Fee-in-lieu of ad valorem tax; revise distribution of for certain projects.

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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Lamar

HOUSE BILL NO. 1635

AN ACT TO AMEND SECTION 27-31-104, MISSISSIPPI CODE OF 1972, 1
TO PROVIDE THAT FOR ANY PROJECT WITH A CAPITAL INVESTMENT IN 2
EXCESS OF $1,000,000,000.00 FOR WHICH A FEE-IN-LIEU OF AD VALOREM 3
TAX AGREEMENT IS ENTERED INTO AFTER JULY 1, 2026, A PORTION OF THE 4
SUM ALLOWED AS A FEE-IN-LIEU ON THE PORTION OF THE PROJECT IN 5
EXCESS OF $1,000,000,000.00 SHALL BE DEPOSITED INTO THE 6
MISSISSIPPI STRATEGIC DEVELOPMENT FUND CREATED IN THIS ACT; TO 7
EXTEND THE DATE OF THE REVERTER ON THE SECTION OF LAW; TO CREATE 8
THE "MISSISSIPPI STRATEGIC DEVELOPMENT FUND" AS A SPECIAL FUND IN 9
THE STATE TREASURY; TO PROVIDE THAT MONIES IN THE FUND SHALL BE 10
EXPENDED BY THE MISSISSIPPI DEVELOPMENT AUTHORITY, UPON 11
APPROPRIATION BY THE LEGISLATURE, TO PROVIDE ASSISTANCE RELATED TO 12
PROJECTS IN MISSISSIPPI FOR MAKING STRATEGIC INFRASTRUCTURE 13
INVESTMENTS, FURTHERING ECONOMIC DEVELOPMENT AND MAKING QUALITY OF 14
LIFE IMPROVEMENTS STATEWIDE; TO BRING FORWARD SECTION 27-31-105, 15
MISSISSIPPI CODE OF 1972, WHICH AUTHORIZES COUNTY BOARDS OF 16
SUPERVISORS AND MUNICIPAL AUTHORITIES TO GRANT A FEE-IN-LIEU OF AD 17
VALOREM TAXES FOR EXPANSIONS OF FACILITIES OR PROPERTIES, FOR THE 18
PURPOSES OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES. 19
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 20
SECTION 1. Section 27-31-104, Mississippi Code of 1972, is 21
amended as follows: 22
[Through June 30, * * * 2029, this section shall read as 23
follows:] 24
27-31-104. (1) (a) County boards of supervisors and 25
municipal authorities are each hereby authorized and empowered to 26
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enter into an agreement with an enterprise granting, and pursuant 27
to such agreement grant a fee-in-lieu of ad valorem taxes, 28
including ad valorem taxes levied for school purposes, for the 29
following: 30
(i) Projects totaling over Sixty Million Dollars 31
($60,000,000.00) by any new enterprises enumerated in Section 32
27-31-101; 33
(ii) Projects by a private company (as such term 34
is defined in Section 57-61-5) having a minimum capital investment 35
of Sixty Million Dollars ($60,000,000.00); 36
(iii) Projects by a qualified business (as such 37
term is defined in Section 57-117-3) meeting minimum criteria 38
established by the Mississippi Development Authority; 39
(iv) Projects, in addition to those projects 40
referenced in Section 27-31-105, totaling over Sixty Million 41
Dollars ($60,000,000.00) by an existing enterprise that has been 42
doing business in the county or municipality for twenty-four (24) 43
months. For purposes of this subparagraph (iv), the term 44
"existing enterprise" includes those enterprises enumerated in 45
Section 27-31-101; or 46
(v) A private company (as such term is defined in 47
Section 57-61-5) or entity defined in Section 77-3-3(d)(i) having 48
a minimum capital investment of One Hundred Million Dollars 49
($100,000,000.00) from any source or combination of sources, 50
provided that a majority of the capital investment is from private 51
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sources, when such project is located within a geographic area for 52
which a Presidential Disaster Declaration was issued on or after 53
January 1, 2014. 54
County boards of supervisors and municipal authorities may 55
not enter into an agreement with an enterprise that is a medical 56
cannabis establishment, as defined in Section 41-137-3 of the 57
Mississippi Medical Cannabis Act, granting, and pursuant to such 58
agreement grant a fee-in-lieu of ad valorem taxes. 59
(b) A fee-in-lieu of ad valorem taxes granted in 60
accordance with this section may include any or all tangible 61
property, real or personal, including any leasehold interests 62
therein but excluding automobiles and trucks operating on and over 63
the highways of the State of Mississippi, used in connection with, 64
or necessary to, the operation of any enterprise, private company 65
or business described in paragraph (a) of this subsection (1), as 66
applicable, whether or not such property is owned, leased, 67
subleased, licensed or otherwise obtained by such enterprise, 68
private company or business, as applicable, irrespective of the 69
taxpayer to which any such leased property is assessed for ad 70
valorem tax purposes. If a fee-in-lieu of ad valorem taxes is 71
granted pursuant to this section with respect to any leasehold 72
interest under a lease, sublease or license of tangible property 73
