MCA Chapter 43

in effect

Miss. Code Ann. § 21-43-1 Power to impose tax on businesses in certain municipalities; purposes for which proceeds may be used.

The governing authority of any municipality in a county bordering on the Gulf of Mexico having therein a family court, and the governing authority of any municipality in any county having a population in excess of thirty-eight thousand (38,000) according to the 1980 decennial census and bordering on the Mississippi River wherein United States Highways 61 and 84 intersect are authorized, in their discretion, to impose a tax on businesses within a parking and business improvement area which is in addition to the general business privilege license tax, and to use such proceeds for the following purposes: The acquisition, construction or maintenance of parking facilities for the benefit of the area. Decoration of any public place in the area. Promotion of public events which are to take place on or in public places in the area. Furnishing of music in any public place in the area. The general promotion of retail trade activities in the area. The construction and maintenance of air-conditioning facilities for the benefit of the area.

Miss. Code Ann. § 21-43-3 Definitions.

“Parking and business improvement area” or “area” as used in this chapter shall mean an area designated as provided in this chapter. “Business” as used in this chapter shall mean all types of business, including professions.

Miss. Code Ann. § 21-43-5 Advisory boards.

The governing authority of any participating municipality shall appoint an advisory board consisting of five (5) members who shall serve at the pleasure of the appointing authority; such board members shall be professional businessmen within the affected area; and such board shall have the sole discretion as to how the revenue derived from the tax is to be used within the scope of the purposes as provided in Section 21-43-1.

Miss. Code Ann. § 21-43-7 Resolution of intention.

A parking and business improvement area may be established whenever the governing authority of any municipality shall by resolution establish such an area. The resolution shall contain the following information: description of the boundaries of the proposed area; the time and place of a hearing to be held to consider establishment of an area; the proposed uses to which the additional revenue shall be put; and the initial rate of increase, or additional levy, of the license privilege tax, with a breakdown by class of business if such classification is to be used.

Miss. Code Ann. § 21-43-9 Notice of hearing.

Notice of the hearing shall be given by: One (1) publication of the resolution of intention in a newspaper of general circulation in the municipality, which may be made as provided in Section 21-17-19; Mailing a complete copy of the resolution of intention to each business in the proposed or established area. Publication and mailing shall be completed at least ten (10) days prior to the time of the hearing.

Miss. Code Ann. § 21-43-11 Procedure at hearing.

Whenever a hearing is held under this chapter, the governing authority of any municipality shall hear all protests and receive evidence for or against the proposed action; rule upon all protests which determination shall be final; and may continue the hearing from time to time. Proceedings shall terminate if protest is made by businesses in the proposed area which pay a majority of the taxes within the area under the general business privilege license tax.

Miss. Code Ann. § 21-43-13 Change of boundaries of proposed area.

If the governing authority decides to change the boundaries of the proposed area, the hearing shall be continued to a time not less than fifteen (15) days after such decision and notice shall be given as provided in Section 21-43-9 stating the boundary amendments, but no resolution of intention is required.

Miss. Code Ann. § 21-43-15 Ordinance establishing area.

If the governing authority, following the hearing, decides to establish the proposed area, it shall adopt an ordinance to that effect. This ordinance shall contain the following information: the number, date and title of the resolution of intention pursuant to which it was adopted; the time and place the hearing was held concerning the formation of such area; the description of the boundaries of such area; a statement that the businesses in the area established by the ordinance shall be subject to the provisions of the additional tax provided by this chapter; the initial rate of increase, or additional levy, of the privilege license tax to be imposed with a breakdown by classification of business, if such classification is used; a statement that a parking and business improvement area has been established; and the uses to which the additional revenue shall be put.

Miss. Code Ann. § 21-43-17 Classification of businesses for tax purposes; exemption of new businesses.

For purposes of the additional tax to be imposed pursuant to this chapter, the governing authority may make a reasonable classification of businesses, giving consideration to various factors. Businesses recently established in the area may be exempted from the tax imposed pursuant to this chapter for a period not exceeding one (1) year from the date they commenced business in the area.

Miss. Code Ann. § 21-43-19 Collection and use of tax; changes.

The collection of the tax imposed pursuant to this chapter shall be made at the same time and in the same manner as any other business privilege license tax. Changes may be made in the additional rate or levy or in the uses to which the additional revenue shall be put as specified in the ordinance establishing the area by ordinance adopted after a hearing before the governing authority. The governing authority shall adopt a resolution of intention to change the additional rate or levy or the uses to which the additional revenue shall be put at least fifteen (15) days prior to the hearing required by this section. This resolution shall specify the proposed change and shall give the time and place of the hearing. The tax levied hereunder must be for the purposes specified in the ordinances and the proceeds shall not be used for any other purpose.

