MS HB1325

Expands eligibility for sales tax revenue diversion under the Tax Increment Financing Act from counties that border both the Mississippi Sound and the State of Alabama to all counties that border the Mississippi Sound

Counties qualifying for the diversion must have issued bonds under the Tax Increment Financing Act to finance a redevelopment project, have outstanding debt service on such bonds, and have a development valued at $10,000,000 or more located in the redevelopment area

Eligible counties receive 18.5% of total sales tax revenue collected on business activities within the redevelopment project area, with funds deposited into the tax increment financing fund to satisfy bonded indebtedness

The diversion begins the month after the Department of Revenue confirms eligibility requirements are met and ends when the county's indebtedness is satisfied

Effective date of July 1, 2021