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HB1105 • 2026

Municipal annexation; restrict collection of ad valorem taxes until certain services are provided by municipality.

AN ACT TO AMEND SECTIONS 21-1-27, 21-1-29, 21-1-61, 21-33-1 AND 21-33-21, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT A MUNICIPALITY IS PROHIBITED FROM LEVYING AND COLLECTING AD VALOREM TAXES IN NEWLY ANNEXED AREAS UNTIL THE MUNICIPALITY HAS PROVIDED THE SERVICES TO THE ANNEXED AREA WHICH ARE LISTED IN THE ORDINANCE THAT THE MUNICIPALITY IS REQUIRED TO PASS; AND FOR RELATED PURPOSES.

Taxes
Did Not Pass

The latest official action shows that this bill did not move forward in that session.

Sponsor
Horne
Last action
2026-02-03
Official status
Dead
Effective date
July 1, 20

Plain English Breakdown

Checked against official source text during the last sync.

Restricting Tax Collection Until Services Are Provided

This bill stops municipalities from collecting property taxes in newly annexed areas until they provide certain services listed in an ordinance.

What This Bill Does

  • Prohibits a municipality from collecting ad valorem (property) taxes in new areas it annexes.
  • Requires the municipality to pass an ordinance listing the services it will provide in the annexed area before collecting taxes.
  • Specifies that tax collection can only start after the listed services are provided by the municipality.

Who It Names or Affects

  • Municipalities that want to annex new areas
  • Residents and businesses in newly annexed areas

Terms To Know

Ad valorem tax
A property tax based on the value of a piece of property.
Annexation
The process by which an area is added to an existing city or town.

Limits and Unknowns

  • This bill did not pass and therefore has no legal effect.
  • It only applies if the municipality follows the required steps in its ordinance.

Bill History

  1. 2026-02-03 Mississippi Legislative Bill Status System

    02/03 (H) Died In Committee

  2. 2026-01-19 Mississippi Legislative Bill Status System

    01/19 (H) Referred To Ways and Means

Official Summary Text

Municipal annexation; restrict collection of ad valorem taxes until certain services are provided by municipality.

Current Bill Text

Read the full stored bill text
H. B. No. 1105 *HR31/R690* ~ OFFICIAL ~ G3/5
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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Horne