used in connection with, or necessary to, the operation of an 74
enterprise, private company or business described in paragraph (a) 75
of this subsection (1), as applicable, the corresponding ownership 76
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interest of the owner, lessor and sublessor of such tangible 77
property shall similarly and automatically be exempt and subject 78
to the fee-in-lieu granted in accordance herewith without any 79
action being required to be taken by such owner, lessor or 80
sublessor. 81
(2) A county board of supervisors may enter into a 82
fee-in-lieu agreement on behalf of the county and any county 83
school district, and a municipality may enter into such a 84
fee-in-lieu agreement on behalf of the municipality and any 85
municipal school district located in the municipality; however, if 86
the project is located outside the limits of a municipality but 87
within the boundaries of the municipal school district, then the 88
county board of supervisors may enter into such a fee-in-lieu 89
agreement on behalf of the school district granting a fee-in-lieu 90
of ad valorem taxes for school district purposes. 91
(3) Any grant of a fee-in-lieu of ad valorem taxes shall be 92
evidenced by a written agreement negotiated by the enterprise and 93
the county board of supervisors and/or municipal authority, as the 94
case may be, and given final approval by the Mississippi 95
Development Authority as satisfying the requirements of this 96
section. 97
(4) (a) The minimum sum allowable as a fee-in-lieu shall 98
not be less than one-third (1/3), or one-tenth (1/10) if the 99
project is also a project eligible for an ad valorem tax exemption 100
under Section 27-31-46 and a fee-in-lieu agreement is entered into 101
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before July 1, 2026, of the ad valorem levy, including ad valorem 102
taxes for school district purposes, and except as otherwise 103
provided, the sum allowed shall be apportioned between the county 104
or municipality, as appropriate, and the school districts in such 105
amounts as may be determined by the county board of supervisors or 106
municipal governing authority, as the case may be, however, except 107
as otherwise provided in this section, from the sum allowed the 108
apportionment to school districts shall not be less than the 109
school districts' pro rata share based upon the proportion that 110
the millage imposed for the school districts by the appropriate 111
levying authority bears to the millage imposed by such levying 112
authority for all other county or municipal purposes. Any 113
fee-in-lieu agreement entered into under this section shall become 114
a binding obligation of the parties to the agreement, be effective 115
upon its execution by the parties and approval by the Mississippi 116
Development Authority and, except as otherwise provided in Section 117
17-25-23 or Section 57-75-33, or any other provision of law, 118
continue in effect for a period not to exceed thirty (30) years 119
commencing on the date that the fee-in-lieu granted thereunder 120
begins in accordance with the agreement; however, no particular 121
parcel of land, real property improvement or item of personal 122
property shall be subject to a fee-in-lieu for a duration of more 123
than ten (10) years. Any such agreement shall be binding, 124
according to its terms, on future boards of supervisors of the 125
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county and/or governing authorities of a municipality, as the case 126
may be, for the duration of the agreement. 127
(b) For any project with a capital investment in excess 128
of One Billion Dollars ($1,000,000,000.00) for which a fee-in-lieu 129
agreement is entered into after July 1, 2026, or for which a 130
fee-in-lieu agreement was entered into before July 1, 2026, but 131
for which no property subject to the agreement was entered on a 132
tax roll and liable for taxation before January 1, 2026, of the 133
sum allowed as a fee-in-lieu on the portion of the project in 134
excess of One Billion Dollars ($1,000,000,000.00): (i) twenty 135
percent (20%) shall be apportioned between the county or 136
municipality, as appropriate, and the school districts in such 137
amounts as may be determined by the county board of supervisors or 138
municipal governing authority, as the case may be, as provided in 139
paragraph (a) of this subsection and (ii) eighty percent (80%) 140
shall be deposited into the Mississippi Strategic Development Fund 141
created in Section 2 of this act. 142
(5) The fee-in-lieu may be a stated fraction or percentage 143
