MISSISSIPPI LEGISLATURE
2025 Regular Session
To: Finance
By: Senator(s) Johnson
AN ACT TO AMEND SECTION 27-33-3, MISSISSIPPI CODE OF 1972, TO INCREASE THE MAXIMUM HOMESTEAD EXEMPTION FROM $7,500.00 TO $20,000.00 OF THE ASSESSED VALUE OF THE HOMESTEAD PROPERTY; TO AMEND SECTION 27-33-75, MISSISSIPPI CODE OF 1972, TO CONFORM; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-33-3, Mississippi Code of 1972, is amended as follows:
27-33-3. In order to
recognize and give effect to the principle of tax-free homes as a public policy
in Mississippi, to encourage home building and ownership, and to give
additional security to family groups, it is hereby declared that homes legally
assessed on the land roll, owned and actually occupied as a home by bona fide
residents of this state, who are heads of families, shall be exempt from the ad
valorem taxes herein enumerated, on not in excess of * * *
Twenty Thousand Dollars ($20,000.00) of the assessed value including an
area of land not in excess of that specified hereinafter in this article. The
exemption from taxes shall be limited to the following:
(a) All homeowners who are heads of families and who qualify under the provisions of this article shall be exempt from taxes levied in 1983 and payable in 1984 and from taxes levied in 1984 and payable in 1985 as follows:
(i) The ad valorem taxes levied by counties pursuant to Section 27-39-329. Amounts so exempted shall not be reimbursed by the state.
(ii) Ad valorem taxes levied for maintenance and current expenses by or for a county as authorized by Section 27-39-303, but the levy for such purpose in any year for which reimbursement is to be made shall not exceed the millage levied for such purpose for the 1984 fiscal year; or a levy for county roads or a road district as authorized by Section 27-39-305; or a levy for constructing and maintaining all bridges and culverts as authorized by Section 65-15-7, but the levy for either or both of such purposes for which reimbursement is to be made shall not in any event exceed seven (7) mills in any year; the levy for the support of the total funding formula fund to produce the minimum local ad valorem tax effort required of a school district by Section 37-57-1, and the supplementary school district tax levy for the support and maintenance of schools as authorized by Section 37-57-105; provided, however, that the total of the levies made under said Sections 37-57-1 and 37-57-105, which shall be exempt under this article, shall be limited to twenty (20) mills for any affected property area, and in the event the total of such levies should exceed twenty (20) mills for any affected property area, the excess shall not be exempt under this article, and in such case, the levy for the support of the total funding formula shall have priority as an exempt levy;
(iii) Ad valorem taxes levied for the support and maintenance of agricultural high schools within the limits and as authorized by Section 37-27-3, and ad valorem taxes levied for the support of community or junior colleges within the limits and as authorized by subsection (2) of Section 37-29-141; provided, however, that the exemption from taxation and reimbursement for tax loss for agricultural high schools and community or junior colleges, or any combination of same, shall not exceed three (3) mills in any one (1) year for any one (1) county;
(iv) Ad valorem taxes levied for the support of the total funding formula provided for in Sections 37-151-200 through 37-151-215 in a municipal separate school district to produce the minimum local ad valorem tax effort required of such municipal separate school district as authorized by Section 37-57-1, and the supplementary tax levy for the support and maintenance of the schools of a municipal separate school district as authorized by Section 37-57-105; provided, however, the total of the levies made under said Sections 37-57-1 and 37-57-105 which shall be exempt under this article shall be limited to fifteen (15) mills for any affected property area, except in those special municipal separate school districts as provided by Sections 37-7-701 through 37-7-743, the total of the levies made under Sections 37-7-739 and 37-57-105 for such special municipal separate school district which shall be exempt under this article shall not exceed twenty (20) mills, and in the event the total of such levies should exceed fifteen (15) mills for any affected property area, or twenty (20) mills in the case of a special municipal separate school district, the excess shall not be exempt under this article, and, in such case, the levy for the support of the total funding formula in the municipal separate school district shall have priority as an exempt levy;
(v) In the event any law referred to in this section is amended so as to authorize an increase in the tax levy for any purposes, such increase in the levy shall be applied to and taxes collected from the property owners on the entire assessed value of exempted homes; and the tax loss resulting from such increase shall not be reimbursed under the provisions of the Homestead Exemption Law, unless such law clearly specifies that the exempted assessed value of homes is exempt from such increase;
(vi) Ad valorem taxes levied under Sections 65-15-7 and 65-15-21 shall be used solely for purposes levied.
