Ad valorem tax; add categories for energy projects and extend deadline for certain exemptions, extend deadlines and revise fee-in-lieu minimum for certain projects.

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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Lamar

COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 1063

AN ACT TO AMEND SECTION 27-31-46, MISSISSIPPI CODE OF 1972, 1
TO REVISE THE DEFINITION OF "PROJECT" TO INCLUDE FACILITIES 2
STORING ENERGY USING BATTERY ENERGY STORAGE SYSTEMS, FOR PURPOSES 3
OF A COUNTY'S AUTHORITY TO GRANT CERTAIN AD VALOREM TAX EXEMPTIONS 4
OF UP TO 50% OF THE TOTAL ASSESSED VALUE OF CERTAIN PROJECTS; TO 5
AMEND SECTION 27-31-46.1, MISSISSIPPI CODE OF 1972, TO EXTEND THE 6
INITIAL CONSTRUCTION DEADLINE FOR PURPOSES OF ELIGIBILITY OF 7
CERTAIN ENERGY PROJECTS FOR CERTAIN AD VALOREM TAX EXEMPTIONS OF 8
UP TO 50% OF THE TOTAL ASSESSED VALUE OF THE PROJECTS; TO EXTEND 9
THE DEADLINE BY WHICH COUNTIES AND MUNICIPALITIES MAY AUTHORIZE 10
SUCH EXEMPTIONS; TO AMEND SECTION 27-31-101, MISSISSIPPI CODE OF 11
1972, TO ADD BATTERY ENERGY STORAGE SYSTEM FACILITIES, FOR 12
PURPOSES OF A COUNTY'S OR A MUNICIPALITY'S AUTHORITY TO GRANT 13
CERTAIN AD VALOREM TAX EXEMPTIONS; TO EXTEND THE DATE OF THE 14
REVERTER ON THE SECTION OF LAW; TO AMEND SECTION 27-31-104, 15
MISSISSIPPI CODE OF 1972, TO EXTEND THE DATE BY WHICH A 16
FEE-IN-LIEU AGREEMENT MAY BE ENTERED WITH CERTAIN QUALIFIED 17
BUSINESSES FOR PURPOSES OF THE MINIMUM FEE-IN-LIEU AMOUNT OF 1/10 18
OF THE TOTAL OF ALL AD VALOREM TAXES OTHERWISE PAYABLE AS ANNUALLY 19
DETERMINED; TO EXTEND THE DATE OF THE REVERTER ON THE SECTION OF 20
LAW; AND FOR RELATED PURPOSES. 21
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 22
SECTION 1. Section 27-31-46, Mississippi Code of 1972, is 23
amended as follows: 24
27-31-46. (1) As used in this section, "project" means a 25
facility, placed in operation after April 16, 2021, generating (a) 26
energy through the use of a renewable energy source such as wind, 27
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water, biomass or solar, or (b) storing energy using battery 28
energy storage systems, whether standalone or co-located with a 29
generation facility. 30
(2) In any project with a capital investment from private 31
sources of not less than One Hundred Million Dollars 32
($100,000,000.00), all property, whether real, personal or mixed, 33
including fixtures and leaseholds utilized in the project, 34
including, but not limited to, operational and environmental 35
property utilized in the project, may be exempted by the county 36
board of supervisors from ad valorem taxation up to an amount not 37
to exceed fifty percent (50%) of the total assessed value of the 38
project. 39
SECTION 2. Section 27-31-46.1, Mississippi Code of 1972, is 40
amended as follows: 41
27-31-46.1. A project that is eligible for an ad valorem tax 42
exemption under Section 27-31-46, and for which initial 43
construction begins on or after July 1, 2022, but not later than 44
December 31, * * * 2036, may be allowed an exemption from ad 45
valorem taxation as provided in this section. For such a project, 46
one-half (1/2) of the true value of property of the project that 47
is subject to a fee-in-lieu of ad valorem taxes pursuant to an 48
agreement under Section 27-31-104 may be exempted by a county 49
board of supervisors and/or municipal governing authorities from 50
ad valorem taxation for a period of ten (10) years from and after 51
the date of the expiration of such fee-in-lieu of ad valorem 52
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taxes. Any exemption from ad valorem taxation allowed under this 53
section must be authorized by a county board of supervisors and/or 54
municipal governing authorities before July 1, * * * 2035. 55
SECTION 3. Section 27-31-101, Mississippi Code of 1972, is 56
amended as follows: 57
[Through June 30, * * * 2029, this section shall read as 58
follows:] 59
27-31-101. (1) County boards of supervisors and municipal 60
authorities are hereby authorized and empowered, in their 61
discretion, to grant exemptions from ad valorem taxation, except 62
state ad valorem taxation; however, such governing authorities 63
shall not exempt ad valorem taxes for school district purposes on 64
tangible property used in, or necessary to, the operation of the 65
manufacturers and other new enterprises enumerated by classes in 66
this section, except to the extent authorized in Sections 67
27-31-104 and 27-31-105(2), nor shall they exempt from ad valorem 68
taxes the products of the manufacturers or other new enterprises 69
or automobiles and trucks belonging to the manufacturers or other 70
new enterprises operating on and over the highways of the State of 71
Mississippi. The time of such exemption shall be for a period not 72
to exceed a total of ten (10) years, which shall begin on the date 73
of completion of the new enterprise for which the exemption is 74
granted; however, boards of supervisors and municipal authorities, 75
in lieu of granting the exemption for one (1) period of ten (10) 76
years, may grant the exemption in a period of less than ten (10) 77
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years. When the initial exemption period granted is less than ten 78
(10) years, the boards of supervisors and municipal authorities 79
may grant a subsequent consecutive period or periods to follow the 80