Miss. Code Ann. § 21-43-21 Disestablishment of area.

The governing authority of any municipality may disestablish an area by ordinance after a hearing before such authority, and such authority shall adopt a resolution of intention to disestablish the area not less than fifteen (15) days prior to the hearing required by this section. The resolution shall state the time and place of the hearing.

Miss. Code Ann. § 21-43-23 Disposition of taxes or assets after disestablishment.

Whenever an area has been disestablished, any remainder of taxes or acquired assets shall be subject to disposition as the advisory board shall determine.

Miss. Code Ann. § 21-43-101 Short title.

Sections 21-43-101 through 21-43-133 shall be known and may be cited as the “Business Improvement District Act.”

Miss. Code Ann. § 21-43-103 Legislative findings of fact and declaration of intent.

The Legislature finds that: The business districts within many municipalities in the state are in a deteriorated condition; This deteriorated condition affects the economic and general welfare of the people of the State of Mississippi; Establishment of business improvement districts is an effective means for restoring and promoting business activity; and It is the intent of the Legislature to provide for a process for establishing these districts.

Miss. Code Ann. § 21-43-105 Definitions.

For the purposes of Sections 21-43-101 through 21-43-133 the following terms shall have the meanings ascribed herein unless the context shall otherwise require: “District” means a business improvement district established pursuant to Sections 21-43-101 through 21-43-133. “District management group” means an established and independent Mississippi non-profit corporation and may also include a local Chamber of Commerce, a downtown development corporation, a Main Street Project or a department of a local municipality as determined solely by a simple majority of the property owners included in the district. “District plan” means a set of goals and strategies as collectively determined by a majority of the property owners included in the district and as incorporated within Sections 21-43-101 through 21-43-133. “Improvements” means any capital project constructed within the public areas, with the approval of the municipality, for any business improvement district or services established under Sections 21-43-101 through 21-43-133 to improve the appearance or economic functioning of property located within the district including, but not limited to: Parks and related facilities; Sidewalks, street curbing, street medians, planting areas, underground utilities, lighting standards or fountains; Trees, shrubs, flowers or other vegetation; Security services which may include assistance to public law enforcement through employment of private security personnel and the purchase of equipment or technology; Economic development services and assistance including, but not limited to, promotion of business, retail or industrial development developer recruitment, business recruitment, business marketing and business retention; Parking management; Street and sidewalk cleaning; Recreational and/or cultural activities; Training programs for employees of businesses within the district; Any other services, events or activities which will enhance the economic prosperity, enjoyment, appearance, image and safety of the district; Refuse collection and disposal services; The production and marketing of special events and festivals; Management of public facilities; Fire prevention services; Water and sewer system enhancement; Drainage enhancements; Signage installation and removal; Planning studies; Marketing studies; Tourism development services; and Collective community child care centers. “Property owner” means that person or persons, entity or entities possessing a majority of the ownership interest in a piece of taxable real property. “Tax exempt properties” means properties which are exempt from certain real property taxes pursuant to Section 27-31-1.

Miss. Code Ann. § 21-43-107 Creation of business improvement districts authorized.

There is hereby authorized the creation of business improvement districts which shall be established in accordance with the procedures described in Sections 21-43-101 through 21-43-133.

Miss. Code Ann. § 21-43-109 Zoning.

All areas included in a business improvement district must be zoned for some use other than residential. Residential uses may be included if the property is zoned for commercial or industrial use and the property is not owner-occupied as a homestead. Properties comprising a business improvement district must be contiguous to the other properties to be benefited in the district with the exception of public streets, alleys, parks and other public rights-of-way and tax exempt properties within the district boundaries.

Miss. Code Ann. § 21-43-111 Initiation of efforts to form business improvement district.

Notice shall be given to the municipality in which the district is to be established when an effort is begun by a contiguous group of non-residentially zoned local property owners to form a business improvement district. Upon delivery of a petition to the clerk of the municipality, signed by at least twenty percent (20%) of the property owners in an area proposing to establish a business improvement district, efforts can begin to form a business improvement district pursuant to Sections 21-43-101 through 21-43-133.

