipal school district located in the municipality; however, if the project is located outside the limits of a municipality but within the boundaries of the municipal school district, then the county board of supervisors may enter into such a fee-in-lieu agreement on behalf of the school district granting a fee-in-lieu of ad valorem taxes for school district purposes.
(3) Any grant of a fee-in-lieu of ad valorem taxes shall be evidenced by a written agreement negotiated by the enterprise and the county board of supervisors and/or municipal authority, as the case may be, and given final approval by the Mississippi Development Authority as satisfying the requirements of this section.
(4) The minimum sum
allowable as a fee-in-lieu shall not be less than one-third (1/3), or one-tenth
(1/10) if the project is also a project eligible for an ad valorem tax
exemption under Section 27-31-46 and a fee-in-lieu agreement is entered into
before July 1, * * * 2035, of the ad valorem levy,
including ad valorem taxes for school district purposes, and except as
otherwise provided, the sum allowed shall be apportioned between the county or
municipality, as appropriate, and the school districts in such amounts as may
be determined by the county board of supervisors or municipal governing
authority, as the case may be, however, except as otherwise provided in this
section, from the sum allowed the apportionment to school districts shall not
be less than the school districts' pro rata share based upon the proportion
that the millage imposed for the school districts by the appropriate levying
authority bears to the millage imposed by such levying authority for all other
county or municipal purposes. Any fee-in-lieu agreement entered into under
this section shall become a binding obligation of the parties to the agreement,
be effective upon its execution by the parties and approval by the Mississippi
Development Authority and, except as otherwise provided in Section 17-25-23 or
Section 57-75-33, or any other provision of law, continue in effect for a
period not to exceed thirty (30) years commencing on the date that the fee-in-lieu
granted thereunder begins in accordance with the agreement; however, no
particular parcel of land, real property improvement or item of personal
property shall be subject to a fee-in-lieu for a duration of more than ten (10)
years. Any such agreement shall be binding, according to its terms, on future
boards of supervisors of the county and/or governing authorities of a
municipality, as the case may be, for the duration of the agreement.
(5) The fee-in-lieu may be
a stated fraction or percentage of the ad valorem taxes otherwise payable or a
stated dollar amount. If the fee is a fraction or percentage of the ad valorem
tax levy, it shall be annually computed on all ad valorem taxes otherwise
payable, including school taxes, as the same may vary from year to year based
upon changes in the millage rate or assessed value and shall not be less than
one-third (1/3) of that amount or one-tenth (1/10) of that amount if the
project is also a project eligible for an ad valorem tax exemption under
Section 27-31-46 and a fee-in-lieu agreement is entered into before July 1, * * * 2035.
If the fee is a stated dollar amount, said amount shall be the higher of the
sum provided for fixed payment or (a) one-third (1/3) of the total of all ad
valorem taxes otherwise payable as annually determined during each year of the
fee-in-lieu or (b) if the project is also a project eligible for an ad valorem
tax exemption under Section 27-31-46 and a fee-in-lieu agreement is entered
into before July 1, * * * 2035, one-tenth (1/10) of the total
of all ad valorem taxes otherwise payable as annually determined during each
year of the fee-in-lieu.
(6) Notwithstanding Section 27-31-111, the parties to a fee-in-lieu may agree on terms and conditions providing for the reduction, suspension, termination or reinstatement of a fee-in-lieu agreement or any fee-in-lieu period granted thereunder upon the cessation of operations by project for twelve (12) or more consecutive months or due to other conditions set forth in the agreement.
(7) For a project as defined in Section 57-75-5(f)(xxi) and located in a county that is a member of a regional economic development alliance created under Section 57-64-1 et seq., the members of the regional economic development alliance may divide the sum allowed as a fee-in-lieu in a manner as determined by the alliance agreement, and the boards of supervisors of the member counties may then apportion the sum allowed between school district purposes and all other county purposes.
(8) For a project as defined in Section 57-75-5(f)(xxvi), the board of supervisors of the county in which the project is located may negotiate with the school district in which the project is located and apportion to the school district an amount of the fee-in-lieu that is agreed upon in the negotiations different than the amount provided for in subsection (3) of this section.