of the ad valorem taxes otherwise payable or a stated dollar 144
amount. If the fee is a fraction or percentage of the ad valorem 145
tax levy, it shall be annually computed on all ad valorem taxes 146
otherwise payable, including school taxes, as the same may vary 147
from year to year based upon changes in the millage rate or 148
assessed value and shall not be less than one-third (1/3) of that 149
amount or one-tenth (1/10) of that amount if the project is also a 150
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project eligible for an ad valorem tax exemption under Section 151
27-31-46 and a fee-in-lieu agreement is entered into before July 152
1, 2026. If the fee is a stated dollar amount, said amount shall 153
be the higher of the sum provided for fixed payment or (a) 154
one-third (1/3) of the total of all ad valorem taxes otherwise 155
payable as annually determined during each year of the fee-in-lieu 156
or (b) if the project is also a project eligible for an ad valorem 157
tax exemption under Section 27-31-46 and a fee-in-lieu agreement 158
is entered into before July 1, 2026, one-tenth (1/10) of the total 159
of all ad valorem taxes otherwise payable as annually determined 160
during each year of the fee-in-lieu. 161
(6) Notwithstanding Section 27-31-111, the parties to a 162
fee-in-lieu may agree on terms and conditions providing for the 163
reduction, suspension, termination or reinstatement of a 164
fee-in-lieu agreement or any fee-in-lieu period granted thereunder 165
upon the cessation of operations by project for twelve (12) or 166
more consecutive months or due to other conditions set forth in 167
the agreement. 168
(7) For a project as defined in Section 57-75-5(f)(xxi) and 169
located in a county that is a member of a regional economic 170
development alliance created under Section 57-64-1 et seq., the 171
members of the regional economic development alliance may divide 172
the sum allowed as a fee-in-lieu in a manner as determined by the 173
alliance agreement, and the boards of supervisors of the member 174
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counties may then apportion the sum allowed between school 175
district purposes and all other county purposes. 176
(8) For a project as defined in Section 57-75-5(f)(xxvi), 177
the board of supervisors of the county in which the project is 178
located may negotiate with the school district in which the 179
project is located and apportion to the school district an amount 180
of the fee-in-lieu that is agreed upon in the negotiations 181
different than the amount provided for in subsection (3) of this 182
section. 183
(9) For a project as defined in Section 57-75-5(f)(xxviii), 184
the annual amount of the fee-in-lieu apportioned to the county 185
shall not be less than the amount necessary to pay the debt 186
service on bonds issued by the county pursuant to Section 187
57-75-37(3)(c). 188
(10) For any county and/or municipality that enters into a 189
fee-in-lieu agreement for a project as defined in Section 190
57-75-5(f)(xxxiii), the minimum sum allowable as a fee-in-lieu for 191
the project shall not be less than one-third (1/3); provided that 192
such allowed sum of each annual fee-in-lieu payment may be first 193
apportioned between the county or municipality, as appropriate, 194
and the school districts in any such amounts as may be determined 195
by the county board of supervisors or municipal governing 196
authority, as the case may be, to either: (a) first allocate and 197
remit to the Mississippi Major Economic Impact Authority or the 198
Mississippi Development Authority, as applicable, such portion of 199
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each annual fee-in-lieu payment to repay to the Mississippi Major 200
Economic Impact Authority or the Mississippi Development 201
Authority, as applicable, funds advanced thereby to such county 202
and/or municipality or to other public agency, as defined in 203
Section 57-75-37(7)(a)(ii), to fund public improvements and 204
related costs for the project pursuant to an agreement entered 205
into in accordance with Section 57-75-37(7)(c)(iii); or (b) first 206
allocate and remit to the enterprise owning and/or operating the 207
project such portion of each annual fee-in-lieu payment payable 208
thereto pursuant to an agreement entered into in accordance with 209
Section 57-75-37(7)(d)(iv). The balance of any annual fee-in-lieu 210
amount remaining after such initial allocation and remittance to 211
the Mississippi Major Economic Impact Authority, Mississippi 212
Development Authority or enterprise owning and/or operating the 213
project, as applicable, shall then be apportioned in accordance 214
