Ad valorem tax; exempt certain tractors, agricultural implements and equipment, and vehicles.

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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Steverson

HOUSE BILL NO. 4004

AN ACT TO AMEND SECTION 27-31-1, MISSISSIPPI CODE OF 1972, TO 1
EXEMPT FROM AD VALOREM TAXATION TRACTORS, AGRICULTURAL IMPLEMENTS 2
AND EQUIPMENT, AND VEHICLES, NOT EXEMPT UNDER SECTION 27-51-41(2), 3
WHILE IN THE HANDS OF A BONA FIDE DEALER AS MERCHANDISE ON A FLOOR 4
PLAN, CONSIGNMENT OR OTHER BASIS; AND FOR RELATED PURPOSES. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 6
SECTION 1. Section 27-31-1, Mississippi Code of 1972, is 7
amended as follows: 8
27-31-1. The following shall be exempt from taxation: 9
(a) All cemeteries used exclusively for burial 10
purposes. 11
(b) All property, real or personal, belonging to the 12
State of Mississippi or any of its political subdivisions, except 13
property of a municipality not being used for a proper municipal 14
purpose and located outside the county or counties in which such 15
municipality is located. A proper municipal purpose within the 16
meaning of this section shall be any authorized governmental or 17
corporate function of a municipality. 18
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(c) All property, real or personal, owned by units of 19
the Mississippi National Guard, or title to which is vested in 20
trustees for the benefit of any unit of the Mississippi National 21
Guard; provided such property is used exclusively for such unit, 22
or for public purposes, and not for profit. 23
(d) All property, real or personal, belonging to any 24
religious society, or ecclesiastical body, or any congregation 25
thereof, or to any charitable society, or to any historical or 26
patriotic association or society, or to any garden or pilgrimage 27
club or association and used exclusively for such society or 28
association and not for profit; not exceeding, however, the amount 29
of land which such association or society may own as provided in 30
Section 79-11-33. All property, real or personal, belonging to 31
any foundation organized as a nonprofit corporation that is exempt 32
from federal income taxation under Section 501(c)(3) of the 33
Internal Revenue Code and that receives, invests and administers 34
private support for a state-supported institution of higher 35
learning, a public community college or junior college located in 36
the State of Mississippi or a nonprofit private university or 37
college located in the State of Mississippi, as the case may be. 38
For the sole purpose of applying the preceding sentence, all 39
property, real or personal, belonging to an entity that is wholly 40
owned by and controlled by such a foundation shall be treated as 41
belonging to the foundation, provided such property is not leased 42
or otherwise used to generate revenue that is not used exclusively 43
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to benefit an institution described above. All property, real or 44
personal, belonging to any rural waterworks system or rural sewage 45
disposal system incorporated under the provisions of Section 46
79-11-1. All property, real or personal, belonging to any college 47
or institution for the education of youths, used directly and 48
exclusively for such purposes, provided that no such college or 49
institution for the education of youths shall have exempt from 50
taxation more than six hundred forty (640) acres of land; 51
provided, however, this exemption shall not apply to commercial 52
schools and colleges or trade institutions or schools where the 53
profits of same inure to individuals, associations or 54
corporations. All property, real or personal, belonging to an 55
individual, institution or corporation and used for the operation 56
of a grammar school, junior high school, high school or military 57
school. All property, real or personal, owned and occupied by a 58
fraternal and benevolent organization, when used by such 59
organization, and from which no rentals or other profits accrue to 60
the organization, but any part rented or from which revenue is 61
received shall be taxed. 62
(e) All property, real or personal, held and occupied 63
by trustees of public schools, and school lands of the respective 64
townships for the use of public schools, and all property kept in 65
storage for the convenience and benefit of the State of 66
Mississippi in warehouses owned or leased by the State of 67
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Mississippi, wherein said property is to be sold by the Alcoholic 68
Beverage Control Division of the Department of Revenue. 69
(f) All property, real or personal, whether belonging 70
to religious or charitable or benevolent organizations, which is 71