HOUSE BILL NO. 1105

AN ACT TO AMEND SECTIONS 21-1-27, 21-1-29, 21-1-61, 21-33-1 1
AND 21-33-21, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT A 2
MUNICIPALITY IS PROHIBITED FROM LEVYING AND COLLECTING AD VALOREM 3
TAXES IN NEWLY ANNEXED AREAS UNTIL THE MUNICIPALITY HAS PROVIDED 4
THE SERVICES TO THE ANNEXED AREA WHICH ARE LISTED IN THE ORDINANCE 5
THAT THE MUNICIPALITY IS REQUIRED TO PASS; AND FOR RELATED 6
PURPOSES. 7
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 8
SECTION 1. Section 21-1-27, Mississippi Code of 1972, is 9
amended as follows: 10
21-1-27. * * * The limits and boundaries of existing cities, 11
towns and villages shall remain as now established until altered 12
in the manner * * * provided in this chapter. When any 13
municipality * * * desires to enlarge or contract * * * its 14
boundaries * * * by adding * * * adjacent unincorporated territory 15
or excluding * * * any part of the incorporated territory of * * * 16
the municipality, the governing authorities of * * * the 17
municipality shall pass an ordinance defining with certainty the 18
territory proposed to be included in or excluded from the 19
corporate limits, and also defining the entire boundary as 20
H. B. No. 1105 *HR31/R690* ~ OFFICIAL ~
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changed. * * * If the municipality desires to enlarge * * * its 21
boundaries, * * * the ordinance shall in general terms describe 22
the proposed improvements to be made in the annexed territory, the 23
manner and extent of such improvements, and the approximate time 24
within which such improvements are to be made * * *. * * * The 25
ordinance shall also contain a statement of the municipal or 26
public services which * * * the municipality proposes to render in 27
such annexed territory. The ordinance shall also state that the 28
municipality may not levy or collect municipal ad valorem taxes 29
within the territory proposed to be annexed until those services 30
that the municipality proposes to render in the ordinance are 31
provided. * * * If the municipality * * * desires to contract its 32
boundaries, * * * the ordinance shall contain a statement of the 33
reasons for * * * the contraction and a statement showing * * * 34
that the public convenience and necessity would be served thereby. 35
(2) [Repealed] 36
(3) [Repealed] 37
SECTION 2. Section 21-1-29, Mississippi Code of 1972, is 38
amended as follows: 39
21-1-29. When any such ordinance * * * described in Section 40
21-1-27 is passed by the municipal authorities, * * * the 41
municipal authorities shall file a petition in the chancery court 42
of the county in which * * * the municipality is located; however, 43
when a municipality wishes to annex or extend its boundaries 44
across and into an adjoining county * * *, the municipal 45
H. B. No. 1105 *HR31/R690* ~ OFFICIAL ~
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authorities shall file a petition in the chancery court of the 46
county in which such territory is located. The petition shall (a) 47
recite the fact of the adoption of * * * the ordinance * * *, (b) 48
pray that the enlargement or contraction of the municipal 49
boundaries, as the case may be, shall be ratified, approved and 50
confirmed by the court * * * and (c) state that the municipality 51
shall not levy or collect municipal ad valorem taxes within the 52
territory proposed to be annexed until those services that the 53
municipality proposed to render in the ordinance are provided by 54
the municipality. There shall be attached to * * * the petition, 55
as exhibits * * *, a certified copy of the ordinance adopted by 56
the municipal authorities and a map or plat of the municipal 57
boundaries as they will exist * * * if such enlargement or 58
contraction becomes effective. 59
SECTION 3. Section 21-1-61, Mississippi Code of 1972, is 60
amended as follows: 61
21-1-61. In all cases where a municipality is created or the 62
limits of an existing municipality are enlarged under the 63
provisions of this chapter, the property included within the 64
municipal boundaries by * * * the creation * * * shall become 65
liable for and subject to municipal ad valorem taxation on the tax 66
lien date next succeeding the effective date of the decree 67
creating or enlarging such municipality. In all cases where the 68
limits of an existing municipality are enlarged through annexation 69
of an adjoining territory under the provisions of this chapter, 70
H. B. No. 1105 *HR31/R690* ~ OFFICIAL ~
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ST: Municipal annexation; restrict collection
of ad valorem taxes until certain services are
provided by municipality.
the annexed territory will not become liable for or subject to 71
municipal ad valorem taxation until the services that the 72
municipality proposed in the ordinance described in Section 73
21-1-27 are rendered by the municipality. 74
SECTION 4. Section 21-33-1, Mississippi Code of 1972, is 75
amended as follows: 76
21-33-1. Except as provided in Section 21-1-61, all lands 77
and other taxable property subject to assessment, held by any 78
person within the municipality, or in added territory, on the 79
first day of January, shall be assessed, and ad valorem taxes 80
thereon levied and collected for the ensuing year, excepting motor 81
vehicles as defined by the "Motor Vehicle Ad Valorem Tax Law of 82
1958," as provided under Sections 27-51-1 through 27-51-49 * * *. 83
SECTION 5. Section 21-33-21, Mississippi Code of 1972, is 84
amended as follows: 85
21-33-21. After the services that the municipality proposed 86
in the ordinance described in Section 21-1-27 are rendered by the 87
municipality within the added territory as required under Section 88
21-1-61, the assessor * * *, in the same manner and at the same 89
time as municipal assessments are made, shall make an assessment 90
of all taxable property in any added territory, and shall make the 91
same a part of the assessment roll of the municipal separate 92
school district. 93
SECTION 6. This act shall take effect and be in force from 94
and after July 1, 2026. 95