JACKSON - Calling a House bill unfair, Senate Finance Committee Chairman Tommy Robertson on Thursday proposed changes to the legislation to restrict the areas where businesses could locate to get tax credits.
The House version of the bill would have allowed a community with at least 30 percent of its residents living under the national poverty level to qualify for the tax breaks.
Robertson, R-Moss Point, said a community in the House bill could have been a ward within a city. That means a county or city that isn't economically distressed, but has a ward that is, could offer the same tax breaks to lure industry that are available in poorer areas, such as the Delta.
"I just don't think that was our intent when we did Advantage Mississippi," Robertson said, referring to an economic development package of incentives passed during Gov. Ronnie Musgrove's administration.
Robertson's committee amended the bill to apply only to incorporated areas.
Robertson gave Moss Point as an example. The city has had two major industry close in recent years. He said 18,000 people in the city. He said Moss Point could be defined as an economically distressed area under the amended bill.
The committee also approved a bill that would prohibit non-farmers from taking advantage of sales tax exemptions on fertilizer, seed, feed and farm equipment.
Under current law, farmers do not have to pay 7 percent state tax on the sale of feed, seed and fertilizer. Tax Commission officials say the exemption originally was put into law to help farmers, but many others - including casual home gardeners - are getting an unintended benefit.
Tax Commission officials say the state could be losing a few million dollars a year.
The House bill was amended in Robertson's committee to give the Department of Agriculture the job of certifying farmers.
In the House version, those responsibilities fall to the Mississippi Cooperative Extension Service, Robertson said.
Sen. Billy Harvey, D-Prentiss, said opposed the bill because it appeared to put a hardship on small farmers and local gardeners.
"I just didn't want to do anything to hamper the local people," Harvey said.
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