House Bill 359 Summary

• Establishes the "Economically Distressed Municipalities Development Act" to provide tax incentives and loans to businesses locating or expanding in economically distressed municipalities with populations under 20,000 that lost at least 10% of population since 1980 and meet unemployment or poverty thresholds.

• Provides approved business enterprises in designated municipalities with 10-year exemptions from local ad valorem taxes, state income tax, franchise tax, and sales tax on construction materials and equipment (or until December 31, 2024, whichever is earlier).

• Creates the Economically Distressed Municipalities Assistance Program to provide loans up to $150,000 per small business enterprise (fewer than 50 employees or less than $1,000,000 net worth) for land, buildings, equipment, inventory, and working capital.

• Authorizes issuance of up to $10,000,000 in state general obligation bonds to fund the loan program, with bond issuance authority ending July 1, 2017.

• Amends the Mississippi tax code to conform existing franchise tax and sales tax exemption provisions to the new program requirements for approved business enterprises in economically distressed municipalities.