Inventory tax; eliminate, and reimburse lost revenue to local governments through legislative appropriations.

S. B. No. 3163 *SS26/R356* ~ OFFICIAL ~ R3/5
26/SS26/R356
PAGE 1 (icj\kr)

To: Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Blackmon

SENATE BILL NO. 3163

AN ACT TO AMEND SECTION 27-31-1, MISSISSIPPI CODE OF 1972, TO 1
EXEMPT FROM AD VALOREM TAXATION THE ENTIRE ASSESSED VALUE OF 2
COMMODITIES, RAW MATERIALS, WORKS-IN-PROCESS, PRODUCTS, GOODS, 3
WARES AND MERCHANDISE HELD FOR RESALE BY A MANUFACTURER, 4
DISTRIBUTOR, WHOLESALE OR RETAIL MERCHANT; TO PROVIDE THAT SUCH 5
ASSESSED VALUE MAY BE DETERMINED BY PHYSICAL COUNT OR BOOK VALUE, 6
AT THE OPTION OF THE MANUFACTURER, DISTRIBUTOR, WHOLESALE OR 7
RETAIL MERCHANT; TO EXEMPT FROM AD VALOREM TAXATION THE ENTIRE 8
ASSESSED VALUE OF ELIGIBLE PERSONAL PROPERTY THAT IS OWNED BY A 9
BUSINESS ENTERPRISE AND USED BY THE BUSINESS ENTERPRISE SOLELY ON 10
THE PREMISES OF THE BUSINESS ENTERPRISE IN THE OPERATION OF THE 11
ENTERPRISE; TO SPECIFY THAT "ELIGIBLE PERSONAL PROPERTY" MEANS 12
FURNITURE, FIXTURES OR EQUIPMENT CLASSIFIED AS PERSONAL PROPERTY 13
FOR PURPOSES OF AD VALOREM TAXATION BUT DOES NOT INCLUDE MOTOR 14
VEHICLES OR CLASS IV PROPERTY AS DEFINED IN SECTION 112 OF THE 15
MISSISSIPPI CONSTITUTION OF 1890; TO CREATE A NEW CODE SECTION TO 16
EXPRESS THE INTENT OF THE LEGISLATURE THAT ANY LOSS OF REVENUE 17
INCURRED BY A COUNTY, MUNICIPALITY, OR SCHOOL DISTRICT RESULTING 18
FROM THE ELIMINATION OF THE INVENTORY TAX BE REIMBURSED TO THE 19
RESPECTIVE LOCAL GOVERNMENT ENTITY THROUGH LEGISLATIVE 20
APPROPRIATION; TO REQUIRE THAT THE AMOUNT OF COUNTY, MUNICIPAL AND 21
SCHOOL DISTRICT INVENTORY TAX THAT WOULD HAVE BEEN LEVIED BE 22
CERTIFIED TO THE DEPARTMENT OF REVENUE, WHICH SHALL COMPILE THE 23
DATA AND REPORT IT TO THE LEGISLATURE NO LATER THAN NOVEMBER 1 OF 24
EACH YEAR; TO AUTHORIZE THE DEPARTMENT OF REVENUE TO PROMULGATE 25
RULES AND REGULATIONS TO ADMINISTER THESE REPORTING PROVISIONS; TO 26
BRING FORWARD SECTION 27-7-22.5, MISSISSIPPI CODE OF 1972, WHICH 27
PROVIDES AN INCOME TAX CREDIT FOR AD VALOREM TAXES PAID ON 28
COMMODITIES, RAW MATERIALS, WORKS-IN-PROCESS, PRODUCTS, GOODS, 29
WARES AND MERCHANDISE HELD FOR RESALE BY ANY MANUFACTURER, 30
DISTRIBUTOR, WHOLESALE OR RETAIL MERCHANT, FOR THE PURPOSE OF 31
POSSIBLE AMENDMENT; TO BRING FORWARD SECTION 27-35-15, MISSISSIPPI 32
CODE OF 1972, WHICH PROVIDES THE METHOD OF ASSESSING PERSONAL 33
S. B. No. 3163 *SS26/R356* ~ OFFICIAL ~
26/SS26/R356
PAGE 2 (icj\kr)

