House Bill 1275

AN ACT TO AMEND SECTIONS 21-33-63 AND 27-41-59, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT FOREIGN PERSONS AND FOREIGN ENTITIES MAY NOT BID FOR OR PURCHASE PROPERTY SOLD AT A TAX SALE; TO DEFINE THE TERMS "FOREIGN PERSON" AND "FOREIGN ENTITY" FOR THE PURPOSES OF THIS ACT; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 21-33-63, Mississippi Code of 1972, is amended as follows:

21-33-63. Sales for the nonpayment of municipal taxes, both ad valorem and for special improvements, shall be made by the tax collector at such place, within the corporate limits, as the governing authorities may direct. The sale of real estate for ad valorem taxes and special improvement assessments and sale of personal property shall be made upon the same notice, at the same time, and in the same manner as provided by law for sales of like property for unpaid state and county taxes.

The lists of lands sold for taxes by the municipality shall be made as required to be made by the state and county tax collector, and shall be filed with the municipal clerk within twenty (20) days after the tax sale, and shall there remain, subject to redemption for the same length of time and in the same manner as prescribed for the redemption of lands sold for state and county taxes, with the same saving to infants and persons of unsound mind. Said lists shall have the same force and effect, and confer the same right and entitle the purchasers to the same remedies, as lists made for delinquent taxes by the state and county tax collector. Such title shall be subservient, however, to a title acquired under a sale for state and county taxes.

One (1) copy of the list of land so sold shall be filed within thirty (30) days of such sale with the chancery clerk of the county in which said municipality is located, and the chancery clerk shall file and index said list among the land records of his county, as other tax sales are listed. However, the failure of the clerk so to file such list as herein prescribed shall not affect the validity of such tax sale.

No foreign person or foreign entity shall be authorized to bid for or purchase any property sold at any tax sale. For the purposes of this section, "foreign person" means any person other than a citizen or resident of the United States and "foreign entity" means any partnership, limited liability company, corporation, estate or trust not formed in the United States. An entity will be deemed to be a foreign entity even if formed in the United States if the entity has twenty-five percent (25%) or greater interest owned or controlled by a foreign person or foreign entity.

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

27-41-59. (1) 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. Except as otherwise provided in subsection (2) of this section, 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.

(2) The tax collector is authorized to enter into an agreement with an online provider to conduct tax sales using online bidding and sale. Such agreement must be ratified by the county board of supervisors in order to be binding. Upon ratification of the agreement by the county board of supervisors, the tax collector may conduct the tax sale online as provided in this section. The time during which online bids can be made at a tax sale conducted under this subsection shall be established in the agreement and, if the tax sale is to be conducted using the procedure authorized by this subsection, the time during which online bids can be made at the sale shall be included in the advertisement required by Section 27-41-55. In counties having two (2) court districts, the online tax sale shall separate the court districts into two (2) separate portals to distinguish each district.

(3) A failure to advertise, an error in the advertisement, or an error in conducting the sale shall not 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.

(4) No foreign person or foreign entity shall be authorized to bid for or purchase any property sold at any tax sale. For the purposes of code section, "foreign person" means any person other than a citizen or resident of the United States and "foreign entity" means any partnership, limited liability company, corporation, estate or trust not formed in the United States. An entity will be deemed to be a foreign entity even if formed in the United States if the entity has twenty-five percent (25%) or greater interest owned or controlled by a foreign person or foreign entity.

SECTION 3. This act shall take effect and be in force from and after July 1, 2023.