with subsection (4) of this section or as otherwise authorized by 215
state law. 216
(11) Any fee-in-lieu of ad valorem taxes granted under this 217
section before March 28, 2019, and consistent herewith, is hereby 218
ratified, approved and confirmed. 219
[From and after July 1, * * * 2029, this section shall read 220
as follows:] 221
27-31-104. (1) (a) County boards of supervisors and 222
municipal authorities are each hereby authorized and empowered to 223
enter into an agreement with an enterprise granting, and pursuant 224
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to such agreement grant a fee-in-lieu of ad valorem taxes, 225
including ad valorem taxes levied for school purposes, for the 226
following: 227
(i) Projects totaling over Sixty Million Dollars 228
($60,000,000.00) by any new enterprises enumerated in Section 229
27-31-101; 230
(ii) Projects by a private company (as such term 231
is defined in Section 57-61-5, Mississippi Code of 1972) having a 232
minimum capital investment of Sixty Million Dollars 233
($60,000,000.00); 234
(iii) Projects, in addition to those projects 235
referenced in Section 27-31-105, totaling over Sixty Million 236
Dollars ($60,000,000.00) by an existing enterprise that has been 237
doing business in the county or municipality for twenty-four (24) 238
months. For purposes of this subparagraph (iii), the term 239
"existing enterprise" includes those enterprises enumerated in 240
Section 27-31-101; or 241
(iv) A private company (as such term is defined in 242
Section 57-61-5) or entity defined in Section 77-3-3(d)(i) having 243
a minimum capital investment of One Hundred Million Dollars 244
($100,000,000.00) from any source or combination of sources, 245
provided that a majority of the capital investment is from private 246
sources, when such project is located within a geographic area for 247
which a Presidential Disaster Declaration was issued on or after 248
January 1, 2014. 249
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County boards of supervisors and municipal authorities may 250
not enter into an agreement with an enterprise that is a medical 251
cannabis establishment, as defined in Section 41-137-3 of the 252
Mississippi Medical Cannabis Act, granting, and pursuant to such 253
agreement grant a fee-in-lieu of ad valorem taxes. 254
(b) A fee-in-lieu of ad valorem taxes granted in 255
accordance with this section may include any or all tangible 256
property, real or personal, including any leasehold interests 257
therein but excluding automobiles and trucks operating on and over 258
the highways of the State of Mississippi, used in connection with, 259
or necessary to, the operation of any enterprise, private company 260
or business described in paragraph (a) of this subsection (1), as 261
applicable, whether or not such property is owned, leased, 262
subleased, licensed or otherwise obtained by such enterprise, 263
private company or business, as applicable, irrespective of the 264
taxpayer to which any such leased property is assessed for ad 265
valorem tax purposes. If a fee-in-lieu of ad valorem taxes is 266
granted pursuant to this section with respect to any leasehold 267
interest under a lease, sublease or license of tangible property 268
used in connection with, or necessary to, the operation of an 269
enterprise, private company or business described in paragraph (a) 270
of this subsection (1), as applicable, the corresponding ownership 271
interest of the owner, lessor and sublessor of such tangible 272
property shall similarly and automatically be exempt and subject 273
to the fee-in-lieu granted in accordance herewith without any 274
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action being required to be taken by such owner, lessor or 275
sublessor. 276
(2) A county board of supervisors may enter into a 277
fee-in-lieu agreement on behalf of the county and any county 278
school district, and a municipality may enter into such a 279
fee-in-lieu agreement on behalf of the municipality and any 280
municipal school district located in the municipality; however, if 281
the project is located outside the limits of a municipality but 282
within the boundaries of the municipal school district, then the 283
county board of supervisors may enter into such a fee-in-lieu 284
agreement on behalf of the school district granting a fee-in-lieu 285
of ad valorem taxes for school district purposes. 286
(3) Any grant of a fee-in-lieu of ad valorem taxes shall be 287
evidenced by a written agreement negotiated by the enterprise and 288
the county board of supervisors and/or municipal authority, as the 289
