Statewide Utility Tax Reform Act; create.

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To: Public Utilities; Ways
and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Harness

HOUSE BILL NO. 1276

AN ACT TO BE KNOWN AS THE "STATEWIDE UTILITY TAX REFORM ACT"; 1
TO REQUIRE NUCLEAR FUEL, NUCLEAR FUEL BY-PRODUCTS AND RELATED 2
MATERIALS TO BE SUBJECT TO AD VALOREM TAXATION AT THE SAME RATE AS 3
OTHER TAXABLE PROPERTY IN MISSISSIPPI; TO ESTABLISH A TIERED 4
DISTRIBUTION SYSTEM FOR THE ALLOCATION OF AD VALOREM TAX REVENUES 5
COLLECTED IN A COUNTY HOSTING A HIGH-RISK FACILITY, INCLUDING A 6
NUCLEAR POWER PLANT; TO REQUIRE UTILITIES OPERATING HIGH-RISK 7
FACILITIES TO MAKE ANNUAL PAYMENTS IN LIEU OF TAXES (PILOT) TO 8
HOST COUNTIES; TO PRESCRIBE THE AMOUNT AND PERMISSIBLE USES OF 9
PILOT PAYMENTS; TO REQUIRE COUNTIES TO ALLOCATE REVENUES RECEIVED 10
UNDER THIS ACT FOR CERTAIN SPECIFIED PURPOSES; TO REQUIRE THE 11
DEPARTMENT OF REVENUE TO OVERSEE IMPLEMENTATION OF THIS ACT; TO 12
REQUIRE ANNUAL REPORTS; TO AMEND SECTION 27-31-1, MISSISSIPPI CODE 13
OF 1972, TO DELETE THE EXEMPTION OF NUCLEAR FUEL AND FUEL 14
BY-PRODUCTS FROM AD VALOREM TAXATION; TO BRING FORWARD SECTIONS 15
19-9-151, 19-9-153, 19-9-155 AND 19-9-157, MISSISSIPPI CODE OF 16
1972, WHICH RELATE TO IN-LIEU PAYMENTS TO COUNTIES IN WHICH 17
NUCLEAR GENERATING PLANTS ARE LOCATED, FOR THE PURPOSES OF 18
POSSIBLE AMENDMENT; TO BRING FORWARD SECTION 27-39-305, 19
MISSISSIPPI CODE OF 1972, WHICH AUTHORIZES COUNTIES TO LEVY AD 20
VALOREM TAXES FOR MAINTENANCE AND CONSTRUCTION OF ROADS AND 21
BRIDGES, FOR THE PURPOSES OF POSSIBLE AMENDMENT; TO BRING FORWARD 22
SECTION 27-39-320, MISSISSIPPI CODE OF 1972, WHICH PROVIDES FOR 23
LIMITATIONS ON INCREASES OF AD VALOREM TAX REVENUES, FOR THE 24
PURPOSES OF POSSIBLE AMENDMENT; TO BRING FORWARD SECTION 33-15-51, 25
MISSISSIPPI CODE OF 1972, WHICH CREATES THE GRAND GULF DISASTER 26
ASSISTANCE TRUST FUND, FOR THE PURPOSES OF POSSIBLE AMENDMENT; TO 27
BRING FORWARD SECTION 37-57-105, MISSISSIPPI CODE OF 1972, WHICH 28
AUTHORIZES AND PROVIDES THE PROCEDURE FOR THE LEVY OF CERTAIN AD 29
VALOREM TAXES FOR SCHOOL DISTRICT PURPOSES, FOR THE PURPOSES OF 30
POSSIBLE AMENDMENT; TO BRING FORWARD SECTION 37-151-87, 31
MISSISSIPPI CODE OF 1972, WHICH RELATES TO THE REDUCTION OF LOCAL 32
SUPPLEMENT OR SUPPORT FROM AD VALOREM TAXATION UNDER THE 33
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MISSISSIPPI STUDENT FUNDING FORMULA, FOR THE PURPOSES OF POSSIBLE 34
AMENDMENT; AND FOR RELATED PURPOSES. 35
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 36
SECTION 1. (1) This act shall be known and may be cited 37
as the "Statewide Utility Tax Reform Act". 38
(2) The purpose of this act is to redefine the taxation 39
structure for public utilities, including nuclear power 40
plants, to ensure fair and equitable distribution of tax 41
revenues, with particular emphasis on compensating counties 42
hosting high-risk facilities. 43
SECTION 2. All nuclear fuel, nuclear fuel by-products and 44
related materials are subject to ad valorem taxation at the 45
same rate as other taxable property in Mississippi, with the 46
revenue allocated as specified in this act. 47
SECTION 3. Counties hosting high-risk facilities, 48
including nuclear power plants, shall receive the majority 49
share of tax revenues derived from those facilities. The 50
tiered distribution system for the allocation of tax revenues 51
is as follows: 52
(a) Tier 1 Counties (High-Risk Hosts): Counties 53
hosting a nuclear power plant or other high-risk utility 54
shall receive sixty-five percent (65%) of the total ad 55
valorem taxes collected from the facility. 56
(b) Tier 2 Counties (Adjacent Counties): Counties 57
adjacent to the host county shall receive ten percent (10%) 58
of the total ad valorem taxes collected to account for 59
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spillover risks and shared infrastructure impact, to be 60
allocated among those counties as determined by the 61
department with consideration given to each county's risks 62
and infrastructure impact. 63
(c) State General Fund: The remaining twenty-five 64
percent (25%) shall be allocated to the State of Mississippi for 65
statewide utility oversight and infrastructure development. 66
SECTION 4. (1) Utility companies operating high-risk 67
facilities, including Entergy Corporation, shall make annual 68
Payments in Lieu of Taxes (PILOT) directly to the host counties. 69
(2) The PILOT amount shall be calculated as follows: 70
(a) Base Amount: Five Million Dollars ($5,000,000.00) 71
annually per high-risk facility; and 72
(b) Performance-Based Adjustment: An additional 73
payment of One Cent ($0.01) per kilowatt-hour of electricity 74
generated by the facility. 75
(3) PILOT funds must be used exclusively for: 76
(a) Infrastructure improvements; 77
(b) Emergency preparedness and public safety; and 78
(c) Health and environmental monitoring. 79
SECTION 5. Revenues received under this act must be 80
allocated by host counties as follows: 81
(a) Forty percent (40%) for public infrastructure, 82
including roads, bridges and utilities. 83
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(b) Thirty percent (30%) for education, including 84
public schools and scholarships for county residents. 85
(c) Twenty percent (20%) for healthcare and emergency 86
preparedness. 87
(d) Ten percent (10%) for economic development 88
initiatives. 89
SECTION 6. (1) The Department of Revenue shall oversee the 90
implementation of and compliance with this act. 91
(2) Each utility company shall submit to the department an 92
annual report detailing tax payments, PILOT contributions and 93
electricity production figures. 94
(3) Each host county shall submit an annual expenditure 95
report to the department detailing the use of revenues received 96
under this act. 97
(4) Utilizing information contained in the reports required 98
under subsections (2) and (3) of this section, the Department of 99
Revenue shall publish an annual report summarizing the tax 100
revenues, distributions and expenditures under this act. 101