initial period of exemption, provided that the total of all 81
periods of exemption shall not exceed ten (10) years. The date of 82
completion of the new enterprise, from which the initial period of 83
exemption shall begin, shall be the date on which operations of 84
the new enterprise begin. The initial request for an exemption 85
must be made in writing by June 1 of the year immediately 86
following the year in which the date of completion of a new 87
enterprise occurs. If the initial request for the exemption is 88
not timely made, the board of supervisors or municipal authorities 89
may grant a subsequent request for the exemption and, in such 90
case, the exemption shall begin on the anniversary date of 91
completion of the enterprise in the year in which the request is 92
made and may be for a period of time extending not more than ten 93
(10) years from the date of completion of the new enterprise. Any 94
subsequent request for the exemption must be made in writing by 95
June 1 of the year in which it is granted. 96
(2) Any board of supervisors or municipal authority which 97
has granted an exemption for a period of less than ten (10) years 98
may grant subsequent periods of exemption to run consecutively 99
with the initial exemption period, or a subsequently granted 100
exemption period, but in no case shall the total of the exemption 101
periods granted for a new enterprise exceed ten (10) years. Any 102
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consecutive period of exemption shall be granted by entry of an 103
order by the board or the authority granting the consecutive 104
exemption on its minutes, reflecting the granting of the 105
consecutive exemption period and the dates upon which such 106
consecutive exemption period begins and expires. The entry of 107
this order granting the consecutive period of exemption shall be 108
made before the expiration of the exemption period immediately 109
preceding the consecutive exemption period being granted. 110
(3) (a) The new enterprises for which any or all of the 111
tangible property described in paragraph (b) of this subsection 112
(3) may be exempt from ad valorem taxation, except state ad 113
valorem taxation, ad valorem taxes for school district purposes, 114
and ad valorem taxes on the products thereof or on automobiles and 115
trucks belonging thereto and operating on and over the highways of 116
the State of Mississippi, are enumerated as and limited to the 117
following, as determined by the Department of Revenue: 118
(i) Warehouse and/or distribution centers; 119
(ii) Manufacturing, processors and refineries; 120
(iii) Research facilities; 121
(iv) Corporate regional and national headquarters 122
meeting minimum criteria established by the Mississippi 123
Development Authority; 124
(v) Movie industry studios meeting minimum 125
criteria established by the Mississippi Development Authority; 126
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(vi) Air transportation and maintenance facilities 127
meeting minimum criteria established by the Mississippi 128
Development Authority; 129
(vii) Recreational facilities that impact tourism 130
meeting minimum criteria established by the Mississippi 131
Development Authority; 132
(viii) Data/information processing enterprises 133
meeting minimum criteria established by the Mississippi 134
Development Authority; 135
(ix) Technology intensive enterprises or 136
facilities meeting criteria established by the Mississippi 137
Development Authority; 138
(x) Health care industry facilities as defined in 139
Section 57-117-3; 140
(xi) Data centers as defined in Section 57-113-21; 141
(xii) Telecommunications enterprises meeting 142
minimum criteria established by the Mississippi Development 143
Authority. The term "telecommunications enterprises" means 144
entities engaged in the creation, display, management, storage, 145
processing, transmission or distribution for compensation of 146
images, text, voice, video or data by wire or by wireless means, 147
or entities engaged in the construction, design, development, 148
manufacture, maintenance or distribution for compensation of 149
devices, products, software or structures used in the above 150
activities. Companies organized to do business as commercial 151
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broadcast radio stations, television stations or news 152
organizations primarily serving in-state markets shall not be 153
included within the definition of the term "telecommunications 154
enterprises"; * * * 155
(xiii) Controlled environment agriculture 156
enterprises meeting minimum criteria established by the 157
Mississippi Development Authority; and 158
(xiv) Battery energy storage system facilities. 159
The new enterprises enumerated in this paragraph (a) do not 160
include medical cannabis establishments as defined in Section 161
41-137-3 of the Mississippi Medical Cannabis Act. 162
(b) An exemption from ad valorem taxes granted under 163
this section may include any or all tangible property, real or 164
personal, including any leasehold interests therein but excluding 165
automobiles and trucks operating on and over the highways of the 166
State of Mississippi, used in connection with, or necessary to, 167
the operation of an enterprise enumerated in paragraph (a) of this 168
subsection (3), whether or not such property is owned, leased, 169
