Nuclear In Lieu Tax Distribution Equity Act; create to revise allocation of Grand Gulf payments.

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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Harness

HOUSE BILL NO. 1277

AN ACT TO BE KNOWN AS THE "NUCLEAR IN LIEU TAX DISTRIBUTION 1
EQUITY ACT"; TO AMEND SECTION 27-35-309, MISSISSIPPI CODE OF 1972, 2
TO REVISE THE FORMULA PROVIDING FOR THE ALLOCATION OF THE PROCEEDS 3
OF THE NUCLEAR IN LIEU TAX PAID TO THE DEPARTMENT OF REVENUE BY 4
THE GRAND GULF NUCLEAR POWER PLANT; TO REQUIRE THE DEPARTMENT OF 5
REVENUE TO MAKE ANNUALLY ALLOCATION ADJUSTMENTS BASED ON ECONOMIC 6
IMPACT STUDIES AND ENVIRONMENTAL RISK FACTORS; TO REQUIRE THE 7
DEPARTMENT TO PREPARE AN ANNUAL REPORT ON THE NUCLEAR IN LIEU TAX 8
REVENUE COLLECTED AND ALLOCATED UNDER THIS ACT; TO REQUIRE THE 9
REPEAL OF THIS ACT ON JULY 1, 2031; AND FOR RELATED PURPOSES. 10
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 11
SECTION 1. (1) This act shall be known and may be cited as 12
the "Nuclear In Lieu Tax Distribution Equity Act." 13
(2) The purpose of this act is to adjust the statutory 14
formula governing the distribution of the Nuclear In Lieu Tax to 15
ensure the equitable allocation of revenues, with priority being 16
given to Claiborne County for hosting the Grand Gulf Nuclear Power 17
Plant and bearing the associated risks and burdens. 18
SECTION 2. Section 27-35-309, Mississippi Code of 1972, is 19
amended as follows: 20
27-35-309. (1) The Department of Revenue shall, if 21
practicable, on or before the first Monday of June of each year, 22
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make out for each person, firm, company or corporation listed in 23
Section 27-35-303 * * * an assessment of the company's property, 24
both real and personal, tangible and intangible. The Department 25
of Revenue shall apportion the assessment of value of each 26
company's property according to the provisions of this article, 27
except as provided in subsection (3) of this section, as follows: 28
(a) When the property of such public service company is 29
located in more than one (1) county in this state, the Department 30
of Revenue shall direct the company to apportion the assessed 31
value between the counties and municipalities and all other taxing 32
districts therein, in the proportion which the property located 33
therein bears to the entire value of the property of such company 34
as valued by the department, so that to each county, municipality 35
and taxing district therein, there shall be apportioned such part 36
of the entire valuation as will fairly equalize the relative value 37
of the property therein located to the whole value thereof. 38
(b) When the property of such public utility required 39
to be assessed by the provisions of this article is located in 40
more than one (1) state, the assessed value thereof shall be 41
apportioned by the Department of Revenue in such manner as will 42
fairly and equitably determine the principal sum for the value 43
thereof in this state, and after ascertaining such value it shall 44
be apportioned by them as herein provided. 45
The assessment roll shall contain all the property of any 46
such public service company, railroad, person, firm or corporation 47
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and the value thereof, and so made that each county, municipality, 48
and taxing district shall receive its just share of taxes 49
proportionately to the amount of property therein situated. 50
(2) (a) The assessment when made shall remain open for 51
twenty (20) days in the Office of the Department of Revenue, and 52
be for such time subject to the objections thereto which may be 53
filed with the Executive Director of the Board of Tax Appeals; but 54
real estate belonging to railroads and which forms no part of the 55
road, and is wholly disconnected from its railroad business, shall 56
not be assessed by the Department of Revenue, but shall be 57
assessed as other real estate is assessed by the tax assessor of 58
the county where situated. 59
(b) The apportionment of the assessed value as required 60
by this section shall be filed with the Department of Revenue by 61
such public service company on or before the last day of the 62
objection period established in paragraph (a) of this subsection 63
(2). If such company shall fail, refuse or neglect to render the 64
apportionment of assessed value as required by this section, such 65
company shall be subject to the penalties provided for in Section 66
27-35-305. The filing of an objection by such public service 67
company shall not preclude such company from filing the property 68
