MS HB1681

Creates an income tax credit for taxpayers who claim a homestead exemption on one property but also own a second residential property classified as Class II instead of Class I

Credit amount equals the difference between actual ad valorem taxes paid on the eligible property and what would have been owed if the property were assessed at the lower Class I rate

Credit cannot exceed the taxpayer's total tax liability for the year after applying all other credits, and unused credits may be carried forward for five consecutive years

Ad valorem taxes applied toward this credit cannot also be claimed as a state income tax deduction

Effective date of January 1, 2022