Taxes/Incentives
Overview
Mississippi Development Authority
The Mississippi Development Authority, through the Financial Resources Division, administers a variety of incentive programs designed to assist businesses in obtaining grants and loans for development and expansion and to posture the State as an aggressive competitor in the Global Market. Major projects require major financing and Mississippi can tailor a package of financial programs that will make your Company’s expansion or location as simple and cost-effective as possible.
Simpson County
On a case by case basis, Simpson County may be able to offer tax breaks and incentives to companies based on job creation, payroll, and investment.
Taxes
One of the many advantages that businesses and individuals have in Simpson County are the low tax rates as compared with other areas and other states. The State of Mississippi’s low competitive tax rates coupled with Simpson County’s low tax rates allow your business to pay less in overall taxes and increase your bottom line. A comprehensive package of tax breaks and incentives are possibly available to companies based on job creation, payroll and capital investment.
All businesses in Mississippi are subject to property taxes. These taxes are levied by three main taxing entities; cities, school boards and counties.
Property Tax
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:
Land $10,000
Machinery and Equipment $700,000
Buildings $1,500,000
Raw Materials $200,000
Finished Goods $500,000
Total $2,910,000
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
