MS HB506

Municipalities may establish special local improvement assessment districts and levy up to 6 mills in annual special assessments on taxable real property within the district, subject to approval by owners of at least 60% of the property.

Districts can fund local improvements including parks, sidewalks, streets, lighting, security enhancements, and related services; proceeds may be used for planning, design, construction, maintenance, and administrative costs.

Municipalities or delegated urban renewal agencies may issue bonds payable solely from special assessment revenues without pledging full faith and credit; bonds are exempt from municipal debt limitations and state taxation.

Homeowners' associations representing districts created under an alternative procedure must submit improvement plans, maintain separate accounting of assessment funds, and file annual independent audits with the municipality.

Special assessment district bonds qualify as legal investments for banks, savings and loan associations, and insurance companies; districts are dissolved by municipal resolution once all improvements are completed and debts are satisfied.