Bill Text: MS HB329 | 2020 | Regular Session | Introduced
Bill Title: Mineral interests; owner of nonproducing interest held separately from surface estate will be liable for portion of ad valorem taxes on land.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2020-03-03 - Died In Committee [HB329 Detail]
Download: Mississippi-2020-HB329-Introduced.html
MISSISSIPPI LEGISLATURE
2020 Regular Session
To: Ways and Means
By: Representative Bell (21st)
House Bill 329
AN ACT TO AMEND SECTIONS 27-31-1, 27-31-73, 27-35-51, 27-41-79, 27-41-81, 27-25-523, 27-25-721 AND 27-25-307, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE OWNER OF THE SURFACE RIGHTS IN REAL ESTATE UNDER WHICH OIL, GAS OR OTHER MINERAL INTERESTS ARE OWNED OR HELD SEPARATELY MAY BE EXEMPT FROM PAYING 25% OF THE AD VALOREM TAXES OTHERWISE DUE ON THE REAL ESTATE, AND THE OWNER OR HOLDER OF ANY NONPRODUCING OIL, GAS OR OTHER MINERAL INTEREST OWNED OR HELD SEPARATELY FROM THE RIGHTS OWNED IN THE SURFACE ESTATE SHALL PAY A PRORATED PORTION OF 25% OF THE AD VALOREM TAXES DUE ON THE LAND; TO PROVIDE THAT IF THE OWNER OR HOLDER OF ANY SEPARATELY OWNED OR HELD NONPRODUCING OIL, GAS OR OTHER MINERAL INTEREST DOES NOT PAY THE PERCENTAGE OF AD VALOREM TAXES THAT HE OR SHE IS REQUIRED TO PAY ON THE SURFACE OF THE LAND UNDER WHICH THE OIL, GAS OR OTHER MINERAL INTEREST IS LOCATED, THEN THE OIL, GAS OR OTHER MINERAL INTEREST SHALL BE SOLD IN THE SAME MANNER AS LANDS ARE SOLD FOR NONPAYMENT OF TAXES; TO PROVIDE THAT IF A SEPARATELY OWNED OR HELD NONPRODUCING OIL, GAS OR OTHER MINERAL INTEREST IS OFFERED FOR SALE DUE TO NONPAYMENT OF TAXES AND THE MINERAL INTEREST IS NOT PURCHASED AT SALE, THEN SUCH MINERAL INTEREST SHALL REVERT TO THE OWNER OF THE SURFACE ESTATE UNDER WHICH THE MINERAL INTEREST IS LOCATED, AND THE OWNER OF THE SURFACE ESTATE SHALL BECOME LIABLE FOR THE AMOUNT OF DELINQUENT TAXES FOR WHICH THE MINERAL INTEREST WAS OFFERED FOR SALE AND FOR A PRORATED PORTION OF THE 25% OF AD VALOREM TAXES DUE ON THE LAND THAT OWNERS OR HOLDERS OF SUCH SEPARATE MINERAL INTERESTS ARE REQUIRED TO PAY; TO REQUIRE TAX COLLECTORS TO PROVIDE LISTS TO THE CHANCERY COURT CLERK SPECIFYING MINERAL INTERESTS THAT WERE SOLD FOR NONPAYMENT OF TAXES AND MINERAL INTERESTS THAT WERE OFFERED FOR SALE AND WHICH REVERTED TO THE SURFACE OWNER DUE TO NOT BEING PURCHASED AT SALE; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-31-1, Mississippi Code of 1972, is amended as follows:
27-31-1. The following shall be exempt from taxation:
(a) All cemeteries used exclusively for burial purposes.
(b) All property, real or personal, belonging to the State of Mississippi or any of its political subdivisions, except property of a municipality not being used for a proper municipal purpose and located outside the county or counties in which such municipality is located. A proper municipal purpose within the meaning of this section shall be any authorized governmental or corporate function of a municipality.
(c) All property, real or personal, owned by units of the Mississippi National Guard, or title to which is vested in trustees for the benefit of any unit of the Mississippi National Guard; provided such property is used exclusively for such unit, or for public purposes, and not-for-profit.
