Amendment vs bill Amendment Report for Senate Bill No. 2842 vs Current version

Struck = removed from the bill ยท added = the amendment's new text.

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MISSISSIPPI LEGISLATURE REGULAR SESSION 2022 By:
House Amendments to Senate Bill No.
Senator(s) Harkins To:
2842 TO THE SECRETARY OF THE SENATE:
Finance SENATE BILL NO.
THIS IS TO INFORM YOU THAT THE HOUSE HAS ADOPTED THE AMENDMENTS SET OUT BELOW:
2842 AN ACT TO REENACT SECTIONS 57-117-1, 57-117-3, 57-117-5, 57-117-7, 57-117-9 AND 57-117-11, MISSISSIPPI CODE OF 1972, WHICH CONSTITUTE THE MISSISSIPPI HEALTH CARE INDUSTRY ZONE ACT;
AMENDMENT NO.
TO AMEND REENACTED SECTION 57-117-3, MISSISSIPPI CODE OF 1972, TO MAKE MINOR FORMATTING REVISIONS;
1 Amend by striking all after the enacting clause and inserting in lieu thereof the following:
TO AMEND REENACTED SECTION 57-117-11, MISSISSIPPI CODE OF 1972, TO EXTEND THE DATE OF REPEAL ON THE MISSISSIPPI HEALTH CARE INDUSTRY ZONE ACT;
TO AMEND SECTION 27-31-101, MISSISSIPPI CODE OF 1972, WHICH AUTHORIZES COUNTY BOARDS OF SUPERVISORS AND MUNICIPAL GOVERNING AUTHORITIES TO GRANT CERTAIN AD VALOREM TAX EXEMPTIONS, TO EXTEND THE REVERTER ON THE PROVISION OF LAW ALLOWING SUCH EXEMPTIONS FOR HEALTH CARE INDUSTRY FACILITIES AS DEFINED IN THE MISSISSIPPI HEALTH CARE INDUSTRY ZONE ACT;
TO AMEND SECTION 27-31-104, MISSISSIPPI CODE OF 1972, WHICH AUTHORIZES COUNTY BOARDS OF SUPERVISORS AND MUNICIPAL GOVERNING AUTHORITIES TO ENTER INTO AGREEMENTS WITH CERTAIN ENTERPRISES GRANTING A FEE-IN-LIEU OF AD VALOREM TAXES, TO EXTEND THE REVERTER ON THE PROVISION OF LAW ALLOWING SUCH AGREEMENTS FOR PROJECTS TOTALING OVER $100,000,000.00 BY QUALIFIED BUSINESSES, AS DEFINED IN THE MISSISSIPPI HEALTH CARE INDUSTRY ZONE ACT, MEETING MINIMUM CRITERIA ESTABLISHED BY THE MISSISSIPPI DEVELOPMENT AUTHORITY;
TO AMEND SECTION 27-65-101, MISSISSIPPI CODE OF 1972, WHICH PROVIDES INDUSTRIAL EXEMPTIONS TO THE SALES TAX, TO EXTEND THE DATE OF REPEAL ON THE EXEMPTION OF SALES OF MATERIALS USED IN THE CONSTRUCTION OF A HEALTH CARE INDUSTRY FACILITY, OR ADDITIONS OR IMPROVEMENTS THEREON, AND SALES OF CERTAIN RELATED MACHINERY AND EQUIPMENT TO QUALIFIED BUSINESSES AS DEFINED IN THE MISSISSIPPI HEALTH CARE INDUSTRY ZONE ACT;
AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
S.
57-117-1.
B.
No.
2842 *SS36/R148* ~ OFFICIAL ~ G3/5 22/SS36/R148 PAGE 1 (icj\kr) 57-117-1.
Section 57-117-3, Mississippi Code of 1972, is reenacted and amended as follows:
Section 57-117-3, Mississippi Code of 1972, as amended by Senate Bill No.
2095, 2022 Regular Session, is reenacted and amended as follows:
or (ii) A business that * * * 1.
or PAGE 12842 (ii) A business that * * * 1.
The term "health care industry facility" does not include any medical cannabis establishment as defined in the Mississippi Medical Cannabis Act.
S.
B.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 2(icj\kr) and related ad valorem tax and sales taxe Act exemptions;
extend repeal date.
The term "qualified business" does not include any medical cannabis establishment as defined in the Mississippi Medical Cannabis Act.
57-117-5.
PAGE 22842 57-117-5.
S.
B.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 3(icj\kr) and related ad valorem tax and sales taxe Act exemptions;
extend repeal date.
(2) A health care industry facility that engages in an activity for which a certificate of need is required must comply with the provisions of Section 41-7-191 in order to be certified as a qualified business.
PAGE 32842 (2) A health care industry facility that engages in an activity for which a certificate of need is required must comply with the provisions of Section 41-7-191 in order to be certified as a qualified business.
If the health care industry facility or business is S.
If the health care industry facility or business is located in a health care industry zone and meets the requirements of this chapter, the MDA shall certify it as a qualified business.
B.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 4(icj\kr) and related ad valorem tax and sales taxe Act exemptions;
extend repeal date.
located in a health care industry zone and meets the requirements of this chapter, the MDA shall certify it as a qualified business.
(b) A sales tax exemption as authorized in Section 27-65-101(pp).
PAGE 42842 (b) A sales tax exemption as authorized in Section 27-65-101(pp).
A S.
A revocation under this section shall not act retroactively to remove any incentives granted by this chapter.
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B.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 5(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
revocation under this section shall not act retroactively to remove any incentives granted by this chapter.
Sections 57-117-1 through 57-117-11 of this act shall be repealed from and after July 1, * * * 2026.
Sections 57-117-1 through 57-117-11 of this act shall be repealed from and after July 1, * * * 2025.
[Through June 30, * * * 2026, this section shall read as follows:] 27-31-101.
[Through June 30, * * * 2025, this section shall read as follows:] 27-31-101.
however, such governing authorities shall not exempt ad valorem taxes for school district purposes on tangible property used in, or necessary to, the operation of the manufacturers and other new enterprises enumerated by classes in this section, except to the extent authorized in Sections 27-31-104 and 27-31-105(2), nor shall they exempt from ad valorem taxes the products of the manufacturers or other new enterprises or automobiles and trucks belonging to the manufacturers or other new enterprises operating on and over the highways of the State of Mississippi.
however, such governing authorities PAGE 52842 shall not exempt ad valorem taxes for school district purposes on tangible property used in, or necessary to, the operation of the manufacturers and other new enterprises enumerated by classes in this section, except to the extent authorized in Sections 27-31-104 and 27-31-105(2), nor shall they exempt from ad valorem taxes the products of the manufacturers or other new enterprises or automobiles and trucks belonging to the manufacturers or other new enterprises operating on and over the highways of the State of Mississippi.
