News & Resources

MPE Joins with MSBA and MASS to Address Potential Elimination of the Inventory Tax

01/06/2012

MSU’s Stennis Institute of Government recently conducted a study on the fiscal impact to counties, municipalities and school districts if the state’s inventory tax were eliminated. The study projected a $72 million annual loss in school revenue and an $89.6 million loss to city and county governments if the inventory tax were eliminated. Elimination of the inventory tax could shift the tax burden from businesses to other Mississippi taxpayers, which could result in either reduced services and/or higher property taxes. MPE joined with the MS School Boards Association, the MS Association of School Superintendents, the MS Municipal League, the MS Association of Supervisors, and the MS Assessors and Collectors Association to send the attached letter to legislators outlining three areas (education, property taxes, borrowing for capital improvements) that could be negatively impacted by the removal of the inventory tax.