Can a Mississippi tax assessor compound the 10% penalty year over year when a taxpayer fails to file a rendition for personal property?

Plain-English summary

The Marshall County board attorney asked three questions about Section 27-35-45, the statute that imposes a 10% penalty when a taxpayer fails to list taxable personal property for assessment:

1. Does the tax assessor have authority to annually compound the penalty for each year a rendition is not submitted?
2. If a taxpayer buys a business and fails to file a rendition, can the tax assessor use the assessed value arrived at over multiple years of compounding 10% increases, or must the assessor refer to the true value of the assets?
3. Should the 10% increase be allowed to compound annually for more than 4 years (since physical review is required at least every 4 years)?

The AG's answer: the statute does not authorize compounding. Section 27-35-45 reads:

If any person shall fail to list for assessment, as required by law, any personal property which is taxable under the laws of the State of Mississippi, and which said person should list for assessment under the laws of the state, or shall intentionally fail to provide the tax assessor with any documentation that the tax assessor considers necessary to verify the list, the current year assessment shall be increased by ten percent (10%).

The plain text says "the current year assessment shall be increased by ten percent (10%)." That is one year, one 10% increase. The statute does not authorize compounding. Counties that have applied compounded penalties going back multiple years have been operating outside the statute.

The AG declined to answer the second and third questions because they require factual determinations or assume the compounding answer was yes (which it is not). Section 7-5-25 limits AG opinions to prospective questions of state law and bars factual determinations and validation of past actions.

The AG also referred the requester to the Mississippi Department of Revenue for any rules and regulations the DOR has promulgated that may apply.

What this means for you

For county tax assessors

The opinion reads § 27-35-45 as authorizing a single 10% increase to the current year's assessment when a taxpayer fails to list taxable personal property. It does not read the statute as authorizing the penalty to compound from year to year. On the AG's reading, a county that has been compounding the 10% across multiple years has been applying the statute beyond what its text provides.

The AG declined to opine on the second question (a business buyer who inherits an unfiled rendition) because answering it would require validating past action or making a factual determination, which § 7-5-25 places outside an official opinion. The opinion also notes that this office does not interpret rules adopted by other agencies and recommends contacting the Department of Revenue about any DOR regulations that may apply.

For business taxpayers

The opinion holds that the 10% increase attaches to the current year's assessment, not to a compounded multi-year figure. It does not address any particular taxpayer's situation or pass on whether a specific past penalty was lawful; § 7-5-25 bars the AG from validating or invalidating past action. The rendition deadline the opinion identifies is April 1 each year (§ 27-35-23).

For the Department of Revenue

The opinion expressly defers to DOR on its own rules and regulations, noting the AG does not interpret another agency's regulations and that the requester was referred to DOR.

For county attorneys

The holding the opinion gives you for the assessor is narrow: the 10% is a current-year increase, not a compounding penalty. The AG did not opine on how to handle past assessments, treating that as past action outside the scope of an official opinion.

For state legislators

The opinion turns entirely on the words "the current year assessment shall be increased by ten percent (10%)." It does not suggest any change to the statute; it interprets the text as written.

Common questions

Does the 10% penalty for failure to file a rendition compound annually?
No. Section 27-35-45 applies a 10% increase to the current year's assessment. It does not compound from year to year.

What if a taxpayer fails to file for multiple years?
Each year you can apply a 10% increase to that year's assessment. Year 1: 10% on year 1's true value. Year 2: 10% on year 2's true value (independently calculated). And so on. The increase is not 10% of last year's already-increased number.

What is the deadline to file a rendition?
April 1 of each year (Section 27-35-23).

At what rate is personal property assessed?
15% of true value (Miss. Const. art. IV, § 112; Section 27-35-4(2)).

What if I just bought a business that has years of unfiled renditions?
The AG declined to opine on that specific scenario, explaining that answering it would require validating past action or making a factual determination, which § 7-5-25 keeps outside an official opinion. The opinion states only the general rule that the 10% increase applies to the current year's assessment.

Does the 4-year physical review rule affect compounding?
The AG treated the third question (whether the increase may compound for more than four years) as moot once it concluded the statute does not authorize compounding at all.

Background and statutory framework

Section 27-35-23: a taxpayer must provide a list of taxable personal property to the tax assessor "no later than the first day of April in each year."

Personal property is generally taxed at 15% of true value. Miss. Const. art. IV, § 112 and Section 27-35-4(2).

