MS HB397

Prohibits municipalities from levying and collecting ad valorem taxes in newly annexed areas until the municipality provides the services described in the annexation ordinance.

Requires municipalities to include in annexation ordinances a statement of municipal services proposed to be rendered in the annexed territory and a declaration that taxes cannot be collected until those services are provided.

Amends the petition process for court approval of annexation to require municipalities to state that ad valorem tax collection is prohibited until proposed services are rendered.

Delays the date when annexed property becomes liable for municipal ad valorem taxation until after the municipality actually provides the services listed in the annexation ordinance.

Effective date: July 1, 2016.