SECTION 7. Section 27-31-1, Mississippi Code of 1972, is 102
amended as follows: 103
27-31-1. The following shall be exempt from taxation: 104
(a) All cemeteries used exclusively for burial 105
purposes. 106
(b) All property, real or personal, belonging to the 107
State of Mississippi or any of its political subdivisions, except 108
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property of a municipality not being used for a proper municipal 109
purpose and located outside the county or counties in which such 110
municipality is located. A proper municipal purpose within the 111
meaning of this section shall be any authorized governmental or 112
corporate function of a municipality. 113
(c) All property, real or personal, owned by units of 114
the Mississippi National Guard, or title to which is vested in 115
trustees for the benefit of any unit of the Mississippi National 116
Guard; provided such property is used exclusively for such unit, 117
or for public purposes, and not for profit. 118
(d) All property, real or personal, belonging to any 119
religious society, or ecclesiastical body, or any congregation 120
thereof, or to any charitable society, or to any historical or 121
patriotic association or society, or to any garden or pilgrimage 122
club or association and used exclusively for such society or 123
association and not for profit; not exceeding, however, the amount 124
of land which such association or society may own as provided in 125
Section 79-11-33. All property, real or personal, belonging to 126
any foundation organized as a nonprofit corporation that is exempt 127
from federal income taxation under Section 501(c)(3) of the 128
Internal Revenue Code and that receives, invests and administers 129
private support for a state-supported institution of higher 130
learning, a public community college or junior college located in 131
the State of Mississippi or a nonprofit private university or 132
college located in the State of Mississippi, as the case may be. 133
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For the sole purpose of applying the preceding sentence, all 134
property, real or personal, belonging to an entity that is wholly 135
owned by and controlled by such a foundation shall be treated as 136
belonging to the foundation, provided such property is not leased 137
or otherwise used to generate revenue that is not used exclusively 138
to benefit an institution described above. All property, real or 139
personal, belonging to any rural waterworks system or rural sewage 140
disposal system incorporated under the provisions of Section 141
79-11-1. All property, real or personal, belonging to any college 142
or institution for the education of youths, used directly and 143
exclusively for such purposes, provided that no such college or 144
institution for the education of youths shall have exempt from 145
taxation more than six hundred forty (640) acres of land; 146
provided, however, this exemption shall not apply to commercial 147
schools and colleges or trade institutions or schools where the 148
profits of same inure to individuals, associations or 149
corporations. All property, real or personal, belonging to an 150
individual, institution or corporation and used for the operation 151
of a grammar school, junior high school, high school or military 152
school. All property, real or personal, owned and occupied by a 153
fraternal and benevolent organization, when used by such 154
organization, and from which no rentals or other profits accrue to 155
the organization, but any part rented or from which revenue is 156
received shall be taxed. 157
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(e) All property, real or personal, held and occupied 158
by trustees of public schools, and school lands of the respective 159
townships for the use of public schools, and all property kept in 160
storage for the convenience and benefit of the State of 161
Mississippi in warehouses owned or leased by the State of 162
Mississippi, wherein said property is to be sold by the Alcoholic 163
Beverage Control Division of the Department of Revenue. 164
(f) All property, real or personal, whether belonging 165
to religious or charitable or benevolent organizations, which is 166
used for hospital purposes, and nurses' homes where a part 167
thereof, and which maintain one or more charity wards that are for 168
charity patients, and where all the income from said hospitals and 169
nurses' homes is used entirely for the purposes thereof and no 170
part of the same for profit. All property, real or personal, 171
belonging to a federally qualified health center where all the 172
income from such center is used entirely for the purposes thereof 173
and no part of the same for profit. 174
(g) The wearing apparel of every person; and also 175
jewelry and watches kept by the owner for personal use to the 176
extent of One Hundred Dollars ($100.00) in value for each owner. 177
(h) Provisions on hand for family consumption. 178
(i) All farm products grown in this state for a period 179
of two (2) years after they are harvested, when in the possession 180
of or the title to which is in the producer, except the tax of 181
one-fifth of one percent (1/5 of 1%) per pound on lint cotton now 182
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levied by the Board of Commissioners of the Mississippi Levee 183
District; and lint cotton for five (5) years, and cottonseed, 184
soybeans, oats, rice and wheat for one (1) year regardless of 185
ownership. 186
(j) All guns and pistols kept by the owner for private 187
use. 188
(k) All poultry in the hands of the producer. 189
(l) Household furniture, including all articles kept in 190
the home by the owner for his own personal or family use; but this 191
shall not apply to hotels, rooming houses or rented or leased 192
apartments. 193
(m) All cattle and oxen. 194
(n) All sheep, goats and hogs. 195
(o) All horses, mules and asses. 196
(p) Farming tools, implements and machinery, when used 197
exclusively in the cultivation or harvesting of crops or timber. 198
