Mississippi Tax Increment Financing

Mississippi Department of Revenue

Program Type:

Tax Increment Financing

Eligible Geography:

Mississippi

Program URL:

https://advance.lexis.com/documentpage/?pdmfid=1000516&crid=8e3a6b94-1560-49e2-b8d8-c6d7ccaee1c2&nodeid=AAMAAZAAC&nodepath=%2FROOT%2FAAM%2FAAMAAZ%2FAAMAAZAAC&level=3&haschildren=&populated=false&title=%C2%A7+21-45-3.+Definitions.&config=00JABhZDIzMTViZS04NjcxLTQ1MDItOTllOS03MDg0ZTQxYzU4ZTQKAFBvZENhdGFsb2f8inKxYiqNVSihJeNKRlUp&pddocfullpath=%2Fshared%2Fdocument%2Fstatutes-legislation%2Furn%3AcontentItem%3A8P6B-80C2-D6RV-H19H-00008-00&ecomp=L38_kkk&prid=bf88d6a9-4b34-43e4-b287-ae4ce79002b8

Summary:

In Mississippi, the use of tax increment financing by eligible local governments is authorized by Mississippi statute Title 21 Chapter 45. A TIF is a tool that allows eligible municipalities and counties to promote economic development using revenues from future funding streams. The governing body makes public improvements in a defined, eligible project area with the intent of stimulating economic development. As the development occurs, the value of the property increases within the district, and so do revenues generated from property taxes paid by the owners. Through a TIF, the governing body is allowed to use the revenues generated by the incremental increase in property tax values to pay for the improvements it made to support the development and to help pay for other infrastructure improvements.

Eligible Recipients:

Local Government; For-Profit Business

Eligible Recipients Detail:

The governing body of any municipality or board of supervisors of any county to implement a tax increment finance (TIF) district.

Eligible Purpose:

General Infrastructure; Last Mile Infrastructure; Building Infrastructure; Anchor Institution Infrastructure

Eligible Purpose Detail:

Mississippi statute stipulates that TIF funds may only be used toward a 'redevelopment project' defined as:
(i) To acquire project areas or portions thereof, including lands, structures or improvements the acquisition of which is necessary or incidental to the proper clearance, development or redevelopment of such areas or to the prevention of the spread or recurrence of slum conditions or conditions of blight;
(ii) To clear any project areas by demolition or removal of existing buildings, structures, streets, utilities or other improvements thereon and to install, construct or reconstruct streets, utilities, bulkheads, boat docks and site improvements essential to the preparation of sites for uses in accordance with the redevelopment plan and public improvements to encourage private redevelopment in accordance with the redevelopment plan; or
(iii) To sell or lease property acquired by a municipality as part of a redevelopment project for not less than its fair value for uses in accordance with such redevelopment plan to retain property or public improvements for public use in accordance with the redevelopment plan.

Other Eligibility Criteria:

TIF districts must be designated in an eligible 'project area' that is defined by the following criteria:
(i) Areas in which there is a significant amount of buildings or improvements which, by reason of dilapidation, deterioration, age, obsolescence, inadequate provision for ventilation, light, air, sanitation or open spaces, high density of population and overcrowding or the existence of conditions which endanger life or property by fire and other causes, or any combination of such factors, are conducive to ill health, transmission of disease, infant mortality, juvenile delinquency or crime and are detrimental to the public health, safety, morals or welfare;
(ii) Areas in which are located a building or buildings that are of important value for purposes of historical preservation, as designated by the Department of Archives and History;
(iii) Areas which by reason of a significant amount of defective or inadequate street layout, faulty lot layout in relation to size, adequacy, accessibility or usefulness, unsanitary or unsafe conditions, deterioration of site improvements, diversity of ownership, tax delinquency, defective or unusual conditions of title, improper subdivision or obsolete platting or the existence of conditions which endanger life or property by fire or other causes, or any combination of such factors, substantially impair or arrest the sound growth of the community, retard the provision of housing accommodations or constitute an economic or social liability and are a menace to the public health, safety, morals or welfare in their present condition and use;
(iv) Areas in which the construction, renovation, repair or rehabilitation of property for residential, commercial or other uses is in the public interest; or
(v) A project for which a certificate of public convenience and necessity has been obtained by the municipality pursuant to the Regional Economic Development Act.

Public hearings are also required before TIF designation.

Source:

https://www.cdfa.net/cdfa/tifmap.nsf/index.html?open&state=MS