SB 2479 — Fee-in-lieu of ad valorem taxes; revise certain provisions regarding.

SB2479 (As SentPassed tothe Governor)Senate) - 2018 Regular Session MISSISSIPPI LEGISLATURE Regular Session To:

Senator(s) Fillingane Senate Bill 2479 (As SentPassed tothe Governor)Senate) AN ACT TO AMEND SECTION 27-31-104, MISSISSIPPI CODE OF 1972, TO REDUCE FROM $100,000,000.00 TO $60,000,000.00 THE AMOUNT THAT A PROJECT BY CERTAIN NEW ENTERPRISES AND CERTAIN PRIVATE COMPANIES MUST TOTAL IN ORDER TO BE ELIGIBLE TO ENTER INTO A FEE-IN-LIEU AGREEMENT;

TO PROVIDE THAT COUNTY BOARDS OF SUPERVISORS AND MUNICIPAL AUTHORITIES MAY ENTER INTO FEE-IN-LIEU OF AD VALOREM TAXES AGREEMENTS FOR CERTAIN PROJECTS HAVING A MINIMUM CAPITAL INVESTMENT OF $100,000,000.00 FROM ANY SOURCE OR COMBINATION OF SOURCES, PROVIDED THAT A MAJORITY OF THE CAPITAL INVESTMENT IS FROM PRIVATE SOURCES, WHEN SUCH A PROJECT IS LOCATED WITHIN A GEOGRAPHIC AREA FOR WHICH A PRESIDENTIAL DISASTER DECLARATION WAS ISSUED ON OR AFTER JANUARY 1, 2014;

          ( * * *ab)  Projects by a private company (as such term is defined in Section 57-61-5 * * *, Mississippi Code of 1972) having a minimum capital investment of * * *One Hundred Million Dollars ($100,000,000.00) Sixty Million Dollars ($60,000,000.00); * * * or           ( * * *bc)  Projects totaling over One Hundred Million Dollars ($100,000,000.00)($100,000,000.00 by a qualified business (as such term is defined in Section 57-117-3) meeting minimum criteria established by the Mississippi Development Authority * * *.;

or           (d)  Projects totaling over Sixty Million Dollars ($60,000,000.00) by an existing enterprise that has been doing business in the county or municipality for twenty-four (24) months.  For purposes of this paragraph (d), the term "existing enterprise" includes those enterprises enumerated in Section 27-31-101;27-31-101.

or           (e)  A private company (as such term is defined in Section 57-61-5) having a minimum capital investment of One Hundred Million Dollars ($100,000,000.00) from any source or combination of sources, provided that a majority of the capital investment is from private sources, when such project is located within a geographic area for which a Presidential Disaster Declaration was issued on or after January 1, 2014.

 Any fee-in-lieu agreement entered into under this section shall become a binding obligation of the parties to the agreement, be effective upon its execution by the parties and approval by the Mississippi Development Authority and, except as otherwise provided in Section 17-25-23 or Section 57-75-33, or any other provision of law, continue in effect for a period not to exceed * * *twentyexceed (20)twenty thirty(20) (30) years commencing on the date that the fee-in-lieu granted thereunder begins in accordance with the agreement;

          (a)  Projects totaling over * * *One Hundred Million Dollars ($100,000,000.00).  In addition to those Sixty Million Dollars ($60,000,000.00)($60,000,000.00 by any new enterprises enumerated in Section 27-31-101 * * *, Mississippi Code of 1972, the term "projects," as used in this section, shall include;

          (c)  Projects totaling over Sixty Million Dollars ($60,000,000.00) by an existing enterprise that has been doing business in the county or municipality for twenty-four (24) months.  For purposes of this paragraph (c), the term "existing enterprise" includes those enterprises enumerated in Section 27-31-101;27-31-101.

or           (d)  A private company (as such term is defined in Section 57-61-5) having a minimum capital investment of One Hundred Million Dollars ($100,000,000.00) from any source or combination of sources, provided that a majority of the capital investment is from private sources, when such project is located within a geographic area for which a Presidential Disaster Declaration was issued on or after January 1, 2014.

     (4)  The minimum sum allowable as a fee-in-lieu shall not be less than one-third (1/3) of the ad valorem levy, including ad valorem taxes for school district purposes, and except as otherwise provided, the sum allowed shall be apportioned between the county or municipality, as appropriate, and the school districts in such amounts as may be determined by the county board of supervisors or municipal governing authority, as the case may be, however, except as otherwise provided in this section, from the sum allowed the apportionment to school districts shall not be less than the school districts' pro rata share based upon the proportion that the millage imposed for the school districts by the appropriate levying authority bears to the millage imposed by such levying authority for all other county or municipal purposes.  Any fee-in-lieu agreement entered into under this section shall become a binding obligation of the parties to the agreement, be effective upon its execution by the parties and approval by the Mississippi Development Authority and, except as otherwise provided in Section 17-25-23 or Section 57-75-33, or any other provision of law, continue in effect for a period not to exceed * * *twentyexceed (20)twenty thirty(20) (30) years commencing on the date that the fee-in-lieu granted thereunder begins in accordance with the agreement;

     (6) (6) Notwithstanding Notwithstanding Section 27-31-111, the parties to a fee-in-lieu may agree on terms and conditions providing for the reduction, suspension, termination or reinstatement of a fee-in-lieu agreement or any fee-in-lieu period granted thereunder upon the cessation of operations by project for twelve (12) or more consecutive months or due to other conditions set forth in the agreement.

     SECTION 2.  TheThis minimumact capitalshall investmenttake requirementseffect of Section 27-31-104(1)(e) in the version of that section effective through June 30, 2022, and Sectionbe 27-31-104(1)(d) in theforce version of that section effective from and after July 1, 2022,2018. as amended by this act, shall apply to any project for which initial capital investment for the project was made on or after July 1, 2014.

     SECTION 3.  This act shall take effect and be in force from and after July 1, 2018.