apportionment as required by this section. 69
(3) Any nuclear generating plant which is located in the 70
state, which is owned or operated by a public utility rendering 71
electric service within the state and not exempt from ad valorem 72
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taxation under any other statute and which is not owned or 73
operated by an instrumentality of the federal government shall be 74
exempt from county, municipal and district ad valorem taxes. In 75
lieu of the payment of county, municipal and district ad valorem 76
taxes, such public utility shall pay to the Department of Revenue 77
a sum based on the assessed value of such nuclear generating plant 78
in an amount to be determined and distributed as follows: 79
(a) The Department of Revenue shall annually assign an 80
assessed value to any nuclear generating plant described in this 81
subsection in the same manner as for ad valorem tax purposes by 82
using accepted industry methods for appraising and assessing 83
public utility property. The assessed value assigned shall be 84
used for the purpose of determining the in-lieu tax due under this 85
section and shall not be included on the ad valorem tax rolls of 86
the situs taxing authority nor be subject to ad valorem taxation 87
by the situs taxing authority nor shall the assessed value 88
assigned be used in determining the debt limit of the situs taxing 89
authority. However, the assessed value so assigned may be used by 90
the situs taxing authority for the purpose of determining salaries 91
of its public officials. 92
(b) On or before February 1, 1987, for the 1986 taxable 93
year and on or before February 1 of each year through the 1989 94
taxable year, such utility shall pay to the Department of Revenue 95
a sum equal to two percent (2%) of the assessed value as 96
ascertained by the Department of Revenue, but such payment shall 97
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not be less than Sixteen Million Dollars ($16,000,000.00) for any 98
of the four (4) taxable years; all such payments in excess of 99
Sixteen Million Dollars ($16,000,000.00) for these four (4) 100
taxable years shall be paid into the General Fund of the state. 101
On or before February 1, 1991, for the 1990 taxable year and on or 102
before February 1 of each year thereafter, such utility shall pay 103
to the Department of Revenue a sum equal to two percent (2%) of 104
the assessed value as ascertained by the Department of Revenue, 105
but such payment shall not be less than Twenty Million Dollars 106
($20,000,000.00) for any taxable year for as long as such nuclear 107
power plant is licensed to operate and is not being permanently 108
decommissioned; all such payments in excess of Sixteen Million 109
Dollars ($16,000,000.00) for taxable years 1990 and thereafter 110
shall be paid as follows: 111
(i) An amount of Three Million Forty Thousand 112
Dollars ($3,040,000.00) annually, beginning with fiscal year 1991 113
and ending with fiscal year 2025, shall be transferred by the 114
Department of Revenue to Claiborne County. * * * Beginning with 115
fiscal year 2027, no less than seventy percent (70%) of the total 116
annual Nuclear In Lieu Tax revenue collected pursuant to this 117
subsection (3) must be transferred to Claiborne County. Until 118
July 1, 2026, such payments may be expended by the Board of 119
Supervisors of Claiborne County for any purpose for which a county 120
is authorized by law to levy an ad valorem tax * * *; however, 121
beginning in fiscal year 2027, the board of supervisors shall 122
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distribute: sixty percent (60%) of such funds to the Board of 123
Supervisors of Claiborne County to be used for public 124
infrastructure, safety and economic development purposes; 125
twenty-five percent (25%) to Claiborne County School District; and 126
fifteen percent (15%) to the City of Port Gibson. Payments 127
received under this subparagraph (i) shall not be included or 128
considered as proceeds of ad valorem taxes for the purposes of the 129
growth limitation on ad valorem taxes under Sections 27-39-305 and 130
27-39-321. However, should the Board of Supervisors of Claiborne 131
County withdraw its support of the Grand Gulf Nuclear Station 132
off-site emergency plan or otherwise fail to satisfy its off-site 133
emergency plan commitments as determined by the Mississippi 134
Emergency Management Agency and the Federal Emergency Management 135
Agency, Five Hundred Thousand Dollars ($500,000.00) annually of 136
the funds designated for Claiborne County as described by 137