The time of such exemption shall be for a period not to exceed a total of ten (10) years which shall begin on the date of completion of the new enterprise for which the exemption is S.
The time of such exemption shall be for a period not to exceed a total of ten (10) years which shall begin on the date of completion of the new enterprise for which the exemption is granted;
B.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 6(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
granted;
If the initial request for the exemption is not timely made, the board of supervisors or municipal authorities may grant a subsequent request for the exemption and, in such case, the exemption shall begin on the anniversary date of completion of the enterprise in the year in which the request is made and may be for a period of time extending not more than ten (10) years from the date of completion of the new enterprise.
If the initial request for the exemption is not timely made, the board of supervisors or municipal authorities PAGE 62842 may grant a subsequent request for the exemption and, in such case, the exemption shall begin on the anniversary date of completion of the enterprise in the year in which the request is made and may be for a period of time extending not more than ten (10) years from the date of completion of the new enterprise.
(2) Any board of supervisors or municipal authority which has granted an exemption for a period of less than ten (10) years may grant subsequent periods of exemption to run consecutively S.
(2) Any board of supervisors or municipal authority which has granted an exemption for a period of less than ten (10) years may grant subsequent periods of exemption to run consecutively with the initial exemption period, or a subsequently granted exemption period, but in no case shall the total of the exemption periods granted for a new enterprise exceed ten (10) years.
B.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 7(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
with the initial exemption period, or a subsequently granted exemption period, but in no case shall the total of the exemption periods granted for a new enterprise exceed ten (10) years.
(3) (a) The new enterprises for which any or all of the tangible property described in paragraph (b) of this subsection (3) may be exempt from ad valorem taxation, except state ad valorem taxation, ad valorem taxes for school district purposes, and ad valorem taxes on the products thereof or on automobiles and trucks belonging thereto and operating on and over the highways of the State of Mississippi, are enumerated as and limited to the following, as determined by the Department of Revenue:
(3) (a) The new enterprises for which any or all of the tangible property described in paragraph (b) of this subsection (3) may be exempt from ad valorem taxation, except state ad valorem taxation, ad valorem taxes for school district purposes, and ad valorem taxes on the products thereof or on automobiles and PAGE 72842 trucks belonging thereto and operating on and over the highways of the State of Mississippi, are enumerated as and limited to the following, as determined by the Department of Revenue:
S.
B.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 8(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
(xi) Data centers as defined in Section 57-113-21;
PAGE 82842 (xi) Data centers as defined in Section 57-113-21;
The term "telecommunications enterprises" means entities engaged in the creation, display, management, storage, processing, transmission or distribution for compensation of images, text, voice, video or data by wire or by wireless means, or entities engaged in the construction, design, development, S.
The term "telecommunications enterprises" means entities engaged in the creation, display, management, storage, processing, transmission or distribution for compensation of images, text, voice, video or data by wire or by wireless means, or entities engaged in the construction, design, development, manufacture, maintenance or distribution for compensation of devices, products, software or structures used in the above activities.
B.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 9(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
manufacture, maintenance or distribution for compensation of devices, products, software or structures used in the above activities.
If an exemption is granted pursuant to this section with respect to any leasehold interest under a lease, sublease or license of tangible property used in connection with, or necessary to, the operation of an enterprise enumerated in paragraph (a) of this subsection (3), the corresponding ownership interest of the owner, lessor and sublessor of such tangible property shall similarly and automatically be exempt without any action being required to be taken by such owner, lessor or sublessor.
If an exemption is granted PAGE 92842 pursuant to this section with respect to any leasehold interest under a lease, sublease or license of tangible property used in connection with, or necessary to, the operation of an enterprise enumerated in paragraph (a) of this subsection (3), the corresponding ownership interest of the owner, lessor and sublessor of such tangible property shall similarly and automatically be exempt without any action being required to be taken by such owner, lessor or sublessor.
S.
B.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 10(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
[From and after July 1, * * * 2026, this section shall read as follows:] 27-31-101.
[From and after July 1, * * * 2025, this section shall read as follows:] 27-31-101.
The time of such exemption shall be for a period not to exceed a total of ten (10) years which shall begin on the date of completion of the new enterprise for which the exemption is granted;
The time of such exemption shall be for a period not PAGE 10842 to exceed a total of ten (10) years which shall begin on the date of completion of the new enterprise for which the exemption is granted;
When the initial exemption period granted is less than ten (10) years, the boards of supervisors and municipal authorities S.
When the initial exemption period granted is less than ten (10) years, the boards of supervisors and municipal authorities may grant a subsequent consecutive period or periods to follow the initial period of exemption, provided that the total of all periods of exemption shall not exceed ten (10) years.
B.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 11(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
may grant a subsequent consecutive period or periods to follow the initial period of exemption, provided that the total of all periods of exemption shall not exceed ten (10) years.
(2) Any board of supervisors or municipal authority which has granted an exemption for a period of less than ten (10) years may grant subsequent periods of exemption to run consecutively with the initial exemption period, or a subsequently granted exemption period, but in no case shall the total of the exemption periods granted for a new enterprise exceed ten (10) years.
(2) Any board of supervisors or municipal authority which has granted an exemption for a period of less than ten (10) years PAGE 11842 may grant subsequent periods of exemption to run consecutively with the initial exemption period, or a subsequently granted exemption period, but in no case shall the total of the exemption periods granted for a new enterprise exceed ten (10) years.
Any consecutive period of exemption shall be granted by entry of an order by the board or the authority granting the consecutive S.
Any consecutive period of exemption shall be granted by entry of an order by the board or the authority granting the consecutive exemption on its minutes, reflecting the granting of the consecutive exemption period and the dates upon which such consecutive exemption period begins and expires.
B.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 12(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
exemption on its minutes, reflecting the granting of the consecutive exemption period and the dates upon which such consecutive exemption period begins and expires.
(v) Movie industry studios meeting minimum criteria established by the Mississippi Development Authority;
PAGE 12842 (v) Movie industry studios meeting minimum criteria established by the Mississippi Development Authority;
S.
