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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Representative Lamar
HOUSE BILL NO. 4033
AN ACT TO IMPOSE A TAX ON THE SALE OF LAND THAT IS USED FOR 1
AGRICULTURAL PURPOSES AND OWNED OR POSSESSED IN MAJORITY PART BY 2
ANY NONRESIDENT ALIEN AT THE TIME OF SALE; TO PROVIDE THE RATE OF 3
THE TAX; TO AMEND SECTION 27-35-50, MISSISSIPPI CODE OF 1972, TO 4
REVISE THE MANNER OF DETERMINING THE TRUE VALUE FOR AD VALOREM TAX 5
PURPOSES OF LAND THAT IS USED FOR AGRICULTURAL PURPOSES AND OWNED 6
OR POSSESSED IN MAJORITY PART BY ANY NONRESIDENT ALIEN; TO DEFINE 7
THE TERMS "NONRESIDENT ALIEN" AND "MAJORITY PART" FOR THE PURPOSES 8
OF THIS ACT; AND FOR RELATED PURPOSES. 9
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 10
SECTION 1. (1) For the purposes of this section, the 11
following words and phrases shall have the meanings ascribed in 12
this subsection unless the context clearly indicates otherwise: 13
(a) "Majority part" means an interest of fifty percent 14
(50%) or more in the aggregate, held by individuals, parties or 15
governments that are nonresident aliens as defined in this 16
section. Majority part shall still apply even if the nonresident 17
alien individuals, parties or governments are not acting in 18
concert. 19
(b) "Nonresident alien" means: 20
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(i) An individual who is domiciled in a country 21
other than the United States and is neither a citizen of the 22
United States nor a resident of the United States within the 23
meaning of 26 USCS Section 7701(b)(1)(A); 24
(ii) A trust, organization, corporation, 25
partnership, limited partnership, limited liability company, 26
trustee or other entity that is: 27
1. Domiciled in a country other than the 28
United States; or 29
2. Domiciled within the United States but 30
which is in the majority part owned by any individual, trust, 31
organization, corporation, partnership, limited partnership, 32
limited liability company, trustee or other entity domiciled in a 33
country other than the United States; or 34
(iii) A foreign government. 35
(2) On the sale of any land that is used for agricultural 36
purposes and owned or possessed in majority part by any 37
nonresident alien at the time of sale, there is imposed and levied 38
a tax at the rate of five percent (5%) on the gain recognized from 39
the sale. 40
SECTION 2. Section 27-35-50, Mississippi Code of 1972, is 41
amended as follows: 42
27-35-50. (1) True value shall mean and include, but shall 43
not be limited to, market value, cash value, actual cash value, 44
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proper value and value for the purposes of appraisal for ad 45
valorem taxation. 46
(2) With respect to each and every parcel of property 47
subject to assessment, the tax assessor shall, in ascertaining 48
true value, consider whenever possible the income capitalization 49
approach to value, the cost approach to value and the market data 50
approach to value, as such approaches are determined by the 51
Department of Revenue. For differing types of categories of 52
property, differing approaches may be appropriate. The choice of 53
the particular valuation approach or approaches to be used should 54
be made by the assessor upon a consideration of the category or 55
nature of the property, the approaches to value for which the 56
highest quality data is available, and the current use of the 57
property. 58
(3) Except as otherwise provided in subsection (4) of this 59
section, in determining the true value of land and improvements 60
thereon, factors to be taken into consideration are the proximity 61
to navigation; to a highway; to a railroad; to a city, town, 62
village or road; and any other circumstances that tend to affect 63
its value, and not what it might bring at a forced sale but what 64
the owner would be willing to accept and would expect to receive 65
for it if he were disposed to sell it to another able and willing 66
to buy. 67
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(4) (a) In arriving at the true value of all Class I and 68
Class II property and improvements, the appraisal shall be made 69
according to current use, regardless of location. 70
(b) (i) Except as otherwise provided in this paragraph 71
(b), in arriving at the true value of any land used for 72
agricultural purposes, the appraisal shall be made according to 73
its use on January 1 of each year, regardless of its location; in 74
making the appraisal, the assessor shall use soil types, 75
productivity and other criteria set forth in the land appraisal 76
manuals of the Department of Revenue, which criteria shall 77
include, but not be limited to, an income capitalization approach 78
with a capitalization rate of not less than ten percent (10%) and 79
a moving average of not more than ten (10) years; however, for the 80
year 2022 and thereafter, the moving average for such land, except 81
land devoted to the production of timber, shall be as follows: 82
for the year 2022, four (4) years; for the year 2023, five (5) 83
years; for the year 2024, six (6) years; for the year 2025, seven 84
(7) years; for the year 2026, eight (8) years; for the year 2027, 85
nine (9) years; and for the year 2028 and thereafter, ten (10) 86
years. However, for the year 1990, the moving average shall not 87
be more than five (5) years; for the year 1991, not more than six 88
(6) years; for the year 1992, not more than seven (7) years; for 89
