House Bill 199 Summary

• Establishes the "Economically Distressed Municipalities Development Act" to provide economic development incentives to municipalities with populations under 20,000 that have lost at least 10% of population since 1980 and meet unemployment or poverty thresholds.

• Grants approved business enterprises in designated economically distressed municipalities exemptions from local ad valorem taxes, state income tax, franchise tax, and sales tax for 10 years or until December 31, 2030, whichever occurs first.

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

• Authorizes the State Bond Commission to issue up to $10 million in general obligation bonds by July 1, 2023, to fund the assistance loan program, with proceeds deposited into the Economically Distressed Municipalities Assistance Fund.

• Amends Mississippi tax codes to exempt approved business enterprises in economically distressed municipalities from franchise tax and sales tax on component building materials and equipment used in facility construction or expansion.