Impacts on property taxes of reclassifying flood-prone cropland in the South Delta area of Mississippi

The current tax appraisal procedures do not account for any negative impacts that the frequent flooding in the South Delta area of Mississippi may have on the productive capacity of the land. Therefore, the current appraisal system may result in agricultural use values that do not reflect the land's capacity to generate economic returns from the commercial production of agriculture products. The primary objective of this study is to develop different methods of reclassifying cropland in flood-prone areas and to determine subsequent impacts on landowners and county tax revenue.;Using the amount of cropland classified in each capability class at different elevation levels in Issaquena and Sharkey Counties, 24 different reclassification schemes were developed in this study. The impact of each scheme on owners of reclassified flood-prone cropland and all other property owners was determined by estimating the change in property tax bills without and with a change in the county's millage rate.;The analysis concludes that if a permanent reclassification is desired, then a reclassification scheme that drops a parcel by 4 classes if it has an elevation level of 90 feet or less would be a reasonable scheme. The 90 foot elevation level coincides with crop insurance high risk ratings. Also, the necessary increase in millage rates is moderate; 6.25 mills in Issaquena County and 2.12 mills in Sharkey County.