Bill Text: MS HB1572 | 2020 | Regular Session | Engrossed
Bill Title: Fee-in-lieu of ad valorem taxes; revise certain provisions regarding school ad valorem taxes.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2020-06-23 - Died In Committee [HB1572 Detail]
Download: Mississippi-2020-HB1572-Engrossed.html
MISSISSIPPI LEGISLATURE
2020 Regular Session
To: Ways and Means
By: Representative Steverson
House Bill 1572
(As Passed the House)
AN ACT TO AMEND SECTION 27-31-104, MISSISSIPPI CODE OF 1972, WHICH AUTHORIZES COUNTY BOARDS OF SUPERVISORS AND MUNICIPAL AUTHORITIES TO ENTER INTO FEE-IN-LIEU OF AD VALOREM TAX AGREEMENTS, TO PROVIDE THAT A COUNTY BOARD OF SUPERVISORS AND MUNICIPAL AUTHORITIES MAY ENTER INTO A FEE-IN-LIEU AGREEMENT WITH AN ENTERPRISE, PRIVATE COMPANY OR OTHER BUSINESS PARTY, AND GRANT A FEE-IN-LIEU OF AD VALOREM TAXES, EXCLUDING AD VALOREM TAXES FOR SCHOOL DISTRICT PURPOSES, TOGETHER WITH AN EXEMPTION FROM ALL AD VALOREM TAXES FOR SCHOOL DISTRICT PURPOSES WITHOUT REQUIRING ANY ANNUAL FEE-IN-LIEU AD VALOREM TAXES FOR SCHOOL DISTRICT PURPOSES; PROVIDED THAT THE MINIMUM SUM ALLOWABLE UNDER SUCH AGREEMENT AS A FEE-IN-LIEU OF AD VALOREM TAXES, EXCLUDING AD VALOREM TAXES FOR SCHOOL DISTRICT PURPOSES, SHALL NOT BE LESS THAN ONE-THIRD OF THE AD VALOREM LEVY, EXCLUDING AD VALOREM TAXES FOR SCHOOL DISTRICT PURPOSES AND SUCH AGREEMENT SHALL CONTRACTUALLY OBLIGATE THE ENTERPRISE, PRIVATE COMPANY OR OTHER BUSINESS PARTY TO SUCH AGREEMENT TO MAKE ONE OR MORE ANNUAL GIFTS OR OTHER DONATIONS TO THE SCHOOL DISTRICT THAT WOULD OTHERWISE BE SUBJECT TO SUCH AGREEMENT IF IT WERE ENTERED INTO PURSUANT TO OTHER PROVISIONS OF LAW; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-31-104, Mississippi Code of 1972, is amended as follows:
[Through June 30, 2022, 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) 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.
(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) Except as otherwise authorized in subsection (7) of this section, the minimum sum allowable as a fee-in-lieu shall not be less than one-third (1/3) 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. Except as otherwise authorized in subsection (7) of this section, 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. Except as otherwise authorized in subsection (7) of this section, if the fee is a stated dollar amount, said amount shall be the higher of the sum provided for fixed payment or 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.
(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) (a) Notwithstanding any other provisions of this section, county boards of supervisors and municipal authorities are each hereby authorized and empowered to enter into a fee-in-lieu agreement with an enterprise, private company or other business party under the circumstances enumerated in subsection (1)(a) of this section granting, and pursuant to such agreement grant (i) a fee-in-lieu of ad valorem taxes, excluding ad valorem taxes for school district purposes, together with (ii) an exemption from all ad valorem taxes for school district purposes without requiring any annual fee-in-lieu ad valorem taxes for school district purposes; provided that the minimum sum allowable under such agreement as a fee-in-lieu of ad valorem taxes, excluding ad valorem taxes for school district purposes, shall not be less than one-third (1/3) of the ad valorem levy, excluding ad valorem taxes for school district purposes and such agreement shall contractually obligate the enterprise, private company or other business party to such agreement to make one or more annual gifts or other donations to the school district that would otherwise be subject to such agreement if it were entered into pursuant to the provisions of this section, excluding this subsection (7). In addition, any such fee-in-lieu agreement entered into pursuant to the authority granted by this subsection
(7) shall be subject to the following:
(i) Before becoming effective, each such agreement must be approved by the board of education of the school district that would otherwise be subject to such agreement if it were entered into pursuant to the provisions of this section, excluding this subsection (7);
(ii) No particular parcel of land, real property improvement or item of personal property shall be subject to an exemption from any ad valorem taxes for school district purposes granted pursuant to this subsection (7) for a duration of more than ten (10) years;
(iii) The fee-in-lieu of ad valorem taxes, excluding ad valorem taxes for school district purposes, whether imposed as a stated dollar amount or as a percentage of such ad valorem tax levy, may be apportioned or otherwise allocated between the county and/or municipality, as applicable, in any manner prescribed by such fee-in-lieu agreement;
(iv) The annual gift or donation to such school district shall be made thereto on or before the date each year that the fee-in-lieu of ad valorem taxes, excluding ad valorem taxes for school district purposes, are payable to the county and/or municipality, as applicable;
(v) The annual gift or donation to such school district shall be made in the form of cash, personal property, real property or any combination of the foregoing; provided, however, that:
1. The value of any such gift or donation made in any form other than cash shall be determined in a manner approved by the board of education of such school district but in no event shall such value be less than the fair market value thereof, and
2. The aggregate annual value (determined in accordance herewith) of such gift or donation, or gifts or donations, made to the school district in accordance herewith shall not be less than the amount the annual fee-in-lieu of ad valorem taxes for school district purposes would have been had such a fee-in-lieu of ad valorem taxes for school district purposes been otherwise granted in accordance with the provisions of this section, exclusive of the provisions of this subsection (7);
(vi) If made in accordance with this subsection (7), the amount of any annual gift or donation to such school district shall not constitute a fee-in-lieu of ad valorem tax payment to such school district.
