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To: Accountability,
Efficiency, Transparency;
Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Senator(s) McLendon
SENATE BILL NO. 2274
AN ACT TO AMEND SECTION 27-41-1, MISSISSIPPI CODE OF 1972, TO 1
DISALLOW A PROCESSING FEE TO BE CHARGED ON DEBIT CARD PAYMENTS FOR 2
AD VALOREM TAXES; TO AMEND SECTIONS 27-104-33 AND 17-25-1, 3
MISSISSIPPI CODE OF 1972, TO CONFORM; AND FOR RELATED PURPOSES. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 5
SECTION 1. Section 27-41-1, Mississippi Code of 1972, is 6
amended as follows: 7
27-41-1. (1) Except as may otherwise be provided in Section 8
27-41-2, all state, county, school, road, levee and other taxing 9
districts and municipal ad valorem taxes, except ad valorem taxes 10
levied for county or district or municipal bonds and other 11
evidences of indebtedness for money borrowed, and interest 12
thereon, heretofore or hereafter assessed or levied shall be due, 13
payable and collectible by the tax collector and shall be paid on 14
or before the first day of February next succeeding the date of 15
the assessment and levying of such taxes. All taxes levied for 16
county and district and municipal bonds and interest thereon, or 17
betterment or improvement assessments, shall be paid by each 18
person assessed therewith on or before the first day of February 19
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next succeeding the date of the assessment and levying of the 20
same, at the time of payment of the state and county ad valorem 21
taxes, except as otherwise hereinafter provided in this chapter. 22
The tax collector shall begin to accept payment for such ad 23
valorem taxes or assessments not later than December 26 of the 24
year prior to the year in which such taxes are required to be 25
paid. 26
Any county may, by an order spread upon the minutes of the 27
board of supervisors, allow the acceptance of partial payments for 28
ad valorem taxes. Any municipality wherein municipal taxes are 29
not collected by the county may, by an order spread upon the 30
minutes of the governing authority of said municipality, allow the 31
acceptance of partial payments for ad valorem taxes. If said 32
partial payments are allowed by the county or municipality, said 33
partial payments shall be made as follows: 34
(a) One-half (1/2) of all ad valorem taxes due shall be 35
paid on or before February 1. 36
(b) One-fourth (1/4) of all ad valorem taxes, interest 37
and penalty due shall be paid on or before May 1. 38
(c) One-fourth (1/4) of all ad valorem taxes, interest 39
and penalty due shall be paid on or before July 1. 40
If any unpaid balance exists on August 1, then the lands 41
shall be sold at the land sale on the last Monday in August for 42
said unpaid balance. 43
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All ad valorem taxes, however, assessed against motor 44
vehicles as prescribed by the Motor Vehicle Ad Valorem Tax Law of 45
1958, for any and all purposes and in any and all jurisdictions, 46
shall be paid in full on the date such taxes are due and payable. 47
(2) Ad valorem tax payments may be made by cash, check, 48
credit cards, charge cards, debit cards and other forms of 49
electronic payment in accordance with policies established by the 50
State Auditor, as well as any other payment methods as deemed 51
appropriate by the collecting agency. If the ad valorem tax 52
payment is made using a debit card, the party making the payment 53
shall not be charged an electronic payment processing fee by the 54
collecting agency. 55
SECTION 2. Section 27-104-33, Mississippi Code of 1972, is 56
amended as follows: 57
27-104-33. The State Department of Finance and 58
Administration shall establish policies that allow the payment of 59
various fees and other accounts receivable to state agencies, and 60
the payment for retail merchandise sold by state agencies, by 61
credit cards, charge cards, debit cards and other forms of 62
electronic payment in the discretion of the department. Any fees 63
or charges associated with the use of such electronic payments 64
shall be assessed to the user of the electronic payment as an 65
additional charge for processing the electronic payment, so that 66
the user will pay the full cost of using the electronic payment. 67
The processing fee for the electronic payment shall not be charged 68
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to parties who are making debit card payments toward their ad 69
valorem taxes. 70
Agencies, with the approval of the Department of Finance and 71
Administration, may bear the full cost of processing such 72
electronic payments if the agency can demonstrate to the 73
department's satisfaction that they are able to assume these costs 74
and provide the related service for the same or lesser cost. 75
However, state agencies may bear the full cost of processing such 76
electronic payments for retail merchandise sold by state agencies. 77
SECTION 3. Section 17-25-1, Mississippi Code of 1972, is 78
amended as follows: 79
17-25-1. The board of supervisors of any county and the 80
governing authorities of any municipality may allow the payment of 81
various taxes, fees and other accounts receivable to the county or 82
municipality, and the payment for retail merchandise sold by the 83
county or municipality, by credit cards, charge cards, debit cards 84
and other forms of electronic payment, in accordance with policies 85
established by the State Auditor. Except as otherwise provided in 86
this section, any fees or charges associated with the use of such 87
electronic payments shall be assessed to the user of the 88
electronic payment as an additional charge for processing the 89
electronic payment, so that the user will pay the full cost of 90
using the electronic payment. However, the processing fee for the 91
electronic payment shall not be charged to parties who are making 92
debit card payments toward their ad valorem taxes. A county or 93
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ST: Local governments; disallow processing fee
for ad valorem tax when paying with a debit
card.
municipality shall not charge the user any additional amount above 94
the processing fee on each transaction. For purposes of this 95
section, the term "accounts receivable" includes, but is not 96
limited to, judgments, fines, costs and penalties imposed upon 97
conviction for criminal and traffic offenses. A county or 98
municipality may bear the full cost of processing such electronic 99
payments for retail merchandise sold by the county or 100
municipality. 101
SECTION 4. This act shall take effect and be in force from 102
and after July 1, 2026. 103