(q) All property of agricultural and mechanical 199
associations and fairs used for promoting their objects, and where 200
no part of the proceeds is used for profit. 201
(r) The libraries of all persons. 202
(s) All pictures and works of art, not kept for or 203
offered for sale as merchandise. 204
(t) The tools of any mechanic necessary for carrying on 205
his trade. 206
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(u) All state, county, municipal, levee, drainage and 207
all school bonds or other governmental obligations, and all bonds 208
and/or evidences of debts issued by any church or church 209
organization in this state, and all notes and evidences of 210
indebtedness which bear a rate of interest not greater than the 211
maximum rate per annum applicable under the law; and all money 212
loaned at a rate of interest not exceeding the maximum rate per 213
annum applicable under the law; and all stock in or bonds of 214
foreign corporations or associations shall be exempt from all ad 215
valorem taxes. 216
(v) All lands and other property situated or located 217
between the Mississippi River and the levee shall be exempt from 218
the payment of any and all road taxes levied or assessed under any 219
road laws of this state. 220
(w) Any and all money on deposit in either national 221
banks, state banks or trust companies, on open account, savings 222
account or time deposit. 223
(x) All wagons, carts, drays, carriages and other 224
horse-drawn vehicles, kept for the use of the owner. 225
(y) (i) Boats, seines and fishing equipment used in 226
fishing and shrimping operations and in the taking or catching of 227
oysters. 228
(ii) All towboats, tugboats and barges documented 229
under the laws of the United States, except watercraft of every 230
kind and character used in connection with gaming operations. 231
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(z) (i) All materials used in the construction and/or 232
conversion of vessels in this state; 233
(ii) Vessels while under construction and/or 234
conversion; 235
(iii) Vessels while in the possession of the 236
manufacturer, builder or converter, for a period of twelve (12) 237
months after completion of construction and/or conversion; 238
however, the twelve-month limitation shall not apply to: 239
1. Vessels used for the exploration for, or 240
production of, oil, gas and other minerals offshore outside the 241
boundaries of this state; or 242
2. Vessels that were used for the exploration 243
for, or production of, oil, gas and other minerals that are 244
converted to a new service for use outside the boundaries of this 245
state; 246
(iv) 1. In order for a vessel described in 247
subparagraph (iii) of this paragraph (z) to be exempt for a period 248
of more than twelve (12) months, the vessel must: 249
a. Be operating or operable, generating 250
or capable of generating its own power or connected to some other 251
power source, and not removed from the service or use for which 252
manufactured or to which converted; and 253
b. The manufacturer, builder, converter 254
or other entity possessing the vessel must be in compliance with 255
any lease or other agreement with any applicable port authority or 256
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other entity regarding the vessel and in compliance with all 257
applicable tax laws of this state and applicable federal tax laws. 258
2. A vessel exempt from taxation under 259
subparagraph (iii) of this paragraph (z) may not be exempt for a 260
period of more than three (3) years unless the board of 261
supervisors of the county and/or governing authorities of the 262
municipality, as the case may be, in which the vessel would 263
otherwise be taxable adopts a resolution or ordinance authorizing 264
the extension of the exemption and setting a maximum period for 265
the exemption. 266
(v) As used in this paragraph (z), the term 267
"vessel" includes ships, offshore drilling equipment, dry docks, 268
boats and barges, except watercraft of every kind and character 269
used in connection with gaming operations. 270
(aa) * * * [Deleted]. 271
(bb) All growing nursery stock. 272
(cc) A semitrailer used in interstate commerce. 273
(dd) All property, real or personal, used exclusively 274
for the housing of and provision of services to elderly persons, 275
disabled persons, mentally impaired persons or as a nursing home, 276
which is owned, operated and managed by a not-for-profit 277
corporation, qualified under Section 501(c)(3) of the Internal 278
Revenue Code, whose membership or governing body is appointed or 279
confirmed by a religious society or ecclesiastical body or any 280
congregation thereof. 281
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(ee) All vessels while in the hands of bona fide 282
dealers as merchandise and which are not being operated upon the 283
waters of this state shall be exempt from ad valorem taxes. As 284
used in this paragraph, the terms "vessel" and "waters of this 285
state" shall have the meaning ascribed to such terms in Section 286
59-21-3. 287
(ff) All property, real or personal, owned by a 288
nonprofit organization that: (i) is qualified as tax exempt under 289
Section 501(c)(4) of the Internal Revenue Code of 1986, as 290
amended; (ii) assists in the implementation of the national 291
contingency plan or area contingency plan, and which is created in 292
response to the requirements of Title IV, Subtitle B of the Oil 293
Pollution Act of 1990, Public Law 101-380; (iii) engages primarily 294
in programs to contain, clean up and otherwise mitigate spills of 295
oil or other substances occurring in the United States coastal or 296
tidal waters; and (iv) is used for the purposes of the 297
organization. 298
(gg) If a municipality changes its boundaries so as to 299
include within the boundaries of such municipality the project 300
site of any project as defined in Section 57-75-5(f)(iv)1, Section 301
57-75-5(f)(xxi) or Section 57-75-5(f)(xxviii) or Section 302
57-75-5(f)(xxix), all real and personal property located on the 303
