Lawmakers taking careful approach on exemption proposal

Published 6:00 am Monday, January 12, 2009

The Mississippi Senate began anticipated efforts to carry outLt. Gov. Phil Bryant’s “Common Sense Agenda” by draftinglegislation that would increase the state’s Homestead ExemptionFriday, but local legislators said the bill faces a long journey tothe governor’s desk.

Senate Bill 2300 would raise the state’s exemption for peopleover age 65 and those who are disabled from $75,000 to$100,000.

The legislation is meant to safeguard the state’s seniorcitizens and disabled from paying higher property taxes after around of property reappraisals, which resulted in increased valuesin some counties around the state. As a result, many fixed incomeseniors are shelling out more in taxes, some for the first timeever.

Subscribe to our free email newsletter

Get the latest news sent to your inbox

District 39 Sen. Cindy Hyde-Smith, D-Brookhaven, supported thebill, saying many of her constituents in Lincoln County had askedher to do so. She said the main argument against the legislation -that tax revenue lost from such an exemption would have to be madeup elsewhere – is overblown.

“Since these people didn’t pay property taxes before, it’s not alot of money we’re going to miss,” she said. “It’s not reallymissed revenue because it wasn’t collected before.”

Hyde-Smith said any revenues that are lost as a result of anincreased Homestead Exemption would be small.

District 92 Rep. Becky Currie, R-Brookhaven, plans to support SB2300 when it arrives in her chamber.

“It’s a good bill because a lot of folks are having to pay a lotof new taxes this year,” she said. “It just gives the disabled andthe elderly a little more cushion.”

The bill is already facing opposition, however. Other locallegislators have not directly opposed the bill, but have manyquestions about its design.

“If someone gets a lower tax, who has to pay for it?” askedDistrict 53 Rep. Bobby Moak, D-Bogue Chitto. “This is not a taxreduction, it’s a tax shift. This is a certain segment of ourpopulation we need to protect – whether we need to protect themthrough the Homestead Exemption Act is another question.”

The effects of such a bill on Lincoln County remain unclear, butTax Assessor Nancy Jordan said it could mean a weaker countybudget.

“If the state doesn’t give us some reimbursement money, it wouldmean the county as a whole would have to pick up the difference,”she said.

Moak said the people who have to pick up the slack from anincreased exemption would likely be business and propertyowners.

“Once it gets over to the House, it will be looked at veryclosely,” he said. “I don’t think working families are prepared foran additional tax increase, and neither are the businesses. Thispassed out of the Senate without them telling us how much of a taxincrease it was on about 65 to 75 percent of the population. Itsounds politically good, but they haven’t given us any numbers totell how much it will cost the state and about 75 percent of thepopulation.”

District 91 Rep. Bob Evans, D-Monticello, agreed with Moak’sdiagnosis of the bill.

“I don’t have any problem with helping seniors … but on theother hand, the county will have to replace that money,” saidDistrict 91 Rep. Bob Evans, D-Monticello. “It looks to me likeyou’re filling up one of their pockets but taking it out of theother.”

Evans said the bill would result in senior citizens – the agegroup SB 2300 is meant to protect – simply being taxed in anotherarea. He was aggravated at the bill’s circumstances, however,saying it was basically a political trap that would gather fearvotes.

“It’s the manner of the semantics,” Evans said. “It’s one ofthose things that is hard to vote against just because of the titleof it. I think whoever authored this bill needs to provide us withsome figures and let us know it’s not just a feel-good idea thatmakes everyone happy.”