(d) All property, real or personal, belonging to any religious society, or ecclesiastical body, or any congregation thereof, or to any charitable society, or to any historical or patriotic association or society, or to any garden or pilgrimage club or association and used exclusively for such society or association and not for profit; not exceeding, however, the amount of land which such association or society may own as provided in Section 79-11-33. All property, real or personal, belonging to any rural waterworks system or rural sewage disposal system incorporated under the provisions of Section 79-11-1. All property, real or personal, belonging to any college or institution for the education of youths, used directly and exclusively for such purposes, provided that no such college or institution for the education of youths shall have exempt from taxation more than six hundred forty (640) acres of land; provided, however, this exemption shall not apply to commercial schools and colleges or trade institutions or schools where the profits of same inure to individuals, associations or corporations. All property, real or personal, belonging to an individual, institution or corporation and used for the operation of a grammar school, junior high school, high school or military school. All property, real or personal, owned and occupied by a fraternal and benevolent organization, when used by such organization, and from which no rentals or other profits accrue to the organization, but any part rented or from which revenue is received shall be taxed.
(e) All property, real or personal, held and occupied by trustees of public schools, and school lands of the respective townships for the use of public schools, and all property kept in storage for the convenience and benefit of the State of Mississippi in warehouses owned or leased by the State of Mississippi, wherein said property is to be sold by the Alcoholic Beverage Control Division of the Department of Revenue of the State of Mississippi.
(f) All property, real or personal, whether belonging to religious or charitable or benevolent organizations, which is used for hospital purposes, and nurses' homes where a part thereof, and which maintain one or more charity wards that are for charity patients, and where all the income from said hospitals and nurses' homes is used entirely for the purposes thereof and no part of the same for profit.
(g) The wearing apparel of every person; and also jewelry and watches kept by the owner for personal use to the extent of One Hundred Dollars ($100.00) in value for each owner.
(h) Provisions on hand for family consumption.
(i) All farm products grown in this state for a period of two (2) years after they are harvested, when in the possession of or the title to which is in the producer, except the tax of one-fifth of one percent (1/5 of 1%) per pound on lint cotton now levied by the Board of Commissioners of the Mississippi Levee District; and lint cotton for five (5) years, and cottonseed, soybeans, oats, rice and wheat for one (1) year regardless of ownership.
(j) All guns and pistols kept by the owner for private use.
(k) All poultry in the hands of the producer.
(l) Household furniture, including all articles kept in the home by the owner for his own personal or family use; but this shall not apply to hotels, rooming houses or rented or leased apartments.
(m) All cattle and oxen.
(n) All sheep, goats and hogs.
(o) All horses, mules and asses.
(p) Farming tools, implements and machinery, when used exclusively in the cultivation or harvesting of crops or timber.
(q) All property of agricultural and mechanical associations and fairs used for promoting their objects, and where no part of the proceeds is used for profit.
(r) The libraries of all persons.
(s) All pictures and works of art, not kept for or offered for sale as merchandise.
(t) The tools of any mechanic necessary for carrying on his trade.
(u) All state, county, municipal, levee, drainage and all school bonds or other governmental obligations, and all bonds and/or evidences of debts issued by any church or church organization in this state, and all notes and evidences of indebtedness which bear a rate of interest not greater than the maximum rate per annum applicable under the law; and all money loaned at a rate of interest not exceeding the maximum rate per annum applicable under the law; and all stock in or bonds of foreign corporations or associations shall be exempt from all ad valorem taxes.
(v) All lands and other property situated or located between the Mississippi River and the levee shall be exempt from the payment of any and all road taxes levied or assessed under any road laws of this state.
(w) Any and all money on deposit in either national banks, state banks or trust companies, on open account, savings account or time deposit.
(x) All wagons, carts, drays, carriages and other horse-drawn vehicles, kept for the use of the owner.
(y) (i) Boats, seines and fishing equipment used in fishing and shrimping operations and in the taking or catching of oysters.
(ii) All towboats, tugboats and barges documented under the laws of the United States, except watercraft of every kind and character used in connection with gaming operations.
(z) (i) All materials used in the construction and/or conversion of vessels in this state;
(ii) Vessels while under construction and/or conversion;
(iii) Vessels while in the possession of the manufacturer, builder or converter, for a period of twelve (12) months after completion of construction and/or conversion; however, the twelve-month limitation shall not apply to:
1. Vessels used for the exploration for, or production of, oil, gas and other minerals offshore outside the boundaries of this state; or
2. Vessels that were used for the exploration for, or production of, oil, gas and other minerals that are converted to a new service for use outside the boundaries of this state;
(iv) 1. In order for a vessel described in subparagraph (iii) of this paragraph (z) to be exempt for a period of more than twelve (12) months, the vessel must:
a. Be operating or operable, generating or capable of generating its own power or connected to some other power source, and not removed from the service or use for which manufactured or to which converted; and
b. The manufacturer, builder, converter or other entity possessing the vessel must be in compliance with any lease or other agreement with any applicable port authority or other entity regarding the vessel and in compliance with all applicable tax laws of this state and applicable federal tax laws.
