Mississippi House Bill HB377

Mississippi 2023 Regular Session

• Introduced: 1/10/23
• Refer: 1/10/23
• Failed: 2/22/23

Caption

Ad valorem tax; exempt motor homes and trailers.

Impact

If enacted, HB377 would have a significant impact on state laws regarding taxation. This bill's amendment means that, for motor homes and trailers specifically, instead of paying ad valorem taxes based on the assessed value, owners will be relieved from this financial obligation. In the current structure, a gradual reduction of the taxable value set prior to 2024 allows for a complete phase-out of these taxes, which could influence vehicle sales and ownership dynamics within Mississippi, especially for those investing in recreational vehicles.

Summary

House Bill 377 seeks to amend Section 27-51-41.1 of the Mississippi Code of 1972 to provide for the complete exemption of the true value of motor homes and trailers from ad valorem taxation starting from October 1, 2024. The bill aims to ease the financial burden on owners of recreational vehicles by eliminating property taxes on these vehicles, which may promote the use and ownership of motor homes and trailers in the state.

Contention

Potential points of contention surrounding HB377 may arise from discussions on its fiscal implications for state revenues, considering that ad valorem taxes contribute significantly to local government funding. Critics might argue that such exemptions could limit resources available for public services, while supporters could advocate for the benefits of increased recreational vehicle ownership and related tourism. This debate reflects broader conversations about tax policy and the prioritization of economic incentives versus budgetary constraints.