this * * * subparagraph (i) shall be deposited in the Grand Gulf 138
Disaster Assistance Fund as provided in Section 33-15-51. 139
(ii) An amount of One Hundred Sixty Thousand 140
Dollars ($160,000.00) annually, beginning with fiscal year 1991 141
and ending with fiscal year 2026, shall be transferred by the 142
Department of Revenue to the City of Port Gibson, Mississippi. 143
Such payments received under this subparagraph (ii) before July 1, 144
2026, and under subparagraph (i) of this paragraph (b) beginning 145
on July 1, 2026, may be expended by the Board of Aldermen of the 146
City of Port Gibson for any purpose for which a municipality is 147
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authorized by law to levy an ad valorem tax and shall not be 148
included or considered as proceeds of ad valorem taxes for the 149
purposes of the growth limitation on ad valorem taxes under 150
Sections 27-39-305 and 27-39-321. However, should the Board of 151
Aldermen of the City of Port Gibson withdraw its support of the 152
Grand Gulf Nuclear Station off-site emergency plan or otherwise 153
fail to satisfy its off-site emergency plan commitment, as 154
determined by the Mississippi Emergency Management Agency and the 155
Federal Emergency Management Agency, Fifty Thousand Dollars 156
($50,000.00) annually of the funds designated for the City of Port 157
Gibson as described by this * * * subparagraph (ii) shall be 158
deposited in the Grand Gulf Disaster Assistance Fund as provided 159
in Section 33-15-51. 160
(iii) * * * Until July 1, 2026, the remaining 161
balance of the payments in excess of Sixteen Million Dollars 162
($16,000,000.00) annually, less amounts transferred under 163
subparagraphs (i) and (ii) of this * * * paragraph (b), beginning 164
with fiscal year 1991, shall be allocated in accordance with 165
subsection (3)(f) of this section. 166
(c) Pursuant to certification by the Attorney General 167
to the State Treasurer and the Department of Revenue that the suit 168
against the State of Mississippi pending on the effective date of 169
House Bill 8, First Extraordinary Session of 1990, [Laws, 1990 Ex 170
Session, Ch. 12, eff June 26, 1990], in the Chancery Court for the 171
First Judicial District of Hinds County, Mississippi, styled 172
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Albert Butler et al v. the Mississippi State Tax Commission et al, 173
has been voluntarily dismissed with prejudice as to all plaintiffs 174
at the request of the complainants and that no attorney's fees or 175
court costs have been assessed against the state and each of the 176
parties, including Claiborne County and each municipality and 177
school district located in the county, have signed and delivered 178
to the Attorney General a full and complete release in favor of 179
the State of Mississippi and its elected officials of all claims 180
that have been asserted or may be asserted in the suit pending on 181
the effective date of House Bill 8, First Extraordinary Session of 182
1990, [Laws, 1990 Ex Session, Ch. 12, eff June 26, 1990], in the 183
Chancery Court for the First Judicial District of Hinds County, 184
Mississippi, styled Albert Butler et al v. the Mississippi State 185
Tax Commission et al, and the deposit into the State General Fund 186
of in-lieu payments and interest thereon due the state under 187
subsection (3)(b) of this section but placed in escrow because of 188
the lawsuit described above, the state shall promptly transfer to 189
the Board of Supervisors of Claiborne County out of the State 190
General Fund an amount of Two Million Dollars ($2,000,000.00) 191
which shall be a one-time distribution to Claiborne County from 192
the state. Such payment may be expended by the Board of 193
Supervisors of Claiborne County for any purposes for which a 194
county is authorized by law to levy an ad valorem tax and shall 195
not be included or considered as proceeds of ad valorem taxes for 196
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the purposes of the growth limitation on ad valorem taxes for the 197
1991 fiscal year under Sections 27-39-321 and 27-39-305. 198
(d) After distribution of the one-time payment to 199
Claiborne County as set forth in subsection (3)(c) of this 200
section, the Department of Revenue upon certification that the 201
pending lawsuit as described in subsection (3)(c) of this section 202
has been voluntarily dismissed shall promptly deposit an amount of 203
Five Hundred Thousand Dollars ($500,000.00) into the Grand Gulf 204
Disaster Assistance Trust Fund as provided for in Section 205
33-15-51, which shall be a one-time payment, to be utilized in 206
accordance with the provisions of such section. 207
