MS HB1570

Amends Section 27-35-50, Mississippi Code of 1972, to establish appraisal procedures for ground leases on property leased by the Mississippi State Port at Gulfport for ad valorem tax purposes.

Requires assessors to appraise ground leases based on actual net ground rent capitalized at a market value capitalization rate prescribed by the Department of Revenue, reflecting prevailing commercial real estate capital costs in the Port's geographical market.

Defines "ground leases" as leases where the Port is the landlord and a business entity is the tenant, and "ground rent" as fixed payments adjusted by market indices like the consumer price index, excluding percentage rent and rent based on improvements.

Excludes percentage rent and rent calculated on tenant improvements from the appraisal calculation for determining true value of ground leases.

Effective date: July 1, 2016.