MISSISSIPPI LEGISLATURE
2004 Regular Session
To: Ways and Means
By: Representative Janus, Upshaw, Aldridge, Bentz, Bondurant, Davis, Ellington, Fillingane, Formby, Gunn, Hamilton (109th), Howell, Moore, Rotenberry, Simpson, Snowden, Ward, Zuber, Reynolds
AN ACT TO AMEND SECTION 27-33-19, MISSISSIPPI CODE OF 1972, TO INCLUDE WITHIN THE DEFINITION OF "HOME" OR "HOMESTEAD" THE FLOOR OR FLOORS OF A BUILDING USED SOLELY AS THE RESIDENCE OF A FAMILY GROUP WHEN THE BUILDING IS OWNED BY THE HEAD OF THE FAMILY AND ANOTHER FLOOR OR FLOORS OF THE BUILDING ARE USED FOR BUSINESS ACTIVITY; TO INCLUDE WITHIN THE DEFINITION OF "HOME" OR "HOMESTEAD" A MANUFACTURED OR MOBILE HOME OCCUPIED AS A PERSON'S PRIMARY HOME FOR AT LEAST FIVE YEARS AT THE SAME PHYSICAL LOCATION; TO AMEND SECTION 27-33-21, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; TO PROVIDE AN EXEMPTION FROM AD VALOREM TAXES FOR AN OWNER OF A MANUFACTURED HOME OR MOBILE HOME WHO OCCUPIES SUCH MANUFACTURED HOME OR MOBILE HOME AS HIS PRIMARY HOME AND HAS DONE SO AT THE SAME PHYSICAL LOCATION FOR AT LEAST FIVE CONSECUTIVE YEARS, REGARDLESS OF WHETHER SUCH PERSON OWNS THE LAND ON WHICH THE MANUFACTURED HOME OR MOBILE HOME IS LOCATED OR HOW THE MANUFACTURED HOME OR MOBILE HOME AND LAND ARE ASSESSED; TO PROVIDE THAT A PERSON MAY NOT CLAIM THE EXEMPTION PROVIDED IN THIS ACT IF THE PERSON CLAIMS ANY OTHER EXEMPTION UNDER STATE HOMESTEAD EXEMPTION LAW; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-33-19, Mississippi Code of 1972, is amended as follows:
27-33-19. The word "home" or "homestead" whenever used in this article shall mean the dwelling, the essential outbuildings and improvements, and the eligible land assessed on the land roll actually occupied as the primary home of a family group, eligible title to which is owned by the head of the family, a bona fide resident of this state, and when the dwelling is separately assessed on the land roll for the year in which the application is made, subject to the limitations and conditions contained in this article. And the meaning of the word is hereby extended to specifically include:
(a) One or more separate, bona fide dwellings and the land on which they are located, each occupied under eligible ownership rights by the widow or the widower, or the children of a deceased parent, each separate home being property or a portion of property owned by a deceased person whose estate has not been distributed or divided or vested in a person or persons for life. But in each case the property for which exemption is sought may not be more than the applicant's inherited portion, and must be accurately described on the application and the conditions explained in writing. But the heirs may elect to accept one (1) homestead for the estate. The home occupied by the surviving spouse as provided by the laws of this state shall be preferred over the homes claimed by the children, and the exemption to any other heir shall not exceed the remaining amount obtained by deducting the assessed value of the surviving spouse's portion from the assessed value of the whole, divided by the number of heirs other than the surviving spouse. Each heir claiming exemption shall meet the requirements as to occupancy, residence and head of a family, and no part of the undivided inherited lands shall be combined with other lands and included in a homestead exemption under this article except in the case of the surviving spouse.
(b) One or more separated dwellings and eligible land, not apartments, occupied each by a family group as a bona fide home, eligible title to which entire property is held jointly by purchase or otherwise by the heads of the families, and each joint owner shall be allowed exemption on the proportion of the total assessed value of all the property, equal to his fractional interest (except as otherwise provided in paragraph (r) of this section), provided no part of the jointly owned property shall be exempted to a joint owner who has been allowed an exemption on another home in the state.
(c) A dwelling and eligible lands owned jointly or severally by a husband and wife, if they are actually and legally living together. But if husband and wife are living apart, not divorced, as provided by subparagraphs (c) and (d) of Section 27-33-13, jointly owned land shall not be included except that the dwelling occupied as a home at the time of separation shall be eligible if owned jointly or severally.
(d) The dwelling and eligible land on which it is located, owned and actually occupied as a home by a minister of the gospel or by a licensed school teacher actively engaged whose duties as such require them to be away from the home for the major part of each year, including January 1, provided it was eligible before such absence, and no income is derived therefrom, and no part of the dwelling claimed as a home is rented, leased or occupied by another family group, and when the home is eligible except for the temporary absence of the owner.