subleased, licensed or otherwise obtained by such enterprise, 170
irrespective of the taxpayer to which any such leased property is 171
assessed for ad valorem tax purposes. If an exemption is granted 172
pursuant to this section with respect to any leasehold interest 173
under a lease, sublease or license of tangible property used in 174
connection with, or necessary to, the operation of an enterprise 175
enumerated in paragraph (a) of this subsection (3), the 176
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corresponding ownership interest of the owner, lessor and 177
sublessor of such tangible property shall similarly and 178
automatically be exempt without any action being required to be 179
taken by such owner, lessor or sublessor. 180
(4) Any exemption from ad valorem taxes granted under this 181
section before March 28, 2019, and consistent herewith, is hereby 182
ratified, approved and confirmed. 183
[From and after July 1, * * * 2029, this section shall read 184
as follows:] 185
27-31-101. (1) County boards of supervisors and municipal 186
authorities are hereby authorized and empowered, in their 187
discretion, to grant exemptions from ad valorem taxation, except 188
state ad valorem taxation; however, such governing authorities 189
shall not exempt ad valorem taxes for school district purposes on 190
tangible property used in, or necessary to, the operation of the 191
manufacturers and other new enterprises enumerated by classes in 192
this section, except to the extent authorized in Sections 193
27-31-104 and 27-31-105(2), nor shall they exempt from ad valorem 194
taxes the products of the manufacturers or other new enterprises 195
or automobiles and trucks belonging to the manufacturers or other 196
new enterprises operating on and over the highways of the State of 197
Mississippi. The time of such exemption shall be for a period not 198
to exceed a total of ten (10) years, which shall begin on the date 199
of completion of the new enterprise for which the exemption is 200
granted; however, boards of supervisors and municipal authorities, 201
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in lieu of granting the exemption for one (1) period of ten (10) 202
years, may grant the exemption in a period of less than ten (10) 203
years. When the initial exemption period granted is less than ten 204
(10) years, the boards of supervisors and municipal authorities 205
may grant a subsequent consecutive period or periods to follow the 206
initial period of exemption, provided that the total of all 207
periods of exemption shall not exceed ten (10) years. The date of 208
completion of the new enterprise, from which the initial period of 209
exemption shall begin, shall be the date on which operations of 210
the new enterprise begin. The initial request for an exemption 211
must be made in writing by June 1 of the year immediately 212
following the year in which the date of completion of a new 213
enterprise occurs. If the initial request for the exemption is 214
not timely made, the board of supervisors or municipal authorities 215
may grant a subsequent request for the exemption and, in such 216
case, the exemption shall begin on the anniversary date of 217
completion of the enterprise in the year in which the request is 218
made and may be for a period of time extending not more than ten 219
(10) years from the date of completion of the new enterprise. Any 220
subsequent request for the exemption must be made in writing by 221
June 1 of the year in which it is granted. 222
(2) Any board of supervisors or municipal authority which 223
has granted an exemption for a period of less than ten (10) years 224
may grant subsequent periods of exemption to run consecutively 225
with the initial exemption period, or a subsequently granted 226
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exemption period, but in no case shall the total of the exemption 227
periods granted for a new enterprise exceed ten (10) years. Any 228
consecutive period of exemption shall be granted by entry of an 229
order by the board or the authority granting the consecutive 230
exemption on its minutes, reflecting the granting of the 231
consecutive exemption period and the dates upon which such 232
consecutive exemption period begins and expires. The entry of 233
this order granting the consecutive period of exemption shall be 234
made before the expiration of the exemption period immediately 235
preceding the consecutive exemption period being granted. 236
(3) (a) The new enterprises for which any or all of the 237
tangible property described in paragraph (b) of this subsection 238
(3) may be exempt from ad valorem taxation, except state ad 239
valorem taxation, ad valorem taxes for school district purposes, 240
and ad valorem taxes on the products thereof or on automobiles and 241
trucks belonging thereto and operating on and over the highways of 242
the State of Mississippi, are enumerated as and limited to the 243
following, as determined by the Department of Revenue: 244
(i) Warehouse and/or distribution centers; 245
(ii) Manufacturing, processors and refineries; 246
(iii) Research facilities; 247
(iv) Corporate regional and national headquarters 248
meeting minimum criteria established by the Mississippi 249
Development Authority; 250
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(v) Movie industry studios meeting minimum 251