project site within the boundaries of such municipality that is 304
owned by a business enterprise operating such project, shall be 305
exempt from ad valorem taxation for a period of time not to exceed 306
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thirty (30) years upon receiving approval for such exemption by 307
the Mississippi Major Economic Impact Authority. The provisions 308
of this paragraph shall not be construed to authorize a breach of 309
any agreement entered into pursuant to Section 21-1-59. 310
(hh) All leases, lease contracts or lease agreements 311
(including, but not limited to, subleases, sublease contracts and 312
sublease agreements), and leaseholds or leasehold interests 313
(including, but not limited to, subleaseholds and subleasehold 314
interests), of or with respect to any and all property (real, 315
personal or mixed) constituting all or any part of a facility for 316
the manufacture, production, generation, transmission and/or 317
distribution of electricity, and any real property related 318
thereto, shall be exempt from ad valorem taxation during the 319
period as the United States is both the title owner of the 320
property and a sublessee of or with respect to the property; 321
however, the exemption authorized by this paragraph (hh) shall not 322
apply to any entity to whom the United States sub-subleases its 323
interest in the property nor to any entity to whom the United 324
States assigns its sublease interest in the property. As used in 325
this paragraph, the term "United States" includes an agency or 326
instrumentality of the United States of America. This paragraph 327
(hh) shall apply to all assessments for ad valorem taxation for 328
the 2003 calendar year and each calendar year thereafter. 329
(ii) All property, real, personal or mixed, including 330
fixtures and leaseholds, used by Mississippi nonprofit entities 331
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qualified, on or before January 1, 2005, under Section 501(c)(3) 332
of the Internal Revenue Code to provide support and operate 333
technology incubators for research and development start-up 334
companies, telecommunication startup companies and/or other 335
technology startup companies, utilizing technology spun-off from 336
research and development activities of the public colleges and 337
universities of this state, State of Mississippi governmental 338
research or development activities resulting therefrom located 339
within the State of Mississippi. 340
(jj) All property, real, personal or mixed, including 341
fixtures and leaseholds, of start-up companies (as described in 342
paragraph (ii) of this section) for the period of time, not to 343
exceed five (5) years, that the startup company remains a tenant 344
of a technology incubator (as described in paragraph (ii) of this 345
section). 346
(kk) All leases, lease contracts or lease agreements 347
(including, but not limited to, subleases, sublease contracts and 348
sublease agreements), and leaseholds or leasehold interests, of or 349
with respect to any and all property (real, personal or mixed) 350
constituting all or any part of an auxiliary facility, and any 351
real property related thereto, constructed or renovated pursuant 352
to Section 37-101-41. 353
(ll) Equipment brought into the state temporarily for 354
use during a disaster response period as provided in Sections 355
27-113-1 through 27-113-9 and subsequently removed from the state 356
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on or before the end of the disaster response period as defined in 357
Section 27-113-5. 358
(mm) For any lease or contractual arrangement to which 359
the Department of Finance and Administration and a nonprofit 360
corporation are a party to as provided in Section 39-25-1(5), the 361
nonprofit corporation shall, along with the possessory and 362
leasehold interests and/or real and personal property of the 363
corporation, be exempt from all ad valorem taxation, including, 364
but not limited to, school, city and county ad valorem taxes, for 365
the term or period of time stated in the lease or contractual 366
arrangement. 367
(nn) All property, real or personal, that is owned, 368
operated and managed by a not-for-profit corporation qualified under 369
Section 501(c)(3) of the Internal Revenue Code, and used to provide, 370
free of charge, (i) a practice facility for a public school district 371
swim team, and (ii) a facility for another not-for-profit 372
organization as defined under Section 501(c)(3) of the Internal 373
Revenue Code to conduct water safety and lifeguard training programs. 374
This section shall not apply to real or personal property owned by a 375
country club, tennis club with a pool, or any club requiring stock 376
ownership for membership. 377
(oo) Any all-terrain vehicle, as defined in Section 378
63-21-5, when held by a retailer on a consignment or floor plan 379
basis. 380
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SECTION 8. Section 19-9-151, Mississippi Code of 1972, is 381
brought forward as follows: 382
19-9-151. The in-lieu payments made to the State Tax 383
Commission pursuant to Section 27-35-309(3)(b), excluding payments 384
made in excess of Sixteen Million Dollars ($16,000,000.00) which 385
are required to be paid into the General Fund of the state, shall 386
be distributed by the State Tax Commission as follows: 387
(a) For fiscal year 1987, fifty percent (50%) of such 388
payment shall be paid to the situs county wherein such nuclear 389
generating plant is located; 390
(b) For fiscal year 1988, forty-five percent (45%) of 391
such payment shall be paid to the situs county wherein such 392
nuclear generating plant is located; 393
(c) For fiscal year 1989, forty percent (40%) of such 394
payment shall be paid to the situs county wherein such nuclear 395
generating plant is located; 396
(d) For fiscal year 1990, thirty-five (35%) of such 397
payment shall be paid to the situs county wherein such nuclear 398
generating plant is located; 399
