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Bill

HB 489

Income tax; exclude payment for property taken by eminent domain from gross income.

2026 Regular Session Introduced by Kimberly Remak

Mississippi bill excludes eminent domain compensation from state income tax, reducing taxes on property owners whose land the government takes.

Referred To Ways and Means
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Bill Summary · HB 489

Legislative bill overview

HB 489 would exclude compensation received from eminent domain takings from the state's income tax calculation in Mississippi. This means residents or businesses receiving payment when the government takes their property would not have to count that payment as taxable income.

Why is this important

Eminent domain compensation is often a one-time, substantial payment that could push recipients into higher tax brackets. Excluding these payments from taxable income could reduce the tax burden on property owners experiencing forced property sales, particularly affecting rural landowners, small business owners, and those whose property is taken for infrastructure projects.

Potential points of contention

  • Revenue impact: Excluding eminent domain payments from taxation reduces state income tax revenue, requiring analysis of fiscal consequences and potential impacts on state services
  • Fairness questions: Critics may argue this creates preferential tax treatment for property owners compared to other forms of compensation or income, raising equity concerns
  • Scope ambiguity: The bill's language regarding what qualifies as "payment for property taken by eminent domain" may need clarification to address partial takings, improvements, and future disputes over valuation

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

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