MS SB2842

Municipalities with populations exceeding 25,000 may create special local improvement assessment districts and levy up to 6 mills in annual special assessments on taxable real property with approval by petition from at least 60% of property owners in the proposed district.

Districts established through homeowners' associations may initiate formation by submitting a plan to the municipality and delivering a petition signed by at least 60% of property owners; such districts automatically dissolve after 10 years unless reestablished through the same procedure.

Special assessment revenue may fund local improvements including parks, sidewalks, streets, security enhancements, property rehabilitation, demolition, landscaping, and related administrative costs; improvements become public property.

Municipalities may issue bonds without an election to finance district improvements, with debt service paid exclusively from special assessments rather than general tax revenues and exempt from municipal debt limitations.

Homeowners' associations managing districts must maintain separate accounting of assessment funds, file annual audits with the municipality by December 31, and failure to file within 6 months results in automatic district dissolution; the act expires July 1, 2025.