used for hospital purposes, and nurses' homes where a part 72
thereof, and which maintain one or more charity wards that are for 73
charity patients, and where all the income from said hospitals and 74
nurses' homes is used entirely for the purposes thereof and no 75
part of the same for profit. All property, real or personal, 76
belonging to a federally qualified health center where all the 77
income from such center is used entirely for the purposes thereof 78
and no part of the same for profit. 79
(g) The wearing apparel of every person; and also 80
jewelry and watches kept by the owner for personal use to the 81
extent of One Hundred Dollars ($100.00) in value for each owner. 82
(h) Provisions on hand for family consumption. 83
(i) All farm products grown in this state for a period 84
of two (2) years after they are harvested, when in the possession 85
of or the title to which is in the producer, except the tax of 86
one-fifth of one percent (1/5 of 1%) per pound on lint cotton now 87
levied by the Board of Commissioners of the Mississippi Levee 88
District; and lint cotton for five (5) years, and cottonseed, 89
soybeans, oats, rice and wheat for one (1) year regardless of 90
ownership. 91
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(j) All guns and pistols kept by the owner for private 92
use. 93
(k) All poultry in the hands of the producer. 94
(l) Household furniture, including all articles kept in 95
the home by the owner for his own personal or family use; but this 96
shall not apply to hotels, rooming houses or rented or leased 97
apartments. 98
(m) All cattle and oxen. 99
(n) All sheep, goats and hogs. 100
(o) All horses, mules and asses. 101
(p) Farming tools, implements and machinery, when used 102
exclusively in the cultivation or harvesting of crops or timber. 103
(q) All property of agricultural and mechanical 104
associations and fairs used for promoting their objects, and where 105
no part of the proceeds is used for profit. 106
(r) The libraries of all persons. 107
(s) All pictures and works of art, not kept for or 108
offered for sale as merchandise. 109
(t) The tools of any mechanic necessary for carrying on 110
his trade. 111
(u) All state, county, municipal, levee, drainage and 112
all school bonds or other governmental obligations, and all bonds 113
and/or evidences of debts issued by any church or church 114
organization in this state, and all notes and evidences of 115
indebtedness which bear a rate of interest not greater than the 116
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maximum rate per annum applicable under the law; and all money 117
loaned at a rate of interest not exceeding the maximum rate per 118
annum applicable under the law; and all stock in or bonds of 119
foreign corporations or associations shall be exempt from all ad 120
valorem taxes. 121
(v) All lands and other property situated or located 122
between the Mississippi River and the levee shall be exempt from 123
the payment of any and all road taxes levied or assessed under any 124
road laws of this state. 125
(w) Any and all money on deposit in either national 126
banks, state banks or trust companies, on open account, savings 127
account or time deposit. 128
(x) All wagons, carts, drays, carriages and other 129
horse-drawn vehicles, kept for the use of the owner. 130
(y) (i) Boats, seines and fishing equipment used in 131
fishing and shrimping operations and in the taking or catching of 132
oysters. 133
(ii) All towboats, tugboats and barges documented 134
under the laws of the United States, except watercraft of every 135
kind and character used in connection with gaming operations. 136
(z) (i) All materials used in the construction and/or 137
conversion of vessels in this state; 138
(ii) Vessels while under construction and/or 139
conversion; 140
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(iii) Vessels while in the possession of the 141
manufacturer, builder or converter, for a period of twelve (12) 142
months after completion of construction and/or conversion; 143
however, the twelve-month limitation shall not apply to: 144
1. Vessels used for the exploration for, or 145
production of, oil, gas and other minerals offshore outside the 146
boundaries of this state; or 147
2. Vessels that were used for the exploration 148
for, or production of, oil, gas and other minerals that are 149
converted to a new service for use outside the boundaries of this 150
state; 151
(iv) 1. In order for a vessel described in 152
subparagraph (iii) of this paragraph (z) to be exempt for a period 153
of more than twelve (12) months, the vessel must: 154
a. Be operating or operable, generating 155
or capable of generating its own power or connected to some other 156
power source, and not removed from the service or use for which 157
