Since my story on the bond issue went out, there have been a number of questions come out about millage and whether the $150 per year figure is accurate or exactly what the cost is going to be.
The answer is yes, but it’s more complicated than that.
The State of Mississippi Code gives county tax assessors a method for enforcing the local property taxes that are requested by the county, city and school districts.
The Mississippi State University Extension Service issued a pamphlet “Understanding Mississippi Property Taxes a while back that explains how property taxes are enforced.
Here are some key points that the document shows.
The first thing is to note that property is divided into five classifications. Real property (land, buildings, and other permanent improvements to the land) is divided into the first two classes.
“Class I real property is single-family, owner-occupied, residential property. (This is the property class to which homestead exemption is applied.) In order for a property to qualify for Class I, it must meet each of these requirements exactly. All other property that does not meet the exact definition for Class I falls into the Class II category. All agricultural, rental, and business properties and most vacant properties are considered Class II. A property can be part Class I and part Class II.
“Class III property is business personal property. This class includes furniture, fixtures, machinery, equipment, and inventory used by a business in its operations. The local tax assessor must list each item in every business, value the item according to DOR rules, and depreciate and revalue each item annually.
“Class IV property is public utility property. Examples of public utility property include property owned by pipeline companies, electric companies, telephone companies, railroads, etc. This property is assessed on an annual basis by the DOR.
“Class V property is motor vehicle property (including mobile homes). When a person purchases a motor vehicle tag in Mississippi, he or she actually pays three separate items: a registration fee, a privilege license, and an ad valorem tax. The registration fee for a new tag is $14. There is a $12.75 renewal registration fee to purchase a decal alone. Most of this fee money is sent to the state government.”
I know that’s a lot to digest. Basically, Class I are all dwellings and where you get homestead exemption. Class II is all other non-single-family dwellings and other real property.
The millage rates are assessed on a percentage of the real value of the property. Class I is 10 percent while Class II is 15 percent. So on $100,000 property at 15 mills, it’s $150/year for Class I and $225/year for Class II.
Class III is basically all other property (i.e. not land in this case) that’s not motor vehicles. Class IV is public utility property and Class V is all vehicles.
Class III has an assessment ratio of 15 percent a well, meaning that $100,000 worth of property is would have assessed taxes of $225.
Class IV and Class V are assessed at 30 percent. That’s why a $20,000 motor vehicle has a cost of $90/year.
My best suggestion on the impact on your personal taxes is to look at your most recent tax bills and see the assessed values. That will allow you to see the whole cost of what it would be for you.
Hope this clears this up.
Brent Maze is the publisher of The Newton County Appeal. He can be reached at bmaze@newtoncountyappeal.com.
