"Stop Predatory Investing Act of 2026"; deny tax deductions for large institutional real estate investors.

S. B. No. 2870 *SS26/R1208* ~ OFFICIAL ~ R3/5
26/SS26/R1208
PAGE 1 (rdd\tb)

To: Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) McLendon

SENATE BILL NO. 2870

AN ACT ENTITLED THE "STOP PREDATORY INVESTING ACT OF 2026" TO 1
LIMIT LARGE-SCALE CORPORATE PURCHASES OF SINGLE-FAMILY HOMES BY 2
DENYING TAX DEDUCTIONS FOR INTEREST AND DEPRECIATION ON PROPERTIES 3
OWNED BY INSTITUTIONAL REAL ESTATE INVESTORS HOLDING 50 OR MORE 4
SUCH HOMES WITH EXCEPTIONS FOR SALES TO HOMEBUYERS OR NONPROFITS; 5
TO PROVIDE DEFINITIONS; TO AMEND SECTION 27-7-5, MISSISSIPPI CODE 6
OF 1972, TO CONFORM TO THE MISSISSIPPI INCOME TAX LAW; AND FOR 7
RELATED PURPOSES. 8
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 9
SECTION 1. (1) This act shall be known and may be cited as 10
the "Stop Predatory Investing Act of 2026." 11
(2) It is the intent of Legislature to prohibit large 12
institutional investors from buying multiple single-family homes 13
and destroying property value and neighborhood integrity and 14
characteristics. 15
(3) With respect to any taxable year beginning with the year 16
ending December 31, 2026, in the case of any institutional real 17
estate investor who owns, directly or indirectly, fifty (50) or 18
more single-family residential rental properties, no deduction 19
shall be allowed under the Mississippi Income Tax Law for any 20
interest paid or depreciation accrued in connection with any such 21
S. B. No. 2870 *SS26/R1208* ~ OFFICIAL ~
26/SS26/R1208
PAGE 2 (rdd\tb)

single family residential rental property. This disqualification 22
in this subsection (3) shall not apply to a sale to an individual 23
for use as the principle residence of the individual, or to a sale 24
to any qualified nonprofit organization. The deductions 25
prohibited under this subsection shall not be applicable with 26
respect to any property which was constructed by the taxpayer or 27
acquired by the taxpayer after its construction but before the 28
first date on which any dwelling unit in such property was 29
occupied by a resident. 30
(4) For purposes of this subsection, the term: 31
(a) "Institutional real estate investor" means large 32
pension funds, insurance companies, university endowments, asset 33
managers and real estate investment trusts which invest over One 34
Million Dollars ($1,000,000.00) annually to generate returns and 35
stable income for beneficiaries and include all legal corporate or 36
partnership or limited liability entities. 37
(b) "Qualified nonprofit organization" means any 38
organization which is not organized for profit, and has as a 39
principal purpose the creation, development or preservation of 40
affordable housing. 41
(c) "Single-family residential rental property" means 42
any residential rental property which contains four (4) or fewer 43
dwelling units and improvements to real property directly related 44
to such dwelling units located on the site of such dwelling units. 45
S. B. No. 2870 *SS26/R1208* ~ OFFICIAL ~
26/SS26/R1208
PAGE 3 (rdd\tb)

SECTION 2. Section 27-7-5, Mississippi Code of 1972, is 46
amended as follows: 47
27-7-5. (1) (a) Except as otherwise provided in this 48
section, there is hereby assessed and levied, to be collected and 49
paid as hereinafter provided, for the calendar year 1983 and 50
fiscal years ending during the calendar year 1983 and all taxable 51
years thereafter, upon the entire net income of every resident 52
individual, corporation, association, trust or estate, in excess 53
of the credits provided, a tax at the following rates: 54
(i) 1. Through calendar year 2017, on the first 55
Five Thousand Dollars ($5,000.00) of taxable income, or any part 56
thereof, the rate shall be three percent (3%); 57
2. For calendar year 2018, on the first One 58
Thousand Dollars ($1,000.00) of taxable income there shall be no 59
tax levied, and on the next Four Thousand Dollars ($4,000.00) of 60
taxable income, or any part thereof, the rate shall be three 61
percent (3%); 62
3. For calendar year 2019, on the first Two 63
Thousand Dollars ($2,000.00) of taxable income there shall be no 64
tax levied, and on the next Three Thousand Dollars ($3,000.00) of 65
taxable income, or any part thereof, the rate shall be three 66
percent (3%); 67
4. For calendar year 2020, on the first Three 68
Thousand Dollars ($3,000.00) of taxable income there shall be no 69
tax levied, and on the next Two Thousand Dollars ($2,000.00) of 70
S. B. No. 2870 *SS26/R1208* ~ OFFICIAL ~
26/SS26/R1208
PAGE 4 (rdd\tb)

