35 Miss. Admin. Code Pt. VI, Subpt. 3, Ch. 06 — Property

100 Only certain property is eligible for homestead exemption. In this rule, the requirements
for homestead property are discussed.
101 ASSESSMENT
All property on which exemption is claimed must meet the following requirements
concerning the assessment of the property.
101.01 Identification
For taxation purposes, all property must be given a value. That value must be assigned to
a definite piece of property. The property to which a value has been assigned must be
identified. The identification should be a parcel number that is unique within a county.
The parcel number on the supplemental roll must be the same parcel number on the
application.
101.02 Separately assessed
All such identified property on which homestead exemption is claimed must be
separately assessed on the land roll. No property may be eligible for exemption unless it
contains a value for land and a value for the dwelling. The land and dwelling must be
separately assessed on the land roll or no exemption may be allowed. A special provision
is made if a dwelling has been destroyed. The property can continue to be eligible for
homestead for one (1) year after the date of destruction.
101.03 Limits

# 1.

Exemption is limited to the first seven thousand five hundred dollars ($7,500) of
assessed value on homestead property. Any assessed value over the first seven
thousand five hundred dollars ($7,500) does not have any exemption and the full
amount of taxes must be paid on the balance. The assessed value limit includes the
land and all buildings and improvements attached to the land. The seven thousand
five hundred dollars ($7,500) limit includes all parcels claimed by an applicant.
The amount in column 7 or column 11 must not exceed this seven thousand five
hundred dollars ($7,500) limit when all parcels are totaled.

# 2.

Another limit has to do with the number of acres that a homestead exemption
claim can include. All homestead property has a limit of one hundred sixty (160)
acres when all parcels are totaled.
102 LOCATION
The location of the property has an effect on the determination of eligibility for
homestead exemption. There is no limit to the number of joined parcels located inside or
outside a municipality. The definition of joined is one or more points of common
boundary. A lot in a subdivision is considered a parcel.
102.01 Property inside a Municipality
If all the property claimed for exemption is located inside a municipality, all the property
on which homestead exemption is sought must actually join. If the land is platted, a
public street or canal that divides the land prevents it from being joined. If the land is not
platted, then the street dividing the property is disregarded and the land is considered
joined.
102.02 Property inside and outside a Municipality
If part of the property claimed for exemption is located inside a municipality and part of
the property lies outside the municipality, all the land must join. If any portion of the
land is located within a municipality, all the land must join.
102.03 Property outside a Municipality
If the property lies outside a municipality, the land does not have to join. A maximum of
only four (4) disjoined tracts may be claimed for exemption. (Only three (3) disjoined
tracts may be added to the home tract). None of these tracts may be located more than
five (5) miles from the home tract, which is the tract of land upon which the applicant's
dwelling is located.
102.04 Property in adjoining counties
If the applicant owns less than the one hundred sixty (160) acres in the county in which
the dwelling is located, he is permitted to add to his homestead exemption claim any
eligible property located in an adjoining county. Again the limits of one hundred sixty
(160) total acres and five (5) miles from the home tract are placed on the property
claimed for homestead exemption. In the case of land in an adjoining county, the
applicant must file in both counties. First the applicant should file in the resident county
and have two certified copies made of the application and carry them to the adjoining
county. These copies should contain the assessed value given the land and dwelling and
the total assessed value given the land allowed by the resident county. One copy is sent
with the original application of the adjoining county that is sent to the Tax Commission
(do not attach) and the other copy attached to the duplicate that is kept on file in the
adjoining county.
102.05 Order of preference
The location of all property which may be claimed for exemption is determined by the
location of the dwelling of the applicant. The order of which property has priority is as
follows:
1. All eligible property in the county of the applicant's dwelling is preferred over
property in another county.
2. If the applicant's dwelling is located outside of a municipality, eligible rural land is
preferred over eligible urban land.

# 3.

Forty (40) acre tracts are preferred over tracts of lesser area.

# 4.

Adjoining land of the same section is preferred over other eligible property.