(b) Those homeowners
who qualify for the exemptions provided for in subsection (a) of this section
and who have reached the age of sixty-five (65) years on or before January 1 of
the year for which the exemption is claimed; and service-connected, totally
disabled American veterans who were honorably discharged from military service,
upon presentation of proper proof of eligibility shall be exempt from any and
all ad valorem taxes, including the forest acreage tax authorized by Section 49-19-115,
on homesteads not in excess of * * *
Twenty Thousand Dollars ($20,000.00) of assessed value thereof;
provided, however, that property owned jointly by husband and wife and property
owned in fee simple by either spouse shall be eligible for this exemption in
full if either spouse fulfills the age or disability requirement. On all other
jointly owned property 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.
(c) Those homeowners
who qualify for the exemptions provided for in subsection (a) of this section
and who would be classified as disabled under the Federal Social Security Act
(42 USCS Section 416(i)), upon presentation of proper proof of eligibility
shall be exempt from any and all ad valorem taxes, including the forest acreage
tax authorized by Section 49-19-115, on homesteads not in excess of * * *
Twenty Thousand Dollars ($20,000.00) of assessed value thereof;
provided, however, that property owned jointly by husband and wife and property
owned in fee simple by either spouse shall be eligible for this exemption in
full if either spouse fulfills the disability requirement. On all other
jointly owned property, 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.
(d) Homeowners who qualify for exemption under subsection (c) of this section will not be included in the limitations of Section 27-33-59(e).
Reimbursement by the State of Mississippi to the various taxing units for the tax losses incurred because of the additional exemptions provided for under these subsections shall be made in accordance with the procedures outlined in Section 27-33-41.
This section shall not apply to claims for homestead exemptions filed in any calendar year subsequent to the 1984 calendar year.
SECTION 2. Section 27-33-75, Mississippi Code of 1972, is amended as follows:
27-33-75. (1) Qualified homeowners described in subsection (1) of Section 27-33-67 shall be allowed an exemption from ad valorem taxes according to the following table:
ASSESSED VALUE HOMESTEAD
OF HOMESTEAD EXEMPTION
$ 1 - $ 150........................................... $ 6.00
151 - 300........................................... 12.00
301 - 450........................................... 18.00
451 - 600........................................... 24.00
601 - 750........................................... 30.00
751 - 900........................................... 36.00
901 - 1,050........................................... 42.00
1,051 - 1,200........................................... 48.00
1,201 - 1,350........................................... 54.00
1,351 - 1,500........................................... 60.00
1,501 - 1,650........................................... 66.00
1,651 - 1,800........................................... 72.00
1,801 - 1,950........................................... 78.00
1,951 - 2,100........................................... 84.00
2,101 - 2,250........................................... 90.00
2,251 - 2,400........................................... 96.00
2,401 - 2,550........................................... 102.00
2,551 - 2,700........................................... 108.00
2,701 - 2,850........................................... 114.00
2,851 - 3,000........................................... 120.00
3,001 - 3,150........................................... 126.00
3,151 - 3,300........................................... 132.00
3,301 - 3,450........................................... 138.00
3,451 - 3,600........................................... 144.00
3,601 - 3,750........................................... 150.00
3,751 - 3,900........................................... 156.00
3,901 - 4,050........................................... 162.00
4,051 - 4,200........................................... 168.00
4,201 - 4,350........................................... 174.00
4,351 - 4,500........................................... 180.00
4,501 - 4,650........................................... 186.00
4,651 - 4,800........................................... 192.00
4,801 - 4,950........................................... 198.00
4,951 - 5,100........................................... 204.00
5,101 - 5,250........................................... 210.00
5,251 - 5,400........................................... 216.00
5,401 - 5,550........................................... 222.00
5,551 - 5,700........................................... 228.00
5,701 - 5,850........................................... 234.00
5,851 - 6,000........................................... 240.00
6,001 - 6,150........................................... 246.00
6,151 - 6,300........................................... 252.00
6,301 - 6,450........................................... 258.00
6,451 - 6,600........................................... 264.00
6,601 - 6,750........................................... 270.00
6,751 - 6,900........................................... 276.00
6,901 - 7,050........................................... 282.00
7,051 - 7,200........................................... 288.00
7,201 - 7,350........................................... 294.00
7,351 * * * - 7,500......................................
