House Bill 1179

AN ACT TO AMEND SECTIONS 27-41-55 AND 27-41-59, MISSISSIPPI CODE OF 1972, WHICH RELATE TO THE CONDUCT OF THE SALE OF LAND FOR UNPAID AD VALOREM TAXES, TO REQUIRE ACTUAL NOTICE IN ADVANCE OF THE PENDING TAX SALE TO THE OWNER OF, ALONG WITH ANY MORTGAGEE, BENEFICIARY OR LIENHOLDER OF RECORD WITH REGARD TO, THE LAND; TO AMEND SECTIONS 27-43-1, 27-43-3, 27-43-5 AND 27-43-7, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 27-41-55, Mississippi Code of 1972, is amended as follows:

27-41-55. (1) At least thirty (30) days before a tax sale as referred to in subsection (2) of this section and as described in Section 27-41-59 is conducted, the tax collector shall provide actual notice to the owner of, and to any mortgagee, beneficiary or lienholder of record with regard to, the land that is liable to sale for taxes not paid. The mortgagee, beneficiary or lienholder shall be entitled to the notice, regardless of whether the mortgage or lien has been in existence over six (6) years. Actual notice may be by personal service, or by certified mail return receipt requested, to the owner's, mortgagee's, beneficiary's or lienholder's last known available address, the address of public record in the chancery clerk's office of the county in which the land is located or the address of public record in the Office of the Secretary of State. Failure to provide the notice that is required in this subsection shall invalidate a subsequent sale of land as described in subsection (2) of this section and Section 27-41-59.

(2) Except as otherwise provided in Section 27-41-2, after the fifth day of August in each year hereafter, the tax collector shall advertise all lands in his county on which all the taxes due and in arrears have not been paid, as provided by law, as well as all land which is liable to sale for the other taxes which have matured, as required by law, for sale at the door of the courthouse of his county or any place within the courthouse that the tax collector deems suitable to hold such sale, provided that the place of such sale shall be designated by the tax collector in the advertisement of the notice of tax sale on the last Monday of August. Such advertisement shall be inserted for two (2) weeks in some newspaper published in the county, if there be one, but in counties having two (2) court districts the lands shall be advertised and sold in the district in which such lands are situated and put up at the courthouse door thereof, and shall contain a list of the lands to be sold in alphabetical order by owner or in numerical order as they are contained in the assessment roll, in substance as follows:

Name of Division of Town- State County Total

Owner Section Section ship Range Tax Tax Tax

or by such other description as it may be assessed. Land in cities and towns shall be described in the advertisement as it is described on the assessment roll. Errors in alphabetical or numerical order in the published or posted list of lands to be sold shall not invalidate any sale made pursuant to such notice.

In addition to the foregoing provisions, and at the option of the tax collector, advertisement for the sale of such county lands may be made after the fifteenth day of February in each year with the sale of such lands to be held on the first Monday of April in each year, and all of the provisions which relate to the tax sale held in August of each year shall apply thereto.

SECTION 2. Section 27-41-59, Mississippi Code of 1972, is amended as follows:

27-41-59. (1) At least thirty (30) days before a tax sale is conducted under this section, the tax collector shall provide actual notice to the owner of, and to any mortgagee, beneficiary or lienholder of record with regard to, the land that is liable to sale for taxes not paid. The mortgagee, beneficiary or lienholder shall be entitled to the notice, regardless of whether the mortgage or lien has been in existence over six (6) years. Actual notice may be by personal service, or by certified mail return receipt requested, to the owner's, mortgagee's, beneficiary's or lienholder's last known available address, the address of public record in the chancery clerk's office of the county in which the land is located or the address of public record in the Office of the Secretary of State. Failure to provide the notice that is required in this subsection shall invalidate a subsequent sale of land as described in this section.

