House Bill 1256

AN ACT TO AMEND SECTIONS 29-3-71 AND 29-3-73, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE SCHOOL BOARD OF A SCHOOL DISTRICT TO ELECT TO GRANT AN EXTENSION OF THE DUE DATE FOR THE PAYMENT OF AD VALOREM TAXES ON SIXTEENTH SECTION LAND LEASES AND TO ADOPT AN ORDER ESTABLISHING PAYMENT TERMS FOR TAXES IN ARREARS; TO BRING FORWARD SECTION 29-3-57, MISSISSIPPI CODE OF 1972, WHICH REQUIRES THE SCHOOL DISTRICT SUPERINTENDENT TO COLLECT RENTALS FROM SIXTEENTH SECTION LAND LEASES, FOR PURPOSES OF POSSIBLE AMENDMENT; TO BRING FORWARD SECTION 27-35-71, MISSISSIPPI CODE OF 1972, WHICH REQUIRES SIXTEENTH SECTION LAND LEASEHOLDS TO BE TAXED, FOR PURPOSES OF POSSIBLE AMENDMENT; TO BRING FORWARD SECTION 27-41-1, MISSISSIPPI CODE OF 1972, WHICH ESTABLISHES FEBRUARY 1 AS THE DATE AD VALOREM TAXES ARE DUE, FOR PURPOSES OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 29-3-71, Mississippi Code of 1972, is amended as follows:

29-3-71. (1) Sixteenth section lands reserved for the use of schools, or lands reserved or granted in lieu of or as a substitute for the sixteenth sections, shall be liable, after the same shall have been leased, to be taxed as other lands are taxed during the continuance of the lease, but in case of sale thereof for taxes, only the title of the lessee or his heirs or assigns shall pass by the sale.

(2) Whenever a leasehold interest in sixteenth section lands or lands granted in lieu thereof is subject to being sold for taxes, the school board of the school district, no earlier than forty (40) days following the date on which those taxes are due under Section 27-41-1, may elect, by a vote of no less than two-thirds (2/3) of the school board membership, to extend the date by which the taxes must be paid for good cause shown. If the school board elects to grant the extension of time for the payment of taxes due, the action approving the extension along with an order setting forth the terms for the payment of the taxes in arrears must be spread upon the minutes of the school board. The school board shall notify the tax collector of the extension by submitting a certified copy of the minutes of the meeting at which the vote was taken and the order setting forth the payment terms was adopted.

SECTION 2. Section 29-3-73, Mississippi Code of 1972, is amended as follows:

29-3-73. (1) Where any school land, generally known as sixteenth sections, reserved for the use of schools, or land reserved or granted in lieu of or substituted for sixteenth sections lies within or partly within any drainage district created under the laws of this state, and will be benefited by such drainage district, such land so benefited shall be liable for its pro rata share of the costs, expenses, taxes, and assessments relating to said district as if owned by an individual, and shall be assessed accordingly, as other lands are assessed. But in case of a sale of such lands for such taxes or assessments, only the title of the lessee holding such lands under lease at the time of the sale shall pass by the sale.

(2) Where such sixteenth section land, or land taken in lieu thereof, shall be held by any lessee, whether his lease shall have heretofore been acquired or shall hereafter be acquired, all such drainage taxes and assessments accruing thereon during such lease shall, in the discretion of the board of education, either be paid by the lessee, his grantees or assigns, or by the board of education, but the liability for such drainage taxes shall be fixed by the lease contract when said lands are leased. Where said lands have been leased by the superintendent of education, with the consent of the board of education in open session, and said lease contract provides that the lessee shall pay all such drainage taxes and assessments, and the lessee has actually entered upon and occupied said lands as lessee and is recognized as such, the school district in which said sixteenth section is located shall not be liable for such drainage taxes on account of the negligence of the secretary in failing to enter the order of the board approving said lease contract on its minutes. All such drainage taxes and assessments accruing on any such lands while the same are not leased shall be paid by the board of education of the school district in which such lands are situated, out of any sixteenth section funds belonging to the township in which such lands are located, which may be on hand at the time when such drainage taxes or assessments become due or which may be thereafter at any time collected or acquired. For the purpose of paying such drainage taxes and assessments, the board of education may borrow all money necessary to pay the same. When any such funds are borrowed as aforesaid, for the purposes aforesaid, the same shall be repaid out of the first sixteenth section fund thereafter derived from the sixteenth section lands so taxed and assessed.