300.00
7,501 - 7,650........................................... 306.00
7,651 - 7,800........................................... 312.00
7,801 - 7,950........................................... 318.00
7,951 - 8,100........................................... 324.00
8,101 - 8,250........................................... 330.00
8,251 - 8,400........................................... 336.00
8,401 - 8,550........................................... 342.00
8,551 - 8,700........................................... 348.00
8,701 - 8,850........................................... 354.00
8,851 - 9,000........................................... 360.00
9,001 - 9,150........................................... 366.00
9,151 - 9,300........................................... 372.00
9,301 - 9,450........................................... 378.00
9,451 - 9,600........................................... 384.00
9,601 - 9,750........................................... 390.00
9,751 - 9,900........................................... 396.00
9,901 - 10,050.......................................... 402.00
10,051 - 10,200......................................... 408.00
10,201 - 10,350......................................... 414.00
10,351 - 10,500......................................... 420.00
10,501 - 10,650......................................... 426.00
10,651 - 10,800......................................... 432.00
10,801 - 11,950......................................... 438.00
11,951 - 12,100......................................... 444.00
11,101 - 11,250......................................... 450.00
11,251 - 11,400......................................... 456.00
11,401 - 11,550......................................... 462.00
11,551 - 11,700......................................... 468.00
11,701 - 11,850......................................... 474.00
11,851 - 12,000......................................... 480.00
12,001 - 12,150......................................... 486.00
12,151 - 12,300......................................... 492.00
12,301 - 12,450......................................... 498.00
12,451 - 12,600......................................... 504.00
12,601 - 12,750......................................... 510.00
12,751 - 12,900......................................... 516.00
12,901 - 13,050......................................... 522.00
13,051 - 13,200......................................... 528.00
13,201 - 13,350......................................... 534.00
13,351 - 13,500......................................... 540.00
13,501 - 13,650......................................... 546.00
13,651 - 13,800......................................... 552.00
13,801 - 13,950......................................... 558.00
13,951 - 14,100......................................... 564.00
14,101 - 14,250......................................... 570.00
14,251 - 14,400......................................... 576.00
14,401 - 14,550......................................... 582.00
14,551 - 14,700......................................... 588.00
14,701 - 14,850......................................... 594.00
14,851 - 15,000......................................... 600.00
15,001 - 15,150......................................... 606.00
15,151 - 15,300......................................... 612.00
15,301 - 15,450......................................... 618.00
15,451 - 15,600......................................... 624.00
15,601 - 15,750......................................... 630.00
15,751 - 15,900......................................... 636.00
15,901 - 16,050......................................... 642.00
16,051 - 16,200......................................... 648.00
16,201 - 16,350......................................... 654.00
16,351 - 16,500......................................... 660.00
16,501 - 16,650......................................... 666.00
16,651 - 16,800......................................... 672.00
16,801 - 16,950......................................... 672.00
16,951 - 17,100......................................... 684.00
17,101 - 17,250......................................... 690.00
17,251 - 17,400......................................... 696.00
17,401 - 17,550......................................... 702.00
17,551 - 17,700......................................... 708.00
17,701 - 17,850......................................... 714.00
17,851 - 18,000......................................... 720.00
18,001 - 18,150......................................... 726.00
18,151 - 18,300......................................... 732.00
18,301 - 18,450......................................... 738.00
18,451 - 18,600......................................... 744.00
18,601 - 18,750......................................... 750.00
18,751 - 18,900......................................... 756.00
18,901 - 19,050......................................... 762.00
19,051 - 19,200......................................... 768.00
19,201 - 19,350......................................... 774.00
19,351 - 19,500......................................... 780.00
19,501 - 19,650......................................... 786.00
19,651 - 19,800......................................... 792.00
19,801 - 19,950......................................... 798.00
19,951 and above........................................ 804.00
Assessed values shall be rounded to the next whole dollar (Fifty Cents (50˘) rounded to the next highest dollar) for the purposes of the above table.
