Mississippi Administrative Code › Title 35 - Department of Revenue › Part 6 - Property › Subpart 02 - Equalization › Chapter 06 - Standards of Acceptance › Section 35-6-02-06-301

Current through June 25, 2024
For the purposes of this rule, being Title 35, Part VI,
					 Subpart 02, Chapter 06, Sections 300 through 604 of Mississippi Administrative
					 Code and all subsections, paragraphs, subparagraphs and clauses thereof, the
					 following definitions shall apply:
1.
				  25% Personal Property List - the 25% list is an annual list compiled from the
				  base year personal property tax roll. It is comprised of approximately 25% of
				  the total personal property on the tax roll excluding leased property, cell
				  towers and billboards. It is to be furnished to the property tax office by the
				  county assessor designating the personal property parcels (businesses) which
				  will undergo close inspections for each of the four years in the update cycle.
				  Parcels are required to be inspected only one time during the update
				  cycle.
2. 25% Real Property List a
				  list of parcels by map numbers that nearly approximates 25% of the total real
				  property parcels in a county. Such parcels will be subject to selection for
				  audit by the property tax office. The list is due to the property tax office by
				  January 1st of the audit year. The property tax
				  office will approve the 25% real property list. 100% of all real property
				  parcels must be closely inspected during the update cycle.
3. Additions - items of personal property
				  added to a business since the last roll year.
4. Appraisal Manualthe current Mississippi
				  Appraisal Manual with current revisions as produced by the property tax
				  office.
5. Assessment equity test
				  the test for price related bias. Price related bias occurs when appraised
				  values are slanted in favor of lower-priced properties or higher-priced
				  properties. The formula for the assessment equity test is the mean divided by
				  the weighted mean. If the resulting number is above one, regressivity is
				  indicated. This indicates that high-value properties are under-appraised
				  relative to low-value properties. If the result is below one, progressivity is
				  indicated. Progressivity indicates that high-value properties are
				  over-appraised relative to low-value properties.
6. Assessment Level Test the overall ratio of
				  appraised values to market values in a statistical study. For the purposes of
				  this rule, the level of assessment will be measured by the median.
7. Assessment Uniformity Test the test for
				  fairness of individual assessments. It is measured by the coefficient of
				  dispersion about the median.
8.
				  Asset - any item that is used in the operation of a business.
9. Asset List - a detailed listing furnished
				  by a business containing personal property items purchased for use in a
				  business. The list should include description, original acquisition cost new,
				  and the actual age of each item.
10. Base Year the year immediately succeeding
				  the most current update year.
11.
				  Business - any commercial establishment, industry, or research and development
				  facility.
12. Close Inspection of
				  Real Property - physically inspecting real property parcels for property tax
				  purposes by viewing them closely with property record card in hand.
13. Coefficient of Dispersion About the
				  Median - a numerical value that measures the average percentage deviation of
				  the ratios from the median in a statistical study.
14. Commission - the State Tax Commission,
				  the Chairman and Associate Commissioners.
15. Consigned Items - items delivered or
				  transferred to the control of another's care in anticipation of sale.
16. County Audit - the verification process
				  performed by the property tax office to determine whether counties have
				  equalized values within given classes of property and have complied with the
				  provisions of this rule to insure that values have been equalized.
17. County Building Index - a calculated
				  number used to adjust the costs in the appraisal manual to meet local
				  construction costs, including, but not limited to, labor, materials and profit.
				  Such index is applied to real property improvements as provided in the
				  appraisal manual.
18. Deed Log - a
				  record of all deeds filed in the Chancery Clerk's office during a calendar
				  year. It must contain all data required by the appraisal manual.
19. Deletions - items of personal property
				  removed from a business during the prior roll year.
20. Depreciation - the loss in value of any
				  item.
21. Drive-by Inspection - the
				  process of reviewing parcels from a motor vehicle to determine whether changes
				  have occurred to the parcels. Drive-bys are an acceptable means of performing
				  real property maintenance.
22.
				  Error Points - points used in the determination of passing or failing the
				  county audit. They are assigned to a category based upon the seriousness of the
				  error with category I errors being the most serious and category III being the
				  least serious.
23. Itemized Listing
				  - an asset list or a detailed listing produced by a contractor acting on behalf
				  of a county, or by a county appraiser.
24. Inventory - an itemized list of goods on
				  hand and available for sale by a business. It may include, but is not limited
				  to; products held in reserve or put on shelves for sale, resale or consumption
				  by the public. They may be raw materials, work in progress, finished goods,
				  consigned goods, or ingredients used in food preparation.
25. Leased Equipment - personal property
				  items furnished by another business which are used under terms of a contact or
				  agreement.
26. Mapping
				  Reconciliation - a verification accounting of parcels on the maps within a
				  county to insure that they are accounted for on the land roll.
27. Median - the midpoint or middle value
				  when a set of values is ranked in order of magnitude.
28. Order - A document issued by the
				  Commission which identifies the assessment levels of a class or classes of
				  property and whether the county is in compliance with the regulations of the
				  commission. It further identifies any corrective actions necessary for counties
				  that are not in compliance.
29.
				  Personal Property Close Inspection - an on-site physical examination of the
				  personal property items associated with a business. The examination is
				  performed with property record card in hand by a contractor acting on behalf of
				  a county or by a county appraiser.
30. Property Record Card - a permanent card
				  or computer generated facsimile of a card containing information about the
				  parcel that it represents. Information on the card shall adhere to the
				  requirements of the appraisal manual.
31. Property Tax Office - the Property Tax
				  Office of the Mississippi State Tax Commission or the employees of
				  same.
32. Real Property Maintenance
				  the annual process of adding new properties to the tax roll, adding additions
				  to existing properties on the tax roll, and deleting structures from the tax
				  roll which have been removed from existing parcels.
33. Rendition - the actual listing of
				  personal property completed by the taxpayer or other preparer, signed by the
				  taxpayer, and returned to the tax assessor's office. A summary of the
				  taxpayer's property with individual additions and deletions noted is likewise
				  considered a rendition, providing the assessor has a complete detail listing of
				  the taxpayer's personal property signed by the taxpayer.
34. State Index - The state index is a
				  calculated number which represents a multiplier used to bring costs in the
				  appraisal manual to the actual cost of constructing an improvement. The state
				  index will not be calculated from construction occurring in counties having a
				  population exceeding 40,000 according to the 2000 U.S. census.
35. Trending Factors or Multipliers - tables
				  provided by the property tax office annually that adjust for inflation in
				  industries.
36. Update - the
				  process that each county must complete every four years in which every parcel
				  is closely inspected to determine whether changes have occurred. All parcels
				  must be revalued during the update cycle.
37. Update Year - the last year of the
				  county's four-year cycle, or the year approved by the property tax office as
				  the update year.
38. Update Cycle -
				  the update cycle is the four year period commencing with the base year and
				  ending with the update year. The update cycle may vary from four years only
				  with the approval of the property tax office.