# 5.

If all the land is not joined, land nearest the dwelling and in the same county is
preferred.
103 JOINT OWNERSHIP
Homestead exemption deals separately with two types of jointly owned property, by
inheritance and by all other means. If a person files on any individually owned property,
that person can not file on any jointly owned property. There two exceptions to this rule:
1. A surviving spouse who files on individually owned property may add property
acquired in an undivided estate. In this case, the jointly owned undivided estate
property is eligible.
2. Husband and wife may file on property owned jointly or individually.
103.01 By inheritance
This type of jointly owned property is the result of an inheritance, either with or without a
will. The property is considered an estate. An estate is treated as undivided for
homestead exemption purposes until the property has been distributed with fee title or life
estate to the various heirs. If some part of the undivided estate is distributed to an heir or
to a purchaser, that part is removed from the undivided estate. If by exchange of deeds,
court decrees, or any other process, each of the heirs is given fee title to parts of the
estate, such parts will be taken away from the undivided estate. Undivided estate
property claimed for homestead exemption can not be combined with any other land,
except in the case of a surviving spouse. A surviving spouse can combine individually
owned property with undivided estate property. The property limits of one hundred sixty
(160) acres and seven thousand five hundred dollars ($ 7,500) of assessed value will
remain.
1. One files
The heirs of the undivided estate can elect to file for one homestead exemption on
the entire undivided estate. The requirements for homestead exemption eligibility
must be met. The estate must be undivided. If that election is made, all heirs must
agree and proof of such is to be attached to the application. The proof needed is
Form 72-049, Election to File One Homestead. The form is provided by the Tax
Commission. When the election to file for one homestead exemption is made, no
other claim may be filed on that undivided estate for that year. The election to file
for one homestead exemption does not prohibit the heirs from filing separately in
later years.
2. More than one files
Any one of the heirs who meets homestead eligibility requirements can file for
homestead exemption on their inherited portion. The home occupied by the
surviving spouse has preference over the homes of any other heirs. If the surviving
spouse filed for homestead exemption, that portion is deducted from the rest of the
undivided estate. The other heirs must share equally in the remainder. If more than
one heir files for exemption on the undivided estate, the election to file for one
homestead exemption later is not prohibited.
3. EXAMPLES:
a. Husband dies leaving wife and two (2) children. Wife lives on property and all
heirs elect to file for one homestead exemption. Title is still held by the estate.
Wife remarries. Wife dies leaving husband number 2 living on the undivided
estate. Heirs can still elect to file for one homestead with husband number 2
as the applicant.
b. Same details as in number 1 except all heirs have now received their portion
of the undivided estate in fee title. Husband number 2 and each child receive
full exemption on their portion.
103.02 By Purchase, etc.
This type of joint ownership includes all other means by which ownership is obtained,
except inheritance. The term joint owner includes tenants in common and joint tenants
for homestead purposes.
1. One dwelling
There are four (4) cases of joint ownership and a single dwelling.
a. Husband and wife
Jointly owned property by a husband and wife is eligible for full exemption on
the entire property, if the husband and wife are living together. If they are
separated, only jointly owned property that is the home at the time of
separation is eligible for full exemption. Any other jointly owned property of
a separated person is ineligible for homestead exemption purposes.
b. Related single persons
Jointly owned property by a group of related persons as defined by Section
27-33-13 (f) is eligible for full exemption on the entire property if all persons
in the group have the same type of title. Only one member of the group can
file.
c. Unrelated single persons
Jointly owned property by two or more persons who do not fall under the
definition of Section 27 -33-13(f) or who are not married is eligible for one
exemption based on the proportionate share of the applicant's ownership.
d. Duplex (2 apartments)
Jointly owned property by two persons consisting of two (2) apartments, such
as duplex, when each owner occupies an apartment or side is eligible for full
exemption for each owner on their equal share of the assessed value of the
property.
e. EXAMPLES:
i. Husband and wife, living together, own a home assessed at $15,000.
That home is eligible for one exemption limited to $7,500.
