SEC. 21-33-325. Borrowing in anticipation of taxes.
The governing authorities of any municipality of this state shall have the power and authority to borrow money for the current expenses of such municipality in anticipation of the ad valorem taxes to be collected for the then current fiscal year. The governing authority of the municipality may borrow such money, as hereinbefore provided, from any available fund in the municipal treasury, or from any other source, and such loan shall be repaid in the manner herein provided. The money so borrowed shall bear interest at a rate not greater than that allowed in Section 75-17-105, Mississippi Code of 1972, and shall be repaid not later than the following March 15, out of the first moneys collected by reason of the tax levy in anticipation of which such money is borrowed, and such money shall be used for no other purpose than the payment of the current expenses of such municipality. The amount borrowed under the provisions of this section shall in no event exceed fifty percent (50%) of the anticipated, but then uncollected, revenue to be produced by the then current tax levy, or levies, against which such money is borrowed. In borrowing money under the provisions hereof, it shall not be necessary to publish notice of intention so to do or to secure the consent of the qualified electors, either by election or otherwise. Such borrowing may be authorized by resolution of the governing authorities and may be evidenced by a negotiable note, or notes, signed and executed in such form as may be prescribed in such resolution. Money may be borrowed in anticipation of ad valorem taxes under the provisions of this section, regardless of whether or not such borrowing shall create an indebtedness in excess of statutory limitations.
Money may likewise be borrowed by the governing authorities of any municipality, as herein provided, for the purpose of paying current interest maturities on any bonded indebtedness of such municipality in anticipation of the collection of taxes for the retirement of such bonded indebtedness and the payment of any interest thereon.
Notwithstanding any provision of this section to the contrary, the governing authorities of any municipality in any county whose reappraisal of property for ad valorem taxation was initially certified by the State Tax Commission in January of 1987 to be in accordance with the rules and regulations of the State Tax Commission, may repay money borrowed in anticipation of taxes under this section, including interest thereon, not later than July 31, 1987. This paragraph shall stand repealed from and after August 1, 1987.
SOURCES: Codes, Hemingway's 1917, Sec. 6068; 1930, Secs. 2500, 2501, 2502; 1942 Sec. 3598-13; Laws, 1916, ch. 150; 1918, ch. 178; 1926, ch. 272; 1934, ch. 320; 1950, ch. 493, Sec. 13; 1981, ch. 462, Sec. 4; 1982, ch. 434, Sec. 9; 1983, ch. 541, Sec. 13; 1985, ch. 519, Sec. 1; 1987, ch. 530, eff from and after passage (approved April 20, 1987).