Ad valorem tax; require counties and municipalities to provide notice and hearing before exceeding revenue-neutral rate.
The bill's implementation is expected to reinforce a structured approach to fiscal responsibilities, holding local governments accountable to their constituents. Particularly, the requirement for public hearings before any budget adoption involving increases to the millage rate seeks to enhance community oversight over local tax policies. The Department of Revenue is tasked with monitoring compliance with these new regulations, which could streamline tax collection processes and ensure that municipalities operate within the law, thereby protecting taxpayer interests.
Senate Bill 2901 aims to establish a framework for counties and municipalities in Mississippi that intend to exceed the revenue-neutral rate in their levy of ad valorem taxes. The bill stipulates that these local governments must adhere to specific notice and hearing procedures, ensuring transparency and public participation in the decision-making process. This means before any increase beyond the revenue-neutral rate can take effect, a governing body must conduct public hearings and provide advance notice to property owners and taxpayers regarding proposed changes to millage rates.
While proponents of SB2901 argue that it promotes fairness and accountability in local government taxation, there are potential points of contention. Critics may view these measures as restrictive, possibly limiting the flexibility needed by local officials to respond to urgent fiscal needs. Furthermore, the penalty provisions for failing to comply with the set procedures—such as refunding over-collected property taxes—might raise concerns among local governments about fiscal management and sustainability, especially in economically challenging times.