"Mississippi Forest and Agricultural Landowners' Fairness Act"; create.

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To: State Affairs
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Yancey

HOUSE BILL NO. 555

AN ACT TO ESTABLISH THE "MISSISSIPPI FOREST AND AGRICULTURAL 1
LANDOWNERS' FAIRNESS ACT"; TO DEFINE TERMINOLOGY AND PRESCRIBE THE 2
PURPOSE FOR WHICH THE LEGISLATION IS INTENDED IN AN EFFORT TO 3
PREVENT MISSISSIPPI TAXPAYERS FROM SUBSIDIZING THE TAXES OF 4
NONRESIDENT ALIENS AND FEDERALLY TAX-EXEMPT ENTITIES OWNING OR 5
HAVING POSSESSORY INTERESTS IN FOREST AND AGRICULTURAL LAND 6
LOCATED IN THE STATE; TO PROHIBIT ANY STATE TAX EXEMPTIONS ON THE 7
ASSESSED VALUE OF FOREST AND AGRICULTURAL LAND TO NONRESIDENT 8
ALIENS AND FEDERALLY TAX-EXEMPT ENTITIES THAT OWN OR HAVE A 9
POSSESSORY INTEREST IN SUCH LANDS LOCATED IN THE STATE; TO REQUIRE 10
SUCH ENTITIES TO PAY THE SAME RATE OF INCOME AND FRANCHISE TAXES 11
AS OTHER BUSINESS CORPORATIONS IN THE STATE UNTIL JANUARY 1, 2028, 12
WHEN THOSE TAXES UPON SUCH BUSINESS CORPORATIONS REPEAL BY 13
OPERATION OF LAW; TO REQUIRE ALL NONRESIDENT ALIENS AND ALL 14
FEDERALLY TAX-EXEMPT ENTITIES OWNING ANY POSSESSORY INTEREST IN 15
FORESTRY AND AGRICULTURAL LAND TO FILE A FULL DISCLOSURE OF ALL 16
OWNERSHIP INFORMATION OF EACH TRACT OF LAND IT OWNS WITH A 17
DESCRIPTION OF EACH TRACT AS IS DESCRIBED IN ITS DEED OR DEEDS TO 18
THE OFFICE OF THE SECRETARY OF STATE WITHIN SIX MONTHS OF PASSAGE 19
OF THIS ACT; TO REQUIRE FUTURE TRANSFERS BY THESE PARTIES TO BE 20
FILED WITH THE SECRETARY OF STATE WITHIN 90 DAYS OF THE TRANSFER; 21
TO REQUIRE THE SECRETARY OF STATE TO MAKE THE OWNERSHIP DISCLOSURE 22
INFORMATION AVAILABLE ON ITS WEBSITE; TO REQUIRE THE DEPARTMENT OF 23
REVENUE TO FILE A TAX LIEN WITH THE CIRCUIT CLERK OF EACH COUNTY 24
IN WHICH LAND IS LOCATED FOR TAXES MORE THAN 180-DAYS DELINQUENT; 25
TO PROVIDE THAT THE DELINQUENCY ON A SINGLE PROPERTY SHALL RESULT 26
IN A TAX LIEN ON ALL LAND OWNED BY THE DELINQUENT TAXPAYER IN THAT 27
COUNTY; AND FOR RELATED PURPOSES. 28
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 29
SECTION 1. This act shall be known as the "Mississippi 30
Forest and Agricultural Landowners' Fairness Act". 31
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SECTION 2. The purpose of this act is to end the unintended 32
consequence of requiring all Mississippi taxpayers to subsidize 33
the taxes of nonresident aliens and federally tax-exempt entities 34
who owns or has a possessory interest in forest and agricultural 35
land in Mississippi. 36
SECTION 3. As used in this act, the following words shall 37
have the meanings herein ascribed, unless the context clearly 38
requires otherwise: 39
(a) "Forest and agricultural land" means any land in 40
the state devoted to the growing of trees or the commercial 41
production of agricultural products or timber, wood or forest 42
products, including nongaming species. Where the land is 43
classified by the county as forest, agricultural, pasture or open 44
land and being used as forest or agricultural land in the 45
performance of forestry or agricultural activities there shall be 46
a prima facie case as to the purpose to which the land is devoted, 47
though such classification shall not be required. 48
(b) "Nonresident alien" means: 49
(i) An individual who is domiciled in a country 50
other than the United States and is neither a citizen of the 51
United States nor a resident of the United States within the 52
meaning of 26 USCS Section 7701(b)(1)(A); 53
(ii) The government of a foreign country; or 54
(iii) A corporation, partnership, limited 55
partnership, limited liability company, trustee, foundation, 56
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retirement or pension fund, or any other entity that is domiciled 57
in a country other than the United States, or that is domiciled 58
within the United States, but is wholly or partly owned by any 59
corporation, partnership, limited liability company, trustee, 60
retirement or pension fund or any other entity domiciled in a 61
country other than the United States. 62
An exception to these categories is any corporation or 63
limited partnership that is listed on a United States stock 64
exchange. 65
(c) "Federally tax-exempt entity" means any 66
