35 Miss. Admin. Code Pt. VI, Subpt. 2, Ch. 08 — Appraisal of Personal Property

100 All personal property is required to be annually appraised at true value. This rule
establishes a uniform method by which all personal property shall be appraised.
101 Personal Property Listing:

# 1.

All taxpayers are required to supply to the Tax Assessor on or before the first day of
April in each year a true listing of their personal property. This is to be
accomplished by providing an asset listing and each year submitting a Personal
Property Rendition Form, which should bring the asset listing up-to-date.

# 2.

If any person shall fail to list for assessment, as required by law, any personal
property which is taxable under the laws of the State of Mississippi, or shall
intentionally fail to provide the Tax Assessor with any documentation that the Tax
Assessor considers necessary to verify the list, the current year assessment shall be
increased by ten percent (10%).
102 Rebuilding or Refurbishment:
The value of the investment in upgrading or updating equipment shall be captured. This
value should be captured for the year of the investment as if the new investment
represented a new, or separate, piece of equipment and should be factored and
depreciated accordingly. The investment should be associated with the appropriate asset
on the taxpayer's asset list. At the time the base (original) equipment is removed from the
facility and thus the property roll, the appropriate proportion of the investment should be
withdrawn from the dollar entry on the property roll.
103 Depreciation Schedule:
1. The State Tax Commission (STC) will annually supply the appropriate depreciation
schedules. The schedule to be applied to a particular industry will be determined by
the average class life for that industry as established by Marshall Valuation
Service's Life Expectancy Guidelines. This guideline is based on IRS publication
number 946 which sets forth economic class lives. The depreciation table bottoms
at a twenty percent (20%) good for operating equipment. Salvage value will apply
only to equipment, which is not usable. If equipment is operational, it will not be
considered salvage.
2. Depreciation on watercraft of every kind and character used in connection with
gaming operations that have permanent connections to shore side facilities will be
determined by the Mississippi State Tax Commission guidelines (Class Lives of
Industries) and published annually.
104 Method of Pricing:
1. Industry: Original acquisition cost new, including all cost associated with installing
the equipment in place for production, will be the base for all industrial property.
The industry will be classed by utilizing Marshall Valuation Service's manual
showing the average life category for the industry. The base cost will be multiplied
by the appropriate inflation factor furnished by the STC (from Marshall Valuation
Service) based on the age of the item. This calculation will be multiplied by the
appropriate percent good depreciation factor (again based on age) that is provided
annually by the STC.
2. Business:
a. The STC pricing guide will be used as a source of pricing business personal
property. Since the STC is factoring or revising the prices on all items each
year, prices used from this source will not be factored for inflation by the
Assessor. Prices from the STC manual should be multiplied by the
appropriate percent good factor (depreciation schedule) supplied by the STC
according to age. Any deviations from the STC pricing guide must be
documented in the Assessor's file. Invoices showing prices in a rms length
transactions, which reflect market value, will be acceptable provided all costs
associated with installation of the equipment are included. (Renditions alone
will not be acceptable). In the event the invoices do not reflect a market value,
then the Assessor should use the pricing guide or other documentation, which
clearly establishes the true value of the property in question. This will usually
be encountered when the property is purchased at a liquidation sale or other
type of forced sale where the property is sold for less than its true value.
b. Any prices that deviate from the STC manual must be classified using the
middle value of the asset range life in years of the Marshall Valuation
Service's Life Expectancy Guidelines (from IRS Publication 946). Values
must be multiplied by the appropriate inflation factor furnished by the STC
(based on Marshall Valuation Service) and then multiplied by the STC percent
good tables provided by the STC.
c. Documentation for items priced outside the manual and items not und in the
manual shall be forwarded to the STC. The missing item(s) will be priced by
the STC within ten (10) days from the date of receipt of the written request
from the county with sufficient information to identify and value the item(s).
In the event the county does not receive the appropriate price within the ten
(10) day period, then the Assessor should use comparables or the best
information available in arriving at the true value.
106 Obsolescence:
1. Functional Obsolescence : The Assessor may optionally grant an allowance for
functional obsolescence. If the Assessor chooses to grant such an allowance in
addition to that already contained within the normal depreciation tables, it must
remain within the allowance contemplated in the functional obsolescence tables
annually furnished by the STC. Only in the most extreme circumstances would an
allowance beyond that contemplated in the tables of allowance be allowed.
Allowance for functional obsolescence beyond the amount provided in the tables
must be elaborately justified by the taxpayer and scrutinized by the Assessor and
STC.
2. Economic Obsolescence : Economic obsolescence must be proved on a case -by-
case basis to the Tax Assessor.
107 If the observed conditions or supporting documentation or other information regarding
the property point to an effective age greater than or less than the actual age, the
observed condition or evidence takes precedence over the table of depreciation.
108 (Reserved)
Subpart 03 Homestead Exemption