(3) Whenever a leasehold interest in sixteenth section lands or lands granted in lieu thereof is subject to being sold for drainage taxes and assessments, the school board of the school district, no earlier than forty (40) days following the date on which those taxes and assessments are due, may elect, by a vote of no less than two-thirds (2/3) of the school board membership, to extend the date by which the taxes and assessments must be paid for good cause shown. If the school board elects to grant the extension of time for the payment of taxes and assessments due, the action approving the extension along with an order setting forth the terms for the payment of the taxes and assessments in arrears must be spread upon the minutes of the school board. The school board shall notify the tax collector of the extension by submitting a certified copy of the minutes of the meeting at which the vote was taken and the order setting forth the payment terms was adopted.

SECTION 3. Section 29-3-57, Mississippi Code of 1972, is brought forward as follows:

29-3-57. The superintendent of education shall keep a current docket as to the expiration date of all leases on sixteenth section lands; likewise, he shall keep a correct current docket upon the existing leases or any extensions thereof as to the amounts and time of payment of rentals provided for by such lease. It shall be the duty of the superintendent of education to collect promptly all rentals due and all principal and interest due upon loans and investments of sixteenth section funds. Upon a sixty (60) day default in payment of any rentals according to the terms of such lease, the lease shall be declared terminated unless the board of education finds extenuating circumstances were present, and the board shall inaugurate the proper legal proceedings to terminate such lease. The superintendent of education, with the approval of the board of education, may employ an attorney or other person to aid in collecting any such funds when in his opinion the same is necessary, and may pay reasonable compensation therefor out of funds collected, not to exceed in any case twenty-five percent (25%) of the amount actually collected. It shall be the duty of the superintendent of education to supervise generally the administration of all sixteenth section lands within his jurisdiction. In all cases where leases of sixteenth section lands are entered into, it shall be the duty of the superintendent of education to take the notes of the lessees for the rents provided by said lease and turn them over to the county depository and attend to their collection. In the case of the leasing of agricultural lands, the school district shall have the same rights and remedies for the security and collection of such rent as are given by law to agricultural landlords.

SECTION 4. Section 27-35-71, Mississippi Code of 1972, is brought forward as follows:

27-35-71. All school lands known as the sixteenth sections, reserved for the use of schools, or lands reserved or granted in lieu of or as a substitute for the sixteenth sections, shall be liable, after the same shall have been leased, to be taxed as other lands are taxed during the continuance of the lease; but in case of sale thereof for taxes, only the title of the lessee or his assignee shall pass by the sale.

SECTION 5. Section 27-41-1, Mississippi Code of 1972, is brought forward as follows:

27-41-1. Except as may otherwise be provided in Section 27-41-2, all state, county, school, road, levee and other taxing districts and municipal ad valorem taxes, except ad valorem taxes levied for county or district or municipal bonds and other evidences of indebtedness for money borrowed, and interest thereon, heretofore or hereafter assessed or levied shall be due, payable and collectible by the tax collector and shall be paid on or before the first day of February next succeeding the date of the assessment and levying of such taxes. All taxes levied for county and district and municipal bonds and interest thereon, or betterment or improvement assessments, shall be paid by each person assessed therewith on or before the first day of February next succeeding the date of the assessment and levying of the same, at the time of payment of the state and county ad valorem taxes, except as otherwise hereinafter provided in this chapter. The tax collector shall begin to accept payment for such ad valorem taxes or assessments not later than December 26 of the year prior to the year in which such taxes are required to be paid.

Any county may, by an order spread upon the minutes of the board of supervisors, allow the acceptance of partial payments for ad valorem taxes. Any municipality wherein municipal taxes are not collected by the county may, by an order spread upon the minutes of the governing authority of said municipality, allow the acceptance of partial payments for ad valorem taxes. If said partial payments are allowed by the county or municipality, said partial payments shall be made as follows:

(a) One-half (1/2) of all ad valorem taxes due shall be paid on or before February 1.

(b) One-fourth (1/4) of all ad valorem taxes, interest and penalty due shall be paid on or before May 1.

If any unpaid balance exists on August 1, then the lands shall be sold at the land sale on the last Monday in August for said unpaid balance.

All ad valorem taxes, however, assessed against motor vehicles as prescribed by the Motor Vehicle Ad Valorem Tax Law of 1958, for any and all purposes and in any and all jurisdictions, shall be paid in full on the date such taxes are due and payable.

SECTION 6. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the ad valorem tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the ad valorem tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.

SECTION 7. This act shall take effect and be in force from and after July 1, 2020.