ii. Separated husband and wife jointly own two homes. Each have custody
of a minor child or joint custody of one child and each live in one of the
jointly owned homes. Only the home at the time of separation is
eligible. If the other home was titled in only the resident spouse's name
and they have not filed a joint income tax return, that home would be
eligible.
iii. Two sisters own and occupy a home assessed at $15,000. The home is
eligible for one exemption limited to $7,500.
iv. Three (3) unrelated single persons live in a house assessed at $15,000.
Each person has a proportionate share of one -third (1/3) of the total
assessed value of the property. Only one can file on this homestead with
the two other owners listed as occupying joint owners. He would be
entitled to an exemption on his share limited to $2,500 of assessed value.
2. More than one dwelling
a. Jointly owned property that has more than one of the dwellings is
eligible. Each joint owner that occupies one of the dwellings can file
for exemption on his proportionate share of the total assessed value
of all the property.
b. EXAMPLES:
i. Three (3) persons jointly own property that includes five hundred
(500) acres and three (3) houses with a total assessed value of
$33,000. Each person can file a homestead exemption claim on
the property occupied by his family, if they meet all requirements
for eligibility. Each person's share would be one -third of the total
property or one hundred sixty -seven (167) acres with an assessed
value of $11,000; however, the exemption is limited to one
hundred sixty (160) acres and a total assessed value of $7,500.
ii. Three (3) persons jointly own property that includes one hundred
fifty (150) acres and three (3) houses with a total assessed value of
$15,000. Each persons share and exemption would include fifty
(50) acres and one house with a total assessed value of $2,500.
iii. Two persons buy one hundred (100) acres of land. They build a
house on that property and each hold separate title to their
respective homes. Both may file for an exemption which would
include one -half (1/2) the assessed value of the land plus the
assessed value of their respective homes.
104 USE
The anticipated use of all property claimed for homestead exemption is that of a home.
Some exceptions to this use are allowed by law and the amount of the exemption allowed
to the applicant or the amount of reimbursement made to the taxing unit would not be
affected. Other exceptions are permitted by law and the amount of reimbursement made
to the taxing unit is not affected; however, the amount of exemption allowed to the
applicant would be affected. Some uses expressly deny homestead exemption to that
property.
104.01 Rented property
Rented property includes rooms within a home being rented and also entire homes being
rented. The amount of exemption and reimbursement due is determined by how many
rooms are being rented. An apartment is counted as three (3) rooms. Sharecropper or
tenant homes are not considered to be rented when only a share of the agricultural crop is
given in consideration.
1. allowed
a. Property occupied by a family group that keeps no more than eight (8)
boarders or paying guests is eligible for full exemption.
b. Property occupied by a family group where no more than four (4) rooms are
rented or are available for rent is eligible for full exemption.
2. allowed in part
a. Property consisting of four (4) apartments, where one apartment is occupied
by the family group that owns the home and the other apartments are rented is
eligible for one-fourth (1/4) of the exemption allowed.
b. Property occupied by a family group where five (5) or six (6) rooms are rented
or are available for rent is eligible for one-half (1/2) of the exemption allowed.
3. disallowed
a. Any property that is rented in its entirety does not qualify for homestead
exemption.
b. Property occupied by a family group where more than eight (8) boarders are
kept is not eligible.
c. Property occupied by a family group where more than six (6) rooms are rented
or are available for rent is not eligible.
104.02 Business activity
Most people transact some business in their home, such as writing a check to pay a
household expense or having a garage sale. The law does give some definitions as to
business activity that will limit or even deny homestead exemption.
1. allowed
Property occupied by a family group wherein business activity is conducted;
however, the assessed value of the property associated with the business activity
must be less than one-fifth (1/5) of the total assessed value of the home.
2. allowed in part
If the assessed value of the property associated with the business does not exceed
one-fifth of the total assessed value of the home and the property is occupied by a
family group that houses a full time business, one -half (1/2) of the eligible
exemption may be allowed.
3. disallowed
a. Property occupied by a family group where any part is used by anyone for
business purposes except as stated in the above two paragraphs is not eligible
