WORKFORCE TRAINING

Local political entities in Mississippi, including counties, supervisors' districts and incorporated cities, towns, or villages, also have the authority to issue tax-exempt and taxable industrial development revenue bonds to finance new or expanded industrial enterprises. In contrast to general obligation bonds, no election approval is required unless 20% or more of the community's electors object to the bond issuance in writing. Ownership of the bond financed facility is retained by the issuing political subdivision,which leases it to the company for rental sufficient to pay the principal and interest on the bonds as they mature.

Industrial Development Revenue Bonds can finance up to 100% of total project costs, including land, buildings, fixtures, new equipment, and new machinery, and architectural, engineering, and legal costs.

Facilities financed by such bonds are allowed a maximum ten-year property tax exemption (exempt school taxes), in addition to being exempt from sales and use taxes on project related purchases during construction. This exemption does not apply to the 3.5% contractor's tax.



GENERAL OBLIGATION BONDS

Local political entities in Mississippi also have the authority to issue general obligation bonds for the purpose of acquiring sites and constructing facilities for lease to new or expanding industries with rentals sufficient to amortize the principal and interest on the bonds provided such improvements are in an industrial park. General obligation bonds carry the full faith and credit of the issuing political entity. As title to the property remains with the political entity issuing the bonds, no taxes are assessed on the improvements made with the proceeds of such bonds.  An agreement is negotiated between the industry and the political entity covering the details of the issuance of the bonds and the lease.  

INDUSTRIAL DEVELOPMENT REVENUE BONDS

GENERAL OBLIGATION BONDS