2. A vessel exempt from taxation under subparagraph (iii) of this paragraph (z) may not be exempt for a period of more than three (3) years unless the board of supervisors of the county and/or governing authorities of the municipality, as the case may be, in which the vessel would otherwise be taxable adopts a resolution or ordinance authorizing the extension of the exemption and setting a maximum period for the exemption.
(v) As used in this paragraph (z), the term "vessel" includes ships, offshore drilling equipment, dry docks, boats and barges, except watercraft of every kind and character used in connection with gaming operations.
(aa) Sixty-six and two-thirds percent (66-2/3%) of nuclear fuel and reprocessed, recycled or residual nuclear fuel by-products, fissionable or otherwise, used or to be used in generation of electricity by persons defined as public utilities in Section 77-3-3.
(bb) All growing nursery stock.
(cc) A semitrailer used in interstate commerce.
(dd) All property, real or personal, used exclusively for the housing of and provision of services to elderly persons, disabled persons, mentally impaired persons or as a nursing home, which is owned, operated and managed by a not-for-profit corporation, qualified under Section 501(c)(3) of the Internal Revenue Code, whose membership or governing body is appointed or confirmed by a religious society or ecclesiastical body or any congregation thereof.
(ee) All vessels while in the hands of bona fide dealers as merchandise and which are not being operated upon the waters of this state shall be exempt from ad valorem taxes. As used in this paragraph, the terms "vessel" and "waters of this state" shall have the meaning ascribed to such terms in Section 59-21-3.
(ff) All property, real or personal, owned by a nonprofit organization that: (i) is qualified as tax exempt under Section 501(c)(4) of the Internal Revenue Code of 1986, as amended; (ii) assists in the implementation of the national contingency plan or area contingency plan, and which is created in response to the requirements of Title IV, Subtitle B of the Oil Pollution Act of 1990, Public Law 101-380; (iii) engages primarily in programs to contain, clean up and otherwise mitigate spills of oil or other substances occurring in the United States coastal or tidal waters; and (iv) is used for the purposes of the organization.
(gg) If a municipality changes its boundaries so as to include within the boundaries of such municipality the project site of any project as defined in Section 57-75-5(f)(iv)1, Section 57-75-5(f)(xxi) or Section 57-75-5(f)(xxviii) or Section 57-75-5(f)(xxix), all real and personal property located on the project site within the boundaries of such municipality that is owned by a business enterprise operating such project, shall be exempt from ad valorem taxation for a period of time not to exceed thirty (30) years upon receiving approval for such exemption by the Mississippi Major Economic Impact Authority. The provisions of this paragraph shall not be construed to authorize a breach of any agreement entered into pursuant to Section 21-1-59.
(hh) All leases, lease contracts or lease agreements (including, but not limited to, subleases, sublease contracts and sublease agreements), and leaseholds or leasehold interests (including, but not limited to, subleaseholds and subleasehold interests), of or with respect to any and all property (real, personal or mixed) constituting all or any part of a facility for the manufacture, production, generation, transmission and/or distribution of electricity, and any real property related thereto, shall be exempt from ad valorem taxation during the period as the United States is both the title owner of the property and a sublessee of or with respect to the property; however, the exemption authorized by this paragraph (hh) shall not apply to any entity to whom the United States sub-subleases its interest in the property nor to any entity to whom the United States assigns its sublease interest in the property. As used in this paragraph, the term "United States" includes an agency or instrumentality of the United States of America. This paragraph (hh) shall apply to all assessments for ad valorem taxation for the 2003 calendar year and each calendar year thereafter.
(ii) All property, real, personal or mixed, including fixtures and leaseholds, used by Mississippi nonprofit entities qualified, on or before January 1, 2005, under Section 501(c)(3) of the Internal Revenue Code to provide support and operate technology incubators for research and development startup companies, telecommunication startup companies and/or other technology startup companies, utilizing technology spun-off from research and development activities of the public colleges and universities of this state, State of Mississippi governmental research or development activities resulting therefrom located within the State of Mississippi.
