Mississippi 2022 Regular Session

Mississippi House Bill HB926

Introduced

1/17/22

Refer

1/17/22

Failed

2/1/22

Caption

Fee-in-lieu of ad valorem taxes; bring forward sections of law relating to.

Impact

If enacted, this bill would have significant implications for local taxation and economic strategies within Mississippi. By permitting local governments to enter into tax agreements that significantly reduce tax burdens for large projects, the bill aims to incentivize business growth and attract new enterprises into the state. This could lead to increased economic activity, higher employment rates, and an overall boost to local economies as municipalities compete to attract key investments.

Summary

House Bill 926 seeks to bring forward certain sections of the Mississippi Code concerning fee-in-lieu of ad valorem taxes agreements. This enables county boards of supervisors and municipal governing authorities to negotiate and grant such agreements with enterprises making substantial capital investments, thus facilitating economic development in their regions. The threshold for projects eligible for these agreements is set at a minimum capital investment of $60 million, which applies to new enterprises as well as expansions or additions from existing ones that have been operational for at least 24 months.

Contention

Debate surrounding HB 926 likely centers on the balance between local control and state economic policy. Critics may argue that such tax incentives can reduce essential funding for public services by diverting tax revenues from localities. Concerns might also arise regarding the potential for inequitable treatment of smaller businesses that do not meet the investment thresholds for similar tax relief, thereby creating an uneven playing field in the local economic landscape.