Video: New Tax Ruling Could Leave City and County Governments Scrambling for Funds
COLUMBUS, Miss. (WCBI) – An I-R-S ruling could open the door to lawsuits that could cost local governments thousands of dollars in tax revenues from utilities. Area tax experts say it comes at a time when many local governments are fighting to pay for services without raising taxes. In its ruling, the I-R-S said a phone company could classify its lines as real estate. Many companies are expected to use it to change how they are charged for local property taxes. That could mean railroads, natural gas, cable companies and others could cut their property taxes in half.
“Could impact the budgets of the city and board of supervisors and both school districts greatly, not only here but statewide.”>
In Lowndes County alone, the change would cost local governments and schools a million dollars in year in tax revenue.