(jj) All property, real, personal or mixed, including fixtures and leaseholds, of startup companies (as described in paragraph (ii) of this section) for the period of time, not to exceed five (5) years, that the startup company remains a tenant of a technology incubator (as described in paragraph (ii) of this section).
(kk) All leases, lease contracts or lease agreements (including, but not limited to, subleases, sublease contracts and sublease agreements), and leaseholds or leasehold interests, of or with respect to any and all property (real, personal or mixed) constituting all or any part of an auxiliary facility, and any real property related thereto, constructed or renovated pursuant to Section 37-101-41, Mississippi Code of 1972.
(ll) Equipment brought into the state temporarily for use during a disaster response period as provided in Sections 27-113-1 through 27-113-9 and subsequently removed from the state on or before the end of the disaster response period as defined in Section 27-113-5.
(mm) For any lease or contractual arrangement to which the Department of Finance and Administration and a nonprofit corporation are a party to as provided in Section 39-25-1(5), the nonprofit corporation shall, along with the possessory and leasehold interests and/or real and personal property of the corporation, be exempt from all ad valorem taxation, including, but not limited to, school, city and county ad valorem taxes, for the term or period of time stated in the lease or contractual arrangement.
(nn) (i) Whenever any nonproducing oil, gas or other mineral interest in real estate is owned separately and apart from and independently of the rights owned in the surface of such real estate, or when any person reserves any right or interest or has any leasehold in any of the elements listed in this subparagraph (i), the owner of the surface estate shall be exempt from paying twenty-five percent (25%) of the ad valorem taxes otherwise due on the real estate if the surface owner has complied with the provisions of subparagraph (ii) of this paragraph (nn).
(ii) It shall be the duty of every person who is eligible for and desires the exemption provided for in this paragraph (nn) to provide to the tax assessor on or before the first day of April each year, for the tax assessor's review and approval, an attorney's title opinion covering the person's real estate reflecting the ownership or reservation of any of the type interests listed in subparagraph (i) of this paragraph (nn). The title opinion shall reflect the name and address of the owner(s) or holder(s) of such interest, the percentage of the interest owned or held and the duration of the interest.
(iii) If a person who is eligible for and desires the exemption provided for in this paragraph (nn) fails to comply with the requirements of subparagraph (ii) of this paragraph (nn), that person shall not be granted such exemption and shall be liable for the full amount of the ad valorem taxes otherwise due on the real estate.
SECTION 2. (1) (a) Except as otherwise provided in paragraph (b) of this subsection (1), the owner(s) or holder(s) of any nonproducing oil, gas or other mineral interest in real estate, which is owned or held separately and apart from and independently of the rights owned in the surface of such real estate, shall pay a percentage of the ad valorem taxes due on the land, as provided in this subsection. The owner(s) or holder(s) of all of the interests described in the preceding sentence collectively shall pay a total of twenty-five percent (25%) of the ad valorem taxes due on the land under which the interests are located, and each individual owner or holder of any of the interests shall pay a prorated portion of the twenty-five percent (25%) based on his or her percentage of ownership of the collective total of all oil, gas or other mineral interests that are nonproducing and owned separately and apart from and independently of the rights owned in the surface of the real estate. The percentage of ad valorem taxes which the owner(s) or holder(s) of any of the interests described in the first sentence of this subsection must pay shall be due and payable at the same time and in the same manner as the ad valorem taxes due on the land.
(b) If the owner of the surface estate under which any separately owned or held, nonproducing oil, gas or other mineral interest is located fails to comply with the requirements of Section 27-31-1(nn)(ii), he or she shall be liable for the full amount of the ad valorem taxes otherwise due on the real estate, and the owner(s) or holder(s) of any of the interests described in the first sentence of paragraph (a) of this subsection (1) shall not be liable for any percentage of the ad valorem taxes due on the real estate.
(2) (a) If the owner or holder of any nonproducing oil, gas or other mineral interest in real estate, which is owned or held separately and apart from and independently of the rights owned in the surface of such real estate, does not pay the percentage of ad valorem taxes that he or she is required to pay on the surface of the land under which the oil, gas or mineral interest is located, the nonproducing, separately owned or held mineral interest shall be sold in the same manner and in accordance with the same procedure as prescribed by law for the sale of lands for nonpayment of taxes.
