MS HB1376

Municipalities must include in annexation ordinances a description of proposed improvements, services to be rendered, and a statement that ad valorem taxes cannot be levied in the annexed area until those services are provided.

Municipalities cannot levy or collect ad valorem taxes in newly annexed territory until the services described in the annexation ordinance are actually provided to that area.

Municipalities must file petitions in chancery court stating that tax collection in annexed territory is prohibited until promised services are delivered.

Annexed territory does not become subject to municipal ad valorem taxation on the next tax lien date following annexation, but only after the municipality provides the services it proposed in the ordinance.

Effective date is July 1, 2023.