corporation, partnership, limited partnership, limited liability 67
company, trustee, foundation, retirement or pension fund or any 68
other entity that is exempt from taxes to the United States for 69
charitable, religious, retirement or any other reason, but is not 70
primarily for the benefit of Mississippi residents. 71
SECTION 4. Nonresident aliens and federally tax-exempt 72
entities owning or having a possessory interest in forestry and 73
agricultural land shall not be exempt from any taxes payable to 74
the Mississippi Department of Revenue based upon the annual 75
assessed value of the land as determined by the local tax assessor 76
of the county wherein the forestry or agricultural land is 77
located. Any such entity shall pay income taxes at the same rate 78
as a business corporation. Additionally, any such entity shall 79
pay franchise taxes at the same rate as other business 80
corporations until such time that the Mississippi franchise tax is 81
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repealed by operation of law upon the conclusion of the 2027 tax, 82
effective on January 1, 2028, as provided by Section 5, Chapter 83
499, Laws of 2016. 84
SECTION 5. (1) All nonresident aliens and all federally 85
tax-exempt entities owning any possessory interest in forestry and 86
agricultural land shall, within six (6) months of passage of this 87
act, file with the Office of the Secretary of State information 88
detailing full disclosure of all ownership information of each 89
tract of land it owns, together with a description of each tract 90
as is described in its deed or deeds. The disclosure shall 91
include names and addresses of all parties and percentages of 92
ownership. All future transfers of any such interest shall 93
likewise be filed with the Secretary of State within ninety (90) 94
days of the transfer whether by deed or by a conveyance of an 95
interest in land without executing a deed, such as in the case of 96
internally transferring any interest in a corporation, 97
partnership, limited partnership, limited liability company, 98
foundation, retirement or pension fund, or other entity. The 99
Secretary of State shall make this information available on its 100
website for the public and the Department of Revenue to have easy 101
access. 102
(2) Failure of the required party to file the necessary 103
information in a timely manner will result in fines imposed on any 104
delinquent landowner and shall be based on guidelines determined 105
by the Department of Revenue. 106
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ST: "Mississippi Forest and Agricultural
Landowners' Fairness Act"; create.
(3) The Department of Revenue shall file a tax lien with the 107
Circuit Clerk of each county in which land is located for which 108
taxes are delinquent for more than one hundred eighty (180) days. 109
This filing shall result in a tax lien on all land owned by the 110
delinquent taxpayer in that county and be subject to the same 111
rules of collection and enforcement as are in effect for 112
delinquent sales taxes and other taxes. 113
SECTION 6. The State of Mississippi currently assesses all 114
forest and agricultural land by reducing the market value, cash 115
value, actual cash value, and proper value of the land by using a 116
formula set forth in Section 27-35-50(4)(b), which shall remain in 117
full force and effect, except that it shall no longer be used to 118
determine the true value of any forest and agricultural land which 119
is owned or possessed in whole or in part by a nonresident alien 120
or federally tax-exempt entity as defined by this act. All land 121
in which a nonresident alien or a federally tax-exempt entity has 122
an ownership or possessory interest shall be taxed by arriving at 123
its true value as determined by an appraisal based solely on its 124
fair market value, cash value, actual value and its proper value. 125
This fair market value appraisal method shall be based on the 126
value of the raw land without infrastructure or improvement, and 127
shall not include any additional value of the timber or any other 128
crop growing or situated on the land. 129
SECTION 7. This act shall take effect and be in force from 130
and after July 1, 2026. 131