B.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 13(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
Companies organized to do business as commercial broadcast radio stations, television stations or news organizations primarily serving in-state markets shall not be included within the definition of the term "telecommunications enterprises." S.
Companies organized to do business as commercial PAGE 13842 broadcast radio stations, television stations or news organizations primarily serving in-state markets shall not be included within the definition of the term "telecommunications enterprises." (b) An exemption from ad valorem taxes granted under this section may include any or all tangible property, real or personal, including any leasehold interests therein but excluding automobiles and trucks operating on and over the highways of the State of Mississippi, used in connection with, or necessary to, the operation of an enterprise enumerated in paragraph (a) of this subsection (3), whether or not such property is owned, leased, subleased, licensed or otherwise obtained by such enterprise, irrespective of the taxpayer to which any such leased property is assessed for ad valorem tax purposes.
B.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 14(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
(b) An exemption from ad valorem taxes granted under this section may include any or all tangible property, real or personal, including any leasehold interests therein but excluding automobiles and trucks operating on and over the highways of the State of Mississippi, used in connection with, or necessary to, the operation of an enterprise enumerated in paragraph (a) of this subsection (3), whether or not such property is owned, leased, subleased, licensed or otherwise obtained by such enterprise, irrespective of the taxpayer to which any such leased property is assessed for ad valorem tax purposes.
SECTION 8.
PAGE 14842 SECTION 8.
Section 27-31-104, Mississippi Code of 1972, is amended as follows:
Section 27-31-104, Mississippi Code of 1972, as amended by Senate Bill No.
[Through June 30, * * * 2026, this section shall read as follows:] S.
2095, 2022 Regular Session, is amended as follows:
B.
[Through June 30, * * * 2025, this section shall read as follows:] 27-31-104.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 15(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
27-31-104.
For purposes of this subparagraph (iv), the term "existing enterprise" includes those enterprises enumerated in Section 27-31-101;
For purposes of this subparagraph (iv), the term PAGE 15842 "existing enterprise" includes those enterprises enumerated in Section 27-31-101;
or (v) 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 S.
or (v) 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.
B.
County boards of supervisors and municipal authorities may not enter into an agreement with an enterprise that is a medical cannabis establishment, as defined in the Mississippi Medical Cannabis Act, granting, and pursuant to such agreement grant a fee-in-lieu of ad valorem taxes.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 16(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
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.
If a fee-in-lieu of ad valorem taxes is granted pursuant to this section with respect to any leasehold interest under a lease, sublease or license of tangible property used in connection with, or necessary to, the operation of an enterprise, private company or business described in paragraph (a) of this subsection (1), as applicable, the corresponding ownership interest of the owner, lessor and sublessor of such tangible property shall similarly and automatically be exempt and subject to the fee-in-lieu granted in accordance herewith without any S.
If a fee-in-lieu of ad valorem taxes is PAGE 16842 granted pursuant to this section with respect to any leasehold interest under a lease, sublease or license of tangible property used in connection with, or necessary to, the operation of an enterprise, private company or business described in paragraph (a) of this subsection (1), as applicable, the corresponding ownership interest of the owner, lessor and sublessor of such tangible property shall similarly and automatically be exempt and subject to the fee-in-lieu granted in accordance herewith without any action being required to be taken by such owner, lessor or sublessor.
B.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 17(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
action being required to be taken by such owner, lessor or sublessor.
(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 S.
PAGE 17842 (4) The minimum sum allowable as a fee-in-lieu shall not be less than one-third (1/3), or one-tenth (1/10) if the project is also a project as defined in Section 27-31-46, 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.
B.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 18(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
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 such agreement shall be binding, according to its terms, on future boards of supervisors of the county and/or governing authorities of a municipality, as the case may be, for the duration of the agreement.
Any such agreement shall be binding, according to its terms, on future boards of PAGE 18842 supervisors of the county and/or governing authorities of a municipality, as the case may be, for the duration of the agreement.
If the fee is a fraction or percentage of the ad valorem tax levy, it shall be annually computed on all ad valorem taxes S.
If the fee is a fraction or percentage of the ad valorem tax levy, it shall be annually computed on all ad valorem taxes otherwise payable, including school taxes, as the same may vary from year to year based upon changes in the millage rate or assessed value and shall not be less than one-third (1/3) of that amount or one-tenth (1/10) of that amount if the project is also a project as defined in Section 27-31-46.
B.
If the fee is a stated dollar amount, said amount shall be the higher of the sum provided for fixed payment or (a) one-third (1/3) of the total of all ad valorem taxes otherwise payable as annually determined during each year of the fee-in-lieu or (b) if the project is also a project as defined in Section 27-31-46, one-tenth (1/10) of the total of all ad valorem taxes otherwise payable as annually determined during each year of the fee-in-lieu.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 19(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
otherwise payable, including school taxes, as the same may vary from year to year based upon changes in the millage rate or assessed value and shall not be less than one-third (1/3) of that amount.
If the fee is a stated dollar amount, said amount shall be the higher of the sum provided for fixed payment or one-third (1/3) of the total of all ad valorem taxes otherwise payable as annually determined during each year of the fee-in-lieu.
(7) For a project as defined in Section 57-75-5(f)(xxi) and located in a county that is a member of a regional economic development alliance created under Section 57-64-1 et seq., the members of the regional economic development alliance may divide the sum allowed as a fee-in-lieu in a manner as determined by the alliance agreement, and the boards of supervisors of the member counties may then apportion the sum allowed between school district purposes and all other county purposes.
PAGE 19842 (7) For a project as defined in Section 57-75-5(f)(xxi) and located in a county that is a member of a regional economic development alliance created under Section 57-64-1 et seq., the members of the regional economic development alliance may divide the sum allowed as a fee-in-lieu in a manner as determined by the alliance agreement, and the boards of supervisors of the member counties may then apportion the sum allowed between school district purposes and all other county purposes.
(8) For a project as defined in Section 57-75-5(f)(xxvi), the board of supervisors of the county in which the project is located may negotiate with the school district in which the S.
(8) For a project as defined in Section 57-75-5(f)(xxvi), the board of supervisors of the county in which the project is located may negotiate with the school district in which the project is located and apportion to the school district an amount of the fee-in-lieu that is agreed upon in the negotiations different than the amount provided for in subsection (3) of this section.
B.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 20(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
project is located and apportion to the school district an amount of the fee-in-lieu that is agreed upon in the negotiations different than the amount provided for in subsection (3) of this section.
