Resident raises concerns about homestead-exemption chargebacks; county explains state Department of Revenue role

At the June 2 Rankin County Board of Supervisors meeting, resident Linda McCoy urged county officials to improve how the county and the state communicate homestead-exemption chargebacks after she said residents received late, confusing notices that put homeowners at risk.

McCoy, of Sharon Lane in Brandon, described a sequence where homeowners receive a tax statement in October and then several months later receive a notice that their homestead exemption was disallowed and an additional “chargeback” had been placed on the property. “You put in a lot of people in jeopardy because you your records, you know, you tell us 1 thing, and then later on, you wanna you ask for something else,” McCoy told the board.

County staff responded that the chargebacks originate with the Mississippi Department of Revenue. County staff said the Department of Revenue compares county homestead lists with state income tax records and notifies counties if a homeowner appears delinquent on state income tax; the county then posts a chargeback for the homestead exemption amount. County staff said the Department of Revenue typically notifies the county after the year-end tax roll is produced; that timing can create a lag between local billing and later chargebacks.

“It's a Department of Revenue generated issue,” the county attorney said, explaining that state law authorizes the Department of Revenue to revoke a homestead exemption for a person who owes state income tax and that the county’s paperwork frequently follows the state’s timing. County staff said when the county receives Department of Revenue notices they send residents a chargeback notice and that homeowners may appeal through the Department of Revenue process.

Staff said the county objected on behalf of one property in the meeting (a motion earlier on the agenda approved a refund where the Department of Revenue had dismissed a chargeback), and that county staff could request documentation from the Department of Revenue about specific cases. Staff also encouraged residents with questions to work with the Department of Revenue and with their legislative representatives to pursue statutory changes if desired.

Board members and staff acknowledged that timing and the way chargebacks appear on statements can be confusing, and they offered to request copies of Department of Revenue notices and to convene further discussions with tax office staff and legislators to explore improvements.

No formal board policy change was adopted at the meeting; staff said they would follow up with the Department of Revenue and provide information to the resident and the board.