House Bill 1220

AN ACT TO AMEND SECTION 29-1-145, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE SECRETARY OF STATE TO REIMBURSE COUNTIES AND MUNICIPALITIES FOR THE COST OF REMOVING TREES POSING A DANGER FROM TAX FORFEITED PROPERTY THAT HAS BEEN CERTIFIED TO THE STATE; TO PRESCRIBE THE MANNER IN WHICH FUNDS COLLECTED FOR THE MAINTENANCE OF TAX FORFEITED PARCELS ARE TO BE ALLOCATED TO COUNTIES AND MUNICIPALITIES; TO BRING FORWARD SECTION 29-1-95, MISSISSIPPI CODE OF 1972, WHICH CREATES THE LAND RECORDS MAINTENANCE FUND AND REQUIRES UNOBLIGATED FUNDS REMAINING AT THE END OF A FISCAL YEAR TO LAPSE INTO THE GENERAL FUND, FOR PURPOSES OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 29-1-145, Mississippi Code of 1972, is amended as follows:

29-1-145. (1) The chancery clerk or municipal clerk shall report to the Secretary of State any reasonable costs incurred by the county or municipality in maintaining * * *~~unredeemed~~ lands sold for taxes * * *~~while those lands remain unsold~~ which have been certified to the state. The Secretary of State shall pay the maintenance costs out of the money deposited into the Land Records Maintenance Fund. The Secretary of State shall certify to the Department of Finance and Administration and to the State Treasurer the amount of maintenance costs allowed to the county and municipality, and the Department of Finance and Administration shall issue a warrant in favor of the county or municipality for the amount of those costs. In no event shall the maintenance costs allowed the county or municipality exceed the market value of the lands or the purchase money received from the sale of those lands.

(2) (a) If the chancery clerk or municipal clerk notifies the Secretary of State of a tree located on tax forfeited property that has been certified to the state, which tree poses an immediate harm to life or property of the adjoining parcels, the chancery clerk or municipal clerk may have the tree removed and submit the cost of removal to the Secretary of State for reimbursement.

(b) The Secretary of State may withhold up to ten percent (10%) of its proceeds from the sales of tax forfeited properties to pay for the removal of trees on tax forfeited properties certified to the state.

(3) (a) From the remaining balance of funds collected for the reasonable cost of cleanup or maintenance of those tax forfeited properties certified to the state which, in the opinion of the governing authorities, constitute a threat to public health or safety, the Secretary of State shall allocate reimbursements, subject to the provisions of paragraph (c), as follows: thirty percent (30%) to the county or municipality in which the highest number of tax forfeited parcels are located; and seventy percent (70%) equally divided between the counties and municipalities in which the second through tenth highest number of parcels are located.

(b) The Secretary of State may adopt rules for the distribution of those funds that are intended for the governmental entities having the first through tenth highest number of parcels under paragraph (a) which are remaining for reimbursement for the reasonable cost of cleanup or maintenance of tax forfeited properties.

(c) In reimbursing counties and municipalities under this subsection, priority must be given to tax forfeited parcels adjacent to public universities and colleges and areas with increased economic growth.

(d) In effort to ensure adequate funding is available to improve the tax forfeited properties for resale throughout the entire state, a county or municipality may not receive funding under this subsection for more than three (3) consecutive years. After the expiration of a period of three (3) years following the final year in which a county or municipality has received funding during consecutive years, the county or municipality is again eligible for reimbursement.

(e) A reimbursement under this subsection may not exceed fifty percent (50%) of the market value of the property.

(5) If at any time the Land Records Maintenance Fund is exhausted, the obligation of the Secretary of State to make disbursements under this section is suspended.

SECTION 2. Section 29-1-95, Mississippi Code of 1972, is brought forward as follows:

29-1-95. (1) All taxes due the county, municipality, public school district, drainage district or levee board on lands sold to the state for taxes and listed into the Secretary of State's office shall remain in abeyance until the land be sold, and thereafter such taxes shall be paid out of the purchase money; but state, county, municipality, public school district, drainage district or levee board taxes shall not accrue on such lands after the fiscal year in which it was certified to the state. Upon the payment of the purchase money of any tax land into the Treasury, the Secretary of State shall certify to the Department of Finance and Administration and to the Treasurer the amount of fees and costs allowed to the county tax collector and chancery clerk, as in cases of the redemption of lands from tax sales, under the provisions of Section 25-7-21; and the Department of Finance and Administration shall issue warrants in favor of such county tax collector and chancery clerk for the amount of such fees. The Secretary of State shall also certify to the Department of Finance and Administration and the Treasurer the amount of the county, municipality, public school district, drainage district and levee board taxes for which said land was sold to the state, and all taxes accruing on said land until the year in which it was certified to the state; and the Department of Finance and Administration shall issue warrants in favor of the proper county, municipality, public school district, drainage district, and levee board for the said four (4) years' taxes. The balance of the purchase money shall be deposited into a special fund to be known as the "Land Records Maintenance Fund," that is hereby created in the State Treasury. The fund shall be administered by the Secretary of State. Any amount on hand in said Land Records Maintenance Fund at the end of the fiscal year that is not necessary to pay any obligations to local governmental units set out in this subsection shall, after June 30 of each year, be transferred to the General Fund, and shall not be authorized for expenditure by the Secretary of State to reimburse or otherwise defray the expenses of any office administered by the Secretary of State.

(2) If, after the payment of the fees and costs allowed to the county tax collector and the chancery clerk, as aforesaid, the balance of the purchase money of any tax land paid into the Treasury shall be insufficient to cover the amount of the state, county, municipality, public school district, drainage district or levee board taxes due thereon, or if the records of the Secretary of State fail to show the amount of state, county, municipality, public school district, drainage district or levee board taxes accruing for the years until said land was certified to the state, on lands sold by the Secretary of State, he shall apportion the balance of the purchase money derived from the sale of such lands between the state, county, municipality, public school district, drainage district and levee board upon the basis of the amount of taxes due the state, county, municipality, public school district, drainage district and levee board, respectively, at the time said land was struck off to the state for delinquent taxes by the sheriff and tax collector, and for which said lands were struck off to the state.

(3) All funds derived from the sale of properties under the provisions of Sections 7-11-15, 29-1-27, 29-1-29, 29-1-35, 29-1-37, 29-1-53 through 29-1-57, 29-1-73 and 29-1-81 through 29-1-87 shall be handled in the manner provided herein for funds derived from the sale of lands.

(4) From and after July 1, 2016, the expenses of this agency shall be defrayed by appropriation from the State General Fund and all user charges and fees authorized under this section shall be deposited into the State General Fund as authorized by law. The requirements of this subsection (4) shall not apply to disbursements made to local governmental units from the Land Records Maintenance Fund, and to any funds which by law are to be collected and deposited to the Land Records Maintenance Fund.

(5) From and after July 1, 2016, no state agency shall charge another state agency a fee, assessment, rent or other charge for services or resources received by authority of this section. This prohibition shall not apply to payments made from the Land Records Maintenance Fund provided for in subsection (1) of this section.

SECTION 3. This act shall take effect and be in force from and after July 1, 2024.