Supes want huge tax break for housing developer repealed
Wednesday, January 8, 2014 12:00 AM
A 2005 law, which allows Section 42 developers such as Valley View Estates LLC to avoid paying a large portion of local ad valorem taxes, needs to be repealed, the Board of Supervisors said on Monday.
The board joined the Mississippi Association of Supervisors in calling on local legislators to vote to repeal the law, which gives the owners of these types of multi-million dollar developments another large tax benefit resulting in their paying little or no ad valorem taxes to the city, county or schools, supervisors said.
The federally subsidized developments provide low and moderate income housing.
Based on the 2005 law, Valley View Estates LLC, which developed the Wells Place subdivision in Philadelphia, has an assessed value of $1,361,490, Tax Assessor Mike Lewis said. It currently pays $29,082.32 in ad valorem taxes.
Prior to the 2005 law, the development would be assessed at $6,770,230, resulting in $144,613 in ad valorem taxes, he said.
The difference would be over $115,500 in tax monies, supervisors noted.
The law created by the legislature in 2005 carves out a special exception for these property owners which is "extremely unfair" to other taxpayers, supervisors said.
As a consequence, the tax breaks have caused an unfair and disproportionate shifting of tax burdens in counties and cities across the state to single family homeowners and less valuable multi-family housing properties, some of which are losing tenants to the federally subsidized properties and struggling to remain in business, the board said.
"Everybody should have to pay their part and their share and the law should be changed to require this," supervisors said in a prepared statement.
The board called on Neshoba County residents to contact their state legislators and ask them to change the law where Section 42 property owners have to pay taxes like other property owners here.