Taxable Value Of Property Will Increase

By Editor | March 19, 2025 |

Yalobusha County Tax Assessor/Collector Michael Walton (standing) addressed the Board of Supervisors during a meeting Monday morning at the Coffeeville courthouse. Walton braced supervisors for a hefty increase in the taxable value of all real property in Yalobusha County.

COFFEEVILLE – Soaring real estate prices and years of inflation are expected to trigger a hefty increase in the taxable value of all real property in Yalobusha County. Speaking during a recessed Board of Supervisor meeting at the Coffeeville courthouse, Tax Assessor/Collector Michael Walton braced supervisors for a 20-plus percent increase in property values for the 2025 tax year as he works to align the assessed value with the market value for all property in the county in accordance with state law.

“Our property values are at the bottom of the barrel,” Walton told supervisors during a slide-show presentation. Walton explained that the property index, one component in the formula used to determined the assessed value, must be raised.

“We are getting to the time of the year when we have to work on the biggest driver for tax assessments, which is called a property index. The index is going up this year. Our property index (in Yalobusha County) is 1.08. The state index for the north half of Mississippi is 1.25. The state just moved to this, they were a little bit lower,” Walton explained.

Next Walton shared details about the factors used to calculate the property index.

“It is a measure of how the price of residential housing changes over time,” Walton told supervisors. “It is also based on the Consumer Price Index.”

“We are at 1.08 and the state is at 1.25. I’m a dumb old country boy but I can figure out now that our taxes are going to be more,” District Five Supervisor Gaylon Gray noted.

“No,” Walton countered. “Our property values are going up, I didn’t say taxes were going up.”

“Well done, well done,” Supervisor Gray quipped as the room erupted in laughter.

Walton’s correction was a reminder that supervisors ultimately determine how much taxpayers pay because they set the tax rate, or millage rate. Walton reminded supervisors that the tax rate can be lowered to compensate for the increase in the taxable value.

Walton reported that the property index in Yalobusha will need to increase to around 1.16 to help bring the tax assessments in the county closer to market value. Using his house as an example in Monday’s presentation, he told supervisors that the assessed value is $155,878 at the current 1.08 property index. This amount is multiplied by the assessment ratio. For single-family, owner-occupied, residential real property, the assessment ratio is 10 percent of the taxable value. This means Walton’s assessment is $15,579. The assessment is then multiplied by the millage rate, or tax rate, that is set by supervisors. When the assessment is multiplied by the current tax rate, Walton’s ad valorem taxes on his home in 2024 was $2,098.34. With his $300 homestead tax credit, Walton’s 2024 tax bill was $1,798.34.

For comparison, Walton presented a 2025 tax estimate if the property index increases from the current rate of 1.08 to 1.16. Walton said the taxable value for his house will increase from $155,878 too $189,620. Using the same millage rate, Walton’s tax bill would increase $455.66 to $2,254 in 2025.

“Does the index value have to change this year?” District Four Supervisor Eddie Harris asked.

Walton said the change is mandatory to stay in the compliance with state regulations that require the assessed value to align more closely with market value, and because the state property index increased. Walton said the work to calculate the updated taxable values for all properties in the county should be completed by early summer, allowing property owners ample time to review the changes.

Any objections to the assessments can be presented to supervisors in August but Walton cautioned that the new value will still be lower than market value. Documentation to counter the taxable value can be an appraisal conducted within the last two years.

“The replacement cost on my house is $290,000, the market value is $320,000. The state wants you to be 80 percent of the market value,” Walton reiterated.

“This is not good news,” Gray said. “It is not good news for somebody to get a $500 increase on their ad valorem taxes,” he added about the example shared by Walton.

“I didn’t say that,” Walton noted, another reference to the supervisors setting the tax rate that will ultimately determine the amount of taxes paid.

“We set a budget and we levy just another millage to make that budget,” supervisor Gray agreed.

Chancery Clerk Donald Gray noted that both school districts set tax rates in their districts as well as the three municipalities. All of these entities will set tax rates using the taxable value set by the tax assessor. All of these entities will set tax rates using the taxable value set by the tax assessor.

