Mississippi Senate Bill SB2190

Mississippi 2022 Regular Session

• Introduced: 1/13/22
• Refer: 1/13/22
• Failed: 2/23/22

Caption

Municipal ad valorem taxes; exempt real property and motor vehicles in an annexed area for 12 months after annexation.

Impact

The enactment of SB2190 is expected to significantly impact local governments and the fiscal landscape of municipalities in Mississippi. By granting tax exemptions on properties and vehicles in newly annexed areas, the bill seeks to ease the financial burden for residents and businesses during their transition into municipal jurisdiction. Supporters argue that this measure could promote smoother incorporations and may encourage growth in areas that seek annexation by offering greater financial appeals to potential constituents. However, this strategy could lead to diminished revenue for municipalities that rely on property taxes for essential services.

Summary

Senate Bill 2190 is a legislative proposal aimed at amending the Mississippi Code to provide a fiscal benefit for properties within newly annexed municipal areas. Specifically, the bill stipulates that all real property located in an area that is annexed by a municipality will be exempt from municipal ad valorem taxes for a period of twelve months following the date of annexation. This exemption applies equally to motor vehicles registered to an address within the annexed area, extending the same twelve-month reprieve from municipal taxation for owners of these vehicles.

Contention

As with many legislative proposals, SB2190 has generated differing opinions among lawmakers and stakeholders. Proponents of the bill assert that it recognizes the unique circumstances that accompany annexations and provides a level of support to new residents as they adjust to new tax obligations. Conversely, critics warn that such exemptions could lead to shortfalls in municipal funding and resources, particularly in areas where financial sustainability is already a concern. The discussions surrounding this bill illustrate the tension between local government funding needs and the desire to facilitate growth and development in communities across Mississippi.