MISSISSIPPI LEGISLATURE
2006 Regular Session
To: Ways and Means
By: Representative Davis, Barnett, Chism, Denny, Fillingane, Moore, Rotenberry, Upshaw, Wells-Smith
AN ACT TO AMEND SECTION 27-33-75, MISSISSIPPI CODE OF 1972, TO INCREASE THE AMOUNT OF HOMESTEAD EXEMPTION FOR PERSONS WHO ARE SIXTY-FIVE YEARS OF AGE OR OLDER OR WHO ARE TOTALLY DISABLED; TO PROVIDE THAT BEGINNING JANUARY 1, 2010, AND EVERY FOURTH YEAR THEREAFTER, THE AMOUNT OF SUCH HOMESTEAD EXEMPTION SHALL BE INCREASED BY A PERCENTAGE AMOUNT EQUAL TO THE CUMULATIVE UNITED STATES INFLATION RATE FOR THE PREVIOUS FOUR CALENDAR YEARS AS CERTIFIED BY THE CHAIRMAN OF THE STATE TAX COMMISSION; TO AMEND SECTION 27-33-77, MISSISSIPPI CODE OF 1972, TO INCREASE THE AMOUNT OF REIMBURSEMENT OF HOMESTEAD EXEMPTION REVENUE LOSSES; TO AMEND SECTION 27-33-79, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT REIMBURSEMENT OF HOMESTEAD EXEMPTION REVENUE LOSSES TO A TAXING UNIT MAY NOT BE MORE THAN ONE HUNDRED FIFTEEN PERCENT OF THE REIMBURSEMENT MADE TO THE TAXING UNIT FOR THE PRECEDING YEAR; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-33-75, Mississippi Code of 1972, is amended as follows:
[With regard to any county that has not 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 State Tax Commission and in effect on January 1, 2001, and has not implemented such valuations for the purposes of ad valorem taxation, this section shall read 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 and above 240.00
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) 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 Six Thousand Dollars ($6,000.00) of the assessed value of the homestead property.
(3) This section shall apply to exemptions claimed in the 1988 calendar year for which reimbursement is made in the 1989 calendar year and to exemptions claimed for which reimbursement is made in subsequent years.
[With regard to any county that 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 State Tax Commission and in effect on January 1, 2001, and for which the State Tax Commission has certified that such new valuations have been implemented for the purposes of ad valorem taxation, this section shall read 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 and above 300.00
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) 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 Seven Thousand Five Hundred Dollars ($7,500.00) of the assessed value of the homestead property.
(b) From and after January 1, 2006, 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 Eight Thousand Dollars ($8,000.00) of the assessed value of the homestead property; and on January 1, 2010, and January 1 of every fourth year thereafter, the exemption provided in this paragraph (b) shall be increased by a percentage amount equal to the cumulative United States inflation rate for the previous four (4) calendar years as certified by the Chairman of the State Tax Commission. The United States inflation rate for a calendar year shall be the Consumer Price Index for the calendar year for all urban consumers as calculated by the Bureau of Labor Statistics of the United States Department of Labor.
(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 2006 calendar year for which reimbursement is made in the 2007 calendar year and to exemptions claimed for which reimbursement is made in subsequent years.
SECTION 2. Section 27-33-77, Mississippi Code of 1972, is amended as follows:
27-33-77. Beginning with the 1985 supplemental roll, and for each succeeding year's roll thereafter, the amount of tax loss to be reimbursed because of exemptions provided for in this article shall be Fifty Dollars ($50.00) each for county taxes exempted and school taxes exempted for a total of One Hundred Dollars ($100.00) per applicant qualifying for homestead exemption under this article. Beginning with the 2006 supplemental roll, and for each succeeding year's roll thereafter, the amount of tax loss to be reimbursed because of exemptions provided for in this article shall be One Hundred Dollars ($100.00) each for county taxes exempted and school taxes exempted for a total of Two Hundred Dollars ($200.00) per applicant qualifying for homestead exemption under this article.
The reimbursement received by the county shall be distributed by the county treasurer to the general fund.
Provided further, that tax losses sustained by municipalities because of exemptions granted to homeowners described in subsection (2) of Section 27-33-67 shall be reimbursed up to the amount of the actual exemption allowed, not to exceed Two Hundred Fifty Dollars ($250.00) per qualified applicant.
The reimbursement received by a county, municipality or school district may be pledged as security for a loan if the reimbursement to the county or school district is otherwise authorized or required by law to be pledged as security for such a loan.
SECTION 3. Section 27-33-79, Mississippi Code of 1972, is amended as follows:
27-33-79. Notwithstanding the limitation imposed on reimbursement of tax losses in Section 27-33-77, no taxing unit shall be reimbursed more than one hundred fifteen percent (115%) or less than the amount of the reimbursement made to the same taxing unit, for the next preceding year, unless such reimbursement is reduced as a result of a reduction in approved homestead applicants; however, for the 1986 calendar year, no taxing unit shall be reimbursed less than the amount of the reimbursement made to the same taxing unit for the 1985 calendar year.
SECTION 4. 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 5. This act shall take effect and be in force from and after July 1, 2006.