(b) In addition to the parties which the chancery clerk is required to provide with notice of a tax sale pursuant to Section 27-43-1 et seq., the chancery clerk shall provide notice to the owner of the surface estate under which the separately owned or held, nonproducing oil, gas or other mineral interest sold for nonpayment of taxes is located that such interest was sold for taxes. In addition to the owner or holder of the oil, gas or other mineral interest sold for nonpayment of taxes, or any person for him with his consent or any person interested in the oil, gas or other mineral interest, the owner of the surface estate under which the interest is located shall have the right, secondary only to the preceding parties, to redeem the oil, gas or other mineral interest sold for nonpayment of taxes.
(c) If the owner of the surface estate pays the amount necessary to redeem the oil, gas or mineral interest sold for nonpayment of taxes, the chancery clerk shall notify the owner or holder of the interest sold for nonpayment of taxes that the owner of the surface estate has tendered the amount necessary to redeem the interest from the tax sale, and that such tender of the amount necessary to redeem the interest does not operate to redeem the interest from the tax sale. The chancery clerk shall notify the owner or holder of the oil, gas or other mineral interest sold for nonpayment of taxes that if such owner or holder, or any persons for him with his consent, or any person interested in the oil, gas or other mineral interest does not redeem the interest before the expiration of the time of redemption, title to the oil, gas or other mineral interest shall vest in the owner of the surface estate who tendered the amount necessary to redeem the interest from the tax sale. If the owner or holder of the oil, gas or other mineral interest does not redeem the interest from the tax sale before the expiration of the redemption period, after being notified by the chancery clerk in accordance with the provisions of this subsection, title to the interest shall vest in the owner of the surface estate who tendered the amount necessary to redeem the interest from the tax sale, and the chancery clerk shall execute a deed of conveyance to such owner of the surface estate.
(d) If any such nonproducing oil, gas or other mineral interest in real estate of a delinquent taxpayer is offered for sale, and no person bids the whole amount of taxes and costs incident to the sale of the mineral interest, such mineral interest shall revert to the owner of the surface estate under which the mineral interest is located. The owner of the surface estate to whom such mineral interest reverts shall be liable, beginning with the next year of tax liability, for the amount of delinquent taxes for which the mineral interest was offered for sale and for his prorated portion of the collective twenty-five percent (25%) of ad valorem taxes due on the land as provided in subsection (1) of this section.
SECTION 3. Section 27-31-73, Mississippi Code of 1972, is amended as follows:
27-31-73. (1) To encourage the purchase of leases upon and interests in oil, gas and other minerals in the State of Mississippi, to encourage drilling for and production of such minerals, and to relieve the taxing officials of the counties of the state of the onerous duties of assessment for, collection of and sale for ad valorem taxes for such interests (which the Legislature finds are generally assessed at nominal values resulting in taxes not commensurate with the services required of such officers), all nonproducing leasehold interests upon all oil, gas and other minerals in, on or under lands lying within the State of Mississippi, created or assigned after the effective date of Sections 27-31-71 through 27-31-87, and also all nonproducing interests in such oil, gas and other minerals (including royalty interests therein) hereafter conveyed to a grantee or purchaser or excepted or reserved to a grantor separately and apart from the surface, shall be exempt from all ad valorem taxes levied on or after January 1, 1947, by the State of Mississippi, or any county, municipality, levee district, road district, school district, drainage district or other taxing district within the state or becoming a lien on or after said date. Any sale for taxes of the surface or of the remainder of the fee shall not in any manner whatsoever affect the interest or interests hereby exempted.
(2) For the same purpose and with like effect there is hereby likewise exempted from such ad valorem taxation all such interests created prior to the passage of Sections 27-31-71 through 27-31-87 which are owned separately and apart from the surface, provided that as a condition precedent to obtaining such exemption upon existing interests, the then owner thereof shall make application for exemption of the interest then owned by him as hereinafter provided and pay, in the manner provided under this chapter, a sum equivalent to the tax herein levied by Section 27-31-77 on instruments hereafter executed creating, transferring or reserving corresponding or similar interests. If any such sum is paid after January 1, 1947, then such exemption shall apply only to taxes becoming a lien after such sum is thus paid.
(3) The exemption from ad valorem taxes provided in this section shall not apply to the percentage of ad valorem taxes that the owner or holder of a nonproducing oil, gas or mineral interest in real estate, which is owned or held separately and apart from and independently of the right owned in the surface of such real estate, must pay on the land under which the oil, gas or other mineral interest is located, pursuant to the provisions of Section 2 of this act.
