Mississippi Senate Bill SB2017

Mississippi 2023 Regular Session

• Introduced: 1/9/23
• Refer: 1/9/23
• Failed: 2/22/23

Caption

Ad valorem tax; remove exemption for university or community college foundation or federally qualified health center property.

Impact

The proposed changes will directly affect the financial obligations of nonprofit corporations associated with higher education and health, as they will now be liable for ad valorem taxes on their properties. By eliminating these tax exemptions, the bill may increase financial burdens on these institutions, which could lead to a reallocation of funds originally intended for educational and community services. Additionally, local governments could potentially increase their revenue streams through these taxes, which may influence budgetary decisions at the municipal level.

Summary

Senate Bill 2017 seeks to amend Section 27-31-1 of the Mississippi Code by removing tax exemptions for certain properties owned by foundations organized as nonprofit corporations, particularly those that support state-supported institutions of higher education, community colleges, and federally qualified health centers. This bill essentially targets properties that were previously exempt due to their affiliation with educational and health institutions, emphasizing a shift in the taxation landscape for nonprofit entities within the state.

Contention

The bill has sparked debate among lawmakers and stakeholders regarding its implications for the nonprofit sector. Proponents argue that the measure could help level the playing field for taxable entities, suggesting that it may enhance fairness in tax contributions across different sectors. However, opponents criticize the bill for potentially undermining the support for essential services provided by nonprofit organizations, particularly in education and health care. The concern is that increased taxation on these foundations could detract from their missions and capabilities to deliver community services.