INDUSTRIAL DEVELOPMENT REVENUE BONDS

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.