MS HB864

Motor vehicle manufacturers operating qualifying projects may apply to the Department of Revenue for a permit (annual fee of $1,000.00) to issue special license tags for vehicles leased to employees under an employee incentive program.

Manufacturers must pay $100.00 per tag in lieu of ad valorem taxes plus $3.75 for the tag fee; tags are valid for one year or the lease term, whichever is shorter.

Revenue from the $100.00 fees is deposited into a special state fund and distributed monthly to county tax collectors based on the proportion of motor vehicle ad valorem tax revenue each local taxing district received in the prior month.

Funds received by local taxing districts are treated as motor vehicle ad valorem tax proceeds and must be used in the same manner as such tax revenues.

Motor vehicles leased under an employee incentive program are exempted from ad valorem taxation, effective July 1, 2019.