(10) Any fee-in-lieu of ad valorem taxes granted under this section before the effective date of this act, and consistent herewith, is hereby ratified, approved and confirmed.
(10) Any fee-in-lieu of ad valorem taxes granted under this section before March 28, 2019, and consistent herewith, is hereby ratified, approved and confirmed.
[From and after July 1, * * * 2026, this section shall read as follows:] 27-31-104.
[From and after July 1, * * * 2025, this section shall read as follows:] PAGE 20842 27-31-104.
(ii) Projects by a private company (as such term is defined in Section 57-61-5, Mississippi Code of 1972) having a S.
(ii) 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 Sixty Million Dollars ($60,000,000.00);
B.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 21(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
minimum capital investment of Sixty Million Dollars ($60,000,000.00);
or (iv) 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.
or (iv) 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 PAGE 21842 within a geographic area for which a Presidential Disaster Declaration was issued on or after January 1, 2014.
(b) A fee-in-lieu of ad valorem taxes granted in accordance with this section may include any or all tangible property, real or personal, including any leasehold interests therein but excluding automobiles and trucks operating on and over the highways of the State of Mississippi, used in connection with, or necessary to, the operation of any enterprise, private company or business described in paragraph (a) of this subsection (1), as applicable, whether or not such property is owned, leased, subleased, licensed or otherwise obtained by such enterprise, S.
County boards of supervisors and municipal authorities may not enter into an agreement with an enterprise that is a medical cannabis establishment, as defined in the Mississippi Medical Cannabis Act, granting, and pursuant to such agreement grant a fee-in-lieu of ad valorem taxes.
B.
(b) A fee-in-lieu of ad valorem taxes granted in accordance with this section may include any or all tangible property, real or personal, including any leasehold interests therein but excluding automobiles and trucks operating on and over the highways of the State of Mississippi, used in connection with, or necessary to, the operation of any enterprise, private company or business described in paragraph (a) of this subsection (1), as applicable, whether or not such property is owned, leased, subleased, licensed or otherwise obtained by such enterprise, private company or business, as applicable, irrespective of the taxpayer to which any such leased property is assessed for ad valorem tax purposes.
No.
If a fee-in-lieu of ad valorem taxes is granted pursuant to this section with respect to any leasehold interest under a lease, sublease or license of tangible property used in connection with, or necessary to, the operation of an enterprise, private company or business described in paragraph (a) of this subsection (1), as applicable, the corresponding ownership interest of the owner, lessor and sublessor of such tangible property shall similarly and automatically be exempt and subject PAGE 22842 to the fee-in-lieu granted in accordance herewith without any action being required to be taken by such owner, lessor or sublessor.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 22(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
private company or business, as applicable, irrespective of the taxpayer to which any such leased property is assessed for ad valorem tax purposes.
If a fee-in-lieu of ad valorem taxes is granted pursuant to this section with respect to any leasehold interest under a lease, sublease or license of tangible property used in connection with, or necessary to, the operation of an enterprise, private company or business described in paragraph (a) of this subsection (1), as applicable, the corresponding ownership interest of the owner, lessor and sublessor of such tangible property shall similarly and automatically be exempt and subject to the fee-in-lieu granted in accordance herewith without any action being required to be taken by such owner, lessor or sublessor.
(3) Any grant of a fee-in-lieu of ad valorem taxes shall be evidenced by a written agreement negotiated by the enterprise and S.
(3) Any grant of a fee-in-lieu of ad valorem taxes shall be evidenced by a written agreement negotiated by the enterprise and the county board of supervisors and/or municipal authority, as the case may be, and given final approval by the Mississippi Development Authority as satisfying the requirements of this section.
B.
(4) The minimum sum allowable as a fee-in-lieu shall not be less than one-third (1/3), or one-tenth (1/10) if the project is also a project as defined in Section 27-31-46, 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 PAGE 23842 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.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 23(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
the county board of supervisors and/or municipal authority, as the case may be, and given final approval by the Mississippi Development Authority as satisfying the requirements of this section.
(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.
S.
B.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 24(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
If the fee is a fraction or percentage of the ad valorem tax levy, it shall be annually computed on all ad valorem taxes otherwise payable, including school taxes, as the same may vary from year to year based upon changes in the millage rate or assessed value and shall not be less than one-third (1/3) of that amount.
If the fee is a fraction or percentage of the ad valorem tax levy, it shall be annually computed on all ad valorem taxes PAGE 24842 otherwise payable, including school taxes, as the same may vary from year to year based upon changes in the millage rate or assessed value and shall not be less than one-third (1/3) of that amount or one-tenth (1/10) of that amount if the project is also a project as defined in Section 27-31-46.
If the fee is a stated dollar amount, said amount shall be the higher of the sum provided for fixed payment or one-third (1/3) of the total of all ad valorem taxes otherwise payable as annually determined during each year of the fee-in-lieu.
If the fee is a stated dollar amount, said amount shall be the higher of the sum provided for fixed payment or (a) one-third (1/3) of the total of all ad valorem taxes otherwise payable as annually determined during each year of the fee-in-lieu or (b) if the project is also a project as defined in Section 27-31-46, one-tenth (1/10) of the total of all ad valorem taxes otherwise payable as annually determined during each year of the fee-in-lieu.
S.
(7) For a project as defined in Section 57-75-5(f)(xxi) and located in a county that is a member of a regional economic development alliance created under Section 57-64-1 et seq., the members of the regional economic development alliance may divide the sum allowed as a fee-in-lieu in a manner as determined by the alliance agreement, and the boards of supervisors of the member PAGE 25842 counties may then apportion the sum allowed between school district purposes and all other county purposes.
B.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 25(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
(7) For a project as defined in Section 57-75-5(f)(xxi) and located in a county that is a member of a regional economic development alliance created under Section 57-64-1 et seq., the members of the regional economic development alliance may divide the sum allowed as a fee-in-lieu in a manner as determined by the alliance agreement, and the boards of supervisors of the member counties may then apportion the sum allowed between school district purposes and all other county purposes.
(10) Any fee-in-lieu of ad valorem taxes granted under this section before the effective date of this act, and consistent herewith, is hereby ratified, approved and confirmed.
(10) Any fee-in-lieu of ad valorem taxes granted under this section before March 28, 2019, and consistent herewith, is hereby ratified, approved and confirmed.
Section 27-65-101, Mississippi Code of 1972, is amended as follows:
Section 27-65-101, Mississippi Code of 1972, as amended by Senate Bill No.
S.