(e) For fiscal year 1991 and thereafter, thirty percent 400
(30%) of such payment shall be paid to the situs county wherein 401
such nuclear generating plant is located. 402
SECTION 9. Section 19-9-153, Mississippi Code of 1972, is 403
brought forward as follows: 404
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19-9-153. Of the funds received pursuant to Section 19-9-151 405
by a situs county wherein such nuclear generating plant is 406
located, the board of supervisors of such situs county shall 407
distribute ten percent (10%) of each payment, upon receipt, to the 408
most populous incorporated municipality within the county; 409
however, if such plant is located within a municipality, such 410
payments which would otherwise be made to the situs county 411
pursuant to Section 19-9-151 shall be divided equally between the 412
situs county and situs municipality. 413
SECTION 10. Section 19-9-155, Mississippi Code of 1972, is 414
brought forward as follows: 415
19-9-155. Of the funds retained by the situs county after 416
the payment made pursuant to Section 19-9-153, not more than Five 417
Million Five Hundred Thousand Dollars ($5,500,000.00) per year may 418
be expended by the board of supervisors of the county for any 419
purposes for which a county is authorized by law to levy an ad 420
valorem tax, and any funds in excess of such amount shall be 421
expended in accordance with Section 19-9-157. 422
SECTION 11. Section 19-9-157, Mississippi Code of 1972, is 423
brought forward as follows: 424
19-9-157. The board of supervisors of the situs county, upon 425
receipt of the payments pursuant to Section 19-9-151 less the 426
payment made according to Section 19-9-153, shall pay all such 427
funds in excess of Five Million Five Hundred Thousand Dollars 428
($5,500,000.00) to the governing authorities of the public school 429
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districts in such county in the proportion that the net enrollment 430
for the preceding scholastic year of each school district bears to 431
the total net enrollment of the county for the preceding 432
scholastic year. Such funds may be expended only for the purposes 433
of capital improvements to school facilities and only after plans 434
therefor have been submitted to and approved by the State Board of 435
Education. The governing authorities of such school districts may 436
borrow money in anticipation of receipt of payments pursuant to 437
this section and the levying authority for the school district may 438
issue negotiable notes therefor, for the purposes set forth 439
herein. Such loan shall be repaid from the payments received 440
under this section by the governing authorities of the public 441
school district. However, no public school districts within the 442
situs county shall be entitled to any payments after January 1, 443
1990. 444
SECTION 12. Section 27-39-305, Mississippi Code of 1972, is 445
brought forward as follows: 446
27-39-305. (1) In addition to the levy authorized by 447
Section 27-39-303, the board of supervisors may annually impose a 448
countywide ad valorem tax levy or levies for the maintenance 449
and/or construction of roads and bridges. 450
(2) For each fiscal year, the aggregate receipts from taxes 451
levied for the maintenance and/or construction of roads and 452
bridges pursuant to this section shall not exceed the aggregate 453
receipts from this source during any one (1) of the immediately 454
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preceding three (3) fiscal years, as determined by the board of 455
supervisors, plus an increase not to exceed ten percent (10%). The 456
additional revenue from the ad valorem tax on any newly 457
constructed properties or any existing properties added to the tax 458
rolls or any properties previously exempt, which were not assessed 459
in the next preceding year may be excluded from the ten percent 460
(10%) increase limitation set forth herein. 461
(3) The ten percent (10%) increase limitation prescribed in 462
this section may be increased an additional amount only as 463
provided in subsection (4) of this section or when the county 464
board of supervisors has determined the need for additional 465
revenues and has held an election on the question of raising the 466
limitation prescribed in this section. The limitation may be 467
increased under this subsection only if the proposed increase is 468
approved by a majority of those voting in an election held for 469
such purpose. The resolution, notice and manner of holding the 470
election shall be as prescribed by law for the holding of 471
elections for the issuance of bonds by the county board of 472
supervisors. Revenues collected for the fiscal year in excess of 473
the ten percent (10%) increase limitation pursuant to an election 474
shall be included in the tax base for the purpose of determining 475
aggregate receipts for which the ten percent (10%) increase 476
limitation applies for subsequent fiscal years. 477
(4) As an alternative to the procedure provided in 478
subsection (3) of this section, the ten percent (10%) increase 479
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limitation prescribed in this section may be increased by an 480
additional amount without an election thereon if the aggregate 481
receipts from the levy authorized in this section and from all 482
other county levies to which Sections 27-39-320 and 27-39-321 483
apply do not exceed one hundred ten percent (110%) of the 484
aggregate receipts from all such levies during any one (1) of the 485
immediately preceding three (3) fiscal years, as determined by the 486
board of supervisors. 487
(5) Except as otherwise provided for excess revenues 488
generated pursuant to an election under subsection (3) of this 489
section and for excess revenues generated in accordance with 490
subsection (4) of this section, if revenues collected as the 491
result of the taxes levied for the fiscal year pursuant to this 492
section exceed the increase limitation, then it shall be the 493
mandatory duty of the board of supervisors to deposit such excess 494
