MISSISSIPPI LEGISLATURE

1998 Regular Session

To: Ways and Means

By: Representatives Williams, Malone

House Bill 1166

(COMMITTEE SUBSTITUTE)

AN ACT TO AMEND SECTION 27-41-101, MISSISSIPPI CODE OF 1972, TO PROVIDE FOR NOTICE TO SECURED CREDITORS PRIOR TO THE SALE FOR AD VALOREM TAXES OF MOBILE HOMES CLASSIFIED AS PERSONAL PROPERTY; AND FOR RELATED PURPOSES. 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

 

SECTION 1. Section 27-41-101, Mississippi Code of 1972, is amended as follows:

27-41-101. (1) In the event the tax collector elects to use the provisions of Sections 27-41-101 through 27-41-109 to collect delinquent tax payments on personal property and, upon default of the payment of ad valorem taxes upon personal property upon the due dates prescribed in this chapter or, in the case of mobile homes classified as personal property, the due date prescribed in Section 27-53-11, the tax collector shall give written notice to the taxpayer demanding the payment of the ad valorem taxes on personal property then remaining in default within twenty (20) days from the date of the delivery of the notice. An employee of the tax collector shall send the notice by first class certified or registered mail, return receipt requested, postage prepaid, or shall deliver the notice to the taxpayer or someone of suitable age and discretion at the taxpayer's place of business or residence. If the taxpayer cannot be found after diligent inquiry, the tax collector may publish written notice to the taxpayer identifying the amount of the delinquent tax payment, the name of the taxpayer, and a description of the personal property. The notice shall be published for two (2) weeks in some newspaper published in the county or judicial district where the personal property is located or published in an adjacent county if there is no newspaper in the county where the property is located. The tax collector shall maintain copies of the notice for two (2) years from the date of receipt of the notice. In the case of personal delivery of the notice, the copy shall contain a notation by the person delivering it of the date and time of delivery, the person to whom delivery was made, and the place of delivery. In the case of delivery by certified or registered mail the return receipt shall also be maintained for two (2) years from the date of receipt of the notice. In the case of publication, the proof of publication shall also be maintained for two (2) years from the date of the first publication.

(2) If any person liable for the payment of ad valorem taxes on personal property fails or refuses to pay the taxes after receiving the notice and demand as provided in subsection (1) of this section, the tax collector may file a notice of a tax lien for such ad valorem taxes with the circuit clerk of the county in which the taxpayer resides or owns property which shall be enrolled as a judgment on the judgment roll.

(3) Immediately upon receipt of the notice of the tax lien for ad valorem taxes on personal property, the circuit clerk shall enter the notice of a tax lien as a judgment upon the judgment roll and show in the appropriate columns the name of the taxpayer as judgment debtor, the name of the tax collector as judgment creditor, the amount of the taxes, interest, fees and costs and the date and time of enrollment. The judgment shall be valid as against mortgagees, pledgees, entrusters, purchasers, judgment creditors, and other persons from the time of filing with the clerk; provided, however, that the preference of a judgment in regard to any personal property upon which the taxes are assessed, excepting (1) motor vehicles as defined by the Motor Vehicle Ad Valorem Tax Law of 1958, shall be entitled to preference over all judgments, executions, encumbrances or liens whensoever created upon such personal property, and (2) secured creditors having a lien on file against a mobile home classified as personal property in the Uniform Commercial Code records in the office of the chancery clerk of the same county or judicial district of the tax collector, shall be entitled to preference over all judgments, executions, encumbrances or liens whensoever created upon such personal property. However, should the tax collector give written notice to the mobile home secured creditor by first class certified or registered mail, return receipt requested, postage prepaid, demanding the payment of the ad valorem taxes on the mobile home within twenty (20) days from the date of the delivery of the notice, and the delinquent taxes not be paid within the twenty (20) days, the preference of the mobile home secured creditor shall be forfeited with the judgment thereafter being valid against that mortgage, lien or pledge. The notice shall be deemed sufficiently given by an employee of the tax collector if mailed by first class certified or registered mail, return receipt requested, postage prepaid, to the mobile home secured creditor using the name and address of the mobile home secured creditor as shown on the financing statement indexed under the taxpayer's name on file in the Uniform Commercial Code records in the office of the chancery clerk of the same county or judicial district of the tax collector. The tax collector may attempt to remail the notice if the notice is returned unsigned. However, the tax collector shall have no legal obligation to search for secured creditors that have not updated their record in the Uniform Commercial Code of the county or judicial district where the property is located. The tax collector shall maintain copies of the notice for two (2) years from the date of receipt of the notice. The amount of the judgment shall be a debt due the county and remain a lien upon all property and rights to property belonging to the taxpayer, both real and personal, including choses in action, with the same force and like effect as any enrolled judgment of a court of record, and shall continue until satisfied. The judgment shall be the equivalent of any enrolled judgment of a court of record and shall serve as authority for the issuance of writs of execution, writs of attachment, writs of garnishment or other remedial writs. The tax collector may issue warrants for collection of ad valorem taxes from such judgments, in lieu of the issuance of any remedial writ by the circuit clerk, as provided in Sections 27-41-103 and 27-41-105; provided, however, that the judgment shall not be a lien upon the property of the taxpayer for a longer period than seven (7) years from the date of the filing of the notice of tax lien for ad valorem taxes, damages and interest unless action be brought thereon before the expiration of such time or unless the tax collector refiles such notice of tax lien before the expiration of such time. The judgment shall be a lien upon the property of the taxpayer for a period of seven (7) years from the date of refiling such notice of tax lien unless action be brought thereon before the expiration of such time or unless the tax collector refiles such notice of tax lien before the expiration of such time. There shall be no limit upon the number of times that the tax collector may refile notices of tax liens.

(4) The tax assessor, tax collector, sheriff, any member of the board of supervisors, their deputies or any other county official making a good faith effort to comply with the provisions of this section shall be held harmless in an individual or official capacity from actions arising from efforts to enforce the provisions of this act.

SECTION 2. If any section, paragraph, sentence, clause, phrase or any part of this act is declared to be unconstitutional or void, or if for any reason is declared to be invalid or of no effect, the remaining sections, paragraphs, sentences, clauses, phrases or parts thereof shall be in no manner affected thereby but shall remain in full force and effect.

SECTION 3. This act shall take effect and be in force from and after July 1, 1998.