County tax levy remains same

The Marshall County Board of Supervisors approved a FY 2018-2019 budget of $25.1 million.

Revenue is up some in this anticipated budget due to several factors – fee in lieu monies on a manufacturing operation, anticipated federal dollars, and increases in building permits and fees.

Last year a general county mill was worth $193,760. The new mill in the general county fund is worth $206,327 – an increase of $12,567 per mill.

The Road and Bridge Fund mill was worth $175,852 last year, and is worth $204,145, an increase of $28,293.

The tax levy is the same as last year –119.86 mills.

See page 11 of this issue for the tax levy in full.

Monies levied for the General Fund cannot be used to pay for Roads and Bridges expenses, and monies levied in the Road and Bridge Fund cannot be used to pay claims incurred by the General County Fund.

This year’s budget gives a raise to county employees that may range from 2 percent to 7 percent, with the average raise computed at 5 percent.

In this new budget is money to replace the roof on the Marshall County Courthouse.

Some monies in the Road and Bridge Fund will be used to pay for new equipment.

Although the tax rate has not changed in the new budget, the value of the mill has increased in the General County Fund and the Road and Bridge Fund. Therefore, some taxpayers may see an increase in their property taxes in the upcoming fiscal year because of the increase in value of these mill rates in the two funds.

The value of the mill increased this year due to industrial growth and agricultural value charges. Some additional revenue is expected in fee-in-lieu assessments and building permit receipts.

How taxes are generated

Ultimately, your tax burden hinges on the value of your real or personal property.

“First, real properties are appraised every four years and updated every year depending on whether any new construction has taken place on the property,” said tax assessor Juanita Dillard.

Appraisals are based on five categories, each of which is assessed at a different percentage of the true value (as appraised), according to tax collector Betty Byrd.

There are five classes of property - real (includes land and houses); personal (anything to operate a business such as inventory, equipment, machinery, furniture, fixtures); motor vehicles (cars, trucks, motorcycles, trailers, motor homes, big trucks); mobile homes (any not certified to the land roll); and PSC, Public Service Commission (includes railroad properties, gas pipelines, phone companies’ equipment, etc.).

The county’s assessed value, which includes all taxable properties in the county, is the sum of the value of all properties in the county before homestead or industrial exemptions are deducted.

The county’s assessed value for 2018 came to $332 million and after deduction of exemptions, it came to $217 million. The 2017 assessed value was $298 million, and $203 million after exemptions were deducted, Byrd said.

Owner-occupied dwellings are assessed at 10 percent of true value. If you have a rental house, it is assessed at 15 percent of true value. Motor vehicles are assessed at 30 percent of value which is determined by the state of Mississippi. Public utilities are assessed at 30 percent of true value with the values provided by the state.

Mobile homes are assessed at 15 percent of true value as determined by the state, unless the mobile home is attached (registered) to the land tax roll. To attach to the land tax roll means you must own the land that the mobile home sits on as well as the mobile home.

There are 28 taxing districts, Byrd said, which determines your tax as well.

Occupied homes can qualify for homestead exemption, if a person registers for it with the tax assessor’s office. The maximum homestead credit after the 10 percent real property assessment is $300.

Homeowners 65 and over or disabled may get up to the first $7,500 assessed value tax-free, if they are homestead-eligible. Totally disabled American veterans are exempt on any amount of assessed value on homestead-eligible property.

Industrial tax-exempt industries must all pay the school tax assessment in full based upon the value of the industry.

They also must pay the 2 mills levied for fire protection and 2 mills for police protection, or 4 mills, and pay the millage for Northwest Community College.

Taxing districts

There are five categories of taxing districts based upon each of the five supervisor districts, Byrd said.

Then there are four taxing districts depending on whether you live inside a municipality. The categories are 0, 1 (Holly Springs), 2 (Byhalia), and 3 (Potts Camp).

There are two school districts - the Holly Springs Separate School District and the Marshall County School District. The assessment depends on which district you live in.

For example, the county school millage is 35.10. The Holly Springs School District is 67.65 mills.

There are seven categories of special assessment districts (industrial exemptions).

As the above shows, your tax may be higher if you live in the Holly Springs School District.

Your vehicle tax also may vary depending on where it is domiciled in the county.

“It can make a huge impact on your motor vehicle registration fee depending on your location,” Byrd said. “In a municipality or township your vehicle tag can be much higher.”

The tax on a new car can vary between $200 and $300 on the same vehicle depending on where you live.

For example, the tag for a vehicle that has an assessed value of $7,034 and located inside the Holly Springs Separate School District and a municipality such as Holly Springs, can run $690. But the same motor vehicle domiciled in the county school district would run $544.

The tax liability on real property works the same way as does the motor vehicle tax.

For example, if a person owns a home valued at $250,000 located inside the city of Holly Springs and inside the Holly Springs School District, the tax would be about $3,500 before deducting the homestead exemption.

Out in the county school district, the same $250,000 house would be taxed at $2,100, Byrd said.

And the higher the value of the property, the greater the difference in the tax liability on a home.

It is to be noted here that neither the tax collector nor the tax assessor sets your tax or mill rates. The state of Mississippi determines the method of assessing the value of real and personal properties, and the rates for motor vehicles and the like.