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

Stop compounding the 10% penalty year over year. The statute authorizes a 10% increase in the current year's assessment for failure to list. It does not authorize a 10%-of-10%-of-10% compounding. Each year, when a taxpayer fails to file a rendition, the current year's assessment goes up by 10%, applied to the current year's true value, not to a previously inflated assessment.

Audit your past practice. If your county has been compounding penalties on long-term non-filers, those assessments are vulnerable to challenge. Coordinate with the county attorney and the Department of Revenue on how to clean up the file going forward.

For new business owners (acquired a business and inherited a rendition failure), the AG declined to opine on the specific question. The basic rule is the 10% applies to the current year's assessment, not to a multi-year compounded number. If you are using a multi-year compounded value as the "current year assessment," that practice is suspect.

For business taxpayers

If you have been hit with multi-year compounded penalties for a rendition failure, this opinion supports your challenge. The 10% applies to the current year, not to compounded prior years. Review your assessments and challenge any that show compounded penalties.

For going-forward compliance: file your rendition by April 1 each year (Section 27-35-23). The penalty for failing is 10% on the current year's assessment, every year you fail. That is annual, not compounded.

For business attorneys

Audit clients' personal property tax assessments for compounding. Where a county has applied compounded penalties, this opinion is a clear citation for challenge. The statute is unambiguous on its face.

For the Department of Revenue

Confirm to counties that the 10% is per-year, not compounded. Update guidance materials. Consider whether DOR rules need clarification on this point.

For county attorneys

Brief your tax assessor. Compounding is a problem. Review the past few years of penalty assessments to identify exposure. Coordinate with the assessor on a corrective approach: future assessments use the per-year-only methodology; past assessments may need adjustment if challenged.

For state legislators

If the policy goal is to make the penalty escalate over years for chronic non-filers, the statute would need amendment. Currently it does not allow that. A simple "the penalty shall compound annually" amendment would change the rule.

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. The general rule is that the 10% applies to the current year's assessment. If you are inheriting compounded penalties on the predecessor's file, the methodology may be wrong. Consult counsel on whether the assessment can be corrected.

Does the 4-year physical review rule affect compounding?
The AG did not directly address it, but the answer follows: physical review every 4 years is a requirement on the assessor; compounding the penalty is a question of statutory authority. Even with reviews every 4 years, the statute does not authorize compounding of the 10%.

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
1. 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.
2. 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.
3. 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