2095, 2022 Regular Session, is amended as follows:
B.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 26(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
(1) The exemptions from the provisions of this chapter which are of an industrial nature or which are more properly classified as industrial exemptions than any other exemption classification of this chapter shall be confined to those persons or property exempted by this section or by the provisions of the Constitution of the United States or the State of Mississippi.
(1) The exemptions from the provisions of this chapter which are of an industrial nature or which are more properly classified as industrial exemptions than any other exemption classification of this chapter shall be confined to those persons or property exempted by this section or by the provisions of the Constitution of the United States or the State PAGE 26842 of Mississippi.
(b) Sales of raw materials, catalysts, processing chemicals, welding gases or other industrial processing gases (except natural gas) to a manufacturer for use directly in manufacturing or processing a product for sale or rental or S.
(b) Sales of raw materials, catalysts, processing chemicals, welding gases or other industrial processing gases (except natural gas) to a manufacturer for use directly in manufacturing or processing a product for sale or rental or repairing or reconditioning vessels or barges of fifty (50) tons load displacement and over.
B.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 27(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
repairing or reconditioning vessels or barges of fifty (50) tons load displacement and over.
(c) The gross proceeds of sales of dry docks, offshore drilling equipment for use in oil or natural gas exploration or production, vessels or barges of fifty (50) tons load displacement and over, when the vessels or barges are sold by the manufacturer or builder thereof.
PAGE 27842 (c) The gross proceeds of sales of dry docks, offshore drilling equipment for use in oil or natural gas exploration or production, vessels or barges of fifty (50) tons load displacement and over, when the vessels or barges are sold by the manufacturer or builder thereof.
S.
B.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 28(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
(h) Sales of raw materials, catalysts, processing chemicals, welding gases or other industrial processing gases (except natural gas) used or consumed directly in manufacturing, repairing, cleaning, altering, reconditioning or improving such rail rolling stock (and component parts thereof).
PAGE 28842 (h) Sales of raw materials, catalysts, processing chemicals, welding gases or other industrial processing gases (except natural gas) used or consumed directly in manufacturing, repairing, cleaning, altering, reconditioning or improving such rail rolling stock (and component parts thereof).
(j) Sales of tangible personal property to persons operating ships in international commerce for use or consumption S.
(j) Sales of tangible personal property to persons operating ships in international commerce for use or consumption on board such ships.
B.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 29(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
on board such ships.
(k) Sales of materials used in the construction of a building, or any addition or improvement thereon, and sales of any machinery and equipment not later than three (3) months after the completion of construction of the building, or any addition thereon, to be used therein, to qualified businesses, as defined in Section 57-51-5, which are located in a county or portion thereof designated as an enterprise zone pursuant to Sections 57-51-1 through 57-51-15.
(k) Sales of materials used in the construction of a building, or any addition or improvement thereon, and sales of any machinery and equipment not later than three (3) months after the completion of construction of the building, or any addition thereon, to be used therein, to qualified businesses, as defined PAGE 29842 in Section 57-51-5, which are located in a county or portion thereof designated as an enterprise zone pursuant to Sections 57-51-1 through 57-51-15.
S.
B.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 30(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
(q) Sales of component materials used in the construction of a building, or any addition or improvement thereon, sales of machinery and equipment to be used therein, and sales of manufacturing or processing machinery and equipment which is permanently attached to the ground or to a permanent foundation and which is not by its nature intended to be housed within a building structure, not later than three (3) months after the initial start-up date, to permanent business enterprises engaging in manufacturing or processing in Tier Three areas (as such term is defined in Section 57-73-21), which businesses are certified by the Department of Revenue as being eligible for the exemption granted in this paragraph (q).
PAGE 30842 (q) Sales of component materials used in the construction of a building, or any addition or improvement thereon, sales of machinery and equipment to be used therein, and sales of manufacturing or processing machinery and equipment which is permanently attached to the ground or to a permanent foundation and which is not by its nature intended to be housed within a building structure, not later than three (3) months after the initial start-up date, to permanent business enterprises engaging in manufacturing or processing in Tier Three areas (as such term is defined in Section 57-73-21), which businesses are certified by the Department of Revenue as being eligible for the exemption granted in this paragraph (q).
(r) (i) Sales of component materials used in the construction of a building, or any addition or improvement thereon, and sales of any machinery and equipment not later than three (3) months after the completion of the building, addition or S.
The exemption provided in this paragraph (q) shall not apply to sales to any business enterprise that is a medical cannabis establishment as defined in the Mississippi Medical Cannabis Act.
B.
(r) (i) Sales of component materials used in the construction of a building, or any addition or improvement thereon, and sales of any machinery and equipment not later than three (3) months after the completion of the building, addition or improvement thereon, to be used therein, for any company establishing or transferring its national or regional headquarters from within or outside the State of Mississippi and creating a minimum of twenty (20) jobs at the new headquarters in this state.
No.
The exemption provided in this subparagraph (i) shall not apply to sales for any company that is a medical cannabis establishment as defined in the Mississippi Medical Cannabis Act.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 31(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
The Department PAGE 31842 of Revenue shall establish criteria and prescribe procedures to determine if a company qualifies as a national or regional headquarters for the purpose of receiving the exemption provided in this subparagraph (i).
extend repeal date.
improvement thereon, to be used therein, for any company establishing or transferring its national or regional headquarters from within or outside the State of Mississippi and creating a minimum of twenty (20) jobs at the new headquarters in this state.
The Department of Revenue shall establish criteria and prescribe procedures to determine if a company qualifies as a national or regional headquarters for the purpose of receiving the exemption provided in this subparagraph (i).
The exemption provided in this subparagraph (ii) shall not apply to sales for any company that is a medical cannabis establishment as defined in the Mississippi Medical Cannabis Act.
(s) The gross proceeds from the sale of semitrailers, trailers, boats, travel trailers, motorcycles, all-terrain cycles and rotary-wing aircraft if exported from this state within S.
(s) The gross proceeds from the sale of semitrailers, trailers, boats, travel trailers, motorcycles, all-terrain cycles and rotary-wing aircraft if exported from this state within forty-eight (48) hours and registered and first used in another state.
B.
(t) Gross income from the storage and handling of natural gas in underground salt domes and in other underground PAGE 32842 reservoirs, caverns, structures and formations suitable for such storage.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 32(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
forty-eight (48) hours and registered and first used in another state.
(t) Gross income from the storage and handling of natural gas in underground salt domes and in other underground reservoirs, caverns, structures and formations suitable for such storage.