the year 1993, not more than eight (8) years; and for the year 90
1994, not more than nine (9) years; and for the year 1990, the 91
variation up or down from the previous year shall not exceed 92
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twenty percent (20%) and thereafter, the variation, up or down, 93
from a previous year shall not exceed ten percent (10%) through 94
the year 2018; and for the year 2019 and thereafter, the 95
variation, up or down, from a previous year shall not exceed four 96
percent (4%). Government payments and crop insurance indemnities 97
shall not be included in determining the true value of such land, 98
and a charge for management of each crop equal to twenty-five 99
percent (25%) of the sum of a crop's estimated variable cost, 100
machinery ownership cost, and general farm overhead cost, shall be 101
deducted in determining the true value of such land. The land 102
shall be deemed to be used for agricultural purposes when it is 103
devoted to the commercial production of crops and other commercial 104
products of the soil, including, but not limited to, the 105
production of fruits and timber or the raising of livestock and 106
poultry; however, enrollment in the federal Conservation Reserve 107
Program or in any other United States Department of Agriculture 108
conservation program or the fact that the land is leased for 109
hunting or fishing purposes shall not preclude land being deemed 110
to be used for agricultural purposes solely on the ground that the 111
land is not being devoted to the production of commercial products 112
of the soil, and income derived from participation in the federal 113
program or income derived from a hunting or fishing lease may be 114
used in combination with other relevant criteria to determine the 115
true value of such land. The true value of aquaculture shall be 116
determined in the same manner as that used to determine the true 117
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value of row crops. From and after January 1, 2027, the 118
provisions of this subparagraph (i) shall not apply in arriving at 119
the true value of any land that is used for agricultural purposes 120
and owned or possessed in majority part by any nonresident alien 121
and the true value of such land shall be determined as provided in 122
this section. For the purposes of this subparagraph (i), the term 123
"nonresident alien" means: 124
1. An individual who is domiciled in a 125
country other than the United States and is neither a citizen of 126
the United States nor a resident of the United States within the 127
meaning of 26 USCS Section 7701(b)(1)(A); 128
2. A trust, organization, corporation, 129
partnership, limited partnership, limited liability company, 130
trustee or other entity that is: 131
a. Domiciled in a country other than the 132
United States; or 133
b. Domiciled within the United States 134
but which is in the majority part owned by any individual, trust, 135
organization, corporation, partnership, limited partnership, 136
limited liability company, trustee or other entity domiciled in a 137
country other than the United States; or 138
3. A foreign government. 139
For the purposes of this subparagraph (i), the term "majority 140
part" means an interest of fifty percent (50%) or more in the 141
aggregate, held by individuals, parties or governments that are 142
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nonresident aliens as defined in this subparagraph (i). Majority 143
part shall still apply even if the nonresident alien individuals, 144
parties or governments are not acting in concert. 145
(ii) 1. From and after January 1, 2025, the 146
provisions of this subparagraph (ii) shall govern the valuation of 147
rural structures. The true value of any rural structure appraised 148
before January 1, 2025, shall be recalculated for 2025 and 149
subsequent tax years in accordance with this subparagraph (ii), 150
beginning with a reappraisal of the true value as of the year of 151
the initial appraisal. 152
2. For purposes of this subparagraph (ii), 153
"rural structure" means any rural secondary building covered in 154
Chapter V of the Department of Revenue appraisal manual, as 155
revised December 2020. The term "rural structure" includes, but 156
is not limited to, silos, grain storage bins, barns and poultry 157
houses, but does not include rural dwellings. 158
3. In arriving at the true value of a rural 159
structure in operation on or before January 1, 2025, the assessor 160
shall follow the guidelines in the Department of Revenue appraisal 161
manual in use immediately prior to the version revised December 162
2020. In arriving at the true value of a rural structure placed 163
in operation after January 1, 2025, the assessor shall follow the 164
guidelines in the most current version of the Department of 165
Revenue appraisal manual. 166
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4. After the initial appraisal, the true 167
value of a rural structure shall be based solely on depreciation 168
on a straight-line basis at a rate of seven percent (7%) per year. 169
For as long as the poultry house remains usable and in production, 170
net depreciation shall not fall below twenty percent (20%) of the 171
original true value. Once the twenty-percent threshold is 172
reached, no further depreciation shall be applied for the duration 173
of the operational life of the poultry house. 174
5. Starting with land roll 2009, an 175
adjustment of forty-five percent (45%) for economic obsolescence 176
