Mississippi Senate Bill SB2194

Mississippi 2022 Regular Session

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

Caption

Ad valorem tax; exempt property owned by a university foundation.

Impact

If enacted, SB2194 would directly impact the taxation landscape for nonprofit organizations in Mississippi. By exempting properties owned by foundations that support higher education from ad valorem taxes, the bill aims to relieve financial burdens on these foundations, allowing them to allocate more resources towards educational support and services. This change serves to enhance the nonprofit sector’s ability to contribute positively to academic institutions, thereby potentially improving the quality of higher education and its accessibility.

Summary

Senate Bill 2194 proposes an amendment to Section 27-31-1 of the Mississippi Code of 1972 to exempt from ad valorem taxation all property owned by nonprofit foundations that are exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code. These foundations must be engaged in receiving, investing, and administering private support specifically for state-supported institutions of higher learning. The goal of this bill is to support the financial stability of nonprofit foundations that play a critical role in sustaining higher education institutions in Mississippi.

Contention

However, some may argue that this bill could lead to a loss of tax revenue for local governments, as the exemption applies broadly to any properties owned by eligible foundations. Critics may raise concerns regarding accountability and oversight of the exempt properties and challenge whether all such foundations are genuinely dedicated to educational purposes. The implications of this tax exemption on local funding for public services and community needs are expected to be points of contention during legislative discussions surrounding the bill.