S.
B.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 33(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
For the purposes of this exemption, "pollution control equipment" means equipment, devices, machinery or systems used or acquired to prevent, control, monitor or reduce air, water or groundwater pollution, or solid or hazardous waste as required by federal or state law or regulation.
For the purposes of this exemption, "pollution control equipment" means equipment, devices, machinery or systems used or acquired to prevent, control, monitor or reduce air, water PAGE 33842 or groundwater pollution, or solid or hazardous waste as required by federal or state law or regulation.
(y) Sales or leases of component materials, machinery and equipment used in the construction of a building, or any addition or improvement thereon to an enterprise operating a project that has been certified by the Mississippi Major Economic Impact Authority as a project as defined in Section 57-75-5(f)(iv)1, Section 57-75-5(f)(xxi), Section 57-75-5(f)(xxii) S.
(y) Sales or leases of component materials, machinery and equipment used in the construction of a building, or any addition or improvement thereon to an enterprise operating a project that has been certified by the Mississippi Major Economic Impact Authority as a project as defined in Section 57-75-5(f)(iv)1, Section 57-75-5(f)(xxi), Section 57-75-5(f)(xxii) or Section 57-75-5(f)(xxviii) and any other sales or leases required to establish or operate such project.
B.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 34(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
or Section 57-75-5(f)(xxviii) and any other sales or leases required to establish or operate such project.
(bb) [Repealed] (cc) Sales or leases to an enterprise owning or operating a project that has been designated by the Mississippi Major Economic Impact Authority as a project as defined in Section 57-75-5(f)(xviii) of machinery and equipment;
PAGE 34842 (bb) [Repealed] (cc) Sales or leases to an enterprise owning or operating a project that has been designated by the Mississippi Major Economic Impact Authority as a project as defined in Section 57-75-5(f)(xviii) of machinery and equipment;
S.
B.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 35(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
(ff) Sales of component materials used in the construction of a facility, or any addition or improvement thereon, and sales or leases of machinery and equipment not later than three (3) months after the completion of construction of the facility, or any addition or improvement thereto, to be used in the building or any addition or improvement thereto, to a permanent business enterprise operating a data/information enterprise in Tier Three areas (as such areas are designated in accordance with Section 57-73-21), meeting minimum criteria established by the Mississippi Development Authority.
(ff) Sales of component materials used in the construction of a facility, or any addition or improvement thereon, and sales or leases of machinery and equipment not later than three (3) months after the completion of construction of the PAGE 35842 facility, or any addition or improvement thereto, to be used in the building or any addition or improvement thereto, to a permanent business enterprise operating a data/information enterprise in Tier Three areas (as such areas are designated in accordance with Section 57-73-21), meeting minimum criteria established by the Mississippi Development Authority.
The exemption provided in this paragraph (ff) shall not apply to sales to any business enterprise that is a medical cannabis establishment as defined in the Mississippi Medical Cannabis Act.
For purposes of this paragraph, an enterprise must meet the criteria provided for in S.
For purposes of this paragraph, an enterprise must meet the criteria provided for in Section 27-65-17(1)(f) in order to be considered a technology intensive enterprise.
B.
(hh) Sales of component materials used in the replacement, reconstruction or repair of a building or facility that has been destroyed or sustained extensive damage as a result of a disaster declared by the Governor, sales of machinery and equipment to be used therein to replace machinery or equipment PAGE 36842 damaged or destroyed as a result of such disaster, including, but not limited to, manufacturing or processing machinery and equipment which is permanently attached to the ground or to a permanent foundation and which is not by its nature intended to be housed within a building structure, to enterprises or companies that were eligible for the exemptions authorized in paragraph (q), (r), (ff) or (gg) of this subsection during initial construction of the building that was destroyed or damaged, which enterprises or companies are certified by the Department of Revenue as being eligible for the exemption granted in this paragraph.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 36(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
Section 27-65-17(1)(f) in order to be considered a technology intensive enterprise.
(hh) Sales of component materials used in the replacement, reconstruction or repair of a building or facility that has been destroyed or sustained extensive damage as a result of a disaster declared by the Governor, sales of machinery and equipment to be used therein to replace machinery or equipment damaged or destroyed as a result of such disaster, including, but not limited to, manufacturing or processing machinery and equipment which is permanently attached to the ground or to a permanent foundation and which is not by its nature intended to be housed within a building structure, to enterprises or companies that were eligible for the exemptions authorized in paragraph (q), (r), (ff) or (gg) of this subsection during initial construction of the building that was destroyed or damaged, which enterprises or companies are certified by the Department of Revenue as being eligible for the exemption granted in this paragraph.
S.
B.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 37(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
(mm) Sales and leases of replacement hardware, software or other necessary technology to operate a data center as authorized under Sections 57-113-21 through 57-113-27.
PAGE 37842 (mm) Sales and leases of replacement hardware, software or other necessary technology to operate a data center as authorized under Sections 57-113-21 through 57-113-27.
(oo) Sales of supplies, equipment and other personal property to an organization that is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code and is the host organization coordinating a professional golf tournament played or S.
(oo) Sales of supplies, equipment and other personal property to an organization that is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code and is the host organization coordinating a professional golf tournament played or to be played in this state and the supplies, equipment or other personal property will be used for purposes related to the golf tournament and related activities.
B.
(pp) Sales of materials used in the construction of a health care industry facility, as defined in Section 57-117-3, or any addition or improvement thereon, and sales of any machinery and equipment not later than three (3) months after the completion of construction of the facility, or any addition thereon, to be PAGE 38842 used therein, to qualified businesses, as defined in Section 57-117-3.
No.
This paragraph shall be repealed from and after July 1, * * * 2025.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 38(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
to be played in this state and the supplies, equipment or other personal property will be used for purposes related to the golf tournament and related activities.
(pp) Sales of materials used in the construction of a health care industry facility, as defined in Section 57-117-3, or any addition or improvement thereon, and sales of any machinery and equipment not later than three (3) months after the completion of construction of the facility, or any addition thereon, to be used therein, to qualified businesses, as defined in Section 57-117-3.
This paragraph shall be repealed from and after July 1, * * * 2026.
The exemption provided in this S.
The exemption provided in this paragraph (rr) does not apply to the sale of tangible personal property by a person providing such tours.
B.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 39(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
paragraph (rr) does not apply to the sale of tangible personal property by a person providing such tours.
