Mississippi Senate Bill SB2014

Mississippi 2023 Regular Session

• Introduced: 1/9/23
• Refer: 1/9/23
• Failed: 2/22/23

Caption

Ad valorem taxes; consider annexed business "new enterprise" for purpose of eligibility for certain municipal tax exemptions.

Impact

The bill would essentially allow municipalities more leeway in granting tax exemptions to businesses that are annexed into their jurisdiction, potentially leading to an increase in economic activity and investment in these areas. The exemption periods for the taxes granted can span up to ten years, starting from the date the enterprise commences operations in the annexed area. This change intends to encourage local governments to promote the growth of enterprises within newly acquired territories and enhance local employment opportunities.

Summary

Senate Bill 2014 seeks to amend the Mississippi Code regarding ad valorem taxation exemptions, particularly in relation to municipalities that annex areas containing businesses eligible for such exemptions. The bill stipulates that if a municipality annexes an area that already contains an enterprise eligible for discretionary ad valorem tax exemptions as a new enterprise, that enterprise shall be treated as 'new' for the purpose of tax exemption qualification. This provision aims to incentivize economic growth by making it easier for newly annexed businesses to access tax benefits.

Contention

However, there are points of contention associated with the bill. Critics may argue that it undermines the established regulatory framework for ad valorem taxes and could result in significant losses in tax revenue for school districts, as the bill explicitly continues the prohibition against granting exemptions on taxes for school district purposes. Moreover, opponents might contend that this could lead to a disparity where larger enterprises benefit disproportionately from tax exemptions compared to smaller, locally-owned businesses.