manufactured or to which converted; and 158
b. The manufacturer, builder, converter 159
or other entity possessing the vessel must be in compliance with 160
any lease or other agreement with any applicable port authority or 161
other entity regarding the vessel and in compliance with all 162
applicable tax laws of this state and applicable federal tax laws. 163
2. A vessel exempt from taxation under 164
subparagraph (iii) of this paragraph (z) may not be exempt for a 165
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period of more than three (3) years unless the board of 166
supervisors of the county and/or governing authorities of the 167
municipality, as the case may be, in which the vessel would 168
otherwise be taxable adopts a resolution or ordinance authorizing 169
the extension of the exemption and setting a maximum period for 170
the exemption. 171
(v) As used in this paragraph (z), the term 172
"vessel" includes ships, offshore drilling equipment, dry docks, 173
boats and barges, except watercraft of every kind and character 174
used in connection with gaming operations. 175
(aa) Sixty-six and two-thirds percent (66-2/3%) of 176
nuclear fuel and reprocessed, recycled or residual nuclear fuel 177
by-products, fissionable or otherwise, used or to be used in 178
generation of electricity by persons defined as public utilities 179
in Section 77-3-3. 180
(bb) All growing nursery stock. 181
(cc) A semitrailer used in interstate commerce. 182
(dd) All property, real or personal, used exclusively 183
for the housing of and provision of services to elderly persons, 184
disabled persons, mentally impaired persons or as a nursing home, 185
which is owned, operated and managed by a not-for-profit 186
corporation, qualified under Section 501(c)(3) of the Internal 187
Revenue Code, whose membership or governing body is appointed or 188
confirmed by a religious society or ecclesiastical body or any 189
congregation thereof. 190
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(ee) All vessels while in the hands of bona fide 191
dealers as merchandise and which are not being operated upon the 192
waters of this state shall be exempt from ad valorem taxes. As 193
used in this paragraph, the terms "vessel" and "waters of this 194
state" shall have the meaning ascribed to such terms in Section 195
59-21-3. 196
(ff) All property, real or personal, owned by a 197
nonprofit organization that: (i) is qualified as tax exempt under 198
Section 501(c)(4) of the Internal Revenue Code of 1986, as 199
amended; (ii) assists in the implementation of the national 200
contingency plan or area contingency plan, and which is created in 201
response to the requirements of Title IV, Subtitle B of the Oil 202
Pollution Act of 1990, Public Law 101-380; (iii) engages primarily 203
in programs to contain, clean up and otherwise mitigate spills of 204
oil or other substances occurring in the United States coastal or 205
tidal waters; and (iv) is used for the purposes of the 206
organization. 207
(gg) If a municipality changes its boundaries so as to 208
include within the boundaries of such municipality the project 209
site of any project as defined in Section 57-75-5(f)(iv)1, Section 210
57-75-5(f)(xxi) or Section 57-75-5(f)(xxviii) or Section 211
57-75-5(f)(xxix), all real and personal property located on the 212
project site within the boundaries of such municipality that is 213
owned by a business enterprise operating such project, shall be 214
exempt from ad valorem taxation for a period of time not to exceed 215
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thirty (30) years upon receiving approval for such exemption by 216
the Mississippi Major Economic Impact Authority. The provisions 217
of this paragraph shall not be construed to authorize a breach of 218
any agreement entered into pursuant to Section 21-1-59. 219
(hh) All leases, lease contracts or lease agreements 220
(including, but not limited to, subleases, sublease contracts and 221
sublease agreements), and leaseholds or leasehold interests 222
(including, but not limited to, subleaseholds and subleasehold 223
interests), of or with respect to any and all property (real, 224
personal or mixed) constituting all or any part of a facility for 225
the manufacture, production, generation, transmission and/or 226
distribution of electricity, and any real property related 227
thereto, shall be exempt from ad valorem taxation during the 228
period as the United States is both the title owner of the 229
property and a sublessee of or with respect to the property; 230
however, the exemption authorized by this paragraph (hh) shall not 231
apply to any entity to whom the United States sub-subleases its 232
interest in the property nor to any entity to whom the United 233