case may be, and given final approval by the Mississippi 290
Development Authority as satisfying the requirements of this 291
section. 292
(4) (a) The minimum sum allowable as a fee-in-lieu shall 293
not be less than one-third (1/3), or one-tenth (1/10) if the 294
project is also a project eligible for an ad valorem tax exemption 295
under Section 27-31-46 and a fee-in-lieu agreement is entered into 296
before July 1, 2026, of the ad valorem levy, including ad valorem 297
taxes for school district purposes, and except as otherwise 298
provided, the sum allowed shall be apportioned between the county 299
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or municipality, as appropriate, and the school districts in such 300
amounts as may be determined by the county board of supervisors or 301
municipal governing authority, as the case may be, however, except 302
as otherwise provided in this section, from the sum allowed the 303
apportionment to school districts shall not be less than the 304
school districts' pro rata share based upon the proportion that 305
the millage imposed for the school districts by the appropriate 306
levying authority bears to the millage imposed by such levying 307
authority for all other county or municipal purposes. Any 308
fee-in-lieu agreement entered into under this section shall become 309
a binding obligation of the parties to the agreement, be effective 310
upon its execution by the parties and approval by the Mississippi 311
Development Authority and, except as otherwise provided in Section 312
17-25-23 or Section 57-75-33, or any other provision of law, 313
continue in effect for a period not to exceed thirty (30) years 314
commencing on the date that the fee-in-lieu granted thereunder 315
begins in accordance with the agreement; however, no particular 316
parcel of land, real property improvement or item of personal 317
property shall be subject to a fee-in-lieu for a duration of more 318
than ten (10) years. Any such agreement shall be binding, 319
according to its terms, on future boards of supervisors of the 320
county and/or governing authorities of a municipality, as the case 321
may be, for the duration of the agreement. 322
(b) For any project with a capital investment in excess 323
of One Billion Dollars ($1,000,000,000.00) for which a fee-in-lieu 324
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agreement is entered into after July 1, 2026, or for which a 325
fee-in-lieu agreement was entered into before July 1, 2026, but 326
for which no property subject to the agreement was entered on a 327
tax roll and liable for taxation before January 1, 2026, of the 328
sum allowed as a fee-in-lieu on the portion of the project in 329
excess of One Billion Dollars ($1,000,000,000.00): (i) twenty 330
percent (20%) shall be apportioned between the county or 331
municipality, as appropriate, and the school districts in such 332
amounts as may be determined by the county board of supervisors or 333
municipal governing authority, as the case may be, as provided in 334
paragraph (a) of this subsection and (ii) eighty percent (80%) 335
shall be deposited into the Mississippi Strategic Development Fund 336
created in Section 2 of this act. 337
(5) The fee-in-lieu may be a stated fraction or percentage 338
of the ad valorem taxes otherwise payable or a stated dollar 339
amount. If the fee is a fraction or percentage of the ad valorem 340
tax levy, it shall be annually computed on all ad valorem taxes 341
otherwise payable, including school taxes, as the same may vary 342
from year to year based upon changes in the millage rate or 343
assessed value and shall not be less than one-third (1/3) of that 344
amount or one-tenth (1/10) of that amount if the project is also a 345
project eligible for an ad valorem tax exemption under Section 346
27-31-46 and a fee-in-lieu agreement is entered into before July 347
1, 2026. If the fee is a stated dollar amount, said amount shall 348
be the higher of the sum provided for fixed payment or (a) 349
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one-third (1/3) of the total of all ad valorem taxes otherwise 350
payable as annually determined during each year of the fee-in-lieu 351
or (b) if the project is also a project eligible for an ad valorem 352
tax exemption under Section 27-31-46 and a fee-in-lieu agreement 353
is entered into before July 1, 2026, one-tenth (1/10) of the total 354
of all ad valorem taxes otherwise payable as annually determined 355
during each year of the fee-in-lieu. 356
(6) Notwithstanding Section 27-31-111, the parties to a 357
fee-in-lieu may agree on terms and conditions providing for the 358