receipts over and above the increase limitation into a special 495
account and credit it to the county road and bridge fund. It will 496
be the further duty of such board to hold said funds and invest 497
the same as authorized by law. Such excess funds shall be 498
calculated in the road and bridge budget for the succeeding fiscal 499
year. Taxes imposed for the succeeding year shall be reduced by 500
the amount of excess funds available. Under no circumstances 501
shall such excess funds be expended during the fiscal year in 502
which such excess funds are collected. 503
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(6) In any county where there is located a nuclear 504
generating power plant on which a tax is assessed under Section 505
27-35-309(3), the term "the aggregate receipts from taxes" as used 506
in this section shall be the portion of the "base revenue" as 507
defined in Section 27-39-320 which is used for the maintenance 508
and/or construction of roads and bridges. 509
(7) If a shortfall occurs in revenues from sources other 510
than ad valorem taxes and oil and gas severance taxes budgeted for 511
the county road and bridge fund during the 1987 fiscal year, then 512
the county may levy a special ad valorem tax for the 1988 fiscal 513
year in an amount the avails of which shall not exceed such 514
shortfall; provided, however, that the aggregate receipts from all 515
ad valorem levies for the maintenance and/or construction of roads 516
and bridges for the 1988 fiscal year shall not exceed the 517
aggregate receipts from this source for the immediately preceding 518
fiscal year plus an increase not to exceed twenty percent (20%). 519
(8) If a shortfall occurs in revenues from oil and gas 520
severance taxes budgeted for the county road and bridge fund 521
during the 1987 fiscal year, then the county may levy a special ad 522
valorem tax for the 1988 fiscal year in an amount the avails of 523
which shall not exceed such shortfall. The avails of such special 524
ad valorem tax shall not be included within the ten percent (10%) 525
increase limitation. The ad valorem taxes levied to offset the 526
shortfall shall be deemed to be ad valorem tax receipts produced 527
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in the 1988 fiscal year for the purpose of determining the 528
limitation on receipts for the succeeding fiscal years. 529
SECTION 13. Section 27-39-320, Mississippi Code of 1972, is 530
brought forward as follows: 531
27-39-320. (1) The Legislature finds and determines that 532
legislation requiring a specific levy or requiring consent of some 533
other governing body to reduce the levy was intended to raise a 534
certain amount of revenue for specific purposes. Upon this 535
determination and notwithstanding the provisions of any statute 536
which requires a definite levy to be made or which requires that a 537
levy may not be reduced except by the consent of some other 538
governing authority, the amount of such levy shall be deemed to be 539
an amount necessary to produce the revenues received in the next 540
preceding year plus, at the option of the taxing authority, an 541
increase not to exceed ten percent (10%) of such revenues. 542
(2) In any county where there is located a nuclear 543
generating power plant on which a tax is assessed under Section 544
27-35-309(3), such required levy and revenue produced thereby may 545
be reduced by the levying authority in an amount in proportion to 546
a reduction in the base revenue of any such county from the 547
previous year. Such reduction shall be allowed only if the 548
reduction in base revenue equals or exceeds five percent (5%). 549
"Base revenue" shall mean the revenue received by the county from 550
the ad valorem tax levy plus the revenue received by the county 551
from the tax assessed under Section 27-35-309(3) and authorized to 552
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be used for any purposes for which a county is authorized by law 553
to levy an ad valorem tax. For purposes of determining if the 554
reduction equals or exceeds five percent (5%), a levy of millage 555
equal to the prior year's millage shall be hypothetically applied 556
to the current year's ad valorem tax base to determine the amount 557
of revenue to be generated from the ad valorem tax levy. For the 558
purposes of this section, the portion of base revenue used to fund 559
the purpose for which a specific levy is required shall be deemed 560
to be the total receipts from ad valorem taxes for such purpose. 561
This paragraph shall apply to taxes levied for the 1987 fiscal 562
year and for each fiscal year thereafter. If the Mississippi 563
Supreme Court or another court finally adjudicates that the tax 564
levied under Section 27-35-309(3) is unconstitutional, then this 565
paragraph shall stand repealed. 566
(3) With respect to ad valorem taxes levied on or after 567
October 1, 1980, no county or municipality shall levy those mills 568
heretofore required by law to be levied to an extent that such 569
levy shall produce more than the total receipts produced from such 570
levy in the next preceding year, plus, at the option of the taxing 571
authority, an increase not to exceed ten percent (10%) of such 572
receipts. Such total receipts shall be deemed to include the 573
total avails of such levy either collected from the property owner 574
or by reimbursement by the state. The revenues produced from any 575
newly constructed properties or any existing properties added to 576
the tax rolls or any properties previously exempt which were not 577
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assessed in the next preceding year may be excluded from the 578
limitation set forth herein. 579
(4) The ten percent (10%) increase limitation prescribed in 580
this section may be increased by an additional amount by the board 581
of supervisors of any county if the aggregate receipts from all 582
county levies to which this section and Sections 27-39-305 and 583
27-39-321 apply do not exceed one hundred ten percent (110%) of 584
