Did you know our property taxes are about to take a huge leap up in Mississippi?

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SO YOU’VE PROBABLY HEARD THERE’S A STORM BREWING IN MISSISSIPPI. If you haven’t, I hate to be the bearer of bad news, but almost everyone in the state is about to see their property taxes take a huge leap up.

I’ve had several folks reach out to me over the past few weeks when they found this information out to ask if this substantial increase was coming from some kind of legislation passed by the Mississippi legislature? There has also been some who have voiced their concerns that it is just a ploy by an our local tax assessor and/or county and city officials to rake in millions more in tax dollars.

Surprisingly, let me begin by saying that none of these things are the real reason. It was actually an administrative directive from the Mississippi Department of Revenue (DOR), not a specific statute passed by the Legislature this year, or some kind of sinister master plan by local leaders.

To be honest, this information even caught me by surprise. Thankfully, the county that I live in (Desoto) decided to send out notices to everyone breaking the bad news. I guess they were trying to soften the blow we would all experience when letters started to arrive from our mortgage companies outlining the deficit in our escrow accounts, and the subsequent hike in our monthly note. If you own your house outright, you probably wouldn’t even have known until you got your next property tax bill later this fall or early next year.

Here is exactly what happened:

• Under existing Mississippi law (Miss. Code § 27‑35‑1 and related sections), tax assessors are required to appraise real property “at true value” and perform physical inspections at least once every four years.

• In July 2025, the DOR directed all county assessors to update their manuals and increase their valuation index—raising assessed property values to at least 85 % of fair market value (with the goal of reaching 100%).

• That instruction, not a bill, is why you’re seeing widespread reassessments and significant increases.

Now this doesn’t completely exempt our local leaders, as I will address later in this post (as there is something they can do about it). Most of us in Desoto and surrounding counties have not witnessed big increases in our property taxes over the last 5 years (especially if you live out in the county like I do). I know that our county leadership has tried hard to keep the millage the same for decades, and property valuation and increases to a minimum.

Since Covid, we’ve witnessed historic property value increases. Supply and demand, along with high inflation and associated building costs are many of the reasons for this increase. Sadly, it doesn’t just stop with valuations and prices though, everything associated with homeownership has gone up. I have a moderate sized home (1500 square feet), and just this year had my homeowners insurance premiums increase by 50%! All the excuses from my insurance company, and subsequent ones that I shopped around with after receiving that premium increase, pointed out the increases in home costs, labor, and replacement values associated with home ownership.

So why doesn’t the county just ignore the directive from DOR? The fact is that if you live in Mississippi, and you live in the house that you own, you can file for and receive a Homestead exemption which will significantly lower your property taxes. You can also get an additional and substantial Homestead exemption once you reach the age of 65 too. That exemption/discount which is extended to the homeowner, is reimbursed by the state back to the local jurisdictions. It was the state’s way of helping out counties and municipalities, along with its homeowners when it came to taxes and home ownership.

Here’s the rub, the Department of Revenue has told local jurisdiction that they must get their assessments up to fair value or risk losing that reimbursement. I don’t know what or who was the impetus for this sudden threat, but without the reimbursement from the state, Desoto County would find itself tens of millions of dollars to the negative, and the homestead exemptions we enjoy would probably go away all together. I assume your county would be no different if you live elsewhere.

I had one friend ask why the legislature couldn’t just change the existing law that DOR is expecting enforcement of. While that is always a possibility, it’s not necessarily prudent. Fair value is what everything from our insurance premiums, ad valorem taxes, and other purchase that we make are based. To give a Tax Assessor the freedom to assess whatever price he or she wants to a home (as opposed to it being based on fair value), could create perverse incentives for individuals who have wealth and political influence gaining unfair assessment in places where there are unscrupulous elected leaders.

As of right now, according to the law, you CAN challenge your assessment value if you feel it is too high (which would result in your paying more property taxes than you rightfully should). However, without the measuring stick of “fair value”, there would be no grounds to challenge an unfair valuation of your property. It’s a catch 22. If you feel your local leaders have under assessed the value of your home, my advice would be to just keep your mouth shut and enjoy the fact your tax burden will be less as a result. Their assessment has no bearing on the actual market value of your home (what you can ask and sell it for). IF YOU FEEL YOUR ASSESEMENT IS TOO HIGH, MANY COUNTIES ARE REQUIRING THAT YOU MUST CHALLENGE IT BY JULY 31, 2025.

In case you are not aware, your property taxes consist of three different taxing entities/recipients: your city if you live in one, your county, and your local school district. NOW HERE IS WHERE THE LOCAL LEADERS BEAR RESPONSIBILITY. Many of them will tell you that they have no choice but to raise the assessment value of your property (true). As a result, this raise will increase the amount of taxes you will now have to pay (also true). Never forget though, that they are the one’s who set the millage rate. The millage is a multiplier used to determine how much you have to pay in taxes on your property. It is applied to and based on your assessed valuation. If your local municipality or county raises your assessment value (and as a result your taxes), which ultimately results in increased revenue for that said municipality or county, THEN THEY TOO HAVE RAISED YOUR TAXES (not just DOR). Local leaders have the power to adjust your millage rate down to compensate or offset any increase in revenue that they might otherwise experience from this reassessment.

If your local leaders ran on platforms that they would not raise your taxes, that they would be fiscally conservative and responsible with your tax dollars, and then turn around and tell you that there is nothing that they can do about any increased revenues that they might experience as a result of the reassessment…THEN THEY ARE LYING TO YOU. This fact also applies to your local school district, since they will also be a major beneficiary of any increases in property values assessed to you. They too posses the same ability to raise or lower their millage portion to offset for any actual increases that they realize as a result of this reassessment.

If you know me and my voting record, along with the many fights I have taken up in my 10 years of service to my constituents and our state, then you know I have fought for your pocketbooks and freedoms at every turn. As much as I hate this new increase in valuations and what it potentially mean for both of us, it is not necessarily the fault of either your legislators or local leadership. How much of an increase though that any of us experience, will be determined not just by the Department of Revenue’s directive…but also our Supervisors, Mayors, Alderman, and School Boards if their coffers also increase as a result.

Talk to your local leadership, consider enlisting the help of your legislators in doing the same. I have, and as a result I know that our county and some of its municipalities are planning to reduce millage rates to offset the increase and still be in compliance with the law and the DOR directive.