Supervisors approve company’s request for tax exemption

Published 7:00 am Friday, May 11, 2018

Pearl River County Tax Assessor-Collector Gary Beech presented the Board of Supervisors with requests from Drying Facility Assets Holdings concerning an exemption on the company’s ad valorem taxes at Monday’s meeting.

The first request for an extension to the company’s ad valorem tax exemption was approved by four Board members, only Board President Sandy Kane Smith voted against the request.

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County Administrator Adrain Lumpkin said that a year and a half ago the Board granted Drying Facility Assets Holdings with an exemption for three years, and by law the exemption could be granted for up to ten years.

“We granted them a tax exemption extension for the next seven years,” Lumpkin said.

Smith said he rejected the request because the industry is already in existence and has been for a few years.

The second request for an ad valorem tax exemption by the same company on its expansion was approved by all members of the Board.

Beech said the expansion involved the business bringing in additional machinery to increase capacity.

Beech also asked the Board to acknowledge a request from Avon Engineered Fabrications for Free Port Tax Exemption through the Mississippi Department of Revenue.

According to the Mississippi Department of Revenue, the state used to provide that exemption to approved businesses so they can avoid paying ad valorem tax on personal property shipped out of the state. The state agency no longer provides that license, and has instead passed execution of the exemption to the local county or municipality governing body.

Beech said the purpose of Free Port is to promote companies coming to Mississippi and employing people, with the advantage of not having to pay tax on raw materials.

Bringing in items and shipping them out of the state exempts them from being charged a tax on that inventory, Lumpkin said.

“This will encourage companies to stay here,” he said.