“It all comes down to what we need,” Walton said about the revenue needed to run the county, schools and municipalities.

“Right, how can we run the county in the best, most efficient way that we can,” supervisor Gray agreed.

“The schools need to understand that. The cities need to understand that,” Walton noted.

“I am sure they are not going to keep those mills where they are,” supervisor Gray said about the tax rates set by the schools and municipalities that would drive up taxes if they aren’t lowered. “But that is up to the board of trustees at the schools.”

“Same thing with the cities,” Walton added.

“I appreciate you coming, I know this is an uphill battle,” Board President Cayce Washington said to Walton.

“You are a first-year tax assessor and you walk into somewhat of a hornet’s nest with the state saying the valuations are going up. I think the more you can communicate and help people understand, the better we will be.”

Other activity in Monday’s meeting:

• Approved a request from Walton to purchase office furniture in the amount of $2,979.92. Walton said the funds are in his budget.

• Approved the annual insurance premium totaling $257,412.08 for the county’s general liability coverage. The Mississippi Association of Supervisors Insurance Trust (MASIT) provides the coverage.

“We had some pretty good claims,” Washington noted. “So to not have an increase is a good thing.”
Billings Ruling, the agent who handles the policy, told supervisors that the largest claim paid by the policy during the last year totaled over $240,000 for damages from massive flooding inside the Water Valley courthouse in July, 2024.

“And that claim is still open,” Ruling added.

The flooding during the July Fourth holiday weekend after a second-floor waterline detached from a fitting, dumping thousands of gallons of water into the historic building.

• Approved two invoices from the Mississippi Association of Supervisors Insurance Trust (MASIT), the county’s liability insurance provider. An invoice in the amount of $3,699.63 was approved for expenses occurred while defending a federal lawsuit filed by Tim Leatherby in 2023 against Yalobusha County and other defendants.

The lawsuit was dismissed with prejudice by U.S. District Judge Michael Mills for lack of subject-matter jurisdiction and for failure to state a claim.

“That is sad that the taxpayers have to pay this on a frivolous lawsuit,” Supervisor Gray said. “That is sad.”

The second invoice from MASIT was approved for the $10,000 deductible in a lawsuit filed against the Yalobusha County Sheriff’s Department last October for a wrongful arrest. The lawsuit was settled out of court for an undisclosed amount after the sheriff’s department issued a warrant for the wrong James Hill.

“He was falsely arrested in front of a bunch of people and missed his cruise. It was settled outside of courts, but our deductible is $10,000,” Chancery Clerk Donald Gray said.

The plaintiff in this lawsuit does not live in Yalobusha County and had the same name as the person the sheriff’s department intended to issue the warrant for. The plaintiff was arrested by port authorities in front of his family and friends when he attempted to board a cruise in New Orleans.

“He spent a long weekend in jail in New Orleans,” Board Attorney Daniel Martin added.

• Heard a request from Lee Taylor to make a private road in the Deerwood Park Subdivision a county road.

Supervisor Washington explained that the private road would have to meet county standards before it could be adopted.

District 4 Supervisor Eddie Harris told Taylor that he would work with County Engineer Karl Grubb to determine what needs to be done before the county could adopt the road.

“I will let you know by the next board meeting in April,” Harris added.

• Approved a request from Jeff Roberts to exceed the maximum posted weight limit while hauling logs on County Road 225, County Road 191 and County Road 48 in District 3. Roberts has a bond posted with the county to cover damages incurred during the logging.

• Approved a request from Fly Timber to exceed the maximum posted weight limit while hauling logs on County Road 201 and County Road 8 in District 5. Fly Timber also has a bond posted with the county to cover potential damage to these roads.

• Approved a request from Waugh & Waugh to exceed the maximum posted weight limit while hauling logs on County Road 61, County Road 63 and County Road 211 in Districts 1 and 4. Waugh & Waugh also has a bond posted.

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