PROPERTY, FOR THE PURPOSE OF POSSIBLE AMENDMENT; AND FOR RELATED 34
PURPOSES. 35
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 36
SECTION 1. Section 27-31-1, Mississippi Code of 1972, is 37
amended as follows: 38
27-31-1. The following shall be exempt from taxation: 39
(a) All cemeteries used exclusively for burial 40
purposes. 41
(b) All property, real or personal, belonging to the 42
State of Mississippi or any of its political subdivisions, except 43
property of a municipality not being used for a proper municipal 44
purpose and located outside the county or counties in which such 45
municipality is located. A proper municipal purpose within the 46
meaning of this section shall be any authorized governmental or 47
corporate function of a municipality. 48
(c) All property, real or personal, owned by units of 49
the Mississippi National Guard, or title to which is vested in 50
trustees for the benefit of any unit of the Mississippi National 51
Guard; provided such property is used exclusively for such unit, 52
or for public purposes, and not for profit. 53
(d) All property, real or personal, belonging to any 54
religious society, or ecclesiastical body, or any congregation 55
thereof, or to any charitable society, or to any historical or 56
patriotic association or society, or to any garden or pilgrimage 57
club or association and used exclusively for such society or 58
association and not for profit; not exceeding, however, the amount 59
S. B. No. 3163 *SS26/R356* ~ OFFICIAL ~
26/SS26/R356
PAGE 3 (icj\kr)

of land which such association or society may own as provided in 60
Section 79-11-33. All property, real or personal, belonging to 61
any foundation organized as a nonprofit corporation that is exempt 62
from federal income taxation under Section 501(c)(3) of the 63
Internal Revenue Code and that receives, invests and administers 64
private support for a state-supported institution of higher 65
learning, a public community college or junior college located in 66
the State of Mississippi or a nonprofit private university or 67
college located in the State of Mississippi, as the case may be. 68
For the sole purpose of applying the preceding sentence, all 69
property, real or personal, belonging to an entity that is wholly 70
owned by and controlled by such a foundation shall be treated as 71
belonging to the foundation, provided such property is not leased 72
or otherwise used to generate revenue that is not used exclusively 73
to benefit an institution described above. All property, real or 74
personal, belonging to any rural waterworks system or rural sewage 75
disposal system incorporated under the provisions of Section 76
79-11-1. All property, real or personal, belonging to any college 77
or institution for the education of youths, used directly and 78
exclusively for such purposes, provided that no such college or 79
institution for the education of youths shall have exempt from 80
taxation more than six hundred forty (640) acres of land; 81
provided, however, this exemption shall not apply to commercial 82
schools and colleges or trade institutions or schools where the 83
profits of same inure to individuals, associations or 84
S. B. No. 3163 *SS26/R356* ~ OFFICIAL ~
26/SS26/R356
PAGE 4 (icj\kr)

corporations. All property, real or personal, belonging to an 85
individual, institution or corporation and used for the operation 86
of a grammar school, junior high school, high school or military 87
school. All property, real or personal, owned and occupied by a 88
fraternal and benevolent organization, when used by such 89
organization, and from which no rentals or other profits accrue to 90
the organization, but any part rented or from which revenue is 91
received shall be taxed. 92
(e) All property, real or personal, held and occupied 93
by trustees of public schools, and school lands of the respective 94
townships for the use of public schools, and all property kept in 95
storage for the convenience and benefit of the State of 96
Mississippi in warehouses owned or leased by the State of 97
Mississippi, wherein said property is to be sold by the Alcoholic 98
Beverage Control Division of the Department of Revenue. 99
(f) All property, real or personal, whether belonging 100
to religious or charitable or benevolent organizations, which is 101
used for hospital purposes, and nurses' homes where a part 102
thereof, and which maintain one or more charity wards that are for 103
charity patients, and where all the income from said hospitals and 104
nurses' homes is used entirely for the purposes thereof and no 105
part of the same for profit. All property, real or personal, 106
belonging to a federally qualified health center where all the 107
income from such center is used entirely for the purposes thereof 108
and no part of the same for profit. 109
S. B. No. 3163 *SS26/R356* ~ OFFICIAL ~
26/SS26/R356
PAGE 5 (icj\kr)

