All businesses in Mississippi are subject to property taxes. These taxes are levied by three main taxing entities; cities, school boards and counties.
Property Tax
Counties and municipalities levy a property tax on real and tangible personal property in Mississippi. Generally, property is assessed at 15% of true value. This assessed value is then multiplied by the millage rate to determine the annual tax liability. Each city and/or county sets its tax rate, or millage. Mississippi does not have a state property tax.
Property Tax Example
Assume the following facts:
- A manufacturing plant is located within a municipality where the total of all taxes is 78.5 mills.
- The true value of the taxable property is:
| Land |
$10,000 |
| Machinery and Equipment |
$700,000 |
| Buildings |
$1,500,000 |
| Raw Materials |
$200,000 |
| Finished Goods |
$500,000 |
| Total |
$2,910,000 |
- The assessed value is calculated by multiplying the total by 15%
(15% x $2,910,000) =
$436,500
- The tax liability, before any exemptions, is calculated by multiplying the assessed value by the millage:
($436,500 x .0785) = $34,265
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