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Bill > HB1223

MS HB1223

Statewide Utility Tax Reform Act; create.

summary

Introduced
01/20/2025
In Committee
01/20/2025
Crossed Over
Passed
Dead
02/26/2025

Introduced Session

2025 Regular Session

Bill Summary

An Act To Be Known As The "statewide Utility Tax Reform Act"; To Require Nuclear Fuel, Nuclear Fuel By-products And Related Materials To Be Subject To Ad Valorem Taxation At The Same Rate As Other Taxable Property In Mississippi; To Establish A Tiered Distribution System For The Allocation Of Ad Valorem Tax Revenues Collected In A County Hosting A High-risk Facility, Including A Nuclear Power Plant; To Require Utilities Operating High-risk Facilities To Make Annual Payments In Lieu Of Taxes (pilot) To Host Counties; To Prescribe The Amount And Permissible Uses Of Pilot Payments; To Require Counties To Allocate Revenues Received Under This Act For Certain Specified Purposes; To Require The Department Of Revenue To Oversee Implementation Of This Act; To Require Annual Reports; To Amend Section 27-31-1, Mississippi Code Of 1972, To Delete The Exemption Of Nuclear Fuel And Fuel By-products From Ad Valorem Taxation; To Bring Forward Sections 19-9-151, 19-9-153, 19-9-155 And 19-9-157, Mississippi Code Of 1972, Which Relate To In-lieu Payments To Counties In Which Nuclear Generating Plants Are Located, For The Purposes Of Possible Amendment; To Bring Forward Section 27-39-305, Mississippi Code Of 1972, Which Authorizes Counties To Levy Ad Valorem Taxes For Maintenance And Construction Of Roads And Bridges, For The Purposes Of Possible Amendment; To Bring Forward Section 27-39-320, Mississippi Code Of 1972, Which Provides For Limitations On Increases Of Ad Valorem Tax Revenues, For The Purposes Of Possible Amendment; To Bring Forward Section 33-15-51, Mississippi Code Of 1972, Which Creates The Grand Gulf Disaster Assistance Trust Fund, For The Purposes Of Possible Amendment; To Bring Forward Section 37-57-105, Mississippi Code Of 1972, Which Authorizes And Provides The Procedure For The Levy Of Certain Ad Valorem Taxes For School District Purposes, For The Purposes Of Possible Amendment; To Bring Forward Section 37-151-87, Mississippi Code Of 1972, Which Relates To The Reduction Of Local Supplement Or Support From Ad Valorem Taxation Under The Mississippi Student Funding Formula, For The Purposes Of Possible Amendment; And For Related Purposes.

AI Summary

This bill, known as the "Statewide Utility Tax Reform Act", aims to fundamentally change how nuclear power facilities are taxed in Mississippi by removing the previous tax exemption for nuclear fuel and establishing a new taxation and revenue distribution system. The bill requires nuclear fuel, nuclear fuel by-products, and related materials to be taxed at the same rate as other taxable property, with a tiered distribution system that prioritizes the counties hosting high-risk facilities. Under this system, counties hosting a nuclear power plant will receive 65% of the total ad valorem taxes collected, adjacent counties will receive 10%, and the remaining 25% will go to the state's general fund. Additionally, utility companies operating high-risk facilities will be required to make annual Payments in Lieu of Taxes (PILOT), with a base amount of $5 million per facility and an additional payment of one cent per kilowatt-hour of electricity generated. Host counties must allocate these revenues specifically: 40% for public infrastructure, 30% for education, 20% for healthcare and emergency preparedness, and 10% for economic development. The Department of Revenue will oversee implementation, with annual reporting requirements for both utility companies and host counties. The bill aims to create a more equitable and transparent tax structure for nuclear power facilities, ensuring that host communities receive appropriate compensation and resources for the risks and impacts associated with these facilities.

Committee Categories

Transportation and Infrastructure

Sponsors (1)

Last Action

Died In Committee (on 02/26/2025)

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