MS HB654

Creates the Inventory Tax Reduction Act allowing taxpayers a credit against inventory tax equal to 10% of ad valorem taxes imposed on inventory, increasing by 10% annually up to a maximum of 50%, beginning the first calendar year after three consecutive state fiscal years show average General Fund revenue growth of 5% or more.

Establishes the Inventory Tax Reduction Fund to be appropriated annually by the Legislature to reimburse counties and local taxing districts for lost inventory tax revenue resulting from the tax credit.

Requires the State Treasurer to certify average General Fund revenue growth to the Department of Revenue by September 1 annually, which shall inform county tax collectors of credit amounts and implement the credit accordingly.

Makes taxpayers ineligible for the inventory tax credit if they are delinquent in inventory tax payments with penalties reaching 12% or if they utilize the income tax credit under Section 27-7-22.5 in the same taxable year.

Takes effect July 1, 2012.