21 Feb Legislative Update — February 21, 2022
We have officially passed the midway point in the 2022 Legislative Session, and we are quickly approaching another critical deadline — the deadline for floor action on revenue/appropriation bills originating in their own chamber.
This week, the House and Senate will likely be busy evaluating revenue bills and appropriation bills out of committee and taking the bills up for a vote on the floor. There has been a lot of talk and debate about the competing tax plans from the House and Senate; however, the Senate has yet to officially file a bill. If the Senate plans to advance a tax reform bill, they must do so by Wednesday, February 23. Conversely, the House has already passed their proposal to eliminate the personal income tax and the Senate has until March 15 to pass HB 531.
MAR continues to advocate for SB 2831 — this legislation would preserve the status quo of how the Mississippi Department of Revenue (DOR) taxes software services. In the summer of 2021, the DOR proposed new regulations that would redefine taxable software services housed outside of the state. These proposed regulations could impact how online banking, REALTOR® standard forms, online document signing, the MLS, and other daily applications are taxed. In the last Legislative Update, there was a summary provided of SB 2831.
Some other items to note, the House and Senate have passed different versions of amendments to the Residential Landlord-Tenant Act. One of the bills, SB 2626 (authored by Chris Johnson) is a “Comprehensive Landlord Tenant Act” that seeks to provide the required change to the unconstitutional provision of the law, but also revises several components of the existing law. The other bills, SB 2461 and HB 1061 provide a constitutional fix to the existing law.
Another bill moving through the process is HB 1069, authored by Representative Clay Deweese. This bill would require all liens to be recorded and published in the chancery clerk’s office. The intent of the legislation is to make the liens more searchable and available in order to make the title searches easier and the real property transaction more transparent and streamlined.
Below you will find a complete summary of MAR’s 2022 Legislative Priorities, as well as a list of bills MAR staff will continue to monitor and evaluate as the Session progresses. Keep in mind, most of the bills on the watchlist will not make it through to final passage and the list will be amended after each deadline has passed.
Mississippi REALTORS® 2022 Legislative Priorities
Taxation
Any tax revision or increases enacted by the Mississippi Legislature should encourage savings, investment, and home ownership. The Mississippi REALTORS® oppose any tax provisions that are unfair to the real estate industry and property owners. The Mississippi REALTORS® oppose any effort to tax professional real estate services.
Principal Sponsor: Philip Gunn
Co- Sponsors: Lamar, White, Steverson, Barnett, Massengill, Bain, Newman, Rushing, Kinkade, Morgan, Pigott, Ford (73rd), Calvert, Smith, Creekmore IV, Goodin, Tullos, Carpenter, Hood, Oliver, Robinson, Boyd, Eure, McKnight, Owen, Sanders, Crawford, Darnell
Current Status: Passed by the House. Referred to Senate Finance Committee
*HB 531 is a bill to eliminate Mississippi’s personal income tax. In its current form, this legislation does not contain any tax on professional services. The legislation does provide a Motor Vehicle Ad Valorem Tax Credit (the car tags should be cut by 50%). The legislation will establish a reimbursement fund so that counties will “be made whole” and should not result in a loss of revenue. MAR will continue to monitor this bill as it advances through the legislative process. This week, the Senate is expected to unveil their tax relief proposal. *
MAR supports legislation that would preserve the status quo of how the Mississippi Department of Revenue (DOR) taxes software services. In the summer of 2021, the DOR proposed new regulations that would redefine taxable software services housed outside of the state. These proposed regulations could impact how online banking, REALTOR® standard forms, online document signing, the MLS, and other daily applications are taxed.
Principal Author: Josh Harkins
Current Status: Passed the Senate. Referred to House Ways and Means Committee
Local Zoning and Planning for Medical Marijuana
The Mississippi REALTORS® believe in the fundamental right of all private property owners working through local government to determine the highest and best use of their land. We maintain that planning for the classification and use of land must adequately consider the needs of housing, agriculture, commercial and industrial growth as well as quality of life and a healthy local economy. The Mississippi REALTORS® support legislation that allows local municipalities to zone and/or opt out of a Mississippi medical marijuana program.
