WeVote
Log In

Bill

Bill

SB 2968

Ad valorem tax; specify provisions for determining the true value of rural structures.

2025 Regular Session Introduced by Andy Berry and 18 co-sponsors

SB 2968 would change rural-structure valuation to straight-line 7% annual depreciation, with a 20% floor for poultry houses and 45% economic obsolescence, potentially lowering taxes.

Died In Conference
#finance #waysandmeans
0
WeVote Research Nonpartisan
Bill Summary · SB 2968

Summary — SB 2968 (2025)

Title: Ad valorem tax; specify provisions for determining the true value of rural structures.
Status: Died in Conference (March 29, 2025)
Introduced: March 14, 2025
Subjects: Finance, Ways and Means
Companion: HB 5144

Purpose

SB 2968 would have revised Mississippi’s statutory rules for determining “true value” (ad valorem appraisal) for agricultural land and, importantly, for rural secondary structures (e.g., silos, grain bins, barns, poultry houses). The intent was to standardize valuation approaches and to set explicit depreciation and obsolescence rules for rural structures used in commercial farming.

Key provisions

  • Defines “true value” to include market/cash/actual cash/appraisal value and directs assessors to consider income capitalization, cost, and market data approaches per Department of Revenue guidance.
  • Agricultural land:
    • Appraise according to use as of January 1 each year, using soil/productivity criteria in the Department of Revenue manuals.
    • Require an income-capitalization approach with a capitalization rate of not less than 10%.
    • Prescribe a moving-average schedule for income inputs that increases from 4 years (2022) up to 10 years (2028 and thereafter): 2022=4, 2023=5, 2024=6, 2025=7, 2026=8, 2027=9, 2028+=10.
    • Deduct a management charge equal to 25% of (estimated variable cost + machinery ownership cost + general farm overhead) when determining true value for crops.
    • Clarify that participation in federal conservation programs or hunting/fishing leases does not automatically disqualify land from being deemed in agricultural use; program income may be considered with other criteria.
  • Rural structures (new, distinct subparagraph):
    • “Rural structure” references Chapter V of the Department of Revenue appraisal manual (Dec. 2020 revision) and includes silos, grain bins, barns, poultry houses — excludes rural dwellings.
    • For rural structures in operation on or before Jan 1, 2025, assessors are to use the Department’s appraisal manual version in effect immediately prior to Dec. 2020; structures placed in operation after Jan 1, 2025 use the most current manual.
    • After the initial appraisal, value of a rural structure is to be determined solely by straight-line depreciation at 7% per year.
    • For poultry houses that remain usable and in production, net depreciation may not reduce true value below 20% of original true value (i.e., a 20% floor). Once that 20% threshold is reached, no further depreciation is applied while operational.
    • Beginning with land roll 2009, a 45% economic obsolescence adjustment is to be applied to all commercially used poultry houses (text prescribes this adjustment; implementation timing is notable).
    • If conflicts arise, these rural-structure provisions control over other parts of the section.
  • Other: provisions on valuation of aquaculture, affordable rental housing, and limitations on considering speculative/alternate-use value remain in the section as amended.

Who is affected

  • Owners/operators of rural commercial structures (notably poultry operations), agricultural landowners, and county tax assessors.
  • Department of Revenue (for appraisal manual guidance and methodology).
  • Potential fiscal effect on local tax revenues where assessed values for rural structures — especially poultry houses — would be reduced under the depreciation/floor and obsolescence adjustments.

Procedural / timeline notes

  • Introduced in Senate March 14, 2025; passed Senate (with committee substitute/amendments) and transmitted to House. House passed as amended; conferees were named but the measure “Died In Conference” on March 29, 2025 — it did not become law.
  • Co-authorizations recorded April–May 2025 prior to final disposition.
  • Companion bill: HB 5144.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.