Tax hike for Section 42 housing developers dies

By Bobby Harrison/NEMS Daily Journal

JACKSON – Legislation to increase the local property taxes on the developers of Section 42 housing died Tuesday when Senate Finance Chair Dean Kirby, R-Pearl, opted not to bring the bill up for consideration.
Tuesday was the deadline to take up the bill, which already had passed the House.
Local government officials claimed the developers are getting “a sweetheart deal” that results in other taxpayers being forced to pay more for government services.
Opponents of the legislation argued that if taxes are increased it might result in less housing being built for low-income people. But local officials said the housing still would be built because of federal tax credits developers can obtain for the construction.
The tax increase would not affect the residents. Their rent is established by federal guidelines.
Kirby said he had hoped local officials and developers could reach a compromise on the issue, but it didn’t happen.

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