Capitol Comments & Bills to Know, February 10-14

Happy Valentine’s Day! As we move deeper into the 2025 Mississippi Legislative Session, it’s crucial for Mississippi Farm Bureau Federation (MFBF) members to stay informed about the bills and legislation that could significantly impact agriculture and rural communities across the state.

As always, the MFBF State Affairs team is hard at work at the Capitol, representing the interests of Mississippi’s farmers, ranchers, and rural families. One piece of legislation that our team is closely monitoring is Senate Bill 2968, authored by Senator Brian Rhodes, Vice-Chairman of the Senate Forestry Committee. This bill introduces specific guidelines for assessing the true value of rural structures for ad valorem tax purposes, a matter that has had wide-reaching effects on our agricultural community. Below are some of the key provisions to address prior issues in this bill:

• Recalculation Requirement: Any rural structure appraised before January 1, 2025, will need to be recalculated for the 2025 tax year and beyond, based on the new assessment guidelines. The revaluation will begin with the year of the structure’s initial appraisal.
• Guideline Updates: For rural structures in operation before January 2025, tax assessors will use the previous version of the Department of Revenue’s appraisal manual. New or modified structures initiated after this date will need to follow the updated guidelines and use the most recent manual.
• Depreciation Rules: The bill introduces a straight-line depreciation approach for assessing the true value of rural structures, at a 7% depreciation per year. A critical provision ensures that net depreciation cannot fall below 20% of the original true value.
• Poultry House Adjustment: For Mississippi’s poultry farmers, the bill includes a 45% economic obsolescence adjustment for poultry houses used in commercial farming operations.
• Conflict Resolution: If any conflicting provisions are found within the current law, the new guidelines outlined in this bill will take precedence, offering clarity and consistency for agricultural property assessments.

Senate Bill 2968 is a critical piece of legislation aimed at providing clarity and fairness in the valuation of rural structures for ad valorem taxation. By addressing the depreciation of agricultural assets like secondary rural structures, it ensures that Mississippi’s agricultural community, is treated fairly when it comes to property taxes. These changes are especially important as they help ensure that tax assessments accurately reflect the true value of farm structures, which can significantly affect the financial burdens on farm operators.

By establishing clearer guidelines, this bill also aims to standardize the way rural properties are assessed across the state, ensuring fairness and transparency for property owners. As agricultural operations continue to face economic challenges, it’s essential that property taxes are aligned with the realities of farm structures’ value and depreciation.

The legislative process is moving forward at a rapid pace. As of last Tuesday, over 1,600 bills died following the major legislative deadline of committees to act on bills in their original chambers. With the committee deadlines behind us, lawmakers focused their attention on floor debates this week. As those debates unfolded, the bills are soon reported out to opposite chambers. As we continue to meet deadlines, it’s more important than ever for MFBF members to stay informed and engaged.

• Friday, February 14: Deadline for reconsideration and passage of bills originating in their respective chambers.
• Monday, February 17: Final date to dispose of motions to reconsider.
• Monday, February 24: Deadline for making requests for appropriation and revenue bills to be drafted.
• Wednesday, February 26: Deadline for original floor action on appropriations and revenue bills originating in their own chamber.

Governor Tate Reeves has recently announced a special election scheduled for April 15, 2025, to fill the vacancy in Senate District 18, which covers Leake, Neshoba, and Winston Counties. This vacancy arose following the resignation of former Senator Jenifer B. Branning, who was elected to the Mississippi Supreme Court. Additionally, special elections will take place for the House of Representatives in District 23 (Calhoun, Webster, Pontotoc, and Lafayette counties) and District 82 (Lauderdale County) on Tuesday, March 25, 2025.

As we move through the next critical deadlines in the Legislative Session, we remain committed to advocating for policies that protect and strengthen agriculture in our state. Your involvement makes a difference, so stay engaged, stay informed, and continue to make your voice heard as we work together to shape the future of Mississippi’s agricultural landscape.