Miss. Code Ann. § 21-43-113 Notice of meeting for development of district plan; requirements for approval of proposed plan; contents of proposed plan.

In order to establish a business improvement district, and upon establishment, every tenth year thereafter, those property owners which make up the area of the proposed district shall be notified of a meeting by United States mail no less than ten (10) days prior to the scheduled date of the meeting. Notification shall include the specific location, date and time of the meeting. The goal of the meeting shall be to develop a district plan for the upcoming ten-year period. Such plan shall be agreed upon by a majority of those property owners in attendance at the meeting. Such district plan shall include the following: A description of the boundaries of the district sufficient to identify the lands included; The improvements proposed and the maximum cost thereof for each of the coming ten (10) years; The total amount proposed to be expended for improvements for and in the district during the upcoming ten (10) years; The proposed source or sources of financing and funding for the improvements; The proposed target dates for beginning the implementation of the improvements; The naming of the district management group for the upcoming ten (10) years; and A listing of the individual properties to be included in the district with any assessment computed and identified for each property based upon gross square footage of buildings and unimproved real estate. The plan may provide that tax exempt properties be included in the district but not be subject to any assessment.

Miss. Code Ann. § 21-43-115 Voting upon proposed district plan.

All property owners of record in the proposed district as of the date of initial notice given as provided in Section 21-43-111, shall be eligible to participate in the process to approve or reject the district plan and the proposed assessment for properties in the district. Votes of property owners within the proposed district shall be weighted in proportion to the amount of the assessment against properties in the district; provided, however, that in no case shall the total number of votes assigned to any one such property owner, through common ownership of property, be equal to more than one-third (1/3) of the total number of votes which may be cast.

Miss. Code Ann. § 21-43-117 Notice of hearing for review of proposed district plan; conduct of election upon proposed district plan; notice of election results; review of approved plan by mayor of municipality; disbursement of proceeds from assessment.

For initial creation of the district, reauthorization of the district at the end of each ten-year period, amendment to the district plan within the ten-year plan period or modification of the boundaries of the district at the end of a ten-year period, the clerk of the municipality shall notify all property owners to be included in the proposed district of a public hearing to review the plan and receive comment about the process for accepting or rejecting the plan. Following a public hearing, the governing authority of the municipality shall set an election date not more than sixty (60) days from the date of the public hearing. The ballot shall clearly state the issue to be decided. Only property owners of record as of the date of initial notice given as provided in Section 21-43-111 shall be eligible to participate in any such election. Notice of an election to create, continue, amend or extend a district shall be: Mailed to each of the district property owners of record thirty (30) days prior to the election, and Published at least twice in a newspaper of general circulation in the municipality, the first publication shall be not less than ten (10), nor more than thirty (30) days before the date for the election. The notice shall include a copy of the plan, a ballot for the election and a notice about the time and date for the election. Not less than ten (10) nor more than thirty (30) days before the date set for the election, the governing authority of the municipality shall cause a copy of the plan and the ballot to be posted in the lobby of its city hall. Ballots shall be marked, signed and submitted by the eligible property owner to the clerk of the municipality by the date designated on the ballot. The clerk of the municipality shall notify the property owners in the district of the result. If the plan is approved by sixty percent (60%) of the participating eligible property owners, the mayor of the municipality shall review the district plan to ensure its compliance with the provisions of Sections 21-43-101 through 21-43-133. The municipality shall disburse the proceeds collected from the assessment to the designated district management group within thirty (30) days after the assessment is due.

Miss. Code Ann. § 21-43-119 Requirements for approval of district plan; requirements for reauthorization, amendments of district plan or modification of boundaries.

A district plan shall be deemed adopted and ready for implementation upon written ballot approval by sixty percent (60%) of the participating eligible property owners in the district. Reauthorization, amendments of the district plan or modification of boundaries shall also be subject to written ballot approval by sixty percent (60%) of the participating eligible property owners.

Miss. Code Ann. § 21-43-121 Designation of district management group; fees and costs chargeable to district; contracts for specialty services.

Each district established pursuant to the provisions of Sections 21-43-101 through 21-43-133, must designate in its district plan an existing local non-profit organization or department of local government as the district management group for execution of day to day activities for the district and for implementation of the district plan. Designation of the district management group shall be decided solely by the property owners affected by the creation of the district. Selection of a district management group shall be included in the district plan voted upon by the property owners in the district. Reasonable management fees, operational reimbursements, administrative costs and program implementation fees may be charged to the district by the district management group during the duration of an approved district plan. The district management group may, in its discretion, contract as needed with outside third party sources for specialty services needed to implement the district plan.