(g) The wearing apparel of every person; and also 110
jewelry and watches kept by the owner for personal use to the 111
extent of One Hundred Dollars ($100.00) in value for each owner. 112
(h) Provisions on hand for family consumption. 113
(i) All farm products grown in this state for a period 114
of two (2) years after they are harvested, when in the possession 115
of or the title to which is in the producer, except the tax of 116
one-fifth of one percent (1/5 of 1%) per pound on lint cotton now 117
levied by the Board of Commissioners of the Mississippi Levee 118
District; and lint cotton for five (5) years, and cottonseed, 119
soybeans, oats, rice and wheat for one (1) year regardless of 120
ownership. 121
(j) All guns and pistols kept by the owner for private 122
use. 123
(k) All poultry in the hands of the producer. 124
(l) Household furniture, including all articles kept in 125
the home by the owner for his own personal or family use; but this 126
shall not apply to hotels, rooming houses or rented or leased 127
apartments. 128
(m) All cattle and oxen. 129
(n) All sheep, goats and hogs. 130
(o) All horses, mules and asses. 131
(p) Farming tools, implements and machinery, when used 132
exclusively in the cultivation or harvesting of crops or timber. 133
S. B. No. 3163 *SS26/R356* ~ OFFICIAL ~
26/SS26/R356
PAGE 6 (icj\kr)

(q) All property of agricultural and mechanical 134
associations and fairs used for promoting their objects, and where 135
no part of the proceeds is used for profit. 136
(r) The libraries of all persons. 137
(s) All pictures and works of art, not kept for or 138
offered for sale as merchandise. 139
(t) The tools of any mechanic necessary for carrying on 140
his trade. 141
(u) All state, county, municipal, levee, drainage and 142
all school bonds or other governmental obligations, and all bonds 143
and/or evidences of debts issued by any church or church 144
organization in this state, and all notes and evidences of 145
indebtedness which bear a rate of interest not greater than the 146
maximum rate per annum applicable under the law; and all money 147
loaned at a rate of interest not exceeding the maximum rate per 148
annum applicable under the law; and all stock in or bonds of 149
foreign corporations or associations shall be exempt from all ad 150
valorem taxes. 151
(v) All lands and other property situated or located 152
between the Mississippi River and the levee shall be exempt from 153
the payment of any and all road taxes levied or assessed under any 154
road laws of this state. 155
(w) Any and all money on deposit in either national 156
banks, state banks or trust companies, on open account, savings 157
account or time deposit. 158
S. B. No. 3163 *SS26/R356* ~ OFFICIAL ~
26/SS26/R356
PAGE 7 (icj\kr)

(x) All wagons, carts, drays, carriages and other 159
horse-drawn vehicles, kept for the use of the owner. 160
(y) (i) Boats, seines and fishing equipment used in 161
fishing and shrimping operations and in the taking or catching of 162
oysters. 163
(ii) All towboats, tugboats and barges documented 164
under the laws of the United States, except watercraft of every 165
kind and character used in connection with gaming operations. 166
(z) (i) All materials used in the construction and/or 167
conversion of vessels in this state; 168
(ii) Vessels while under construction and/or 169
conversion; 170
(iii) Vessels while in the possession of the 171
manufacturer, builder or converter, for a period of twelve (12) 172
months after completion of construction and/or conversion; 173
however, the twelve-month limitation shall not apply to: 174
1. Vessels used for the exploration for, or 175
production of, oil, gas and other minerals offshore outside the 176
boundaries of this state; or 177
2. Vessels that were used for the exploration 178
for, or production of, oil, gas and other minerals that are 179
converted to a new service for use outside the boundaries of this 180
state; 181
S. B. No. 3163 *SS26/R356* ~ OFFICIAL ~
26/SS26/R356
PAGE 8 (icj\kr)