SECTION 4. Section 27-35-51, Mississippi Code of 1972, is amended as follows:
27-35-51. (1) Except as otherwise provided in subsection (2) of this section, whenever any buildings, improvements or structures, mineral, gas, oil, timber or similar interests in real estate, including building permits or reservations, are owned separately and apart from and independently of the rights and interests owned in the surface of such real estate, or when any person reserves any right or interest, or has any leasehold in the elements above enumerated, all of such interests shall be assessed and taxed separately from such surface rights and interests in said real estate, and shall be sold for taxes in the same manner and with the same effect as other interests in real estate are sold for taxes. Whenever the owner or holder of any separately owned or held nonproducing oil, gas or other mineral interest does not pay the percentage of ad valorem taxes that he or she is required to pay on the surface of the land under which the oil, gas or other mineral interest is located, the provisions of Section 2 of this act shall apply. All interests in real estate herein enumerated shall be returned to the tax assessor within the same time and in the same manner as the owners of land are now required by law to list lands for assessment and taxation and under like penalties. The tax assessor shall enter the assessment of the interests herein enumerated upon the assessment roll by entering the same upon the next succeeding line or lines of the roll following the assessment of the surface owner, the name of the owner and the name of the interest, and by placing the value in the appropriate column or columns on the roll; or the assessor may enter the assessment of any or all of such interests upon a page or pages in the land roll following the assessment of the lands of the county, and the value of all such interests shall be included in the recapitulation of the roll. And the value of said interest or interests shall be determined and fixed in the same manner and by the same officials now required by law to value and assess property for taxation.
(2) Pursuant to Section 65-43-3(2)(i), any contract entered into under Section 65-43-3 by a governmental entity, as defined in Section 65-43-1, with a company as defined in Section 65-43-3(1), involving a franchise, license agreement, concession agreement, operating agreement, construction agreement, design agreement and/or any other similar contractual arrangement in connection with the financing, design, construction, acquisition, maintenance and/or operation of a toll road or toll bridge project pursuant to Section 65-43-3, shall not constitute any right, title or interest in land or other real property or real estate or in personal property separate and apart and independent of the rights and interests of the governmental entity for purposes of subsection (1) of this section, in the toll road or toll bridge project, including tollbooths and related toll facilities, including, but not limited to, land, pavement, drainage-related structures, and other infrastructure and property related thereto in which a governmental entity is the title owner of such property and/or holder of easements, rights-of-way and/or other interests for such toll road or toll bridge project.
SECTION 5. Section 27-41-79, Mississippi Code of 1972, is amended as follows:
27-41-79. The tax collector
shall on or before the second Monday of May and on or before the second Monday
of October of each year, transmit to the clerk of the chancery court of the
county separate certified lists of the lands struck off by him to the state and
that sold to individuals, specifying to whom assessed, the date of sale, the
amount of taxes for which sale was made, and each item of cost incident thereto,
and where sold to individuals, the name of the purchaser, such sale to be
separately recorded by the clerk in a book kept by him for that purpose. * * *
The tax collector shall also transmit to the clerk of the chancery court of
the county separate lists of any nonproducing oil, gas or other mineral
interests in real estate which are sold to persons for nonpayment of taxes or
which are offered for sale and, because no person bids the whole amount of taxes
and costs incident to the sale of such interest, revert to the owners of the
surface estate under which such mineral interests are located. All such
lists (except lists of nonproducing mineral interests that reverted to the
owners of the surface estate under which such mineral interests are located)
shall vest in the state or in the individual purchaser thereof a perfect title
to the land or mineral interest, or both, sold for taxes, but without
the right of possession for the period of and subject to the right of
redemption * * *.
Lists of nonproducing mineral interests that reverted to the owners of the
surface estate under which such mineral interests are located shall vest in
such surface owners a perfect title to the mineral interests, not subject to
the right of redemption. A failure to transmit or record a list or a
defective list shall not affect or render the title void. If the tax collector
or clerk shall fail to perform the duties herein prescribed, he shall be liable
to the party injured by such default in the penal sum of Twenty-five Dollars
($25.00), and also on his official bond for the actual damage sustained. The
lists hereinabove provided shall, when filed with the clerk, be notice to all
persons in the same manner as are deeds when filed for record. The lists of
lands hereinabove referred to shall be filed by the tax collector in May for
sales made in April and in October for sales made in September, respectively.
