MississippiHB 18972025 Regular SessionHouseWALLET

Northwest Regional Alliance; authorize Tate, Panola, Lafayette and Yalobusha counties to form for economic development purposes.

Sponsored By: John Thomas "Trey" Lamar (Republican)

Signed by Governor

Ways and MeansFinance

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 2 benefits, 2 costs, 4 mixed.

Four counties can add property taxes

Each of the four counties can add an annual property tax of up to 2 mills for a specific alliance purpose. That equals up to $2 per $1,000 of taxable value, not market value. This tax is added to existing taxes and is exempt from property-tax increase limits. It must end when the related debt is paid off. Before imposing or raising it, county boards must adopt a resolution and publish notice weekly for at least three consecutive weeks. The first notice must appear at least 21 days before the change; the last must appear within seven days before it. The act also sets a general 10% limit on growth in property-tax receipts, measured against any of the prior three fiscal years. Exclusions cover new construction or assessments, school taxes, specified road and bridge taxes, general obligation bond payments, and first-year levies for newly required programs. Those mandatory levies enter the base in later years. Voters can approve extra revenue for up to five years, outside the cap's base. Without an election, boards can use a 110% limit based on the prior three-year average. Another exception allows increases of up to 20 mills or an amount no greater than the aggregate levy in any of the prior ten fiscal years. Nuclear-plant counties use a special statutory revenue base. Preserved 1988 shortfall levies were excluded from that year's cap but count toward the base for later limits.

County property-taking power has expired

Member county boards cannot use this specific project property-taking authority after July 1, 2006. Before that cutoff, boards needed a binding commitment placing the specified project in a member county before taking property. The cutoff limits this particular authority, not every property-taking power mentioned in the law.

Four counties can team up on development

Tate, Panola, Lafayette, and Yalobusha Counties can form the Northwest Regional Alliance for economic development. Counties can use available funds for land, buildings, roads, parks, and infrastructure; no funding amount is guaranteed. The alliance can work with development groups in Mississippi and other states, alongside existing regional entities. Joint agreements must spell out governance, budgets, staffing, property handling, bond administration, termination, and cost and revenue sharing. Agreements require state review, with approval assumed after 60 days without disapproval, and public filing with county clerks and the Secretary of State. Joint bodies must follow local purchasing, audit, banking, and spending laws. The Mississippi Development Authority can issue rules, but cannot impose taxes under this act or receive its bond and project oversight powers.

Alliance users face charges and service limits

The alliance can set reasonable charges for project facilities or property it owns or operates within project areas. It can add late-payment or nonpayment penalties when needed for the project; no amounts are set. The alliance cannot provide paid utility services except water and sewage. Cities, counties, and natural gas districts keep their existing authority to serve their authorized areas.

Projects can move roads and cemeteries

For the qualifying project defined in the law, the alliance can negotiate moving roads, railways, power lines, pipelines, and related infrastructure. It can acquire needed rights-of-way, including through condemnation where authorized, and transfer them to infrastructure owners. Owners must receive due compensation or agree to payment of relocation costs. For that qualifying project, the alliance can also negotiate necessary grave or cemetery relocation and pay all reasonable costs.

Project land faces new use limits

The alliance can ban specified heavy industries, housing, hotels, schools, day care centers, hospitals, and related uses on land needed for projects. Existing lawful uses can continue, including substantially similar rebuilding after a casualty loss. Owners have 12 months after restrictions are adopted to finish a new use already under construction. The alliance can also impose necessary, reasonable limits on mining and other activities that threaten project structures or operations. Those protective rules can reach outside project boundaries only when needed to protect the project.

Counties gain borrowing power for development

Each county can issue up to $5 million in total general obligation bond principal for alliance projects. These bonds create public repayment obligations but do not count toward constitutional or statutory county debt limits. Local governments must make project debt proceeds available to the alliance and can secure bonds with reserves, insurance, and other authorized tools. Before directing project bond issuance, local governments must publish notice at least 30 days ahead, listing the amount, purpose, and planned issuance date. Where no local newspaper is published, notice must also be posted in three public places for at least 30 days.

Project businesses gain property and site support

The alliance can lease, sell, or transfer acquired project property to the operating business, its affiliates, or successors. It can guarantee title and pay title and recording costs. Member governments can buy property options and arrange access for needed preliminary studies, even when no purchase follows. The alliance can also promise to cover environmental problems that predate a project, protecting the business while taking on contractual costs. No dollar limit is specified for those environmental promises.

Sponsors & Cosponsors

Sponsor

John Thomas "Trey" Lamar
Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 171 • No: 0

Senate vote • 3/18/2025

Passed

Yes: 51 • No: 0

House vote • 2/26/2025