Bill Text: MS HB1568 | 2016 | Regular Session | Introduced

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Bill Title: Tax increment financing; clarify what constitutes cost of a redevelopment project under.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2016-02-23 - Died In Committee [HB1568 Detail]

Download: Mississippi-2016-HB1568-Introduced.html

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MISSISSIPPI LEGISLATURE

2016 Regular Session

To: Municipalities; Revenue and Expenditure General Bills

By: Representative DeLano

House Bill 1568

AN ACT TO AMEND SECTION 21-45-19, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE COST OF A REDEVELOPMENT PROJECT UNDER THE TAX INCREMENT FINANCING ACT INCLUDES THE COST ASSOCIATED WITH THE OPERATION AND MAINTENANCE OF CERTAIN PROPERTY RIGHTS TO REAL PROPERTY THAT MAY HAVE BEEN PURCHASED BY A MUNICIPALITY FOR THE PROJECT, AS MAY BE AUTHORIZED IN THE APPLICABLE REDEVELOPMENT PLAN; TO AMEND SECTIONS 21-45-11 AND 21-45-21, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; AND FOR RELATED PURPOSES.

     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

     SECTION 1.  Section 21-45-19, Mississippi Code of 1972, is amended as follows:

     21-45-19.  The cost of a redevelopment project shall be deemed to include the actual cost of the construction or rehabilitation of any part of a project which may be constructed or rehabilitated by a municipality, including:

          (a)  Architects' and engineers' fees * * *,;

          (b)  The purchase price of any real property that may be acquired by a municipality by purchase * * *,;

          (c)  All expenses in connection with the authorization, sale and issuance of bonds or other indebtedness to finance such acquisition, and the interest on bonds for a reasonable time prior to construction or rehabilitation, during construction or rehabilitation and for not exceeding one (1) year after completion of the construction or rehabilitation * * *.; and

          (d)  Those activities and expenses, other than debt service, that are authorized in the redevelopment plan adopted under the provisions of this chapter for costs associated with the operation and maintenance of a right-of-way, easement or other property right pertaining to real property that may have been purchased by a municipality pursuant to the plan.

     SECTION 2.  Section 21-45-11, Mississippi Code of 1972, is amended as follows:

     21-45-11.  Any tax increment financing plan, at a minimum, shall contain:

          (a)  A statement of the objectives of a municipality with regard to the plan;

          (b)  A statement indicating the need and proposed use of the tax increment financing plan in relationship to the redevelopment plan;

          (c)  A statement containing the cost estimates of the redevelopment project as described in Section 21-45-19 and the projected sources of revenue (ad valorem taxes, sales taxes, and the proceeds of any other financial assistance) to be used to meet the costs including estimates of tax increments and the total amount of indebtedness to be incurred;

          (d)  A list of all real property to be included in the tax increment financing plan;

          (e)  The duration of the tax increment financing plan's existence;

          (f)  A statement of the estimated impact of the tax increment financing plan upon the revenues of all taxing jurisdictions in which a redevelopment project is located; and

          (g)  A statement requiring that a separate fund be established to receive ad valorem taxes and the proceeds of any other financial assistance.

     Before approving any tax increment financing plan, the governing body shall hold a public hearing thereon after published notice in a newspaper in which the municipality is authorized to publish legal notices at least once and not less than ten (10) days and not more than twenty (20) days prior to the hearing.

     SECTION 3.  Section 21-45-21, Mississippi Code of 1972, is amended as follows:

     21-45-21.  (1)  After adoption of a redevelopment plan containing a tax increment financing plan the clerk shall certify the assessed value of the real property, including personal property located thereon, described in the tax increment financing plan.  Property taxable at the time of the certification shall be included in the assessed value at its most recently determined valuation.

     Property exempt from taxation at the time of the request shall be included at zero unless it was taxable when the tax increment financing plan was approved, in which case its most recently determined assessed valuation before it became exempt shall be included.  These assessed values shall be, and will be referred to as, the "original assessed value."

     (2)  Each year thereafter, the clerk and the * * *State Tax Commission Department of Revenue, if applicable, shall certify the amount by which the assessed value of real property, including personal property located thereon, described in the tax increment financing plan has increased or decreased from the original assessed value.  These assessed values shall be, and will be referred to as, the "current assessed value."

     (3)  Any amount by which the current assessed value of the real property, including personal property located thereon, described in the redevelopment plan exceeds the original assessed value shall be referred to as the "captured assessed value."  The clerk shall certify the amount of the captured assessed value to the municipality each year for the duration of the tax increment financing plan.  A municipality may choose to retain all or a portion of the captured assessed value for purposes of tax increment financing if the plan provides that all or a portion of the captured assessed value is necessary to finance the redevelopment project, including the costs described in Section 21-45-19 and the cost of establishing necessary reserves to insure payment of revenue bonds.

     If the tax increment financing plan provides that only a portion of the captured assessed value is necessary to finance the redevelopment program, only that portion shall be set aside and the remainder shall be apportioned to the various municipal tax levy funds and the various county tax levy funds.

     The amount of captured assessed value that a municipality intends to use for purposes of tax increment financing must be clearly stated in the tax increment financing plan.

     (4)  After adoption of a redevelopment plan containing a tax increment financing plan which includes a portion of the municipality sales tax diversion, the * * *State Tax Commission Department of Revenue shall certify the amount of sales tax collected by the state within the boundaries of the redevelopment area and diverted to the municipality in the twelve-month period ending on the last day of the month before the effective date of approval of the plan.  Any increase in the amount collected within the boundaries shall be set aside by the municipality in the fund created by the tax increment financing plan.

     Each redevelopment plan shall be approved in the same manner and at the same times provided in Section 43-35-13 for the approval of urban renewal plans.  Any tax increment financing plan shall become effective on the same date as the redevelopment plan is approved.

     SECTION 4.  This act shall take effect and be in force from and after July 1, 2016.

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