criteria established by the Mississippi Development Authority; 252
(vi) Air transportation and maintenance facilities 253
meeting minimum criteria established by the Mississippi 254
Development Authority; 255
(vii) Recreational facilities that impact tourism 256
meeting minimum criteria established by the Mississippi 257
Development Authority; 258
(viii) Data/information processing enterprises 259
meeting minimum criteria established by the Mississippi 260
Development Authority; 261
(ix) Technology intensive enterprises or 262
facilities meeting criteria established by the Mississippi 263
Development Authority; 264
(x) Data centers as defined in Section 57-113-21; 265
(xi) Telecommunications enterprises meeting 266
minimum criteria established by the Mississippi Development 267
Authority. The term "telecommunications enterprises" means 268
entities engaged in the creation, display, management, storage, 269
processing, transmission or distribution for compensation of 270
images, text, voice, video or data by wire or by wireless means, 271
or entities engaged in the construction, design, development, 272
manufacture, maintenance or distribution for compensation of 273
devices, products, software or structures used in the above 274
activities. Companies organized to do business as commercial 275
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broadcast radio stations, television stations or news 276
organizations primarily serving in-state markets shall not be 277
included within the definition of the term "telecommunications 278
enterprises"; * * * 279
(xii) Controlled environment agriculture 280
enterprises meeting minimum criteria established by the 281
Mississippi Development Authority, and 282
(xiii) Battery energy storage system facilities. 283
The new enterprises enumerated in this paragraph (a) do not 284
include medical cannabis establishments as defined in Section 285
41-137-3 of the Mississippi Medical Cannabis Act. 286
(b) An exemption from ad valorem taxes granted under 287
this section may include any or all tangible property, real or 288
personal, including any leasehold interests therein but excluding 289
automobiles and trucks operating on and over the highways of the 290
State of Mississippi, used in connection with, or necessary to, 291
the operation of an enterprise enumerated in paragraph (a) of this 292
subsection (3), whether or not such property is owned, leased, 293
subleased, licensed or otherwise obtained by such enterprise, 294
irrespective of the taxpayer to which any such leased property is 295
assessed for ad valorem tax purposes. If an exemption is granted 296
pursuant to this section with respect to any leasehold interest 297
under a lease, sublease or license of tangible property used in 298
connection with, or necessary to, the operation of an enterprise 299
enumerated in paragraph (a) of this subsection (3), the 300
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corresponding ownership interest of the owner, lessor and 301
sublessor of such tangible property shall similarly and 302
automatically be exempt without any action being required to be 303
taken by such owner, lessor or sublessor. 304
(4) Any exemption from ad valorem taxes granted under this 305
section before March 28, 2019, and consistent herewith, is hereby 306
ratified, approved and confirmed. 307
SECTION 4. Section 27-31-104, Mississippi Code of 1972, is 308
amended as follows: 309
[Through June 30, * * * 2029, this section shall read as 310
follows:] 311
27-31-104. (1) (a) County boards of supervisors and 312
municipal authorities are each hereby authorized and empowered to 313
enter into an agreement with an enterprise granting, and pursuant 314
to such agreement grant a fee-in-lieu of ad valorem taxes, 315
including ad valorem taxes levied for school purposes, for the 316
following: 317
(i) Projects totaling over Sixty Million Dollars 318
($60,000,000.00) by any new enterprises enumerated in Section 319
27-31-101; 320
(ii) Projects by a private company (as such term 321
is defined in Section 57-61-5) having a minimum capital investment 322
of Sixty Million Dollars ($60,000,000.00); 323
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(iii) Projects by a qualified business (as such 324
term is defined in Section 57-117-3) meeting minimum criteria 325
established by the Mississippi Development Authority; 326
(iv) Projects, in addition to those projects 327
referenced in Section 27-31-105, totaling over Sixty Million 328
Dollars ($60,000,000.00) by an existing enterprise that has been 329
doing business in the county or municipality for twenty-four (24) 330
months. For purposes of this subparagraph (iv), the term 331
"existing enterprise" includes those enterprises enumerated in 332
Section 27-31-101; or 333
(v) A private company (as such term is defined in 334
Section 57-61-5) or entity defined in Section 77-3-3(d)(i) having 335
a minimum capital investment of One Hundred Million Dollars 336
($100,000,000.00) from any source or combination of sources, 337
provided that a majority of the capital investment is from private 338
sources, when such project is located within a geographic area for 339
which a Presidential Disaster Declaration was issued on or after 340
January 1, 2014. 341
County boards of supervisors and municipal authorities may 342
not enter into an agreement with an enterprise that is a medical 343
cannabis establishment, as defined in Section 41-137-3 of the 344