Section 27-35-45 (the penalty statute):

If any person shall fail to list for assessment, as required by law, any personal property which is taxable under the laws of the State of Mississippi, and which said person should list for assessment under the laws of the state, or shall intentionally fail to provide the tax assessor with any documentation that the tax assessor considers necessary to verify the list, the current year assessment shall be increased by ten percent (10%).

The statute uses "current year assessment" and "ten percent (10%)" as singular concepts. Nothing in the text authorizes compounding from year to year.

Section 7-5-25 limits the AG to prospective questions of state law and bars factual determinations and validation of past actions.

Citations

• Miss. Const. art. IV, § 112 (personal property assessment ratio)
• Miss. Code Ann. § 27-35-4(2) (15% assessment ratio)
• Miss. Code Ann. § 27-35-23 (April 1 rendition deadline)
• Miss. Code Ann. § 27-35-45 (10% penalty for failure to list)
• Miss. Code Ann. § 7-5-25 (scope of AG opinions)

Source

• Landing page: https://attorneygenerallynnfitch.com/divisions/opinions-and-policy/recent-opinions/
• Original PDF: https://attorneygenerallynnfitch.com/wp-content/uploads/2026/05/A.-Whaley-Smith-May-5-2026-Computing-Penalties-for-Delinquent-Ad-Valorem-Property-Taxes.pdf

Original opinion text

May 5, 2026
Amanda Whaley Smith, Esq.
Attorney, Marshall County Board of Supervisors
Post Office Box 849
Holly Springs, Mississippi 38635
Re:

Computing Penalties for Delinquent Ad Valorem Property Taxes

Dear Ms. Whaley Smith:
The Office of the Attorney General has received your request for an official opinion.
Questions Presented

1. Does the Marshall County Tax Assessor ("Tax Assessor") have the authority to annually
   compound the penalty contemplated in Mississippi Code Annotated Section 27-35-45 for each
   year that a rendition is not submitted by a taxpayer?
2. If a taxpayer purchases a business and fails to submit a listing of personal property or rendition
   to the tax office as required by law, is the Tax Assessor authorized to use the assessed value which
   was arrived at over the course of multiple years of compounding ten percent increases or must the
   Tax Assessor refer to the true value of the assets?
3. Should the ten percent increase to assessed value required pursuant to Section 27-35-45 be
   allowed to compound annually for more than a four year period of time since a physical review of
   property subject to taxation is required at least once every four years?
   Brief Response
4. If a taxpayer fails to list taxable personal property for assessment, Section 27-35-45 provides
   for a ten percent increase of the current year's assessment. There is no provision for compounding
   the penalty from year to year.
5. See response 1. To the extent that this question asks us to opine on past action or make a factual
   determination, we are unable to respond by official opinion.
6. The response to question one renders this question moot.
   Applicable Law and Discussion
   As an initial matter, opinions of this office are limited to prospective questions of state law. Miss.
   Code Ann. § 7-5-25. An official opinion can neither validate nor invalidate past action. We also
   cannot make factual determinations by official opinion. To the extent that your request asks us to
   determine whether the Tax Assessor has the authority to charge a penalty under specific
   circumstances or whether a specific taxpayer owes prior ad valorem taxes and penalties, we must
   decline to do so. We further note that official opinions are limited to questions of state law. We do
   not interpret or opine on regulations adopted by other state agencies. We recommend contacting
   the Department of Revenue to determine whether it has promulgated any rules and regulations that
   may be applicable to your question. We offer the following interpretation of state law for
   prospective application only.
   Pursuant to Section 27-35-23, a taxpayer has the duty to provide a list of his or her taxable personal
   property to the tax assessor "no later than the first day of April in each year." Personal property is
   generally taxed at fifteen percent of true value. Miss. Const. Art. IV, § 112 and Miss. Code Ann.
   § 27-35-4(2). According to Section 27-35-45:

If any person shall fail to list for assessment, as required by law, any personal
property which is taxable under the laws of the State of Mississippi, and which said
person should list for assessment under the laws of the state, or shall intentionally
fail to provide the tax assessor with any documentation that the tax assessor
considers necessary to verify the list, the current year assessment shall be increased
by ten percent (10%).

(emphasis added.) Based on the plain language of the statute, if a taxpayer fails to list taxable
personal property for assessment, Section 27-35-45 provides for a ten percent increase of the
current year's assessment. This section does not provide for the compounding annually of the
penalty.
If this office may be of any further assistance to you, please do not hesitate to contact us.
Sincerely,
LYNN FITCH, ATTORNEY GENERAL
By:

/s/ Beebe Garrard
Beebe Garrard
Special Assistant Attorney General