(uu) Sales or leases to an enterprise and its affiliates operating a project that has been certified by the Mississippi Major Economic Impact Authority as a project as defined in Section 57-75-5(f)(xxix) of:
PAGE 39842 (uu) Sales or leases to an enterprise and its affiliates operating a project that has been certified by the Mississippi Major Economic Impact Authority as a project as defined in Section 57-75-5(f)(xxix) of:
S.
B.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 40(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
and (iii) All services taxable pursuant to Section 27-65-23 required to establish, support, operate, repair and/or maintain such project.
and PAGE 40842 (iii) All services taxable pursuant to Section 27-65-23 required to establish, support, operate, repair and/or maintain such project.
and S.
and (ii) Machinery, special tools (such as dies, molds, and jigs) or repair parts thereof, or replacements and lease thereof, repair services thereon, fuel, supplies and electricity, coal and natural gas used in the manufacturing process and purchased by the enterprise owning or operating the project for the benefit of the project.
B.
(ww) Sales of component materials used in the construction of a building, or any expansion or improvement thereon, sales of machinery and/or equipment to be used therein, and sales of processing machinery and equipment which is permanently attached to the ground or to a permanent foundation which is not by its nature intended to be housed in a building structure, no later than three (3) months after initial startup, expansion or improvement of a permanent enterprise solely engaged PAGE 41842 in the conversion of natural sand into proppants used in oil and gas exploration and development with at least ninety-five percent (95%) of such proppants used in the production of oil and/or gas from horizontally drilled wells and/or horizontally drilled recompletion wells as defined in Sections 27-25-501 and 27-25-701.
No.
(2) Sales of component materials used in the construction of a building, or any addition or improvement thereon, sales of machinery and equipment to be used therein, and sales of manufacturing or processing machinery and equipment which is permanently attached to the ground or to a permanent foundation and which is not by its nature intended to be housed within a building structure, not later than three (3) months after the initial start-up date, to permanent business enterprises engaging in manufacturing or processing in Tier Two areas and Tier One areas (as such areas are designated in accordance with Section 57-73-21), which businesses are certified by the Department of Revenue as being eligible for the exemption granted in this subsection, shall be exempt from one-half (1/2) of the taxes imposed on such transactions under this chapter.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 41(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
The exemption provided in this subsection (2) shall not apply to sales to any business enterprise that is a medical cannabis establishment as defined in the Mississippi Medical Cannabis Act.
extend repeal date.
(3) Sales of component materials used in the construction of a facility, or any addition or improvement thereon, and sales or leases of machinery and equipment not later than three (3) months after the completion of construction of the facility, or any PAGE 42842 addition or improvement thereto, to be used in the building or any addition or improvement thereto, to a permanent business enterprise operating a data/information enterprise in Tier Two areas and Tier One areas (as such areas are designated in accordance with Section 57-73-21), which businesses meet minimum criteria established by the Mississippi Development Authority, shall be exempt from one-half (1/2) of the taxes imposed on such transaction under this chapter.
(ii) Machinery, special tools (such as dies, molds, and jigs) or repair parts thereof, or replacements and lease thereof, repair services thereon, fuel, supplies and electricity, coal and natural gas used in the manufacturing process and purchased by the enterprise owning or operating the project for the benefit of the project.
The exemption provided in this subsection (3) shall not apply to sales to any business enterprise that is a medical cannabis establishment as defined in the Mississippi Medical Cannabis Act.
(ww) Sales of component materials used in the construction of a building, or any expansion or improvement thereon, sales of machinery and/or equipment to be used therein, and sales of processing machinery and equipment which is permanently attached to the ground or to a permanent foundation which is not by its nature intended to be housed in a building structure, no later than three (3) months after initial startup, expansion or improvement of a permanent enterprise solely engaged in the conversion of natural sand into proppants used in oil and gas exploration and development with at least ninety-five percent (95%) of such proppants used in the production of oil and/or gas from horizontally drilled wells and/or horizontally drilled recompletion wells as defined in Sections 27-25-501 and 27-25-701.
(4) Sales of component materials used in the construction of a facility, or any addition or improvement thereto, and sales of machinery and equipment not later than three (3) months after the completion of construction of the facility, or any addition or improvement thereto, to be used in the building or any addition or improvement thereto, to technology intensive enterprises for industrial purposes in Tier Two areas and Tier One areas (as such areas are designated in accordance with Section 57-73-21), which businesses are certified by the Department of Revenue as being eligible for the exemption granted in this subsection, shall be exempt from one-half (1/2) of the taxes imposed on such transactions under this chapter.
(2) Sales of component materials used in the construction of a building, or any addition or improvement thereon, sales of machinery and equipment to be used therein, and sales of manufacturing or processing machinery and equipment which is permanently attached to the ground or to a permanent foundation and which is not by its nature intended to be housed within a S.
B.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 42(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
building structure, not later than three (3) months after the initial start-up date, to permanent business enterprises engaging in manufacturing or processing in Tier Two areas and Tier One areas (as such areas are designated in accordance with Section 57-73-21), which businesses are certified by the Department of Revenue as being eligible for the exemption granted in this subsection, shall be exempt from one-half (1/2) of the taxes imposed on such transactions under this chapter.
(3) Sales of component materials used in the construction of a facility, or any addition or improvement thereon, and sales or leases of machinery and equipment not later than three (3) months after the completion of construction of the facility, or any addition or improvement thereto, to be used in the building or any addition or improvement thereto, to a permanent business enterprise operating a data/information enterprise in Tier Two areas and Tier One areas (as such areas are designated in accordance with Section 57-73-21), which businesses meet minimum criteria established by the Mississippi Development Authority, shall be exempt from one-half (1/2) of the taxes imposed on such transaction under this chapter.
(4) Sales of component materials used in the construction of a facility, or any addition or improvement thereto, and sales of machinery and equipment not later than three (3) months after the completion of construction of the facility, or any addition or improvement thereto, to be used in the building or any addition or S.
B.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 43(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
improvement thereto, to technology intensive enterprises for industrial purposes in Tier Two areas and Tier One areas (as such areas are designated in accordance with Section 57-73-21), which businesses are certified by the Department of Revenue as being eligible for the exemption granted in this subsection, shall be exempt from one-half (1/2) of the taxes imposed on such transactions under this chapter.
