Overview of Property Tax Assessment in Mississippi

In Mississippi, property taxes are administered at the county level, but the Mississippi Department of Revenue (DOR) oversees standards to ensure uniformity and compliance with state law. Properties are appraised at their "true value," which is defined as market value under Mississippi Code § 27-35-50. This true value is then used to calculate the assessed value by applying classification-based ratios: for example, 10% for Class I properties (owner-occupied residential), 15% for Class II (other real property), and higher for personal property. The property tax is ultimately determined by multiplying the assessed value by the local millage rate (tax rate per $1,000 of assessed value) set by counties, municipalities, and school districts.

However, in practice, county appraisals may not always align perfectly with current market values due to factors like infrequent updates or market fluctuations. To address this, the DOR conducts sales ratio studies, comparing appraised values to actual sales prices. These studies measure the "median ratio" of appraisals to market value. State standards require this ratio to fall within acceptable ranges for compliance: 85% to 115% for Class I properties and 75% to 125% for Class II properties.

If a county's ratio falls below the minimum (e.g., below 85% for Class I), the DOR can mandate a reassessment to bring appraisals closer to market value.

The "New Rule" Requiring 85% of Market Value

The rule in question isn't entirely new but stems from longstanding DOR standards for acceptance of county tax rolls, which have been enforced more rigorously in recent years. As of 2025, the DOR has mandated reassessments in certain counties where ratio studies showed appraisals significantly below market value. For instance, in DeSoto County, previous appraisals averaged only 56% of market value, prompting a state order to adjust to at least 85%.

This ensures compliance with state law requiring appraisals at true (market) value, while allowing a tolerance down to 85% as the minimum acceptable threshold based on the ratio study standards.Key aspects of this enforcement:

• Purpose: The goal is to achieve fairness and equalization in property taxation. Under-appraised properties can lead to inequities, where some owners pay less relative to their property's actual worth, shifting the burden elsewhere. State law (Mississippi Code § 27-35-113) empowers the DOR to examine and enforce standards, including assessment levels relative to market value.

• Scope: This applies primarily to real property (land and buildings), with reassessments updating values based on recent sales data, market indices, and physical inspections. Personal property and vehicles are handled separately and updated annually.

• Timeline and Cycle: Counties must update real property values at least every four years, with 100% of parcels physically observed over that period.

• The 2025 mandates stem from recent ratio studies identifying non-compliance, making this feel like a "new" rule for affected areas. For example, reassessment notices were mailed in DeSoto County in July 2025, with new values effective for the 2025 tax year (bills due in early 2026).

• Minimum vs. Ideal: While the DOR encourages appraisals at 100% of market value, the 85% floor is the compliance threshold to pass the ratio study. If a county fails, it must adjust within tighter limits (e.g., no more than 15% deviation for Class I after correction).

Impacts on Property Owners and Taxes

This reassessment can result in higher appraised values, which may increase assessed values and, consequently, property taxes—especially in high-growth areas like DeSoto County, where real estate prices have risen.

However:

• Tax increases aren't guaranteed, as local governments can adjust millage rates downward to offset higher values. For example, DeSoto County's board has not raised its millage rate in 21 years and aims to minimize impacts.

• Certain homeowners (e.g., those 65+ or disabled with homestead exemptions) may see taxes decrease if millage is reduced, as their exemptions lock in portions of the value.

• Vehicle tags, tied to millage rates, could become cheaper in some cases.

• Overall property tax revenue funds local services like schools and infrastructure, and reassessments help ensure equitable contributions.

Property owners receiving new assessment notices can appeal if they believe the value is inaccurate. In DeSoto County, appeals were due by July 31, 2025, through the county tax assessor's office.

Owners are encouraged to review their property details online or contact their county assessor for specifics. This enforcement reflects the DOR's push for accurate, up-to-date appraisals rather than a wholesale change in law. For the most current details, property owners should consult their local county assessor or the DOR website.