Miss. Code Ann. § 21-43-123 Authorization of assessments for funding of district; lien for assessments; receipt of grants and donations by district.

A business improvement district may be funded in whole or in part by an assessment authorized pursuant to this section. Such assessment shall be in addition to any taxes or assessments that may be imposed on property that is included in the district. The assessment shall be levied on the property in the district based upon the gross square footage of the property. The district plan shall set the amount that shall be assessed on each square foot of property. A district plan may authorize that the assessment per square foot for buildings may be at a different rate than that for land; provided, however, that the square foot rate for each type of property shall be uniform. Upon presentation of a district plan by a district created pursuant to Sections 21-43-101 through 21-43-133, the governing authorities of a municipality shall, at the same time and in the same manner as ad valorem taxes are levied, levy the assessment provided for in this section on the property in the district in the amount specified in the district plan. Assessments shall constitute a lien upon the respective lots or parcels of land and other real property upon which they are levied, superior to all other liens except those for state and county taxes. In addition to the assessment authorized under this section, a business improvement district shall also be authorized and empowered to apply for and receive public and private grants and to accept any monetary contribution or donation of real or personal property.

Miss. Code Ann. § 21-43-125 Financing of improvements in districts.

The expenses incurred in the construction, designing, planning, marketing, administration or operation of any improvement in a district shall be financed in accordance with the district plan. Upon the establishment, reauthorization, amendment or extension of the district, property owners within the district shall be charged the assessment pursuant to the plan. Improvements must be in addition to or an enhancement of those provided to the district by the municipality prior to the establishment of the district.

Miss. Code Ann. § 21-43-127 Imposition and collection of assessment.

The assessment upon benefited real property pursuant to Sections 21-43-101 through 21-43-133 shall be imposed as established in the district plan. The governing authorities of the municipality shall annually certify to the tax collector, or other officer charged with the duty of collecting taxes in the municipality, the annual installment of assessment due from each tract of land against which an assessment has been levied. The collector shall thereupon enter upon the annual tax roll of the municipality, in a separate column, the amount of the installment to be collected for each tract of land assessed, and the collector shall collect such installment at the same time he collects the annual municipal tax. All assessments levied under the provisions of Sections 21-43-101 through 21-43-133 shall be enforced in the same manner in which the payment of other municipal taxes is enforced, and all statutes regulating the collection of other municipal taxes shall apply to the enforcement and collection of the assessments levied under the provisions of Sections 21-43-101 through 21-43-133.

Miss. Code Ann. § 21-43-129 Custody and disbursement of proceeds of assessments; district fiscal year; permissible improvements.

The proceeds of any assessment imposed pursuant to an approved district plan shall be held by the chief fiscal officer of the municipality until disbursed to the designated district management group. A business improvement district shall operate on the same fiscal year as that of the municipality. None of the proceeds collected pursuant to Sections 21-43-101 through 21-43-133 shall be used for any purposes other than those set forth in the approved district plan. Improvements provided by a district using district funds may be undertaken only when the service, events, project or activity undertaken is not for the sole benefit of any particular property owner or other private party.

Miss. Code Ann. § 21-43-131 Duration of initial authorization of district; requirements and procedure for reauthorization.

The initial authorization for any business improvement district shall be for ten (10) years. During the last twelve (12) months of the tenth year of the authorization, a new district plan must be developed which meets all of the initial requirements of the district plan plus reauthorizes the district for another ten (10) years. Reauthorization requires the same approval process as initial establishment and authorization of the district. Should the district fail to receive reauthorization from the affected property owners in the district, the business improvement district will cease to exist at the conclusion of the most recently approved ten-year period or as soon thereafter as any outstanding indebtedness is satisfied. The ability to reauthorize rests solely with the affected property owners in the district.

Miss. Code Ann. § 21-43-133 Dissolution of district.

Any district established or extended pursuant to the provisions in Sections 21-43-101 through 21-43-133, which has satisfied all indebtedness incurred to accomplish any of the purposes of the district, may be dissolved by the governing authority of the municipality upon: Written and certified petition from the property owners within the district who collectively represent more than seventy percent (70%) of the total assessed valuation of all benefited real property in the boundaries of the district, or The district plan terminates when no reauthorization has occurred as set forth in Sections 21-43-101 through 21-43-133. Upon dissolution of a business improvement district, any assets of the district remaining shall be transferred to the municipality.