(iv) 1. In order for a vessel described in 182
subparagraph (iii) of this paragraph (z) to be exempt for a period 183
of more than twelve (12) months, the vessel must: 184
a. Be operating or operable, generating 185
or capable of generating its own power or connected to some other 186
power source, and not removed from the service or use for which 187
manufactured or to which converted; and 188
b. The manufacturer, builder, converter 189
or other entity possessing the vessel must be in compliance with 190
any lease or other agreement with any applicable port authority or 191
other entity regarding the vessel and in compliance with all 192
applicable tax laws of this state and applicable federal tax laws. 193
2. A vessel exempt from taxation under 194
subparagraph (iii) of this paragraph (z) may not be exempt for a 195
period of more than three (3) years unless the board of 196
supervisors of the county and/or governing authorities of the 197
municipality, as the case may be, in which the vessel would 198
otherwise be taxable adopts a resolution or ordinance authorizing 199
the extension of the exemption and setting a maximum period for 200
the exemption. 201
(v) As used in this paragraph (z), the term 202
"vessel" includes ships, offshore drilling equipment, dry docks, 203
boats and barges, except watercraft of every kind and character 204
used in connection with gaming operations. 205
S. B. No. 3163 *SS26/R356* ~ OFFICIAL ~
26/SS26/R356
PAGE 9 (icj\kr)

(aa) Sixty-six and two-thirds percent (66-2/3%) of 206
nuclear fuel and reprocessed, recycled or residual nuclear fuel 207
by-products, fissionable or otherwise, used or to be used in 208
generation of electricity by persons defined as public utilities 209
in Section 77-3-3. 210
(bb) All growing nursery stock. 211
(cc) A semitrailer used in interstate commerce. 212
(dd) All property, real or personal, used exclusively 213
for the housing of and provision of services to elderly persons, 214
disabled persons, mentally impaired persons or as a nursing home, 215
which is owned, operated and managed by a not-for-profit 216
corporation, qualified under Section 501(c)(3) of the Internal 217
Revenue Code, whose membership or governing body is appointed or 218
confirmed by a religious society or ecclesiastical body or any 219
congregation thereof. 220
(ee) All vessels while in the hands of bona fide 221
dealers as merchandise and which are not being operated upon the 222
waters of this state shall be exempt from ad valorem taxes. As 223
used in this paragraph, the terms "vessel" and "waters of this 224
state" shall have the meaning ascribed to such terms in Section 225
59-21-3. 226
(ff) All property, real or personal, owned by a 227
nonprofit organization that: (i) is qualified as tax exempt under 228
Section 501(c)(4) of the Internal Revenue Code of 1986, as 229
amended; (ii) assists in the implementation of the national 230
S. B. No. 3163 *SS26/R356* ~ OFFICIAL ~
26/SS26/R356
PAGE 10 (icj\kr)

contingency plan or area contingency plan, and which is created in 231
response to the requirements of Title IV, Subtitle B of the Oil 232
Pollution Act of 1990, Public Law 101-380; (iii) engages primarily 233
in programs to contain, clean up and otherwise mitigate spills of 234
oil or other substances occurring in the United States coastal or 235
tidal waters; and (iv) is used for the purposes of the 236
organization. 237
(gg) If a municipality changes its boundaries so as to 238
include within the boundaries of such municipality the project 239
site of any project as defined in Section 57-75-5(f)(iv)1, Section 240
57-75-5(f)(xxi) or Section 57-75-5(f)(xxviii) or Section 241
57-75-5(f)(xxix), all real and personal property located on the 242
project site within the boundaries of such municipality that is 243
owned by a business enterprise operating such project, shall be 244
exempt from ad valorem taxation for a period of time not to exceed 245
thirty (30) years upon receiving approval for such exemption by 246
the Mississippi Major Economic Impact Authority. The provisions 247
of this paragraph shall not be construed to authorize a breach of 248
any agreement entered into pursuant to Section 21-1-59. 249
(hh) All leases, lease contracts or lease agreements 250
(including, but not limited to, subleases, sublease contracts and 251
sublease agreements), and leaseholds or leasehold interests 252
(including, but not limited to, subleaseholds and subleasehold 253
interests), of or with respect to any and all property (real, 254
personal or mixed) constituting all or any part of a facility for 255
S. B. No. 3163 *SS26/R356* ~ OFFICIAL ~
26/SS26/R356
PAGE 11 (icj\kr)