(e) The dwelling and the eligible land on which it is located, consisting of not more than four (4) apartments; provided (1) if one (1) apartment is actually occupied as a home by the owner the exemption shall be limited to one-fourth (1/4) the exemption granted pursuant to this article, or (2) if the dwelling and land is owned by four (4) persons and the four (4) owners each occupy one (1) apartment as a home, the exemption shall be granted equally to each owner; provided revenue is not derived from any part of the property except as permitted by subparagraphs (g) and (h) of this section. If the dwelling and the eligible land on which it is located consists of not more than three (3) apartments, and one (1) apartment is actually occupied as a home by the owner, the exemption shall be limited to one-third (1/3) the exemption granted pursuant to this article, or if the dwelling and land is owned by three (3) persons and the three (3) owners each occupy one (1) apartment as a home, the exemption shall be granted equally to each owner; provided revenue is not derived from any part of the property except as permitted by subparagraphs (g) and (h) of this section. If the dwelling and the eligible land on which it is located consists of not more than two (2) apartments and one (1) apartment is actually occupied as a home by the owner, the exemption shall be limited to one-half (1/2) the exemption granted pursuant to this article, or if the dwelling and land is owned by two (2) persons and the two (2) owners each occupy one (1) apartment as a home, the exemption shall be granted equally to each owner; provided revenue is not derived from any part of the property except as permitted by subparagraphs (g) and (h) of this section.
(f) The dwelling and eligible land on which it is located, actually occupied as the bona fide home of a family group owned by the head of the family whereof five (5) and not more than six (6) rooms are rented to tenants or boarders, and where there are rented rooms and an apartment, the apartment shall be counted as three (3) rooms; provided the exemption shall be limited to one-half (1/2) the exemption granted pursuant to this article.
(g) The dwelling and eligible land being the bona fide home of a family group owned by the head of the family used partly as a boarding house, or for the entertainment of paying guests, if the number of boarders or paying guests does not exceed eight (8).
(h) The dwelling and eligible land being the bona fide home of a family group owned by the head of the family wherein activity of a business nature is carried on, but where the assessed value of the property associated with the business activity is less than one-fifth (1/5) of the total assessed value of the bona fide home; provided, however, that when the owner's full-time business is located in the bona fide home of the head of the family, such owner shall be limited to one-half (1/2) of the exemption granted pursuant to this article.
(i) The dwelling and the eligible land on which it is located and other eligible land even though ownership of and title to the dwelling and the land on which it is located has been conveyed to a housing authority for the purpose of obtaining the benefits of the Housing Authorities Law as authorized by Sections 43-33-1 through 43-33-53 or related laws.
(j) A dwelling and the eligible land on which it is located owned by a person who is physically or mentally unable to care for himself and confined in an institution for treatment shall be eligible notwithstanding the absence of the owner unless the home is excluded under other provisions of this article. The exemption is available for a period of five (5) years from the day of confinement.
(k) The dwelling and the eligible land on which it is located owned by two (2) or more persons of a group, as defined in paragraph (f) of Section 27-33-13, when two (2) or more of the group have eligible title, or if the group holds a life estate, a joint estate or an estate in common; provided the title of the several owners shall be of the same class.
(l) A dwelling and the eligible land on which it is located under a lease of sixty (60) years by the Pearl River Valley Water Supply District at the reservoir known as the "Ross Barnett Reservoir" actually occupied as the home or homestead of a family or person as defined heretofore in this article. However, no such family group or any other person heretofore qualified and defined in this article shall be allowed to establish more than one (1) home or homestead for the purpose and intent of this article.
(m) Units of a condominium constructed in accordance with Section 89-9-1 et seq., Mississippi Code of 1972, known as the "Mississippi Condominium Law," and actually occupied as the home or homestead of a family or person as defined heretofore in this article. However, no such family group or any other person heretofore qualified and defined in this article shall be allowed to establish more than one (1) home or homestead for the purpose and intent of this article.
(n) A dwelling and the eligible land on which it is located held under a lease of ten (10) years or more or for life, from a fraternal or benevolent organization and actually occupied as the home or homestead of a family or person as defined heretofore in this article. No such family group or any other person heretofore qualified and defined in this article shall be allowed to establish more than one (1) home or homestead for the purpose and intent of this article.
(o) A dwelling being the bona fide home of a family group owned by the head of the family and located on land owned by a corporation incorporated more than fifty (50) years ago and in which the homeowner is a shareholder, and which corporation owns no land outside Monroe and Itawamba Counties. No family group or any other person heretofore qualified and defined in this article shall be allowed to establish more than one (1) home or homestead for the purpose and intent of this article.