(5) (a) For purposes of this subsection:
PAGE 43842 (5) (a) For purposes of this subsection:
and (v) "Equipment used in the deployment of broadband technologies" means any equipment capable of being used for or in connection with the transmission of information at a rate, prior to taking into account the effects of any signal degradation, that is not less than three hundred eighty-four (384) kilobits per second in at least one (1) direction, including, but not limited S.
and (v) "Equipment used in the deployment of broadband technologies" means any equipment capable of being used for or in connection with the transmission of information at a rate, prior to taking into account the effects of any signal degradation, that is not less than three hundred eighty-four (384) kilobits per second in at least one (1) direction, including, but not limited to, asynchronous transfer mode switches, digital subscriber line access multiplexers, routers, servers, multiplexers, fiber optics and related equipment.
B.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 44(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
to, asynchronous transfer mode switches, digital subscriber line access multiplexers, routers, servers, multiplexers, fiber optics and related equipment.
(c) Sales of equipment to telecommunications enterprises after June 30, 2003, and before July 1, 2025, that is installed in Tier Two and Tier Three areas and used in the deployment of broadband technologies shall be exempt from the taxes imposed on such transactions under this chapter.
(c) Sales of equipment to telecommunications enterprises after June 30, 2003, and before July 1, 2025, that is installed in Tier Two and Tier Three areas and used in the PAGE 44842 deployment of broadband technologies shall be exempt from the taxes imposed on such transactions under this chapter.
(6) Sales of component materials used in the replacement, reconstruction or repair of a building that has been destroyed or sustained extensive damage as a result of a disaster declared by the Governor, sales of machinery and equipment to be used therein to replace machinery or equipment damaged or destroyed as a result of such disaster, including, but not limited to, manufacturing or processing machinery and equipment which is permanently attached to the ground or to a permanent foundation and which is not by its nature intended to be housed within a building structure, to enterprises that were eligible for the partial exemptions provided for in subsections (2), (3) and (4) of this section during initial construction of the building that was destroyed or damaged, which S.
(6) Sales of component materials used in the replacement, reconstruction or repair of a building that has been destroyed or sustained extensive damage as a result of a disaster declared by the Governor, sales of machinery and equipment to be used therein to replace machinery or equipment damaged or destroyed as a result of such disaster, including, but not limited to, manufacturing or processing machinery and equipment which is permanently attached to the ground or to a permanent foundation and which is not by its nature intended to be housed within a building structure, to enterprises that were eligible for the partial exemptions provided for in subsections (2), (3) and (4) of this section during initial construction of the building that was destroyed or damaged, which enterprises are certified by the Department of Revenue as being eligible for the partial exemption granted in this subsection, shall be exempt from one-half (1/2) of the taxes imposed on such transactions under this chapter.
B.
No.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 45(icj\kr) and related ad valorem tax and sales taxne Act exemptions;
extend repeal date.
enterprises are certified by the Department of Revenue as being eligible for the partial exemption granted in this subsection, shall be exempt from one-half (1/2) of the taxes imposed on such transactions under this chapter.
S.
Further, amend by striking the title in its entirety and inserting in lieu thereof the following:
B.
AN ACT TO REENACT SECTIONS 57-117-1, 57-117-3, 57-117-5, 57-117-7, 57-117-9 AND 57-117-11, MISSISSIPPI CODE OF 1972, WHICH CONSTITUTE THE MISSISSIPPI HEALTH CARE INDUSTRY ZONE ACT;
No.
TO AMEND REENACTED SECTION 57-117-3, MISSISSIPPI CODE OF 1972, AS AMENDED BY SENATE BILL NO.
2842 *SS36/R148* ~ OFFICIAL ~ 22/SS36/R148 PAGE 46(icj\kr)
2095, 2022 REGULAR SESSION, TO CONFORM TO AMENDMENTS MADE TO THAT SECTION BY SENATE BILL NO.
2095, 2022 PAGE 45842 REGULAR SESSION, AND TO MAKE MINOR FORMATTING REVISIONS;
TO AMEND REENACTED SECTION 57-117-11, MISSISSIPPI CODE OF 1972, TO EXTEND THE DATE OF REPEAL ON THE MISSISSIPPI HEALTH CARE INDUSTRY ZONE ACT;
TO AMEND SECTION 27-31-101, MISSISSIPPI CODE OF 1972, WHICH AUTHORIZES COUNTY BOARDS OF SUPERVISORS AND MUNICIPAL GOVERNING AUTHORITIES TO GRANT CERTAIN AD VALOREM TAX EXEMPTIONS, TO EXTEND THE REVERTER ON THE PROVISION OF LAW ALLOWING SUCH EXEMPTIONS FOR HEALTH CARE INDUSTRY FACILITIES AS DEFINED IN THE MISSISSIPPI HEALTH CARE INDUSTRY ZONE ACT;
TO AMEND SECTION 27-31-104, MISSISSIPPI CODE OF 1972, AS AMENDED BY SENATE BILL NO.
2095, 2022 REGULAR SESSION, WHICH AUTHORIZES COUNTY BOARDS OF SUPERVISORS AND MUNICIPAL GOVERNING AUTHORITIES TO ENTER INTO AGREEMENTS WITH CERTAIN ENTERPRISES GRANTING A FEE-IN-LIEU OF AD VALOREM TAXES, TO EXTEND THE REVERTER ON THE PROVISION OF LAW ALLOWING SUCH AGREEMENTS FOR PROJECTS TOTALING OVER $100,000,000.00 BY QUALIFIED BUSINESSES, AS DEFINED IN THE MISSISSIPPI HEALTH CARE INDUSTRY ZONE ACT, MEETING MINIMUM CRITERIA ESTABLISHED BY THE MISSISSIPPI DEVELOPMENT AUTHORITY;
TO AMEND SECTION 27-65-101, MISSISSIPPI CODE OF 1972, AS AMENDED BY SENATE BILL NO.
2095, 2022 REGULAR SESSION, WHICH PROVIDES INDUSTRIAL EXEMPTIONS TO THE SALES TAX, TO EXTEND THE DATE OF REPEAL ON THE EXEMPTION OF SALES OF MATERIALS USED IN THE CONSTRUCTION OF A HEALTH CARE INDUSTRY FACILITY, OR ADDITIONS OR IMPROVEMENTS THEREON, AND SALES OF CERTAIN RELATED MACHINERY AND EQUIPMENT TO QUALIFIED BUSINESSES AS DEFINED IN THE MISSISSIPPI HEALTH CARE INDUSTRY ZONE ACT;
AND FOR RELATED PURPOSES.
HR31\SB2842PH.J Andrew Ketchings Clerk of the House of Representatives PAGE 46842