the manufacture, production, generation, transmission and/or 256
distribution of electricity, and any real property related 257
thereto, shall be exempt from ad valorem taxation during the 258
period as the United States is both the title owner of the 259
property and a sublessee of or with respect to the property; 260
however, the exemption authorized by this paragraph (hh) shall not 261
apply to any entity to whom the United States sub-subleases its 262
interest in the property nor to any entity to whom the United 263
States assigns its sublease interest in the property. As used in 264
this paragraph, the term "United States" includes an agency or 265
instrumentality of the United States of America. This paragraph 266
(hh) shall apply to all assessments for ad valorem taxation for 267
the 2003 calendar year and each calendar year thereafter. 268
(ii) All property, real, personal or mixed, including 269
fixtures and leaseholds, used by Mississippi nonprofit entities 270
qualified, on or before January 1, 2005, under Section 501(c)(3) 271
of the Internal Revenue Code to provide support and operate 272
technology incubators for research and development start-up 273
companies, telecommunication startup companies and/or other 274
technology startup companies, utilizing technology spun-off from 275
research and development activities of the public colleges and 276
universities of this state, State of Mississippi governmental 277
research or development activities resulting therefrom located 278
within the State of Mississippi. 279
S. B. No. 3163 *SS26/R356* ~ OFFICIAL ~
26/SS26/R356
PAGE 12 (icj\kr)

(jj) All property, real, personal or mixed, including 280
fixtures and leaseholds, of start-up companies (as described in 281
paragraph (ii) of this section) for the period of time, not to 282
exceed five (5) years, that the startup company remains a tenant 283
of a technology incubator (as described in paragraph (ii) of this 284
section). 285
(kk) All leases, lease contracts or lease agreements 286
(including, but not limited to, subleases, sublease contracts and 287
sublease agreements), and leaseholds or leasehold interests, of or 288
with respect to any and all property (real, personal or mixed) 289
constituting all or any part of an auxiliary facility, and any 290
real property related thereto, constructed or renovated pursuant 291
to Section 37-101-41. 292
(ll) Equipment brought into the state temporarily for 293
use during a disaster response period as provided in Sections 294
27-113-1 through 27-113-9 and subsequently removed from the state 295
on or before the end of the disaster response period as defined in 296
Section 27-113-5. 297
(mm) For any lease or contractual arrangement to which 298
the Department of Finance and Administration and a nonprofit 299
corporation are a party to as provided in Section 39-25-1(5), the 300
nonprofit corporation shall, along with the possessory and 301
leasehold interests and/or real and personal property of the 302
corporation, be exempt from all ad valorem taxation, including, 303
but not limited to, school, city and county ad valorem taxes, for 304
S. B. No. 3163 *SS26/R356* ~ OFFICIAL ~
26/SS26/R356
PAGE 13 (icj\kr)

the term or period of time stated in the lease or contractual 305
arrangement. 306
(nn) All property, real or personal, that is owned, 307
operated and managed by a not-for-profit corporation qualified 308
under Section 501(c)(3) of the Internal Revenue Code, and used to 309
provide, free of charge, (i) a practice facility for a public 310
school district swim team, and (ii) a facility for another 311
not-for-profit organization as defined under Section 501(c)(3) of 312
the Internal Revenue Code to conduct water safety and lifeguard 313
training programs. This section shall not apply to real or 314
personal property owned by a country club, tennis club with a 315
pool, or any club requiring stock ownership for membership. 316
(oo) Any all-terrain vehicle, as defined in Section 317
63-21-5, when held by a retailer on a consignment or floor plan 318
basis. 319
(pp) The entire assessed value of commodities, raw 320
materials, works-in-process, products, goods, wares and 321
merchandise held for resale by a manufacturer, distributor, 322
wholesale or retail merchant. For purposes of this paragraph 323
(pp), assessed value may be determined by physical count or book 324
value, at the option of the manufacturer, distributor, wholesale 325
or retail merchant. 326
(qq) The entire assessed value of eligible personal 327
property owned by a business enterprise and used by the business 328
enterprise solely on the premises of the business enterprise in 329
S. B. No. 3163 *SS26/R356* ~ OFFICIAL ~
26/SS26/R356
PAGE 14 (icj\kr)

