(1) Any municipality in the State of Mississippi, into or through which a designated state highway runs or is proposed to be run by the State Highway Commission, may, within the discretion of its governing authorities, contribute funds to the State Highway Commission for the purpose of aiding in the building or construction of such highway, including the construction of necessary bridges, in an amount to be determined by agreement in writing between the State Highway Commission and the governing authority of such municipality and entered in their respective minutes; but in no event shall such contribution exceed one half of one per centum of the total assessed valuation of such municipality, according to the last completed assessment roll of the taxable property therein.

(2) Any county within the State of Mississippi, into or through which a designated state highway runs or is proposed to be run by the State Highway Commission, whether within or without a municipality, may, within the discretion of its board of supervisors, contribute funds to the State Highway Commission for the purpose of aiding in the building or construction of such highway, including the construction of necessary bridges, in an amount to be determined by agreement in writing between the State Highway Commission and the board of supervisors of such county and entered in their respective minutes; but in no event shall such contribution exceed one fifth of one per centum of the total assessed valuation of such county, according to the last completed assessment roll of the taxable property therein.

(3) Any municipality or county, exercising any of the powers granted herein, is hereby authorized and empowered to issue general obligation bonds to provide funds for the aforesaid purpose. Any municipality issuing such bonds shall proceed in compliance with the provisions of Sections 21-33-301 through 21-33-329, Mississippi Code of 1972, and any county issuing such bonds shall proceed in compliance with the provisions of Sections 19-9-1 through 19-9-31, Mississippi Code of 1972, and all such bonds shall be sold in the manner provided by Section 31-19-25, Mississippi Code of 1972. However, where a municipality and county jointly obligate themselves to make contributions to the State Highway Commission, as provided herein, such municipality and such county may enter into an agreement to be spread on the minutes of the board of supervisors of such county and the minutes of the governing authority of such municipality, under which the municipality may issue bonds to raise funds for both the municipality and county, or the county may issue bonds to raise funds for both the county and municipality. Any such agreement may provide that in lieu of issuing its bonds hereunder, the municipality or the county, as the case may be, may contribute money to the other annually or semiannually in such amount and for such period of time as may be agreed upon by the two governing authorities, for the purpose of retiring its portion of the bonds issued by the other; and the obligation assumed by the nonissuing authority may be pledged in addition to the full faith, credit, and resources of the issuing authority for the payment of such bonds as they mature and the interest thereon as it may accrue. Both the municipality and the county, by their respective governing authorities, are hereby authorized and empowered to levy and collect the necessary ad valorem taxes on all taxable property within their respective jurisdictions sufficient to retire such bonds, or to provide funds to contribute to the other authority, as required by the aforesaid agreement; when any county shall be required to make a contribution to a municipality under the terms of this section, such contribution may be made from the proceeds of a tax to be levied pursuant to the provisions of Section 65-15-7, as the same now exists or may hereafter be amended, or from any source or sources available to such county. In the event that the required funds or any part thereof are thus provided, the annual ad valorem tax hereinabove provided for may be correspondingly reduced. Any bonds issued by any municipality or any county under the terms and provisions of this section, or any pledge of contributions made by any county or municipality, shall be excepted from all limitations of indebtedness prescribed by any general or special law and shall not be considered in applying any present or future limitations of indebtedness. This section is cumulative and is in addition to any authority now exercised by counties and municipalities under any other law relating to either.

(4) Any tax levy made to service the bonds authorized to be issued under authority of this section shall not be refundable under the homestead exemption laws of this state.