Bill Text: MS SB2870 | 2026 | Regular Session | Introduced
Bill Title: "Stop Predatory Investing Act of 2026"; deny tax deductions for large institutional real estate investors.
Sponsorship: Partisan Bill (Republican 1)
Status: (Failed) 2026-02-25 - Died In Committee [SB2870 Detail]
Download: Mississippi-2026-SB2870-Introduced.html
MISSISSIPPI LEGISLATURE
2026 Regular Session
To: Finance
By: Senator(s) McLendon
Senate Bill 2870
AN ACT ENTITLED THE "STOP PREDATORY INVESTING ACT OF 2026" TO LIMIT LARGE-SCALE CORPORATE PURCHASES OF SINGLE-FAMILY HOMES BY DENYING TAX DEDUCTIONS FOR INTEREST AND DEPRECIATION ON PROPERTIES OWNED BY INSTITUTIONAL REAL ESTATE INVESTORS HOLDING 50 OR MORE SUCH HOMES WITH EXCEPTIONS FOR SALES TO HOMEBUYERS OR NONPROFITS; TO PROVIDE DEFINITIONS; TO AMEND SECTION 27-7-5, MISSISSIPPI CODE OF 1972, TO CONFORM TO THE MISSISSIPPI INCOME TAX LAW; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) This act shall be known and may be cited as the "Stop Predatory Investing Act of 2026."
(2) It is the intent of Legislature to prohibit large institutional investors from buying multiple single-family homes and destroying property value and neighborhood integrity and characteristics.
(3) With respect to any taxable year beginning with the year ending December 31, 2026, in the case of any institutional real estate investor who owns, directly or indirectly, fifty (50) or more single-family residential rental properties, no deduction shall be allowed under the Mississippi Income Tax Law for any interest paid or depreciation accrued in connection with any such single family residential rental property. This disqualification in this subsection (3) shall not apply to a sale to an individual for use as the principle residence of the individual, or to a sale to any qualified nonprofit organization. The deductions prohibited under this subsection shall not be applicable with respect to any property which was constructed by the taxpayer or acquired by the taxpayer after its construction but before the first date on which any dwelling unit in such property was occupied by a resident.
(4) For purposes of this subsection, the term:
(a) "Institutional real estate investor" means large pension funds, insurance companies, university endowments, asset managers and real estate investment trusts which invest over One Million Dollars ($1,000,000.00) annually to generate returns and stable income for beneficiaries and include all legal corporate or partnership or limited liability entities.
(b) "Qualified nonprofit organization" means any organization which is not organized for profit, and has as a principal purpose the creation, development or preservation of affordable housing.
(c) "Single-family residential rental property" means any residential rental property which contains four (4) or fewer dwelling units and improvements to real property directly related to such dwelling units located on the site of such dwelling units.
SECTION 2. Section 27-7-5, Mississippi Code of 1972, is amended as follows:
27-7-5. (1) (a) Except as otherwise provided in this section, there is hereby assessed and levied, to be collected and paid as hereinafter provided, for the calendar year 1983 and fiscal years ending during the calendar year 1983 and all taxable years thereafter, upon the entire net income of every resident individual, corporation, association, trust or estate, in excess of the credits provided, a tax at the following rates:
(i) 1. Through calendar year 2017, on the first Five Thousand Dollars ($5,000.00) of taxable income, or any part thereof, the rate shall be three percent (3%);
2. For calendar year 2018, on the first One Thousand Dollars ($1,000.00) of taxable income there shall be no tax levied, and on the next Four Thousand Dollars ($4,000.00) of taxable income, or any part thereof, the rate shall be three percent (3%);
3. For calendar year 2019, on the first Two Thousand Dollars ($2,000.00) of taxable income there shall be no tax levied, and on the next Three Thousand Dollars ($3,000.00) of taxable income, or any part thereof, the rate shall be three percent (3%);
4. For calendar year 2020, on the first Three Thousand Dollars ($3,000.00) of taxable income there shall be no tax levied, and on the next Two Thousand Dollars ($2,000.00) of taxable income, or any part thereof, the rate shall be three percent (3%);
5. For calendar year 2021, on the first Four Thousand Dollars ($4,000.00) of taxable income there shall be no tax levied, and on the next One Thousand Dollars ($1,000.00) of taxable income, or any part thereof, the rate shall be three percent (3%);
6. For calendar year 2022 and all taxable years thereafter, there shall be no tax levied on the first Five Thousand Dollars ($5,000.00) of taxable income;
(ii) On taxable income in excess of Five Thousand Dollars ($5,000.00) up to and including Ten Thousand Dollars ($10,000.00), or any part thereof, the rate shall be four percent (4%); and
(iii) On all taxable income in excess of Ten Thousand Dollars ($10,000.00), the rate shall be five percent (5%).
(b) (i) For calendar year 2023 and all calendar years thereafter, there shall be no tax levied under subparagraph (ii) of paragraph (a) of this subsection on the taxable income of individuals in excess of Five Thousand Dollars ($5,000.00) up to and including Ten Thousand Dollars ($10,000.00), or any part thereof; and
(ii) For calendar year 2024 and all calendar years thereafter, the tax imposed under subparagraph (iii) of paragraph (a) of this subsection upon all taxable income of individuals in excess of Ten Thousand Dollars ($10,000.00), shall be at the following rates:
1. For calendar year 2024, on such taxable income, the rate shall be four and seven-tenths percent (4.7%);
2. For calendar year 2025, on such taxable income, the rate shall be four and four-tenths percent (4.4%);
3. For calendar year 2026, on such taxable income, the rate shall be four percent (4%);
4. For calendar year 2027, on such taxable income, the rate shall be three and three-quarters percent (3.75%);
5. For calendar year 2028, on such taxable income, the rate shall be three and one-half percent (3.5%);
6. For calendar year 2029, on such taxable income, the rate shall be three and one-quarter percent (3.25%); and
(2) An S corporation, as defined in Section 27-8-3(1)(g), shall not be subject to the income tax imposed under this section.
(3) A like tax is hereby imposed to be assessed, collected and paid annually, except as hereinafter provided, at the rate specified in this section and as hereinafter provided, upon and with respect to the entire net income, from all property owned or sold, and from every business, trade or occupation carried on in this state by individuals, corporations, partnerships, trusts or estates, not residents of the State of Mississippi.
(4) In the case of taxpayers having a fiscal year beginning in a calendar year with a rate in effect that is different than the rate in effect for the next calendar year and ending in the next calendar year, the tax due for that taxable year shall be determined by:
(a) Computing for the full fiscal year the amount of tax that would be due under the rates in effect for the calendar year in which the fiscal year begins; and
(b) Computing for the full fiscal year the amount of tax that would be due under the rates in effect for the calendar year in which the fiscal year ends; and
(c) Applying to the tax computed under paragraph (a) the ratio which the number of months falling within the earlier calendar year bears to the total number of months in the fiscal year; and
(d) Applying to the tax computed under paragraph (b) the ratio which the number of months falling within the later calendar year bears to the total number of months within the fiscal year; and
(e) Adding to the tax determined under paragraph (c) the tax determined under paragraph (d) the sum of which shall be the amount of tax due for the fiscal year.
(5) Effective with taxable year ending 2026, any income tax levied under this chapter and any deduction allowed under this chapter shall be in compliance with the provisions of the "Stop Predatory Investing Act of 2026" provided in this Senate Bill No._____ (2026 Regular Session) which prohibits institutional real estate investors from purchasing large parcels of single-family properties and taking tax deductions.
SECTION 3. This act shall take effect and be in force from and after July 1, 2026.