(2) Except as otherwise provided in Section 27-41-2, on the first Monday of April, if the tax collector has exercised his option to hold a tax sale on that day, and on the last Monday of August, as the case may be, if the taxes remain unpaid, the tax collector shall proceed to sell, for the payment of taxes then remaining due and unpaid, together with all fees, penalties and damages provided by law, the land or so much and such parts of the land of each delinquent taxpayer to the highest and best bidder for cash as will pay the amount of taxes due by him and all costs and charges. He shall first offer one hundred sixty (160) acres or a smaller separately described subdivision, if the land is less than one hundred sixty (160) acres. If the first parcel so offered does not produce the amount due, then he shall offer as an entirety all the land constituting one (1) tract. Each separate assessment as it appears and is described on the assessment roll shall constitute one (1) tract for the purpose of sale for taxes, notwithstanding the fact that the person who is the owner thereof, or to whom it is assessed, is the owner of or is assessed with other lands, the whole of which constitutes one (1) entire tract but appears on the assessment roll in separate subdivisions. Upon offering the land of any delinquent taxpayer constituting one (1) tract, if no person will bid for it, the whole amount of taxes and all costs incident to the sale, the tax collector shall strike it off to the state. The sale shall be continued from day to day within the hours from 8:30 o'clock in the forenoon and 4:30 o'clock in the afternoon until completed; but neither a failure to advertise, nor error in the advertisement, nor error in conducting the sale, shall invalidate a sale at the proper time and place for taxes of any land on which the taxes were due and not paid, but a sale made at the wrong time or at the wrong place shall be void. Any person sustaining damages by reason of any failure or error by the tax collector may recover damages therefor on his official bond.

SECTION 3. Section 27-43-1, Mississippi Code of 1972, is amended as follows:

27-43-1. The clerk of the chancery court shall, within one hundred eighty (180) days and not less than sixty (60) days prior to the expiration of the time of redemption with respect to land sold, either to individuals or to the state, be required to issue notice, in accordance with the provisions of Section 27-43-3, to the record owner of the land sold as of one hundred eighty (180) days prior to the expiration of the time of redemption, in effect following, to wit:

"State of Mississippi, To _______________,

County of _________________

You will take notice that _________________ (here describe lands) _________________ lands assessed to you or supposed to be owned by you, was, on the _________________ day of _________________ sold to _________________ for the taxes of _________________ year _________________, and that the title to said land will become absolute in _________________ unless redemption from said tax sale be made on or before _________________ day of _________________.

This _________________ day of _________________ 2_______

_________________ Clerk."

SECTION 4. Section 27-43-3, Mississippi Code of 1972, is amended as follows:

27-43-3. The clerk shall issue the notice to the sheriff of the county of the reputed owner's residence, if he be a resident of the State of Mississippi, and the sheriff shall be required to serve personal notice as summons issued from the courts are served, and make his return to the chancery clerk issuing same. The clerk shall also mail a copy of same to the reputed owner at his usual street address, if same can be ascertained after diligent search and inquiry, or to his post office address if only that can be ascertained, and he shall note such action on the tax sales record. The clerk shall also be required to publish the name and address of the reputed owner of the property and the legal description of such property in a public newspaper of the county in which the land is located, or if no newspaper is published as such, then in a newspaper having a general circulation in such county. Such publication shall be made at least forty-five (45) days prior to the expiration of the redemption period.

If said reputed owner is a nonresident of the State of Mississippi, then the clerk shall mail a copy of said notice thereto in the same manner as hereinabove set out for notice to a resident of the State of Mississippi, except that personal notice served by the sheriff shall not be required.