(b) Except as otherwise expressly authorized by this subsection (7), any fee-in-lieu agreement entered into pursuant to this subsection (7) shall be subject to all other requirements and provisions of this section. Any fee-in-lieu agreement entered into by a county and/or municipality under this section before July 1, 2020, may be amended, or amended and restated, to grant a fee-in-lieu of ad valorem taxes, excluding ad valorem taxes for school district purposes, and an exemption from all ad valorem taxes for school district purposes, subject to the annual gift requirement and all other requirements of this subsection (7).
( * * *8) 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.
( * * *9) 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.
( * * *10) 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).
( * * *11) Any fee-in-lieu of ad valorem
taxes granted under this section before the effective date of this act, and
consistent herewith, is hereby ratified, approved and confirmed.
[From and after July 1, 2022, 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) 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.
(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) Except as otherwise authorized in subsection (7) of this section, the minimum sum allowable as a fee-in-lieu shall not be less than one-third (1/3) 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. Except as otherwise authorized in subsection (7) of this section, 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. Except as otherwise authorized in subsection (7) of this section, if the fee is a stated dollar amount, said amount shall be the higher of the sum provided for fixed payment or 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.
(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) (a) Notwithstanding any other provisions of this section, county boards of supervisors and municipal authorities are each hereby authorized and empowered to enter into a fee-in-lieu agreement with an enterprise, private company or other business party under the circumstances enumerated in subsection (1)(a) of this section granting, and pursuant to such agreement grant (i) a fee-in-lieu of ad valorem taxes, excluding ad valorem taxes for school district purposes, together with (ii) an exemption from all ad valorem taxes for school district purposes without requiring any annual fee-in-lieu ad valorem taxes for school district purposes; provided that the minimum sum allowable under such agreement as a fee-in-lieu of ad valorem taxes, excluding ad valorem taxes for school district purposes, shall not be less than one-third (1/3) of the ad valorem levy, excluding ad valorem taxes for school district purposes and such agreement shall contractually obligate the enterprise, private company or other business party to such agreement to make one or more annual gifts or other donations to the school district that would otherwise be subject to such agreement if it were entered into pursuant to the provisions of this section, excluding this subsection (7). In addition, any such fee-in-lieu agreement entered into pursuant to the authority granted by this subsection
(7) shall be subject to the following:
(i) Before becoming effective, each such agreement must be approved by the board of education of the school district that would otherwise be subject to such agreement if it were entered into pursuant to the provisions of this section, excluding this subsection (7);
(ii) No particular parcel of land, real property improvement or item of personal property shall be subject to an exemption from any ad valorem taxes for school district purposes granted pursuant to this subsection (7) for a duration of more than ten (10) years;
(iii) The fee-in-lieu of ad valorem taxes, excluding ad valorem taxes for school district purposes, whether imposed as a stated dollar amount or as a percentage of such ad valorem tax levy, may be apportioned or otherwise allocated between the county and/or municipality, as applicable, in any manner prescribed by such fee-in-lieu agreement;
(iv) The annual gift or donation to such school district shall be made thereto on or before the date each year that the fee-in-lieu of ad valorem taxes, excluding ad valorem taxes for school district purposes, are payable to the county and/or municipality, as applicable;
(v) The annual gift or donation to such school district shall be made in the form of cash, personal property, real property or any combination of the foregoing; provided, however, that:
1. The value of any such gift or donation made in any form other than cash shall be determined in a manner approved by the board of education of such school district but in no event shall such value be less than the fair market value thereof, and
2. The aggregate annual value (determined in accordance herewith) of such gift or donation, or gifts or donations, made to the school district in accordance herewith shall not be less than the amount the annual fee-in-lieu of ad valorem taxes for school district purposes would have been had such a fee-in-lieu of ad valorem taxes for school district purposes been otherwise granted in accordance with the provisions of this section, exclusive of the provisions of this subsection (7);
(vi) If made in accordance with this subsection (7), the amount of any annual gift or donation to such school district shall not constitute a fee-in-lieu of ad valorem tax payment to such school district.
(b) Except as otherwise expressly authorized by this subsection (7), any fee-in-lieu agreement entered into pursuant to this subsection (7) shall be subject to all other requirements and provisions of this section. Any fee-in-lieu agreement entered into by a county and/or municipality under this section before July 1, 2020, may be amended, or amended and restated, to grant a fee-in-lieu of ad valorem taxes, excluding ad valorem taxes for school district purposes, and an exemption from all ad valorem taxes for school district purposes, subject to the annual gift requirement and all other requirements of this subsection (7).
( * * *8) 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.
( * * *9) 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.
( * * *10) 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).
( * * *11) Any fee-in-lieu of ad valorem
taxes granted under this section before the effective date of this act, and consistent
herewith, is hereby ratified, approved and confirmed.
SECTION 2. This act shall take effect and be in force from and after July 1, 2020.