the aggregate receipts from all such levies during any one (1) of 585
the immediately preceding three (3) fiscal years, as determined by 586
the board of supervisors. 587
(5) The limitations set forth in this section shall apply to 588
the mandatory tax levied by Section 27-39-329. 589
SECTION 14. Section 33-15-51, Mississippi Code of 1972, is 590
brought forward as follows: 591
33-15-51. The Grand Gulf Disaster Assistance Trust Fund is 592
hereby created as a special fund in the State Treasury to be 593
administered by the Mississippi Emergency Management Agency. 594
Monies paid into the fund shall be derived from Sections 595
27-35-309(3)(b)(i) and (ii) and 27-35-309(3)(d). All monies 596
deposited therein shall be available for expenditure, transfer and 597
allocation by the Mississippi Emergency Management Agency for 598
state and local preparedness activities directly related to the 599
Grand Gulf Nuclear Generating Plant, with at least fifty percent 600
(50%) of the monies in the fund earmarked for use in conducting 601
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such activities in the geographic area falling within a 602
thirty-mile radius of the plant. 603
SECTION 15. Section 37-57-105, Mississippi Code of 1972, is 604
brought forward as follows: 605
37-57-105. (1) In addition to the taxes levied under 606
Section 37-57-1, the levying authority for the school district, as 607
defined in Section 37-57-1, upon receipt of a certified copy of an 608
order adopted by the school board of the school district 609
requesting an ad valorem tax effort in dollars for the support of 610
the school district and any charter schools located in the 611
district, shall, at the same time and in the same manner as other 612
ad valorem taxes are levied, levy an annual ad valorem tax in the 613
amount fixed in such order upon all of the taxable property of 614
such school district, which shall not be less than the millage 615
rate certified by the State Board of Education as the uniform 616
minimum school district ad valorem tax levy required for the 617
support of the total funding formula as required by Sections 618
37-151-200 through 37-151-215 in such school district under 619
Sections 37-57-1 and 37-151-211. However, any school district 620
levying less than the uniform minimum school district ad valorem 621
tax levy on July 1, 1997, shall only be required to increase its 622
local district maintenance levy in four (4) mill annual increments 623
in order to attain such millage requirements. In making such 624
levy, the levying authority shall levy an additional amount 625
sufficient to cover anticipated delinquencies and costs of 626
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collection so that the net amount of money to be produced by such 627
levy shall be equal to the amount which is requested by the school 628
board. The proceeds of such tax levy, excluding levies for the 629
payment of the principal of and interest on school bonds or notes 630
and excluding levies for costs of collection, shall be placed in 631
the school depository to the credit of the school district and 632
shall be expended in the manner provided by law for the purpose of 633
supplementing teachers' salaries, extending school terms, 634
purchasing furniture, supplies and materials, and for all other 635
lawful operating and incidental expenses of such school district. 636
The monies authorized to be received by school districts from 637
the School Ad Valorem Tax Reduction Fund pursuant to Section 638
37-61-35 shall be included as ad valorem tax receipts. The 639
levying authority for the school district, as defined in Section 640
37-57-1, shall reduce the ad valorem tax levy for such school 641
district in an amount equal to the amount distributed to such 642
school district from the School Ad Valorem Tax Reduction Fund each 643
calendar year pursuant to Section 37-61-35. Such reduction shall 644
not be less than the millage rate necessary to generate a 645
reduction in ad valorem tax receipts equal to the funds 646
distributed to such school district from the School Ad Valorem Tax 647
Reduction Fund pursuant to Section 37-61-35. The millage levy 648
certified by the State Board of Education as the minimum tax levy 649
shall be subject to the provisions of this paragraph. 650
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In any county where there is located a nuclear generating 651
power plant on which a tax is assessed under Section 27-35-309(3), 652
such required levy and revenue produced thereby may be reduced by 653
the levying authority in an amount in proportion to a reduction in 654
the base revenue of any such county from the previous year. Such 655
reduction shall be allowed only if the reduction in base revenue 656
equals or exceeds five percent (5%). "Base revenue" shall mean 657
the revenue received by the county from the ad valorem tax levy 658
plus the revenue received by the county from the tax assessed 659
under Section 27-35-309(3) and authorized to be used for any 660
purposes for which a county is authorized by law to levy an ad 661
valorem tax. For purposes of determining if the reduction equals 662
or exceeds five percent (5%), a levy of millage equal to the prior 663
year's millage shall be hypothetically applied to the current 664
year's ad valorem tax base to determine the amount of revenue to 665
be generated from the ad valorem tax levy. For the purposes of 666
this section and Section 37-57-107, the portion of the base 667
revenue used for the support of any school district shall be 668
deemed to be the aggregate receipts from ad valorem taxes for the 669
support of any school district. This paragraph shall apply to 670
taxes levied for the 1987 fiscal year and for each fiscal year 671
thereafter. If the Mississippi Supreme Court or another court 672
finally adjudicates that the tax levied under Section 27-35-309(3) 673
is unconstitutional, then this paragraph shall stand repealed. 674
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The State Department of Education shall calculate a local pro 675
