MS HB1315

Creates the Inventory Tax Reduction Act allowing taxpayers a credit against inventory tax starting after three consecutive state fiscal years with average General Fund revenue growth of 5% or more, beginning at 10% and increasing by 10% annually until reaching 50% maximum.

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 credits.

Requires the Department of Revenue to distribute payments from the Inventory Tax Reduction Fund to county tax collectors for reimbursement to local taxing districts, with reimbursement amounts determined by the Department based on documentation from tax collectors.

Amends Section 27-7-22.5 to prohibit taxpayers utilizing the existing income tax credit on ad valorem taxes from also claiming the new inventory tax credit in the same taxable year.

Requires the State Treasurer to certify average State General Fund revenue growth to the Department of Revenue by September 1 each year to determine credit implementation and increases until the 50% cap is reached.