In 1980, the Legislature established the use value method of property appraisal, whereby agricultural and forest lands are valued according to the productivity of the land and income generated by it, rather than at market value. The State Tax Commission has the statutory responsibility for equalizing agricultural land assessments among counties. By failing to base use value computations on statistically valid sampling procedures and by adopting use values derived from procedures other than those set forth by statute, the Tax Commission has not ensured that agricultural land values are established in compliance with the law. Also, the commission has not adequately monitored the assessment of agricultural land to ensure that uniform and equal assessments exist among the eighty-two counties as required by law.
In addition, the State Tax Commission has not required evidence or support documentation from counties before approving changes in agricultural property tax assessments, which has resulted in the in appropriate reduction of property taxes.
For a paper copy of this report, contact PEER by telephone at 601-359-1226 or by e-mail at reports@peer.ms.gov.