(e) After distribution of the one-time payment to 208
Claiborne County as set forth in subsection (3)(c) of this section 209
and the payment to the Grand Gulf Disaster Assistance Trust Fund 210
as set forth in subsection (3)(d) of this section, the Department 211
of Revenue upon certification that the pending lawsuit as 212
described in subsection (3)(c) of this section has been 213
voluntarily dismissed shall promptly distribute ten percent (10%) 214
of the remainder of the prior payments remaining in escrow to the 215
General Fund of the state and the balance of the prior payments 216
remaining in escrow shall be distributed to the counties and 217
municipalities in this state wherein such public utility has 218
rendered electric service in the proportion that the amount of 219
electric energy consumed by the retail customers of such public 220
utility in each county, excluding municipalities therein, and in 221
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each municipality, for the next preceding fiscal year bears to the 222
total amount of electric energy consumed by all retail customers 223
of such public utility in the State of Mississippi for the next 224
preceding fiscal year. The payments distributed to the counties 225
and municipalities under this paragraph (e) may be expended by 226
such counties and municipalities for any lawful purpose and shall 227
not be included or considered as proceeds of ad valorem taxes for 228
the purposes of the growth limitation on ad valorem taxes under 229
Sections 27-39-321 and 27-39-305. 230
(f) After * * * distribution of the payments as 231
provided for in subsection (3)(b) of this section, beginning with 232
fiscal year 2027, the Department of Revenue shall distribute no 233
more than ten percent (10%) of the remainder of the payments to 234
the General Fund of the state and the * * * remaining twenty 235
percent (20%) to the forty-five (45) counties * * * in this state 236
wherein such public utility renders electric service. The 237
distribution under this paragraph (f) must be calculated in the 238
proportion that * * * a county's population bears to the total 239
population of the forty-five (45) counties and with consideration 240
given to the local economic needs and proximity to the Grand Gulf 241
Nuclear Power Plant of each county. 242
(g) No county, including municipalities therein, shall 243
receive in excess of * * * five percent (5%) of the funds 244
distributed under paragraph (f) of this subsection. 245
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(h) The revenues received by counties and 246
municipalities under paragraph (f) of this subsection shall not be 247
included or considered as proceeds of ad valorem taxes for the 248
purposes of the growth limitation on ad valorem taxes under 249
Sections 27-39-305 and 27-39-321. 250
SECTION 3. (1) In recognition of the environmental, health 251
and safety risks borne by Claiborne County in relation to the 252
Grand Gulf Nuclear Power Plant, the revised allocation formula 253
established in Section 27-35-309(3) for Nuclear In Lieu Tax 254
revenues shall compensate the county for hosting radioactive waste 255
and enduring emergency preparedness measures and provide funding 256
for community health programs and infrastructure improvements. 257
(2) Each year the Department of Revenue shall assess and 258
adjust allocations of the Nuclear In Lieu Tax revenues based on 259
the findings of economic impact studies and environmental risk 260
reports. 261
SECTION 4. (1) The Department of Revenue shall prepare an 262
annual report on Nuclear In Lieu Tax revenue allocations. The 263
report must include no less than the following information: 264
(a) The total Nuclear In Lieu Tax revenue collected; 265
(b) The revenue allocated under Section 27-35-309(3) to 266
Claiborne County, the City of Port Gibson, the State General Fund 267
and the forty-five (45) counties in the Grand Gulf Nuclear Power 268
Plant service area; and 269
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ST: Nuclear In Lieu Tax Distribution Equity
Act; create to revise allocation of Grand Gulf
payments.
(c) The methodology used to determine the distribution 270
calculations. 271
(2) Before February 1 of each year, the department shall 272
submit the report prepared pursuant to this section to the 273
Legislature. In addition, the department shall make the report 274
publicly available on the department's website. 275
SECTION 5. Sections 1 through 5 of this act shall stand 276
repealed on July 1, 2031. 277
SECTION 6. This act shall take effect and be in force from 278
and after July 1, 2026. 279