Poultry farmers to face higher taxes after DOR ruling
Neshoba County poultry farmers are facing higher taxes following an update to the state Department of Revenue’s appraisal manual that significantly increases the assessment of poultry houses per square foot.
Tax Assessor/Collector Mike Lewis held a meeting last Wednesday to explain the tax increase to Neshoba County poultry farmers.
Officials said the DOR’s previous manual, last updated in 2009, had not been revised in over a decade, making the recent adjustments particularly impactful.
Lewis had previously encouraged property owners to review their values when the land rolls opened in early July, as published in the Democrat.
“When the state updated its appraisal manual in 2020, it included a square footage cost increase for poultry houses across the board,” Lewis said. “Everything went up some.”
“We didn’t have to implement the changes immediately, but we had to implement them during our next update, which was this year.”
Several other counties had already updated their rates ahead of Neshoba County, and by the end of the update cycle, around 28 counties in Mississippi will have adopted the new manual and rates, Lewis added.
The square footage cost for newer poultry houses, classified as B-75 (broiler and pullet houses), has risen by 106 percent. However, due to depreciation, each farmer’s tax assessment will be based on the specific depreciation of their property.
During the meeting, Lewis provided poultry farmers with estimated cost assessments for four types of poultry houses.
He noted that newer poultry houses with B-75 specifications — typically around 25,000 square feet — now have an estimated updated cost of $8.96 per square foot.
“The state says that all poultry houses cost the same to construct, so we use a 1.00 index for the calculation,” Lewis said. “If you multiply 25,000 square feet by $8.96 and depreciate it by 98 percent, the value comes to $219,000.”
With the state’s economic obsolescence rate factored in at 4.92 percent for B-75 poultry houses, Lewis said that the actual assessed value for farmers is lower.
“With the 98 percent obsolescence rate applied, it brings the value down to $120,540,” he said.
Lewis compared poultry house assessments to other structures. A barn of similar specifications would be valued at $173,460, and a warehouse would be assessed at $428,260.
“That’s what I was trying to get the poultry famers to understand at the meeting, that they are getting a break, because of the economic obsolescence,” Lewis said.
Economic obsolescence refers to the loss in value of a property or asset due to external factors outside the owner's control. It is a form of depreciation caused by conditions in the surrounding area or broader economic environment rather than issues with the property itself.
Lewis said the new assessments will likely remain in effect until the update cycle is completed in 2026. He emphasized that this change was mandated by the Department of Revenue and not the result of any decisions made by the Board of Supervisors or the Tax Assessor’s office.
“I feel like there is going to be a change, but the Department of Revenue will not make a change until everyone puts this manual into effect,” Lewis said. “You can’t just go back and tell people in Lamar County, who have been paying that for two years, that now we are giving all these other folks a break. That’s where we are at.”
About 50 farmers attended the meeting at the courthouse. Most of them were asking questions like why the tax increase was happening, and some even criticized the Board of Supervisors for the tax increase, but Lewis explained it was the state DOR appraisal manual.
Rep. Scott Bounds was present and suggested the Legislature could address the issue next Session. If they did pass anything, Bounds said it would not go into effect until around July 2025.