shall be applied to all poultry houses used in commercial farming 177
operations. 178
6. If any provision in this subparagraph (ii) 179
is found to conflict with any other provision in this section, the 180
provision of this subparagraph (ii) shall control. 181
(c) In determining the true value based upon current 182
use, no consideration shall be taken of the prospective value such 183
property might have if it were put to some other possible use. 184
(d) In arriving at the true value of affordable rental 185
housing, the assessor shall use the appraisal procedure set forth 186
in land appraisal manuals of the Department of Revenue. Such 187
procedure shall prescribe that the appraisal shall be made 188
according to actual net operating income attributable to the 189
property, capitalized at a market value capitalization rate 190
prescribed by the Department of Revenue that reflects the 191
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prevailing cost of capital for commercial real estate in the 192
geographical market in which the affordable rental housing is 193
located adjusted for the enhanced risk that any recorded land use 194
regulation places on the net operating income from the property. 195
The owner of affordable rental housing shall provide to the county 196
tax assessor on or before April 1 of each year, an accurate 197
statement of the actual net operating income attributable to the 198
property for the immediately preceding year prepared in accordance 199
with generally acceptable accounting principles. As used in this 200
paragraph: 201
(i) "Affordable rental housing" means residential 202
housing consisting of one or more rental units, the construction 203
and/or rental of which is subject to Section 42 of the Internal 204
Revenue Code (26 USC 42), the Home Investment Partnership Program 205
under the Cranston-Gonzalez National Affordable Housing Act (42 206
USC 12741 et seq.), the Federal Home Loan Banks Affordable Housing 207
Program established pursuant to the Financial Institutions Reform, 208
Recovery and Enforcement Act (FIRREA) of 1989 (Public Law 101-73), 209
or any other federal, state or similar program intended to provide 210
affordable housing to persons of low or moderate income and the 211
occupancy and maximum rental rates of such housing are restricted 212
based on the income of the persons occupying such housing. 213
(ii) "Land use regulation" means a restriction 214
imposed by an extended low-income housing agreement or other 215
covenant recorded in the applicable land records or by applicable 216
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law or regulation restricting the maximum income of residents 217
and/or the maximum rental rate in the affordable rental housing. 218
(e) In arriving at the true value of ground leases on 219
real property leased by the Mississippi State Port at Gulfport, 220
the assessor shall use the appraisal procedure set forth in land 221
appraisal manuals of the Department of Revenue. Such procedure 222
shall prescribe that the appraisal shall be made according to 223
actual net ground rent attributable to the leased premises, 224
capitalized at a market value capitalization rate prescribed by 225
the Department of Revenue that reflects the prevailing cost of 226
capital of commercial real estate in the geographical market in 227
which the Mississippi State Port at Gulfport is located. As used 228
in this paragraph (e): 229
(i) "Ground leases" means those leases of land 230
where the Mississippi State Port at Gulfport is the landlord and a 231
person or business entity is the tenant. 232
(ii) "Ground rent" means the rent paid to the 233
Mississippi State Port at Gulfport in a set amount for a specific 234
length of tenancy where the amount of rent may be adjusted from 235
time to time based upon market indices, such as the consumer price 236
index. Ground rent does not include percentage rent and rent 237
based on improvements or any other type of rental payment. 238
(iii) "Percentage rent" means the rent paid to the 239
Mississippi State Port at Gulfport that is calculated based upon 240
revenue generated by the tenant by virtue of the ground lease. 241
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ST: Agricultural land; impose tax on sale of
certain foreign owned.
(iv) "Rent based on improvements" means the rent 242
paid to the Mississippi State Port at Gulfport that is calculated 243
based upon investments in improvements to the leased premises made 244
by tenant. 245
(5) The true value of each class of property shall be 246
determined annually. 247
(6) The Department of Revenue shall have the power to adopt, 248
amend or repeal such rules or regulations in a manner consistent 249
with the Constitution of the State of Mississippi to implement the 250
duties assigned to the department in this section. 251
(7) When promulgating its annual table of inflation factors 252
for industrial property, the Department of Revenue shall include 253
commercial solar and wind facilities as a separate category of 254
industrial property. If Marshall Valuation Service has not 255
provided an inflation factor for commercial solar and wind 256
facilities for a particular year, the department shall set such 257
inflation factor at 1.000. 258
SECTION 3. Section 1 of this act shall be codified as a new 259
section in Chapter 7, Title 27, Mississippi Code of 1972. 260
SECTION 4. This act shall take effect and be in force from 261
and after July 1, 2026. 262