States assigns its sublease interest in the property. As used in 234
this paragraph, the term "United States" includes an agency or 235
instrumentality of the United States of America. This paragraph 236
(hh) shall apply to all assessments for ad valorem taxation for 237
the 2003 calendar year and each calendar year thereafter. 238
(ii) All property, real, personal or mixed, including 239
fixtures and leaseholds, used by Mississippi nonprofit entities 240
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qualified, on or before January 1, 2005, under Section 501(c)(3) 241
of the Internal Revenue Code to provide support and operate 242
technology incubators for research and development start-up 243
companies, telecommunication startup companies and/or other 244
technology startup companies, utilizing technology spun-off from 245
research and development activities of the public colleges and 246
universities of this state, State of Mississippi governmental 247
research or development activities resulting therefrom located 248
within the State of Mississippi. 249
(jj) All property, real, personal or mixed, including 250
fixtures and leaseholds, of start-up companies (as described in 251
paragraph (ii) of this section) for the period of time, not to 252
exceed five (5) years, that the startup company remains a tenant 253
of a technology incubator (as described in paragraph (ii) of this 254
section). 255
(kk) All leases, lease contracts or lease agreements 256
(including, but not limited to, subleases, sublease contracts and 257
sublease agreements), and leaseholds or leasehold interests, of or 258
with respect to any and all property (real, personal or mixed) 259
constituting all or any part of an auxiliary facility, and any 260
real property related thereto, constructed or renovated pursuant 261
to Section 37-101-41. 262
(ll) Equipment brought into the state temporarily for 263
use during a disaster response period as provided in Sections 264
27-113-1 through 27-113-9 and subsequently removed from the state 265
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on or before the end of the disaster response period as defined in 266
Section 27-113-5. 267
(mm) For any lease or contractual arrangement to which 268
the Department of Finance and Administration and a nonprofit 269
corporation are a party to as provided in Section 39-25-1(5), the 270
nonprofit corporation shall, along with the possessory and 271
leasehold interests and/or real and personal property of the 272
corporation, be exempt from all ad valorem taxation, including, 273
but not limited to, school, city and county ad valorem taxes, for 274
the term or period of time stated in the lease or contractual 275
arrangement. 276
(nn) All property, real or personal, that is owned, 277
operated and managed by a not-for-profit corporation qualified under 278
Section 501(c)(3) of the Internal Revenue Code, and used to provide, 279
free of charge, (i) a practice facility for a public school district 280
swim team, and (ii) a facility for another not-for-profit 281
organization as defined under Section 501(c)(3) of the Internal 282
Revenue Code to conduct water safety and lifeguard training programs. 283
This section shall not apply to real or personal property owned by a 284
country club, tennis club with a pool, or any club requiring stock 285
ownership for membership. 286
(oo) Any all-terrain vehicle, as defined in Section 287
63-21-5, when held by a retailer on a consignment or floor plan 288
basis. 289
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ST: Ad valorem tax; exempt certain tractors,
agricultural implements and equipment, and
vehicles.
(pp) Tractors, agricultural implements and equipment, 290
and vehicles, not exempt under Section 27-51-41(2), while in the 291
hands of a bona fide dealer as merchandise on a floor plan, 292
consignment or other basis. 293
SECTION 2. Nothing in this act shall affect or defeat any 294
claim, assessment, appeal, suit, right or cause of action for 295
taxes due or accrued under the ad valorem tax laws before the date 296
on which this act becomes effective, whether such claims, 297
assessments, appeals, suits or actions have been begun before the 298
date on which this act becomes effective or are begun thereafter; 299
and the provisions of the ad valorem tax laws are expressly 300
continued in full force, effect and operation for the purpose of 301
the assessment, collection and enrollment of liens for any taxes 302
due or accrued and the execution of any warrant under such laws 303
before the date on which this act becomes effective, and for the 304
imposition of any penalties, forfeitures or claims for failure to 305
comply with such laws. 306
SECTION 3. This act shall take effect and be in force from 307
and after January 1, 2027. 308