reduction, suspension, termination or reinstatement of a 359
fee-in-lieu agreement or any fee-in-lieu period granted thereunder 360
upon the cessation of operations by project for twelve (12) or 361
more consecutive months or due to other conditions set forth in 362
the agreement. 363
(7) For a project as defined in Section 57-75-5(f)(xxi) and 364
located in a county that is a member of a regional economic 365
development alliance created under Section 57-64-1 et seq., the 366
members of the regional economic development alliance may divide 367
the sum allowed as a fee-in-lieu in a manner as determined by the 368
alliance agreement, and the boards of supervisors of the member 369
counties may then apportion the sum allowed between school 370
district purposes and all other county purposes. 371
(8) For a project as defined in Section 57-75-5(f)(xxvi), 372
the board of supervisors of the county in which the project is 373
located may negotiate with the school district in which the 374
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project is located and apportion to the school district an amount 375
of the fee-in-lieu that is agreed upon in the negotiations 376
different than the amount provided for in subsection (3) of this 377
section. 378
(9) For a project as defined in Section 57-75-5(f)(xxviii), 379
the annual amount of the fee-in-lieu apportioned to the county 380
shall not be less than the amount necessary to pay the annual debt 381
service on bonds issued by the county pursuant to Section 382
57-75-37(3)(c). 383
(10) For any county and/or municipality that enters into a 384
fee-in-lieu agreement for a project as defined in Section 385
57-75-5(f)(xxxiii), the minimum sum allowable as a fee-in-lieu for 386
the project shall not be less than one-third (1/3); provided that 387
such allowed sum of each annual fee-in-lieu payment may be first 388
apportioned between the county or municipality, as appropriate, 389
and the school districts in any such amounts as may be determined 390
by the county board of supervisors or municipal governing 391
authority, as the case may be, to either: (a) first allocate and 392
remit to the Mississippi Major Economic Impact Authority or the 393
Mississippi Development Authority, as applicable, such portion of 394
each annual fee-in-lieu payment to repay to the Mississippi Major 395
Economic Impact Authority or the Mississippi Development 396
Authority, as applicable, funds advanced thereby to such county 397
and/or municipality or to other public agency, as defined in 398
Section 57-75-37(7)(a)(ii), to fund public improvements and 399
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related costs for the project pursuant to an agreement entered 400
into in accordance with Section 57-75-37(7)(c)(iii); or (b) first 401
allocate and remit to the enterprise owning and/or operating the 402
project such portion of each annual fee-in-lieu payment payable 403
thereto pursuant to an agreement entered into in accordance with 404
Section 57-75-37(7)(d)(iv). The balance of any annual fee-in-lieu 405
amount remaining after such initial allocation and remittance to 406
the Mississippi Major Economic Impact Authority, Mississippi 407
Development Authority or enterprise owning and/or operating the 408
project, as applicable, shall then be apportioned in accordance 409
with subsection (4) of this section or as otherwise authorized by 410
state law. 411
(11) Any fee-in-lieu of ad valorem taxes granted under this 412
section before March 28, 2019, and consistent herewith, is hereby 413
ratified, approved and confirmed. 414
SECTION 2. There is created in the State Treasury a special 415
fund to be designated as the "Mississippi Strategic Development 416
Fund", which shall consist of funds deposited therein under 417
Section 27-31-104, Mississippi Code of 1972, and funds from any 418
other source designated for deposit into such fund. The fund 419
shall be maintained by the State Treasurer as a separate and 420
special fund, separate and apart from the General Fund of the 421
state. Unexpended amounts remaining in the fund at the end of a 422
fiscal year shall not lapse into the State General Fund, and any 423
investment earnings or interest earned on amounts in the fund 424
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shall be deposited to the credit of the fund. Monies in the fund 425
shall be expended by the Mississippi Development Authority, upon 426
appropriation by the Legislature, making strategic infrastructure 427
investments, furthering economic development and making quality of 428
life improvements statewide. 429
SECTION 3. Section 27-31-105, Mississippi Code of 1972, is 430