One-half (1/2) of the exemption allowed in the above table shall be from taxes levied for school district purposes and one-half (1/2) shall be from taxes levied for county general fund purposes.
(2) (a) Except as
otherwise provided in this subsection, qualified homeowners described in
subsection (2) of Section 27-33-67 shall be allowed an exemption from all ad
valorem taxes on not in excess of * * *
Twenty Thousand Dollars ($20,000.00) of the assessed value of the homestead
property.
(b) From and after January 1, 2015, qualified homeowners described in subsection (2)(a) of Section 27-33-67 and unremarried surviving spouses of such homeowners shall be allowed an exemption from all ad valorem taxes on the assessed value of the homestead property.
(c) Except as otherwise provided in this paragraph (c), a qualified homeowner claiming an exemption under paragraph (a) of this subsection shall be allowed an additional exemption from all ad valorem taxes on an amount equal to the difference between (i) the assessed value of the homestead property on January 1, 2018, or January 1 of the first year for which the qualified homeowner claims an exemption for the homestead property under paragraph (a) of this subsection, and (ii) any increase in the assessed value of the homestead property resulting from a subsequent update in valuation of the homestead property that is completed during the time the qualified homeowner owns the property. In addition, if a subsequent update in valuation of the homestead property that is completed during the time the qualified homeowner owns the property results in the assessed value of the homestead property being less than the assessed value of the property on January 1, 2018, or January 1 of the first year for which the qualified homeowner claims an exemption for the homestead property under paragraph (a) of this subsection, then the exemption authorized under this paragraph (c) shall be on an amount equal to the difference between (i) such lower assessed value and (ii) any increase in the assessed value of the homestead property resulting from a subsequent update in valuation of the homestead property that is completed during the time the qualified homeowner owns the property. However, except for renovations, expansions, improvements or additions to promote energy efficiency, safety or access to the homestead property, the exemption authorized in this paragraph (c) shall not apply to any portion of increase in the assessed value of the homestead property that is attributable to renovations, expansions or improvements of or additions to the property during such time. For the purposes of this paragraph (c), an update in valuation of the homestead property occurs when a county has completed an update in the valuation of Class I property, as designated by Section 112, Mississippi Constitution of 1890, in the county according to procedures prescribed by the Department of Revenue and in effect on January 1, 2018, and for which the Department of Revenue has certified that such new valuations have been implemented for the purposes of ad valorem taxation.
(d) From and after January 1, 2023, a qualified homeowner who is the unremarried surviving spouse of a member of the United States Armed Forces who was killed or died on active duty, or of a member of a reserve component of the United States Armed Forces or of the National Guard who was killed or died on active duty for training, shall be allowed an exemption from all ad valorem taxes on the assessed value of the homestead property.
(e) From and after January 1, 2025, a qualified homeowner who is an American veteran who has been honorably discharged from military service and has reached ninety (90) years of age on or before January 1 of the year for which the exemption is claimed, shall be allowed an exemption from all ad valorem taxes on the assessed value of the homestead property.
(3) Except as otherwise provided in this subsection, this section shall apply to exemptions claimed in the 2001 calendar year for which reimbursement is made in the 2002 calendar year and to exemptions claimed for which reimbursement is made in subsequent years. The exemption provided for in subsection (2)(b) of this section shall apply to exemptions claimed in the 2015 calendar year for which reimbursement is made in the 2016 calendar year and to exemptions claimed for which reimbursement is made in subsequent years. The exemption provided for in subsection (2)(c) of this section shall apply to exemptions claimed in the 2018 calendar year for which reimbursement is made in the 2019 calendar year and to exemptions claimed for which reimbursement is made in subsequent years. The exemption provided for in subsection (2)(e) of this section shall apply to exemptions claimed in the 2025 calendar year for which reimbursement is made in the 2026 calendar year and to exemptions claimed for which reimbursement is made in subsequent years.
SECTION 3. This act shall take effect and be in force from and after January 1, 2026.