Notice by mail shall be by registered or certified mail. In the event the notice by mail is returned undelivered and the personal notice as hereinabove required to be served by the sheriff is returned not found, then the clerk shall make further search and inquiry to ascertain the reputed owner's street and post office address. If the reputed owner's street or post office address is ascertained after the additional search and inquiry, the clerk shall again issue notice as hereinabove set out. If personal notice is again issued and it is again returned not found and if notice by mail is again returned undelivered, then the clerk shall file an affidavit to that effect and shall specify therein the acts of search and inquiry made by him in an effort to ascertain the reputed owner's street and post office address and said affidavit shall be retained as a permanent record in the office of the clerk and such action shall be noted on the tax sales record. If the clerk is still unable to ascertain the reputed owner's street or post office address after making search and inquiry for the second time, then it shall not be necessary to issue any additional notice but the clerk shall file an affidavit specifying therein the acts of search and inquiry made by him in an effort to ascertain the reputed owner's street and post office address and said affidavit shall be retained as a permanent record in the office of the clerk and such action shall be noted on the tax sale record.

For examining the records to ascertain the record owner of the property, the clerk shall be allowed a fee of Twenty Dollars ($20.00); for issuing the notice the clerk shall be allowed a fee of Two Dollars ($2.00) and, for mailing same and noting such action on the tax sales record, a fee of One Dollar ($1.00); and for serving the notice, the sheriff shall be allowed a fee of Four Dollars ($4.00). For issuing a second notice, the clerk shall be allowed a fee of Five Dollars ($5.00) and, for mailing same and noting such action on the tax sales record, a fee of Two Dollars and Fifty Cents ($2.50), and for serving the second notice, the sheriff shall be allowed a fee of Four Dollars ($4.00). The clerk shall also be allowed the actual cost of publication. Said fees and cost shall be taxed against the owner of said land if the same is redeemed, and if not redeemed, then said fees are to be taxed as part of the cost against the purchaser. The failure of the landowner to actually receive the notice herein required shall not render the title void, provided the clerk and sheriff have complied with the duties herein prescribed for them.

Should the clerk inadvertently fail to send notice as prescribed in this section, then such sale shall be void and the clerk shall not be liable to the purchaser or owner upon refund of all purchase money paid.

At least forty-five (45) days before the sale of the land for unpaid taxes is conducted under Sections 27-41-55 and 27-41-59, the clerk shall forward to the county tax collector the last known available address or address of public record in the clerk's office of the owner of the land which will be the subject of the pending tax sale.

SECTION 5. Section 27-43-5, Mississippi Code of 1972, is amended as follows:

27-43-5. It shall be the duty of the clerk of the chancery court to examine the record of deeds, mortgages and deeds of trust in his office to ascertain the names and addresses of all mortgagees, beneficiaries and holders of vendors liens of all lands sold for taxes; and he shall, within the time fixed by law for notifying owners, send by certified mail with return receipt requested to all such lienors so shown of record the following notice, to wit:

"State of Mississippi, To _______________,

County of ___________

You will take notice that ___________________ (here describe lands) assessed to, or supposed to be owned by __________________ was on the ______ day of _______________, 2 ___, sold to _____________________ for the taxes of __________________ (giving year) upon which you have a lien by virtue of the instrument recorded in this office in ______ Book _____, page _____, dated __________________, and that the title to said land will become absolute in said purchaser unless redemption from said sale be made on or before the ______ day of May of 2 ___.

This _____ day of _____, 2 ___ .

_______________________________

Chancery Clerk of _________ County, Miss."

At least forty-five (45) days before the sale of the land for unpaid taxes is conducted under Sections 27-41-55 and 27-41-59, the clerk shall forward to the county tax collector the last known available address or address of public record in the clerk's office of any mortgagee, beneficiary or holder of a vendor's lien on the land which will be the subject of the pending tax sale.

SECTION 6. Section 27-43-7, Mississippi Code of 1972, is amended as follows:

27-43-7. The notice shall be mailed to said lienors, if any, to the post office address of the lienors, as such address is set forth in the instrument creating the lien, otherwise to the post office address of said lienors, if actually known to the clerk, and if unknown to the clerk then addressed to the last known available address as may be specified for the lienor in public records of the Office of the Secretary of State.

SECTION 7. This act shall take effect and be in force from and after its passage.