Proposed legislation would give HOA’s taxing authority if signed into law

HOAs taxing authority

JACKSON, MS (WLBT) - Some may complain about the possibility of property taxes getting raised. But, Chairman of the Madison Organization of Neighborhood Associations Paul Tankersley says upkeep of a neighborhood translates to maintaining property values.

“But this you get instant benefits because it all goes right back to where you live, right there.”

House Bill 1612 would give homeowners’ associations taxing authority through creation of special improvement assessment districts. Those non-profits would be able to impose up to 6 mills of property tax for improvements like streets, security or parks. But it would require 60 percent of the homeowners to support the increase. Jackson leaders and neighborhood associations have stood behind the idea of Community Improvement Districts for the last several years.

“We need to use every technique and every source of funding we can get," said Tankersley. "If we can get people to adopt their own neighborhoods, fix their own potholes, what’s to complain about?”

Tankersley says most of neighborhood associations in Madison already have some enforcement powers.

“For a neighborhood that has covenants and the covenants give them the legal right to collect assessments, this bill means nothing," he added. "They don’t need it.”

But he notes that even some with covenants don’t have the power to take neighbors to court for failing to pay their dues.

“Basically would spread the expense of maintenance across everybody in the neighborhood instead of a few who choose to pay,” explained Tankersley.

The bill has cleared the House and is awaiting Senate approval.

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