Principal Sponsor: Kevin Blackwell
Co-Sponsors: Barnett, Butler (36th), Butler (38th), DeLano, Hickman, Horhn, Jackson (11th), Simmons (12th), Simmons (13th)
Current Status: LAW
Enhance Due Process Rights for Real Estate Licensees
The Mississippi REALTORS® strive to enhance the ability of its members to achieve career success in an ethical and professional manner and to promote and protect the rights of private property ownership. Through years of member surveys and member input, Mississippi REALTORS® have consistently expressed an interest in amplifying the rights of licensees when dealing with the regulatory authority. The Mississippi REALTORS® continue to support legislation and/or regulation that enhances due process rights of licensees including supersedeas provisions in Mississippi real estate license law.
Principal Sponsor: Daniel Sparks
Co-Sponsors: Tate, Thompson, DeLano, Boyd, Hickman, Chism, Whaley, McCaughn, Seymour, Moran, England, McMahan, Caughman, Barnett, Younger, Suber, McLendon, Jackson (11th), Branning, Thomas, Polk, Williams
Current Status: LAW
In addition to MAR’s 2022 Legislative Priorities, the bills on the list below are being monitored by MAR staff and directly or indirectly impact the real estate profession. There may be additional bills introduced and added to this list.
HB 71: Housing Repair Grant Fund; authorize issuance of bonds to provide funds for grants to low-income individuals for home repairs.
HB 111: Housing Loan Assistance Pilot Program; create and authorize issuance of bonds to provide funds for.
HB 256: Manufactured and mobile homes; require certain notice to tax collector when relocated to another county.
HB 372: Sixteenth section land; authorize leasing of certain classified land to cities/counties for less than 5% of market value.
HB 379: Property interest; conveyance to married individuals considered to create joint tenancy with right of survivorship.
HB 531: Mississippi Tax Freedom Act of 2022; create.
HB 548: Ad valorem tax; exempt motor homes and trailers.
HB 551: Ad valorem taxation; exempt real property.
HB 585: Ad valorem tax; exempt property of certain nonprofit corporations.
HB 616: Menaced property; authorize municipalities to secure abandoned or dilapidated buildings on such property
HB 617: Municipalities; authorize waiver of liens, under certain circumstances, for costs associated with cleaning menaced property.
HB 626: Scrap metal; revise valuation of for penalties.
HB 686: Appraisal Management Companies; extend repealer on registration requirements under Mississippi Appraisal Company Act.
HB 826: Ad valorem tax; provide partial exemption for certain business personal property.
HB 827: Ad valorem tax; exempt certain business personal property from.
HB 828: Homestead exemption; increase for persons 65 years of age or older or totally disabled.
HB 842: Rural Fire Truck Acquisition Assistance Program; authorize an additional round for counties and municipalities.
HB 917: “Home-based Opportunity Freedom Act of 2022”; create
HB 933: Homeowners’ associations; regulate managing agents of and provide certain requirements for.
HB 1015: “Property Clean-up Revolving Fund”; establish.
HB 1061: Residential Landlord Tenant Act; revise evictions procedures of the.
HB 1069: Liens for delinquent county garbage fees; require chancery to keep certain record of.
HB 1105: Notaries; revise residency requirements of.
HB 1159: Sixteenth section lands; authorize local school boards to enter into public or private contracts for sale of forestry products grown on.
HB 1205: Appropriation; Rural Fire Truck Fund for additional round of trucks under Acquisition Assistance Program.
SB 2039: Real estate appraisal management companies; extend repealer on registration provisions.
SB 2072: Ad valorem taxes; consider annexed business “new enterprise” for purposes of eligibility for certain municipal tax exemptions.
SB 2082: Ad valorem tax on inventory; phase in exemption for certain small businesses.
SB 2094: Appropriation; Rural Fire Truck Fund for additional round of trucks under Acquisition Assistance Program.
SB 2194: Ad valorem tax; exempt property owned by a university foundation.
SB 2370: Ad valorem taxation; exempt property used for housing and providing services to victims of domestic violence and sexual assault.
SB 2461: Landlord-tenant law; revise provisions of to create procedures and protection for evictions.
SB 2465: Construction liens; failure to file notice shall not invalidate claim of lien.
SB 2626: Comprehensive Landlord and Tenant Act; enact.
SB 2769: Ad valorem tax; exempt property owned by a university foundation.
SB 2831: Sales and use taxes; bring forward code sections for purpose of possible amendment.
If you have questions about the 2022 Legislative Session or a particular piece of legislation, please contact MAR’s Vice President of Government Relations at cwise@msrealtors.org.