Mississippi Medical Cannabis Act, granting, and pursuant to such 345
agreement grant a fee-in-lieu of ad valorem taxes. 346
(b) A fee-in-lieu of ad valorem taxes granted in 347
accordance with this section may include any or all tangible 348
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property, real or personal, including any leasehold interests 349
therein but excluding automobiles and trucks operating on and over 350
the highways of the State of Mississippi, used in connection with, 351
or necessary to, the operation of any enterprise, private company 352
or business described in paragraph (a) of this subsection (1), as 353
applicable, whether or not such property is owned, leased, 354
subleased, licensed or otherwise obtained by such enterprise, 355
private company or business, as applicable, irrespective of the 356
taxpayer to which any such leased property is assessed for ad 357
valorem tax purposes. If a fee-in-lieu of ad valorem taxes is 358
granted pursuant to this section with respect to any leasehold 359
interest under a lease, sublease or license of tangible property 360
used in connection with, or necessary to, the operation of an 361
enterprise, private company or business described in paragraph (a) 362
of this subsection (1), as applicable, the corresponding ownership 363
interest of the owner, lessor and sublessor of such tangible 364
property shall similarly and automatically be exempt and subject 365
to the fee-in-lieu granted in accordance herewith without any 366
action being required to be taken by such owner, lessor or 367
sublessor. 368
(2) A county board of supervisors may enter into a 369
fee-in-lieu agreement on behalf of the county and any county 370
school district, and a municipality may enter into such a 371
fee-in-lieu agreement on behalf of the municipality and any 372
municipal school district located in the municipality; however, if 373
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the project is located outside the limits of a municipality but 374
within the boundaries of the municipal school district, then the 375
county board of supervisors may enter into such a fee-in-lieu 376
agreement on behalf of the school district granting a fee-in-lieu 377
of ad valorem taxes for school district purposes. 378
(3) Any grant of a fee-in-lieu of ad valorem taxes shall be 379
evidenced by a written agreement negotiated by the enterprise and 380
the county board of supervisors and/or municipal authority, as the 381
case may be, and given final approval by the Mississippi 382
Development Authority as satisfying the requirements of this 383
section. 384
(4) The minimum sum allowable as a fee-in-lieu shall not be 385
less than one-third (1/3), or one-tenth (1/10) if the project is 386
also a project eligible for an ad valorem tax exemption under 387
Section 27-31-46 and a fee-in-lieu agreement is entered into 388
before July 1, * * * 2035, of the ad valorem levy, including ad 389
valorem taxes for school district purposes, and except as 390
otherwise provided, the sum allowed shall be apportioned between 391
the county or municipality, as appropriate, and the school 392
districts in such amounts as may be determined by the county board 393
of supervisors or municipal governing authority, as the case may 394
be, however, except as otherwise provided in this section, from 395
the sum allowed the apportionment to school districts shall not be 396
less than the school districts' pro rata share based upon the 397
proportion that the millage imposed for the school districts by 398
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the appropriate levying authority bears to the millage imposed by 399
such levying authority for all other county or municipal purposes. 400
Any fee-in-lieu agreement entered into under this section shall 401
become a binding obligation of the parties to the agreement, be 402
effective upon its execution by the parties and approval by the 403
Mississippi Development Authority and, except as otherwise 404
provided in Section 17-25-23 or Section 57-75-33, or any other 405
provision of law, continue in effect for a period not to exceed 406
thirty (30) years commencing on the date that the fee-in-lieu 407
granted thereunder begins in accordance with the agreement; 408
however, no particular parcel of land, real property improvement 409
or item of personal property shall be subject to a fee-in-lieu for 410
a duration of more than ten (10) years. Any such agreement shall 411
be binding, according to its terms, on future boards of 412
supervisors of the county and/or governing authorities of a 413
municipality, as the case may be, for the duration of the 414
agreement. 415
(5) The fee-in-lieu may be a stated fraction or percentage 416
of the ad valorem taxes otherwise payable or a stated dollar 417
amount. If the fee is a fraction or percentage of the ad valorem 418
tax levy, it shall be annually computed on all ad valorem taxes 419
otherwise payable, including school taxes, as the same may vary 420
from year to year based upon changes in the millage rate or 421
assessed value and shall not be less than one-third (1/3) of that 422
amount or one-tenth (1/10) of that amount if the project is also a 423
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project eligible for an ad valorem tax exemption under Section 424
27-31-46 and a fee-in-lieu agreement is entered into before July 425