taxable income, or any part thereof, the rate shall be three 71
percent (3%); 72
5. For calendar year 2021, on the first Four 73
Thousand Dollars ($4,000.00) of taxable income there shall be no 74
tax levied, and on the next One Thousand Dollars ($1,000.00) of 75
taxable income, or any part thereof, the rate shall be three 76
percent (3%); 77
6. For calendar year 2022 and all taxable 78
years thereafter, there shall be no tax levied on the first Five 79
Thousand Dollars ($5,000.00) of taxable income; 80
(ii) On taxable income in excess of Five Thousand 81
Dollars ($5,000.00) up to and including Ten Thousand Dollars 82
($10,000.00), or any part thereof, the rate shall be four percent 83
(4%); and 84
(iii) On all taxable income in excess of Ten Thousand 85
Dollars ($10,000.00), the rate shall be five percent (5%). 86
(b) (i) For calendar year 2023 and all calendar years 87
thereafter, there shall be no tax levied under subparagraph (ii) 88
of paragraph (a) of this subsection on the taxable income of 89
individuals in excess of Five Thousand Dollars ($5,000.00) up to 90
and including Ten Thousand Dollars ($10,000.00), or any part 91
thereof; and 92
(ii) For calendar year 2024 and all calendar years 93
thereafter, the tax imposed under subparagraph (iii) of paragraph 94
(a) of this subsection upon all taxable income of individuals in 95
S. B. No. 2870 *SS26/R1208* ~ OFFICIAL ~
26/SS26/R1208
PAGE 5 (rdd\tb)

excess of Ten Thousand Dollars ($10,000.00), shall be at the 96
following rates: 97
1. For calendar year 2024, on such taxable 98
income, the rate shall be four and seven-tenths percent (4.7%); 99
2. For calendar year 2025, on such taxable 100
income, the rate shall be four and four-tenths percent (4.4%); 101
3. For calendar year 2026, on such taxable 102
income, the rate shall be four percent (4%); 103
4. For calendar year 2027, on such taxable 104
income, the rate shall be three and three-quarters percent 105
(3.75%); 106
5. For calendar year 2028, on such taxable 107
income, the rate shall be three and one-half percent (3.5%); 108
6. For calendar year 2029, on such taxable 109
income, the rate shall be three and one-quarter percent (3.25%); 110
and 111
7. For calendar year 2030 and all calendar 112
years thereafter, except as otherwise provided in Section 113
27-7-5.1, on such taxable income, the rate shall be three percent 114
(3%). 115
(2) An S corporation, as defined in Section 27-8-3(1)(g), 116
shall not be subject to the income tax imposed under this section. 117
(3) A like tax is hereby imposed to be assessed, collected 118
and paid annually, except as hereinafter provided, at the rate 119
specified in this section and as hereinafter provided, upon and 120
S. B. No. 2870 *SS26/R1208* ~ OFFICIAL ~
26/SS26/R1208
PAGE 6 (rdd\tb)

with respect to the entire net income, from all property owned or 121
sold, and from every business, trade or occupation carried on in 122
this state by individuals, corporations, partnerships, trusts or 123
estates, not residents of the State of Mississippi. 124
(4) In the case of taxpayers having a fiscal year beginning 125
in a calendar year with a rate in effect that is different than 126
the rate in effect for the next calendar year and ending in the 127
next calendar year, the tax due for that taxable year shall be 128
determined by: 129
(a) Computing for the full fiscal year the amount of 130
tax that would be due under the rates in effect for the calendar 131
year in which the fiscal year begins; and 132
(b) Computing for the full fiscal year the amount of 133
tax that would be due under the rates in effect for the calendar 134
year in which the fiscal year ends; and 135
(c) Applying to the tax computed under paragraph (a) 136
the ratio which the number of months falling within the earlier 137
calendar year bears to the total number of months in the fiscal 138
year; and 139
(d) Applying to the tax computed under paragraph (b) 140
the ratio which the number of months falling within the later 141
calendar year bears to the total number of months within the 142
fiscal year; and 143
S. B. No. 2870 *SS26/R1208* ~ OFFICIAL ~
26/SS26/R1208
PAGE 7 (rdd\tb)
ST: "Stop Predatory Investing Act of 2026";
deny tax deductions for large institutional real
estate investors.
(e) Adding to the tax determined under paragraph (c) 144
the tax determined under paragraph (d) the sum of which shall be 145
the amount of tax due for the fiscal year. 146
(5) Effective with taxable year ending 2026, any income tax 147
levied under this chapter and any deduction allowed under this 148
chapter shall be in compliance with the provisions of the "Stop 149
Predatory Investing Act of 2026" provided in this Senate Bill 150
No._____ (2026 Regular Session) which prohibits institutional real 151
estate investors from purchasing large parcels of single-family 152
properties and taking tax deductions. 153
SECTION 3. This act shall take effect and be in force from 154
and after July 1, 2026. 155