MS HB125

Prohibits municipalities from levying or collecting ad valorem taxes on newly annexed territory until the municipality actually provides the services and improvements it promised in the annexation ordinance

Requires annexation ordinances to explicitly state that the municipality cannot collect ad valorem taxes until proposed services are delivered to the annexed area

Amends the chancery court petition process to include a statement confirming the tax collection restriction applies until services are rendered

Delays property tax liability for annexed territory until the municipality fulfills its service commitments, rather than on the next tax lien date following annexation

Effective date: July 1, 2021