All businesses in Mississippi are subject to property taxes. These taxes are levied by three main taxing entities; cities, school boards and counties.
Counties and municipalities levy a property tax on real and tangible personal property in Mississippi. Generally, property is assessed at 15% of true value. This assessed value is then multiplied by the millage rate to determine the annual tax liability. Each city and/or county sets its tax rate, or millage. Mississippi does not have a state property tax.
Property Tax Example
Assume the following facts:
A manufacturing plant is located within a municipality where the total of all taxes is 78.5 mills.
The true value of the taxable property is:
Machinery and Equipment $700,000
Raw Materials $200,000
Finished Goods $500,000
The assessed value is calculated by multiplying the total by 15% (15% x $2,910,000) = $436,500
The tax liability, before any exemptions, is calculated by multiplying the assessed value by the millage: ($436,500 x .0785) = $34,265