rata amount for the aggregate receipts of the tax levied in this 676
section by dividing the aggregate receipts by the sum of the 677
school district's net enrollment, as determined under Section 678
37-151-211, and the net enrollment of any charter school students 679
who reside in the district. 680
(2) When the tax is levied upon the territory of any school 681
district located in two (2) or more counties, the order of the 682
school board requesting the levying of such tax shall be certified 683
to the levying authority of each of the counties involved, and 684
each of the levying authorities shall levy the tax in the manner 685
specified herein. The taxes so levied shall be collected by the 686
tax collector of the levying authority involved and remitted by 687
the tax collector to the school depository of the home county to 688
the credit of the school district involved as provided above, 689
except that taxes for collection fees may be retained by the 690
levying authority for deposit into its general fund. 691
(3) The aggregate receipts from ad valorem taxes levied for 692
school district purposes, excluding collection fees, pursuant to 693
this section and Section 37-57-1 shall be subject to the increased 694
limitation under Section 37-57-107; however, if the ad valorem tax 695
effort in dollars requested by the school district for the fiscal 696
year exceeds the next preceding fiscal year's ad valorem tax 697
effort in dollars by more than four percent (4%) but not more than 698
seven percent (7%), then the school board shall publish notice 699
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thereof once each week for at least three (3) consecutive weeks in 700
a newspaper having general circulation in the school district 701
involved, with the first publication thereof to be made not less 702
than fifteen (15) days prior to the final adoption of the budget 703
by the school board. If at any time prior to the adoption a 704
petition signed by not less than twenty percent (20%) or fifteen 705
hundred (1500), whichever is less, of the qualified electors of 706
the school district involved shall be filed with the school board 707
requesting that an election be called on the question of exceeding 708
the next preceding fiscal year's ad valorem tax effort in dollars 709
by more than four percent (4%) but not more than seven percent 710
(7%), then the school board shall, not later than the next regular 711
meeting, adopt a resolution calling an election to be held within 712
such school district upon such question. The election shall be 713
called and held, and notice thereof shall be given, in the same 714
manner for elections upon the questions of the issuance of the 715
bonds of school districts, and the results thereof shall be 716
certified to the school board. The ballot shall contain the 717
language "For the School Tax Increase Over Four Percent (4%)" and 718
"Against the School Tax Increase Over Four Percent (4%)." If a 719
majority of the qualified electors of the school district who 720
voted in such election shall vote in favor of the question, then 721
the stated increase requested by the school board shall be 722
approved. For the purposes of this paragraph, the revenue sources 723
excluded from the increased limitation under Section 37-57-107 724
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shall also be excluded from the limitation described herein in the 725
same manner as they are excluded under Section 37-57-107. 726
SECTION 16. Section 37-151-87, Mississippi Code of 1972, is 727
brought forward as follows: 728
37-151-87. No school district shall pay any teacher less 729
than the state minimum salary. However, school districts are 730
authorized to reduce the state minimum salary by a pro rata daily 731
amount in order to comply with the school district employee 732
furlough provisions of Section 37-7-308. From and after July 1, 733
2012, no school district shall receive any funds under the 734
provisions of this chapter for any school year during which the 735
aggregate amount of local supplement is reduced below such amount 736
for the previous year. However, (a) where there has been a 737
reduction in total funding formula allocations for such district 738
in such year, (b) where there has been a reduction in the amount 739
of federal funds to such district below the previous year, or (c) 740
where there has been a reduction in ad valorem taxes to such 741
school district for the 1986-1987 school year below the amount for 742
the previous year due to the exemption of nuclear generating 743
plants from ad valorem taxation pursuant to Section 27-35-309, the 744
aggregate amount of local supplement in such district may be 745
reduced in the discretion of the local school board without loss 746
of funds under this chapter. No school district may receive any 747
funds under the provisions of this chapter for any school year if 748
the aggregate amount of support from ad valorem taxation shall be 749
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ST: Statewide Utility Tax Reform Act; create.
reduced during such school year below such amount for the previous 750
year; however, where there is a loss in total funding formula 751
allocations, or where there is or heretofore has been a decrease 752
in the total assessed value of taxable property within a school 753
district, the aggregate amount of such support may be reduced 754
proportionately. Nothing herein contained shall prohibit any 755
school district from adopting or continuing a program or plan 756
whereby teachers are paid varying salaries according to the 757
teaching ability, classroom performance and other similar 758
standards. 759
For purposes of this section, the term "local supplement" 760
means the additional amount paid to an individual teacher over and 761
above the salary schedule prescribed in Section 37-19-7 for the 762
performance of regular teaching duties by that teacher. 763
SECTION 17. This act shall take effect and be in force from 764
and after January 1, 2027. 765