(p) A dwelling and the eligible land on which it is located under a lease of five (5) years or more by the Mississippi-Yazoo Delta Levee Board actually occupied as the home or homestead of a family or person as defined pursuant to this article. However, no such family group or any other person qualified and defined pursuant to this article shall be allowed to establish more than one (1) home or homestead for the purpose and intent of this article. The definition shall include all leases in existence that were entered into prior to July 1, 1992.
(q) A dwelling and the eligible land on which the spouse of a testator is granted the use of such dwelling for life or until the occurrence of certain contingencies and the children of such testator are granted a remainder interest in the dwelling and eligible land. Such dwelling and eligible land will only qualify as a home or homestead if (i) the spouse of the testator would otherwise qualify as head of a family if the interest were a tenancy for life (life estate) and (ii) the dwelling and eligible land is actually occupied as the home of the spouse of the testator. The children of the testator shall be allowed to establish an additional homestead for purposes of this article.
(r) A dwelling and the eligible land actually occupied as the bona fide home of a family group. If a person has been granted use and possession of a home in a divorce decree, that individual is eligible for full exemption, regardless of whether the property is jointly owned.
(s) A dwelling being the bona fide home of a family group located on land owned by a corporation incorporated more than forty (40) years ago and in which the head of the family group is a shareholder, and which corporation owns no land outside Lee County, Mississippi. No family group or any other person qualified and defined in this article shall be allowed to establish more than one (1) home or homestead for the purpose and intent of this article.
(t) The floor or floors of a building used solely for the residence of a family group when the building is owned by the head of the family and another floor or floors of the building are used for business activity. This paragraph (t) shall repealed from and after January 1, 2007.
(u) A dwelling that is a manufactured home or mobile home as defined in Section 27-53-1, the owner of which occupies the home as his primary home and has done so at the same physical location for at least five (5) consecutive years.
SECTION 2. Section 27-33-21, Mississippi Code of 1972, is amended as follows:
27-33-21. There is excluded from the definition of a home and from homestead exemption the property enumerated in this section.
(a) Any building and land on which it is located, any part of which is used or intended to be used, by the owner or by anyone else, for business purposes; or from which revenue is derived or intended to be derived, except as permitted in paragraphs (f), (g), (h) and (t) of Section 27-33-19 of this article; or which is rented or is available for rent, for business purposes; or any building and the land on which it is located used as a hotel, tourist court, apartment building except as provided in paragraph (e) of Section 27-33-19 of this article; or a dwelling whereof more than six (6) rooms are rented; and where there is one (1) apartment and rented rooms the apartment shall be counted as three (3) rooms; less than three (3) rooms rented and used for housekeeping shall be counted as rented rooms. A proportionate share of agricultural products, produced on the land, received for the use of the land and a tenant house, where the use of the tenant house is merely incidental to the use of the land (where no money is paid and no consideration is paid other than a proportionate share of agricultural products produced on the land), shall not be considered as rent or income from the property so as to exclude it from the definition of a home.
(b) Any buildings or structures and the land on which located used as gins, sawmills, stores, gasoline stations, repair shops, and the like; and any buildings and the land on which located used for the conduct of any business or private manufacture or processing, all whether used in connection with farming operations or not.
(c) Any dwelling house and the land on which it is located, or other land, which is owned by any person or family group to whom an exemption has been allowed on another home in this state except in cases defined in paragraphs (c) and (d) of Section 27-33-13; or any dwelling and the land on which it is located in which any person or family group owns a joint estate, an estate in common, a life estate or other estate defined in paragraph (a) of Section 27-33-17 of this article to whom an exemption has been allowed on another home in this state to the extent of such person's interest; provided, this exclusion shall not apply in the case of husband, or wife, allowed an exemption on the home owned and occupied by them, and when either is a part owner, either as a joint tenant or tenant in common, of another home which is occupied by father, mother, brother, or sister as a bona fide home, eligible for exemption under paragraph (a) of Section 27-33-19 of this article.
(d) Any dwelling house and the land on which it is located, or other land, which is not held under eligible title of ownership, but is being occupied under an agreement to buy, or under a conveyance or contract of conditional sale, or purchase or any similar contract, except as permitted by paragraph (i) of Section 27-33-19 of this article.
(e) Any jointly owned land or jointly owned dwelling combined with individually owned land on which exemption has been claimed and allowed, except as provided in paragraphs (a) and (c) of Section 27-33-19 of this article; and no homestead shall consist of individually owned lands combined with lands held for life.