(9) For a project as defined in Section 57-75-5(f)(xxviii), the annual amount of the fee-in-lieu apportioned to the county shall not be less than the amount necessary to pay the annual debt service on bonds issued by the county pursuant to Section 57-75-37(3)(c).
(10) For any county and/or municipality that enters into a fee-in-lieu agreement for a project as defined in Section 57-75-5(f)(xxxiii), the minimum sum allowable as a fee-in-lieu for the project shall not be less than one-third (1/3); provided that such allowed sum of each annual fee-in-lieu payment may be first apportioned between the county or municipality, as appropriate, and the school districts in any such amounts as may be determined by the county board of supervisors or municipal governing authority, as the case may be, to either: (a) first allocate and remit to the Mississippi Major Economic Impact Authority or the Mississippi Development Authority, as applicable, such portion of each annual fee-in-lieu payment to repay to the Mississippi Major Economic Impact Authority or the Mississippi Development Authority, as applicable, funds advanced thereby to such county and/or municipality or to other public agency, as defined in Section 57-75-37(7)(a)(ii), to fund public improvements and related costs for the project pursuant to an agreement entered into in accordance with Section 57-75-37(7)(c)(iii); or (b) first allocate and remit to the enterprise owning and/or operating the project such portion of each annual fee-in-lieu payment payable thereto pursuant to an agreement entered into in accordance with Section 57-75-37(7)(d)(iv). The balance of any annual fee-in-lieu amount remaining after such initial allocation and remittance to the Mississippi Major Economic Impact Authority, Mississippi Development Authority or enterprise owning and/or operating the project, as applicable, shall then be apportioned in accordance with subsection (4) of this section or as otherwise authorized by state law.
(11) Any fee-in-lieu of ad valorem taxes granted under this section before March 28, 2019, and consistent herewith, is hereby ratified, approved and confirmed.
SECTION 5. This act shall take effect and be in force from and after July 1, 2026, and shall stand repealed on June 30, 2026.
Further, amend by striking the title in its entirety and inserting in lieu thereof the following:
AN ACT TO AMEND SECTION 27-31-46, MISSISSIPPI CODE OF 1972, TO REVISE THE DEFINITION OF "PROJECT" TO INCLUDE FACILITIES STORING ENERGY USING BATTERY ENERGY STORAGE SYSTEMS, FOR PURPOSES OF A COUNTY'S AUTHORITY TO GRANT CERTAIN AD VALOREM TAX EXEMPTIONS OF UP TO 50% OF THE TOTAL ASSESSED VALUE OF CERTAIN PROJECTS; TO AMEND SECTION 27-31-46.1, MISSISSIPPI CODE OF 1972, TO EXTEND THE INITIAL CONSTRUCTION DEADLINE FOR PURPOSES OF ELIGIBILITY OF CERTAIN ENERGY PROJECTS FOR CERTAIN AD VALOREM TAX EXEMPTIONS OF UP TO 50% OF THE TOTAL ASSESSED VALUE OF THE PROJECTS; TO EXTEND THE DEADLINE BY WHICH COUNTIES AND MUNICIPALITIES MAY AUTHORIZE SUCH EXEMPTIONS; TO AMEND SECTION 27-31-101, MISSISSIPPI CODE OF 1972, TO ADD BATTERY ENERGY STORAGE SYSTEM FACILITIES, FOR PURPOSES OF A COUNTY'S OR A MUNICIPALITY'S AUTHORITY TO GRANT CERTAIN AD VALOREM TAX EXEMPTIONS; TO EXTEND THE DATE OF THE REVERTER ON THE SECTION OF LAW; TO AMEND SECTION 27-31-104, MISSISSIPPI CODE OF 1972, TO EXTEND THE DATE BY WHICH A FEE-IN-LIEU AGREEMENT MAY BE ENTERED WITH CERTAIN QUALIFIED BUSINESSES FOR PURPOSES OF THE MINIMUM FEE-IN-LIEU AMOUNT OF 1/10 OF THE TOTAL OF ALL AD VALOREM TAXES OTHERWISE PAYABLE AS ANNUALLY DETERMINED; TO EXTEND THE DATE OF THE REVERTER ON THE SECTION OF LAW; AND FOR RELATED PURPOSES.