1, * * * 2035. If the fee is a stated dollar amount, said amount 426
shall be the higher of the sum provided for fixed payment or (a) 427
one-third (1/3) of the total of all ad valorem taxes otherwise 428
payable as annually determined during each year of the fee-in-lieu 429
or (b) if the project is also a project eligible for an ad valorem 430
tax exemption under Section 27-31-46 and a fee-in-lieu agreement 431
is entered into before July 1, * * * 2035, one-tenth (1/10) of the 432
total of all ad valorem taxes otherwise payable as annually 433
determined during each year of the fee-in-lieu. 434
(6) Notwithstanding Section 27-31-111, the parties to a 435
fee-in-lieu may agree on terms and conditions providing for the 436
reduction, suspension, termination or reinstatement of a 437
fee-in-lieu agreement or any fee-in-lieu period granted thereunder 438
upon the cessation of operations by project for twelve (12) or 439
more consecutive months or due to other conditions set forth in 440
the agreement. 441
(7) For a project as defined in Section 57-75-5(f)(xxi) and 442
located in a county that is a member of a regional economic 443
development alliance created under Section 57-64-1 et seq., the 444
members of the regional economic development alliance may divide 445
the sum allowed as a fee-in-lieu in a manner as determined by the 446
alliance agreement, and the boards of supervisors of the member 447
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counties may then apportion the sum allowed between school 448
district purposes and all other county purposes. 449
(8) For a project as defined in Section 57-75-5(f)(xxvi), 450
the board of supervisors of the county in which the project is 451
located may negotiate with the school district in which the 452
project is located and apportion to the school district an amount 453
of the fee-in-lieu that is agreed upon in the negotiations 454
different than the amount provided for in subsection (3) of this 455
section. 456
(9) For a project as defined in Section 57-75-5(f)(xxviii), 457
the annual amount of the fee-in-lieu apportioned to the county 458
shall not be less than the amount necessary to pay the debt 459
service on bonds issued by the county pursuant to Section 460
57-75-37(3)(c). 461
(10) For any county and/or municipality that enters into a 462
fee-in-lieu agreement for a project as defined in Section 463
57-75-5(f)(xxxiii), the minimum sum allowable as a fee-in-lieu for 464
the project shall not be less than one-third (1/3); provided that 465
such allowed sum of each annual fee-in-lieu payment may be first 466
apportioned between the county or municipality, as appropriate, 467
and the school districts in any such amounts as may be determined 468
by the county board of supervisors or municipal governing 469
authority, as the case may be, to either: (a) first allocate and 470
remit to the Mississippi Major Economic Impact Authority or the 471
Mississippi Development Authority, as applicable, such portion of 472
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each annual fee-in-lieu payment to repay to the Mississippi Major 473
Economic Impact Authority or the Mississippi Development 474
Authority, as applicable, funds advanced thereby to such county 475
and/or municipality or to other public agency, as defined in 476
Section 57-75-37(7)(a)(ii), to fund public improvements and 477
related costs for the project pursuant to an agreement entered 478
into in accordance with Section 57-75-37(7)(c)(iii); or (b) first 479
allocate and remit to the enterprise owning and/or operating the 480
project such portion of each annual fee-in-lieu payment payable 481
thereto pursuant to an agreement entered into in accordance with 482
Section 57-75-37(7)(d)(iv). The balance of any annual fee-in-lieu 483
amount remaining after such initial allocation and remittance to 484
the Mississippi Major Economic Impact Authority, Mississippi 485
Development Authority or enterprise owning and/or operating the 486
project, as applicable, shall then be apportioned in accordance 487
with subsection (4) of this section or as otherwise authorized by 488
state law. 489
(11) Any fee-in-lieu of ad valorem taxes granted under this 490
section before March 28, 2019, and consistent herewith, is hereby 491
ratified, approved and confirmed. 492
[From and after July 1, * * * 2029, this section shall read 493
as follows:] 494
27-31-104. (1) (a) County boards of supervisors and 495
municipal authorities are each hereby authorized and empowered to 496
enter into an agreement with an enterprise granting, and pursuant 497
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to such agreement grant a fee-in-lieu of ad valorem taxes, 498
including ad valorem taxes levied for school purposes, for the 499
following: 500
(i) Projects totaling over Sixty Million Dollars 501
($60,000,000.00) by any new enterprises enumerated in Section 502
27-31-101; 503
(ii) Projects by a private company (as such term 504
is defined in Section 57-61-5, Mississippi Code of 1972) having a 505
minimum capital investment of Sixty Million Dollars 506
($60,000,000.00); 507
(iii) Projects, in addition to those projects 508
referenced in Section 27-31-105, totaling over Sixty Million 509
Dollars ($60,000,000.00) by an existing enterprise that has been 510
doing business in the county or municipality for twenty-four (24) 511
months. For purposes of this subparagraph (iii), the term 512