for homestead exemption. Property occupied by a family group where any
part is used as a gin, sawmill, store, gasoline station, repair shop,
manufacturing or processing plant, hotel, motel, tourist court, apartment house
with no more than two (2) apartments, and the like are specifically ineligible
for homestead exemption.
b. If it is possible to split the parcel into the residence and the business, this
would be an ideal way to handle a business in the home. In this way the
residential parcel may be assessed as a residence only and the business parcel
can be assessed as a business.
c. EXAMPLES:
i. A beauty shop is located in the home in a room where the family has
their washer and dryer. There is a sink and hair dryer and a chair for the
customers. If the assessed value of this small business and equipment is
less than one-fifth (1/5) the total value of the home, this business would
not effect the amount of homestead. If this business is the full -time
occupation of the owner, the homestead is limited to one -half (1/2) of
the exemption allowed.
ii. A person has a small grocery store in his house. The store is on the first
floor and the family resides on the second floor. The homestead
exemption is disallowed because grocery stores are specifically excluded
from the definition of eligible homestead property by Section 27 -33-21
(b).
iii. A person has a small store in the front of his house. There is a wall
separating the store from the rest of the house. The parcel is split down
this wall and the owner is assessed on a residential parcel which can
receive the 10% assessment rate with homestead exemption and a
business parcel which receives the 15% assessment rate.
105 OCCUPANCY
In order for property to be eligible for homestead exemption, it must actually be occupied
by the applicant with only one family group to a dwelling. The exceptions to this general
requirement are listed below. With these exceptions, all other requirements needed for
homestead exemption must be met for the property to be eligible. If one of the following
people has another person live in the home, for whatever reason, the property will
become ineligible.
105.01 Non-occupying single persons
Applicants who fall under the definition of Section 27 -33-13 (e) do not have to occupy
the property on which homestead exemption is sought. This is also discussed in Rule 4 -
Head of Family
105.02 Ministers and teachers
Only property owned and occupied as a home by a minister or a licensed school teacher,
whose occupation keeps them away for long periods of time, is eligible. The statute
allows for these two types of jobs. No other individuals whose business calls for them to
be away can claim this exemption. No other family group can occupy the home for any
reason.
105.03 Institutionalized persons
Section 27-33-19 (j) states that property owned by a person who is physically or mentally
unable to care for himself and confined to an institution for treatment is eligible. This
exemption is available for a period of five (5) years from the date of confinement. If a
county requires annual homestead filing, arrangements should be made to have an
attorney, agent, or guardian sign for the confined person.
106 SPECIFICALLY ELIGIBLE PROPERTY
Some property that has certain conditions is considered eligible by statute.
106.01 Leased lands
Leased property that is listed in Section 27 -33-17 (c), (d) and (f), and that is occupied by
a family group is eligible.
106.02 Condominiums
Condominiums are considered separate dwellings when separately assessed. Also
included in this category are townhouses and duplexes.
106.03 Housing authority
Property that is occupied by a family group, but whose title and ownership has been
conveyed to a housing authority, is eligible.
107 Specifically Ineligible Property
Some property is considered ineligible by statute.
107.01 Conditional
Property occupied under an agreement to buy or under a conditional contract is not
eligible property for homestead exemption.
107.02 One-fourth purchase price
Property on which one -fourth (1/4) of the purchase price has not been paid or where
payments for the property do not show a reasonable interest rate and payment schedule is
not eligible.
107.03 Separate interests
Mineral rights or timber leases or any such land interest that is separately assessed and
that is attached to property on which homestead exemption has been claimed can not be
included in the assessed value of the homestead exemption property.
107.04 Other property
Any property owned by an applicant who has received homestead exemption on any
other property in this state is not eligible.
107.05 Different types of ownership
Individually owned land that has been claimed for homestead exemption purposes is not
eligible when combined with jointly owned property except in the case of a surviving
spouse or husband and wife. Individually owned property is never eligible when
combined with property that has a life estate interest.
108 (Reserved)