MS HB4033

Imposes a 5% tax on gains from the sale of agricultural land that is 50% or more owned by nonresident aliens, including foreign individuals, foreign-domiciled entities, U.S. entities majority-owned by foreign parties, and foreign governments

Eliminates favorable agricultural use valuation for ad valorem tax purposes on foreign-owned farmland starting January 1, 2027, requiring such land to be assessed at standard true value rather than reduced agricultural rates

Defines "nonresident alien" broadly to include individuals domiciled outside the U.S. who are not citizens or residents, as well as trusts, corporations, partnerships, and other entities domiciled abroad or majority-owned by foreign parties

Applies the "majority part" ownership threshold at 50% or more aggregate foreign interest, regardless of whether the foreign owners are acting in concert

Takes effect July 1, 2026, with the ad valorem tax changes applying to land rolls beginning January 1, 2027