the operation of the enterprise. For purposes of this paragraph 330
(qq), "eligible personal property" means furniture, fixtures or 331
equipment classified as personal property for purposes of ad 332
valorem taxation. However, "eligible personal property" does not 333
include (i) motor vehicles, or (ii) personal property included in 334
Class IV property as defined in Section 112, Mississippi 335
Constitution of 1890. 336
SECTION 2. It is the intent of the Legislature that any loss 337
of revenue incurred by a county, municipality, or school district 338
resulting from the elimination of the inventory tax in Section 339
27-31-1(pp) and (qq) be reimbursed to the respective local 340
government entity through legislative appropriation. Tax 341
assessors shall continue to assess the value of the items exempted 342
under Section 27-31-1(pp) and (qq) and shall apply the millage 343
rate in effect to ascertain lost revenue for the year. The amount 344
of county, municipal and school district inventory tax that would 345
have been levied shall be certified to the Department of Revenue 346
at the same time the recapitulation of the assessment is 347
transmitted to the department under Section 27-35-111. The 348
department shall compile the data and report it to the Legislature 349
no later than November 1 of each year. The Department of Revenue 350
may promulgate rules and regulations to administer this section. 351
SECTION 3. Section 27-7-22.5, Mississippi Code of 1972, is 352
brought forward as follows: 353
S. B. No. 3163 *SS26/R356* ~ OFFICIAL ~
26/SS26/R356
PAGE 15 (icj\kr)

27-7-22.5. (1) (a) For any manufacturer, distributor, 354
wholesale or retail merchant who pays to a county, municipality, 355
school district, levee district or any other taxing authority of 356
the state or a political subdivision thereof, ad valorem taxes 357
imposed on commodities, raw materials, works-in-process, products, 358
goods, wares and merchandise held for resale, a credit against the 359
income taxes imposed under this chapter shall be allowed for the 360
portion of the ad valorem taxes so paid in the amounts prescribed 361
in subsection (2). 362
(b) (i) For any person, firm or corporation who pays 363
to a county, municipality, school district, levee district or any 364
other taxing authority of the state or a political subdivision 365
thereof, ad valorem taxes imposed on rental equipment, a credit 366
against the income taxes imposed under this chapter shall be 367
allowed for the portion of the ad valorem taxes so paid in the 368
amounts prescribed in subsection (2). 369
(ii) As used in this paragraph, "rental equipment" 370
means any rental equipment or other rental items which are held 371
for short-term rental to the public: 372
1. Under rental agreements with no specific 373
term; 374
2. Under at-will or open-ended agreements; or 375
3. Under rental agreements with terms 376
ordinarily of less than three hundred sixty-five (365) days; and 377
S. B. No. 3163 *SS26/R356* ~ OFFICIAL ~
26/SS26/R356
PAGE 16 (icj\kr)

4. Is not subject to privilege taxes imposed 378
in Chapter 19, Title 27, Mississippi Code of 1972. 379
(c) The tax credit allowed by this section may not be 380
claimed by a taxpayer that is a medical cannabis establishment as 381
defined in the Mississippi Medical Cannabis Act. 382
(2) The tax credit allowed by this section shall not exceed 383
the amounts set forth in paragraphs (a) through (g) of this 384
subsection; and may be claimed for each location where such 385
commodities, raw material, works-in-process, products, goods, 386
wares, merchandise and/or rental equipment are found and upon 387
which the ad valorem taxes have been paid. Any tax credit claimed 388
under this section but not used in any taxable year may be carried 389
forward for five (5) consecutive years from the close of the tax 390
year in which the credit was earned. 391
(a) For the 1994 taxable year, the tax credit for each 392
location of the taxpayer shall not exceed the lesser of Two 393
Thousand Dollars ($2,000.00) or the amount of income taxes due the 394
State of Mississippi that are attributable to such location. 395
(b) For the 1995 taxable year, the tax credit for each 396
location of the taxpayer shall not exceed the lesser of Three 397
Thousand Dollars ($3,000.00) or the amount of income taxes due the 398
State of Mississippi that are attributable to such location. 399
(c) For the 1996 taxable year, the tax credit for each 400
location of the taxpayer shall not exceed the lesser of Four 401
S. B. No. 3163 *SS26/R356* ~ OFFICIAL ~
26/SS26/R356
PAGE 17 (icj\kr)

