Mississippi Business Property Tax: Ad Valorem Tax on Equipment and Inventory

Mississippi taxes business property at the local level. Equipment, machinery, furniture, computers and inventory held for sale are listed with your county tax assessor each year. The local taxing districts that cover each location then apply their millage to the assessed value. This guide explains how the mississippi ad valorem tax works on business personal property, who sets the value, which exemptions exist, and what you still need to confirm with your local office.

This guide is informational content, not legal or tax advice. Rates, deadlines and exemption rules can change, and the figures here reflect the sources cited as of October 2026. Talk with a qualified CPA or attorney before you act on any of it, especially if you operate in more than one county or city.

What the Tax Covers

The mississippi business personal property tax reaches tangible property your business owns and uses. Two categories come up most often:

• Business personal property: equipment, machinery, tools, furniture, computers and similar movable assets used in operations.
• Inventory held for sale: goods you keep on hand to sell. Inventory is taxed locally, and the Legislature has not removed the tax.

Real estate is taxed under a separate property tax process. Motor vehicles are treated differently from other business personal property, so ask your assessor how a company vehicle should be listed.

Who Assesses and Who Collects

The county tax assessor appraises taxable personal property every year at its true value. The assessor does not set the tax rate. Each taxing district where your property sits, such as the county, city and school district, applies its own millage to the assessed value. Your total bill therefore depends on where each asset is located.

This matters for multi-site businesses. A warehouse inside city limits and a yard outside them can sit in different taxing districts with different millage, so the same kind of equipment can carry different bills.

How the Value Is Set

Two numbers drive the bill. True value is the value the assessor places on the property. Assessment is the portion of that value the tax applies to. According to the Department of Revenue's Property Tax FAQ, Class III personal property other than motor vehicles is assessed at 15% of true value. Millage is then applied to that assessed amount.

For illustration only: if an assessor sets the true value of a machine at $100,000, the assessed value is $15,000, and the tax is that $15,000 multiplied by the combined millage for the location. The millage is not stated here. Check with your county tax assessor for the exact millage for your address.

Do not assume inventory uses the same class or rate as equipment. Confirm with your assessor which class and rate apply to your inventory.

Registration Is Not Licensing, and Neither Pays the Property Tax

Mississippi issues no single statewide business license. Business owners often mix up several separate filings:

• Forming an LLC: the Certificate of Formation (Form F0100) costs $50 and is filed with the Secretary of State. It is a registration of the entity, not a license.
• Assumed names: a fictitious business name is registered with the Secretary of State (Form F0070, $25), not with the county.
• Sales tax permit: businesses making retail sales register with the Department of Revenue. The permit is a tax registration with no fee, although a bond may be required for applicants without a permanent Mississippi location. The state sales tax rate is 7%, and there is no county add-on. Only Jackson and Tupelo levy a city sales tax.
• Local privilege license: every city, town and village issues its own under Miss. Code 27-17. Counties license only businesses located outside municipalities.

None of these filings replaces the annual personal property filing with the county assessor. Keep them on separate calendars.

Exemptions and Incentives

Free Port Warehouse Goods

Goods stored in a licensed free port warehouse that will ship out of state can be exempt under Miss. Code 27-31-51 to 27-31-61. The license is issued by the local governing authority, not the state. If your inventory moves through a warehouse, ask the city or county whether a free port license is available and what it requires. Do not assume your goods qualify.

New and Expanded Enterprise Exemptions

New or expanded enterprises, such as manufacturers and distribution centers, can seek local exemptions of up to ten years on an asset under Miss. Code 27-31-101 to 27-31-117. The application deadline is June 1. Because the exemption is granted locally and is not automatic, contact the local governing authority and your county assessor before the deadline to confirm which year it applies to and what the application must include.

Inventory Tax Status in 2026

Two bills would have eliminated the inventory tax: SB 3125 in 2025 and SB 3163 in 2026. Both died in committee. As of 2026, the inventory tax still applies. Do not budget for a repeal. If a future bill changes this rule, confirm its status and effective date with your county assessor and a tax professional before you rely on it.

Annual Filing Steps

1. Build an asset list. Record equipment, furniture, computers and tools with purchase date, cost and physical location. Separate each location.
2. Count inventory. Keep a dated record of goods held for sale at each location so the figure matches what you report.
3. Call the county tax assessor. Confirm the filing deadline, the required forms, the valuation date and the exact millage for each location. This guide does not publish those figures, and they should come from the assessor directly.
4. Check each taxing district. If assets sit in more than one city or county, confirm the millage for every site.
5. Screen for exemptions first. Ask about free port and new-enterprise options before you file, because the June 1 application date may come before your filing deadline.
6. Keep proof. Save filed returns, assessment notices and exemption approvals with your permanent records.

Common Mistakes

• Expecting the state to collect it. The county tax assessor appraises the property, and the local taxing districts levy the millage.
• Treating registration as a property tax filing. The LLC Certificate of Formation, the assumed name filing and the sales tax permit do not satisfy the annual assessor filing.
• Confusing franchise tax with property tax. The Mississippi franchise tax applies to corporations, not to an LLC taxed as a partnership. It is a separate state tax.
• Missing an out-of-town location. Equipment at a second site is still taxable where it sits.
• Applying for exemptions late. A missed application date can cost you the exemption, so confirm the deadline with the local governing authority.

Official Resources

• Mississippi Department of Revenue, including the Property Tax FAQ and sales tax information: https://www.dor.ms.gov/
• Sales and use tax registration for applicants: https://www.dor.ms.gov/business/sales-use-tax/registration-information-sales-and-use-tax-applicants
• Mississippi Secretary of State, Business Services Division: https://www.sos.ms.gov/business-services
• Business entity search: https://corp.sos.ms.gov/corp/portal/c/page/corpBusinessIdSearch/portal.aspx
• Mississippi Small Business Development Center Network, with 19 locations statewide: https://www.mississippisbdc.org/
• SBA resources for Mississippi: https://www.sba.gov/district/mississippi

For filing deadlines, forms and millage, contact your county tax assessor directly. Those details vary by county and city and are not set out in this guide.