35 Miss. Admin. Code Pt. VI, Subpt. 3, Ch. 01 — Exemptions and Reimbursements

100 The Tax Commission performs two functions in reference to homestead exemption. The
first function is to determine the eligibility of taxpayers who wish to obtain an exemption
from ad valorem property taxes. The second function is to reimburse the taxing unit who
suffers a tax loss because of its exemption.
101 EXEMPTIONS
Homestead Exemption is a privilege offered to eligible taxpayers by the State of
Mississippi. The exemption is not granted automatically. An application must be filed
and each taxpayer must qualify for the exemption. There are two types of exemptions
regular and additional.

# 1.

Regular
The regular exemption is given to all eligible taxpayers. The exemption is from
all ad valorem taxes assessed to property, limited to the first seven thousand five
hundred dollars ($7,500) of assessed value, and limited to three hundred dollars
($300) of actual exempted tax dollars. Any ad valorem taxes imposed on the
assessed value of property over the first seven thousand five hundred dollars
($7,500) must be paid. Assessed value is determined by the tax assessor of the
county in which property is located. Homestead property is usually classified as
Class 1 property with a 10% assessment rate; however, if any income producing
activity is located on the property, it may be classified as Class 2 with a 15%
assessment rate. Class 1 property is not necessarily homestead property.

# 2.

Additional
Any taxpayer that qualifies for the additional exemption has an even greater
exemption offered to them. The requirements for the additional exemption are
detailed in Rule 3 - Applicant. The exemption is from all ad valorem taxes
assessed to property, limited to the first seven thousand five hundred dollars
($7,500) of assessed value. No dollar limit is placed on the actual exempted tax
dollars. Any ad valorem taxes imposed on the assessed value of property over the
first seven thousand five hundred dollars ($7,500) must be paid.
102 REIMBURSEMENT
The Tax Commission reimburses the taxing unit for each eligible and allowed taxpayer.
The counties and the separate school districts are reimbursed for the regular exemptions.
The municipalities are reimbursed for the additional exemptions.
1. Requirements
In order for a taxing unit to receive reimbursement for any tax loss suffered due to
an allowed homestead exemption, a request must be made to the homestead
exemption office.
a. County
For a county, the request consists of the ORIGINAL copies of the Certificate
of Tax loss, the Recapitulation of Homestead Exemptions (Supplemental
Roll), Affidavit of Rolls, and the homestead exemption applications.
b. Municipality
For a municipality, this request consists of the ORIGINAL copies of the
Certificate of Tax Loss, a Municipal Recapitulation of Homestead Exemptions
(Municipal Supplemental Roll), Affidavit of Municipal Rolls, and the
Certified Tax Levy.
2. When
The reimbursement is made in two payments during the year. The first payment is
made March 1 and is approximately one half (1/2) of the total amount to be
reimbursed. The second payment is made September 1 and is the remainder of the
total amount due. If a school taxing unit is in need of the second payment before
the school year begins, a Certificate of Necessity, Form 72 -035, is submitted to the
Tax Commission and the second payment will be made June 1. Reimbursement
may be withheld until a taxing unit submits a proper request.

# 3.

Regular exemptions
For each regular exemption, a total of one hundred dollars ($100) per applicant is
reimbursed to the taxing unit. One half or fifty dollars ($50) is reimbursed for
county taxes exempted. One -half or fifty dollars ($50) is reimbursed for school
taxes exempted. The taxpayer is entitled to a maximum of three hundred dollars
($300) of exemption and a minimum of six dollars ($6) of exemption; however, the
reimbursement made to the county will always be one hundred dollars ($100) per
applicant. Each reimbursement check is accompanied by a Notice of Distribution,
Form 72 -036. This form indicates the amount of reimbursement to the county
general fund and the school district fund.

# 4.

Additional Exemptions
For additional exemptions, the municipality in whose taxing district the applicant
has claimed homestead property is reimbursed for the tax losses suffered. The
actual tax loss suffered by the municipality is reimbursed with a limit of two
hundred dollars ($200) per applicant. An eligible applicant is given his full
exemption from the municipality; however, the reimbursement is limited to two
hundred dollars ($200) per applicant. Each reimbursement check is accompanied
by a Notice of Distribution, Form 72 -037, which indicates the amount of
reimbursement.

# 5.

Amount
To determine the amount of reimbursement due a taxing unit, begin with the figure
shown on the Certificate of Tax Loss, subtract all charges, and add all credits. The
result will be the total amount of reimbursement for the year. A taxing unit is
limited in the amount of reimbursement it can receive. The amount of
reimbursement cannot be more than one hundred six percent (106%) of the previous
year's reimbursement. The reimbursement cannot be less than the amount
reimbursed the previous year unless the number of applicants has been reduced. All
documents needed to determine the actual amount of reimbursement due are sent to
the various taxing units.
103 (Reserved)