brought forward as follows: 431
27-31-105. (1) Any person, firm or corporation who owns or 432
operates a manufacturing or other enterprise of public utility as 433
enumerated in Section 27-31-101 and who makes additions to or 434
expansions of the facilities or properties or replaces equipment 435
used in connection with or necessary to the operation of such 436
enterprise may be granted an exemption from ad valorem taxation, 437
except state ad valorem taxation, ad valorem taxes for school 438
district purposes, and ad valorem taxes on the products thereof or 439
on automobiles and trucks belonging thereto and operating on and 440
over the highways of the State of Mississippi, upon each addition 441
to or expansion of the facility or property or replacement of 442
equipment, used in connection with, or necessary to, the operation 443
of an enterprise enumerated in Section 27-31-101, whether or not 444
such property is owned, leased, subleased, licensed or otherwise 445
obtained by such enterprise, irrespective of the taxpayer to which 446
any such leased property is assessed for ad valorem tax purposes, 447
within the discretion of the county board of supervisors and 448
municipal authorities; however, such governing authorities shall 449
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not exempt ad valorem taxes for school district purposes on such 450
additions or expansions of the facility or property, or 451
replacement of equipment. If an exemption is granted pursuant to 452
this subsection (1) with respect to any leasehold interest under a 453
lease, sublease or license of tangible property used in connection 454
with, or necessary to, the operation of an enterprise enumerated 455
in Section 27-31-101, the corresponding ownership interest of the 456
owner, lessor and sublessor of such tangible property shall 457
similarly and automatically be exempt without any action being 458
required to be taken by such owner, lessor or sublessor. In order 459
to obtain the exemptions authorized by this section, a person, 460
firm or corporation shall follow the same procedure prescribed for 461
obtaining an exemption on a new enterprise, except as otherwise 462
provided in this section. For any additions, expansions or 463
replacements with reference to any particular new enterprise, 464
which have been completed during any calendar year, only one (1) 465
request must be made for the exemptions sought for the additions, 466
expansions or replacements. The time of the exemption shall 467
commence from the date of completion of the additions, expansions 468
or replacements, and shall extend for a period not to exceed ten 469
(10) years thereafter; however, boards of supervisors and 470
municipal authorities, in lieu of granting the exemption for one 471
(1) period of ten (10) years, may grant the exemption in 472
consecutive periods of five (5) years each, but the total of such 473
consecutive periods shall not exceed ten (10) years. The initial 474
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ST: Fee-in-lieu of ad valorem tax; revise
distribution of for certain projects.
request for an exemption must be made in writing by June 1 of the 475
year immediately following the year in which the additions, 476
expansions or replacements are completed. If the initial request 477
for the exemption is not timely made, the board of supervisors or 478
municipal authorities may grant a subsequent request for the 479
exemption and, in such case, the exemption shall begin on the 480
anniversary date of completion of the additions, expansions or 481
replacements in the year in which the request is made and may be 482
for a period of time extending not more than ten (10) years from 483
the date of completion of the additions, expansions or 484
replacements. Any subsequent request for the exemption must be 485
made in writing by June 1 of the year in which it is granted. Any 486
exemption from ad valorem taxes granted under this subsection (1) 487
before March 28, 2019, and consistent herewith, is hereby 488
ratified, approved and confirmed. 489
(2) For expansions of facilities or properties, or 490
replacement of equipment, county boards of supervisors and 491
municipal authorities may grant a fee in lieu of taxes in the same 492
manner, to the same extent, and with the same qualifying threshold 493
as provided for projects under Section 27-31-104, Mississippi Code 494
of 1972. Any fee-in-lieu of taxes granted under this subsection 495
(2) before March 28, 2019, and consistent herewith, is hereby 496
ratified, approved and confirmed. 497
SECTION 4. This act shall take effect and be in force from 498
and after July 1, 2026. 499