"existing enterprise" includes those enterprises enumerated in 513
Section 27-31-101; or 514
(iv) A private company (as such term is defined in 515
Section 57-61-5) or entity defined in Section 77-3-3(d)(i) having 516
a minimum capital investment of One Hundred Million Dollars 517
($100,000,000.00) from any source or combination of sources, 518
provided that a majority of the capital investment is from private 519
sources, when such project is located within a geographic area for 520
which a Presidential Disaster Declaration was issued on or after 521
January 1, 2014. 522
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County boards of supervisors and municipal authorities may 523
not enter into an agreement with an enterprise that is a medical 524
cannabis establishment, as defined in Section 41-137-3 of the 525
Mississippi Medical Cannabis Act, granting, and pursuant to such 526
agreement grant a fee-in-lieu of ad valorem taxes. 527
(b) A fee-in-lieu of ad valorem taxes granted in 528
accordance with this section may include any or all tangible 529
property, real or personal, including any leasehold interests 530
therein but excluding automobiles and trucks operating on and over 531
the highways of the State of Mississippi, used in connection with, 532
or necessary to, the operation of any enterprise, private company 533
or business described in paragraph (a) of this subsection (1), as 534
applicable, whether or not such property is owned, leased, 535
subleased, licensed or otherwise obtained by such enterprise, 536
private company or business, as applicable, irrespective of the 537
taxpayer to which any such leased property is assessed for ad 538
valorem tax purposes. If a fee-in-lieu of ad valorem taxes is 539
granted pursuant to this section with respect to any leasehold 540
interest under a lease, sublease or license of tangible property 541
used in connection with, or necessary to, the operation of an 542
enterprise, private company or business described in paragraph (a) 543
of this subsection (1), as applicable, the corresponding ownership 544
interest of the owner, lessor and sublessor of such tangible 545
property shall similarly and automatically be exempt and subject 546
to the fee-in-lieu granted in accordance herewith without any 547
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action being required to be taken by such owner, lessor or 548
sublessor. 549
(2) A county board of supervisors may enter into a 550
fee-in-lieu agreement on behalf of the county and any county 551
school district, and a municipality may enter into such a 552
fee-in-lieu agreement on behalf of the municipality and any 553
municipal school district located in the municipality; however, if 554
the project is located outside the limits of a municipality but 555
within the boundaries of the municipal school district, then the 556
county board of supervisors may enter into such a fee-in-lieu 557
agreement on behalf of the school district granting a fee-in-lieu 558
of ad valorem taxes for school district purposes. 559
(3) Any grant of a fee-in-lieu of ad valorem taxes shall be 560
evidenced by a written agreement negotiated by the enterprise and 561
the county board of supervisors and/or municipal authority, as the 562
case may be, and given final approval by the Mississippi 563
Development Authority as satisfying the requirements of this 564
section. 565
(4) The minimum sum allowable as a fee-in-lieu shall not be 566
less than one-third (1/3), or one-tenth (1/10) if the project is 567
also a project eligible for an ad valorem tax exemption under 568
Section 27-31-46 and a fee-in-lieu agreement is entered into 569
before July 1, * * * 2035, of the ad valorem levy, including ad 570
valorem taxes for school district purposes, and except as 571
otherwise provided, the sum allowed shall be apportioned between 572
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the county or municipality, as appropriate, and the school 573
districts in such amounts as may be determined by the county board 574
of supervisors or municipal governing authority, as the case may 575
be, however, except as otherwise provided in this section, from 576
the sum allowed the apportionment to school districts shall not be 577
less than the school districts' pro rata share based upon the 578
proportion that the millage imposed for the school districts by 579
the appropriate levying authority bears to the millage imposed by 580
such levying authority for all other county or municipal purposes. 581
Any fee-in-lieu agreement entered into under this section shall 582
become a binding obligation of the parties to the agreement, be 583
effective upon its execution by the parties and approval by the 584
Mississippi Development Authority and, except as otherwise 585
provided in Section 17-25-23 or Section 57-75-33, or any other 586
provision of law, continue in effect for a period not to exceed 587
thirty (30) years commencing on the date that the fee-in-lieu 588
granted thereunder begins in accordance with the agreement; 589
however, no particular parcel of land, real property improvement 590
or item of personal property shall be subject to a fee-in-lieu for 591
a duration of more than ten (10) years. Any such agreement shall 592
be binding, according to its terms, on future boards of 593
supervisors of the county and/or governing authorities of a 594