(f) Any dwelling and the land on which it is located acquired, other than by a bona fide gift or by inheritance, since July 1, 1938, for which one-fourth (1/4) of the full purchase price has not been actually paid by the purchaser, unless the deed or instrument by which title is acquired provides, bona fide, for annual payment of interest at the normal rate, and for substantial and regular payments on the principal debt at intervals of one (1) year or less.
(g) Any building of any kind and the land on which it is located, whether inside or outside a municipality, if any part thereof is rented out or held available to be rented out, except as provided in Section 27-33-19, paragraphs (e) and (f), and except rental of farm property for a proportionate share of the crop.
(h) Any land, whether inside or outside a municipality unless it is situated and described as provided in Sections 27-33-23 and 27-33-25 of this article.
SECTION 3. (1) The qualified owner of a manufactured home or mobile home who occupies the home as his primary home shall be allowed an exemption from ad valorem taxes according to the schedule set forth in Section 27-33-75, if he has done so at the same physical location for at least five (5) consecutive years.
(2) (a) This section shall apply to exemptions claimed in the 2005 calendar year for which reimbursement is made in the 2006
calendar year and to exemptions claimed for which reimbursement is made in subsequent years.
(b) The person shall be entitled to the exemption regardless of whether he owns the land on which the manufactured home or mobile home is located or how the manufactured home or mobile home and land are assessed. However, no person may claim an exemption under this Section 3 if the person claims any other exemption under state homestead exemption law.
(3) Any owner of a manufactured home or mobile home who is sixty-five (65) years of age or older or who is totally disabled
shall be allowed an exemption from all ad valorem taxes on up to Seven Thousand Five Hundred Dollars ($7,500.00) of the assessed value of the manufactured home or mobile home if he occupies the manufactured home or mobile home as his primary home and has done so at the same physical location for at least five (5) consecutive years. The person shall be entitled to the exemption regardless of whether he owns the land on which the manufactured home or mobile home is located or how the manufactured home or mobile home and land are assessed. However, no person may claim an exemption under this subsection (3) if the person claims any other exemption under state homestead exemption law.
(4) To qualify for the exemption provided for in subsection (3) of this section because of disability, the manufactured home owner or mobile home owner must present proper proof of any of the following:
(a) Service-connected, total disability as an American veteran who has been honorably discharged from military service.
(b) Classification as totally disabled under the federal Social Security Act (42 USCS Section 416(i)), the Railroad Retirement Act or any other federal act approved by the State Tax Commission.
(i) If a person is eligible for classification as totally disabled under the federal acts referred to in this subsection (4)(b), but does not qualify to receive benefits thereunder because his annual income exceeds an amount set as the maximum allowed in qualifying to receive the benefits, then he is eligible for the disability exemption specified in subsection (3) of this section. Proper proof of such eligibility shall be determined by the State Tax Commission.
(ii) If a person is eligible for classification as totally disabled under the federal Social Security Act (42 USCS Section 416(i)), but does not qualify to receive benefits thereunder only because he has not made the necessary social security contributions, then he is eligible for the disability exemption specified in subsection (3) of this section. Proper proof of such eligibility shall be determined by the State Tax Commission.
(c) Classification as totally disabled under the provisions of a retirement plan that is considered to be qualified under the United States Internal Revenue Code. The determination of whether or not a retirement plan is so qualified shall be made by the State Tax Commission.
(d) Classification as totally disabled as determined by the State Tax Commission pursuant to rules and regulations adopted by the State Tax Commission.
Proper proof of classification as totally disabled under the federal acts referred to in subsection (4)(b) or (4)(c) of this section, including proof of the total disability and of eligibility to qualify to receive benefits under the relevant federal act or qualified retirement plan, shall be determined by the State Tax Commission.
A manufactured home or mobile home owned jointly by husband and wife and a manufactured home or mobile home owned in fee simple by either spouse, if either spouse fulfills the age or disability requirement, shall be eligible for the exemption provided in subsection (3) of this section. On all other jointly owned manufactured homes or mobile homes, the amount of the allowable exemption shall be determined on the basis of each individual joint owner's qualifications and pro rata share of the property.
SECTION 4. A manufactured home or mobile home that qualifies for a homestead ad valorem tax exemption under Section 3 of this act shall be exempt from taxation as personal property under Chapter 53, Title 27, Mississippi Code of 1972.
SECTION 5. Section 4 of this act shall be codified as a new section in Chapter 53, Title 27, Mississippi Code of 1972.
SECTION 6. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the ad valorem tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the ad valorem tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.
SECTION 7. This act shall take effect and be in force from and after January 1, 2005.