Mississippi 2022 Regular Session

Mississippi Senate Bill SB3146

Introduced

2/18/22

Refer

2/18/22

Failed

2/23/22

Caption

Ad valorem tax; authorize partial exemption for nonresidential use land that is converted to residential use.

Impact

If enacted, SB3146 would significantly impact local tax revenue generation practices by allowing exemptions that could lower property tax income for counties and municipalities as they transition properties into residential use. The exemption would cease once a property is occupied by a homeowner. For properties comprising multiple parcels, the exemption could continue on each parcel until fully occupied, effectively extending the local governments' flexibility in promoting development while managing their tax revenues.

Summary

Senate Bill 3146 is designed to authorize county boards of supervisors and the governing authorities of municipalities in Mississippi to grant partial ad valorem tax exemptions for properties that are being converted from nonresidential to residential use. The bill specifies that the exemption will be equivalent to the difference between the assessed values of the property in its nonresidential state and its new residential state. This Act aims to encourage the conversion of nonresidential properties to residential ones by alleviating the tax burden during the transition period, thereby potentially aiding in housing demand and urban redevelopment efforts.

Contention

The bill may face contention regarding the potential loss of tax revenue for local governments and fairness concerns for existing homeowners who already pay property taxes. Stakeholders may question whether providing tax breaks specifically for converting properties prioritizes certain developments over maintaining a consistent fiscal environment for municipalities. Additionally, the manner in which exemption requests are made and recorded could spark discussions about transparency and administrative burden on local authorities, thus necessitating clear guidelines to manage requests effectively.