municipality, as the case may be, for the duration of the 595
agreement. 596
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(5) The fee-in-lieu may be a stated fraction or percentage 597
of the ad valorem taxes otherwise payable or a stated dollar 598
amount. If the fee is a fraction or percentage of the ad valorem 599
tax levy, it shall be annually computed on all ad valorem taxes 600
otherwise payable, including school taxes, as the same may vary 601
from year to year based upon changes in the millage rate or 602
assessed value and shall not be less than one-third (1/3) of that 603
amount or one-tenth (1/10) of that amount if the project is also a 604
project eligible for an ad valorem tax exemption under Section 605
27-31-46 and a fee-in-lieu agreement is entered into before July 606
1, * * * 2035. If the fee is a stated dollar amount, said amount 607
shall be the higher of the sum provided for fixed payment or (a) 608
one-third (1/3) of the total of all ad valorem taxes otherwise 609
payable as annually determined during each year of the fee-in-lieu 610
or (b) if the project is also a project eligible for an ad valorem 611
tax exemption under Section 27-31-46 and a fee-in-lieu agreement 612
is entered into before July 1, * * * 2035, one-tenth (1/10) of the 613
total of all ad valorem taxes otherwise payable as annually 614
determined during each year of the fee-in-lieu. 615
(6) Notwithstanding Section 27-31-111, the parties to a 616
fee-in-lieu may agree on terms and conditions providing for the 617
reduction, suspension, termination or reinstatement of a 618
fee-in-lieu agreement or any fee-in-lieu period granted thereunder 619
upon the cessation of operations by project for twelve (12) or 620
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more consecutive months or due to other conditions set forth in 621
the agreement. 622
(7) For a project as defined in Section 57-75-5(f)(xxi) and 623
located in a county that is a member of a regional economic 624
development alliance created under Section 57-64-1 et seq., the 625
members of the regional economic development alliance may divide 626
the sum allowed as a fee-in-lieu in a manner as determined by the 627
alliance agreement, and the boards of supervisors of the member 628
counties may then apportion the sum allowed between school 629
district purposes and all other county purposes. 630
(8) For a project as defined in Section 57-75-5(f)(xxvi), 631
the board of supervisors of the county in which the project is 632
located may negotiate with the school district in which the 633
project is located and apportion to the school district an amount 634
of the fee-in-lieu that is agreed upon in the negotiations 635
different than the amount provided for in subsection (3) of this 636
section. 637
(9) For a project as defined in Section 57-75-5(f)(xxviii), 638
the annual amount of the fee-in-lieu apportioned to the county 639
shall not be less than the amount necessary to pay the annual debt 640
service on bonds issued by the county pursuant to Section 641
57-75-37(3)(c). 642
(10) For any county and/or municipality that enters into a 643
fee-in-lieu agreement for a project as defined in Section 644
57-75-5(f)(xxxiii), the minimum sum allowable as a fee-in-lieu for 645
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the project shall not be less than one-third (1/3); provided that 646
such allowed sum of each annual fee-in-lieu payment may be first 647
apportioned between the county or municipality, as appropriate, 648
and the school districts in any such amounts as may be determined 649
by the county board of supervisors or municipal governing 650
authority, as the case may be, to either: (a) first allocate and 651
remit to the Mississippi Major Economic Impact Authority or the 652
Mississippi Development Authority, as applicable, such portion of 653
each annual fee-in-lieu payment to repay to the Mississippi Major 654
Economic Impact Authority or the Mississippi Development 655
Authority, as applicable, funds advanced thereby to such county 656
and/or municipality or to other public agency, as defined in 657
Section 57-75-37(7)(a)(ii), to fund public improvements and 658
related costs for the project pursuant to an agreement entered 659
into in accordance with Section 57-75-37(7)(c)(iii); or (b) first 660
allocate and remit to the enterprise owning and/or operating the 661
project such portion of each annual fee-in-lieu payment payable 662
thereto pursuant to an agreement entered into in accordance with 663
Section 57-75-37(7)(d)(iv). The balance of any annual fee-in-lieu 664
amount remaining after such initial allocation and remittance to 665
the Mississippi Major Economic Impact Authority, Mississippi 666
Development Authority or enterprise owning and/or operating the 667
project, as applicable, shall then be apportioned in accordance 668
with subsection (4) of this section or as otherwise authorized by 669
state law. 670
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ST: Ad valorem tax; add categories for energy
projects and extend deadline for certain
exemptions, extend deadlines and revise fee-in-
lieu minimum for certain projects.
(11) Any fee-in-lieu of ad valorem taxes granted under this 671
section before March 28, 2019, and consistent herewith, is hereby 672
ratified, approved and confirmed. 673
SECTION 5. This act shall take effect and be in force from 674
and after July 1, 2026. 675