Thousand Dollars ($4,000.00) or the amount of income taxes due the 402
State of Mississippi that are attributable to such location. 403
(d) For the 1997 taxable year and each taxable year 404
thereafter through taxable year 2013, the tax credit for each 405
location of the taxpayer shall not exceed the lesser of Five 406
Thousand Dollars ($5,000.00) or the amount of income taxes due the 407
State of Mississippi that are attributable to such location. 408
(e) For the 2014 taxable year, the tax credit for each 409
location of the taxpayer shall not exceed the lesser of Ten 410
Thousand Dollars ($10,000.00) or the amount of income taxes due 411
the State of Mississippi that are attributable to such location. 412
(f) For the 2015 taxable year, the tax credit for each 413
location of the taxpayer shall not exceed the lesser of Fifteen 414
Thousand Dollars ($15,000.00) or the amount of income taxes due 415
the State of Mississippi that are attributable to such location. 416
(g) For the 2016 taxable year and each taxable year 417
thereafter, the tax credit of the taxpayer shall be the lesser of 418
the amount of the ad valorem taxes described in subsection (1) 419
paid or the amount of income taxes due the State of Mississippi 420
that are attributable to such location. 421
(3) Any amount of ad valorem taxes paid by a taxpayer that 422
is applied toward the tax credit allowed in this section may not 423
be used as a deduction by the taxpayer for state income tax 424
purposes. In the case of a taxpayer that is a partnership, 425
limited liability company or S corporation, the credit may be 426
S. B. No. 3163 *SS26/R356* ~ OFFICIAL ~
26/SS26/R356
PAGE 18 (icj\kr)

applied only to the tax attributable to partnership, limited 427
liability company or S corporation income derived from the 428
taxpayer. 429
(4) Any amount of ad valorem taxes applied and used as a tax 430
credit under Section 27-31-19.1 may not be applied and used as a 431
tax credit under this section. 432
SECTION 4. Section 27-35-15, Mississippi Code of 1972, is 433
brought forward as follows: 434
27-35-15. (1) The tax assessors shall annually appraise all 435
personal property subject to taxation in their respective counties 436
at true value and assess it in proportion thereto. They shall set 437
down in the assessment roll the names in full of all persons 438
liable to taxation in the county in alphabetical order under each 439
municipality, but firms or persons owning the same class of 440
property may be listed on the roll together regardless of the 441
alphabetical order. Where there are on the roll more than one (1) 442
person of the same name, the place of residence of each shall be 443
shown, or they shall be otherwise so designated as to identify 444
each and distinguish them. The assessor shall set down each item 445
of personal property liable to taxation and the amount of each 446
individual's taxable property shall be totaled and set down in the 447
column provided, opposite his name. The assessor shall so fill 448
out the blanks on the rolls as to disclose clearly and fully all 449
information indicated by the roll. 450
S. B. No. 3163 *SS26/R356* ~ OFFICIAL ~
26/SS26/R356
PAGE 19 (icj\kr)
ST: Inventory tax; eliminate, and reimburse
lost revenue to local governments through
legislative appropriations.
The tax assessor shall place in the columns provided on the 451
roll the true value of the property owned by each taxpayer in 452
every road district, school district, levee district or other 453
special taxing district imposing an ad valorem tax; and he shall 454
truly and correctly add every column on the roll and show in the 455
proper column the total amount of property assessed to every 456
taxpayer and the amount assessed to every taxpayer in each and 457
every road district, school district or other special taxing 458
district; and the totals of each column from every page shall be 459
carried to the recapitulation on a page or pages in the back of 460
the roll. The tax assessor shall add the recapitulation and show 461
the total amount of all property assessed in his county and the 462
total for each municipality, school district, road district, levee 463
district or other special taxing district imposing an ad valorem 464
tax. The assessor shall also show in his recapitulation the 465
correct total of each and every column in the roll. 466
(2) The tax assessors shall include on the personal property 467
roll the list of aircraft received from the State Tax Commission 468
which are liable for registration but which have not been so 469
registered as required by Title 61, Chapter 15, Mississippi Code 470
of 1972. 471
SECTION 5. This act shall take effect and be in force from 472
and after January 1, 2027. 473