SECTION 6. Section 27-41-81, Mississippi Code of 1972, is amended as follows:
27-41-81. The tax collector
shall on or before the first Monday of June transmit to the clerk of the
chancery court of the county separate certified lists of the lands struck off
by him to the state and that sold to individuals, specifying to whom assessed,
the day of the sale, the amount of taxes for which the sale was made and each
item of cost incidental thereto, and, where sold to individuals, the name of
the purchaser, to be separately recorded by the clerk in books kept by him for that
purpose. * * * The tax collector shall
also transmit to the clerk of the chancery court of the county separate lists
of any nonproducing oil, gas or other mineral interests in real estate which
are sold to persons for nonpayment of taxes or which are offered for sale and,
because no person bids the whole amount of taxes and costs incident to the sale
of such interest, revert to the owners of the surface estate under which such
mineral interests are located. The lists shall (except lists of
nonproducing mineral interests that reverted to the owners of the surface
estate under which such mineral interests are located) vest in the state or
the individual purchaser thereof a perfect title to the land or mineral
interest, or both, sold for taxes, but without the right of possession and
subject to the right of redemption * * *. Lists of nonproducing mineral
interests that reverted to the owners of the surface estate under which such
mineral interests are located shall vest in such surface owners a perfect title
to the mineral interests, not subject to the right of redemption. A
failure to transmit or record a list, or a defective list, shall not affect or
render the title void. If the tax collector or clerk shall fail to perform the
duties herein prescribed, he shall be liable to the party injured by such
default in the penal sum of Twenty-five Dollars ($25.00), and also on his bond
for the actual damages sustained.
The list hereinabove provided shall, when filed with the clerk, be notice to all persons in the same manner as are deeds when filed for record.
SECTION 7. Section 27-25-523, Mississippi Code of 1972, is amended as follows:
27-25-523. (1) All oil produced or under the ground on producing properties within the State of Mississippi and all producing oil equipment, including wells, connections, pumps, derricks and other appurtenances actually owned by and belonging to the producer, and all leases in production, including mineral rights in producing properties, shall be exempt from all ad valorem taxes now levied or hereafter levied by the State of Mississippi, or any county, municipality, levee district, road, school or any other taxing district within this state. This exemption shall not apply to drilling equipment, including derricks, machinery, and other materials necessary to drilling, nor to oil gathering systems, nor to the surface of lands leased for oil production or upon which oil producing properties are situated, but all such drilling equipment, gathering systems, and lands shall be assessed as are other properties and shall be subject to ad valorem tax. However, no additional assessment shall be added to the surface value of such lands by reason of the presence of oil thereunder or its production therefrom. The exemption herein granted shall apply to all ad valorem taxes levied in the year 1944 and each year thereafter.
(2) The exemption from ad valorem taxes provided in this section shall not apply to the percentage of ad valorem taxes that the owner or holder of a nonproducing oil interest in real estate, which is owned or held separately and apart from and independently of the rights owned in the surface of such real estate, must pay on the land under which the oil interest is located, pursuant to the provisions of Section 2 of this act.
SECTION 8. Section 27-25-721, Mississippi Code of 1972, is amended as follows:
27-25-721. (1) All gas and carbon dioxide produced or under the ground on producing properties within the State of Mississippi and all producing gas or carbon dioxide equipment, including wells, connections, pumps, derricks and other appurtenances actually owned by and belonging to the producer, and all leases in production, including mineral rights in producing properties, shall be exempt from all ad valorem taxes now levied or hereafter levied by the State of Mississippi, or any other taxing district within this state. This exemption shall not apply to drilling equipment, including derricks, machinery, and other materials necessary to drilling, nor to gas or carbon dioxide gathering systems, nor to the surface of lands leased for gas or carbon dioxide production or upon which gas or carbon dioxide producing properties are situated, but all such drilling equipment, gathering systems, and lands shall be assessed as are other properties and shall be subject to ad valorem tax. However, no additional assessment shall be added to the surface value of such lands by reason of the presence of gas or carbon dioxide thereunder or its production therefrom. The exemption herein granted shall apply to all ad valorem taxes levied in the year 1948 and each year thereafter.
(2) The exemption from ad valorem taxes provided in this section shall not apply to the percentage of ad valorem taxes that the owner or holder of a nonproducing gas interest in real estate, which is owned or held separately and apart from and independently of the right owned in the surface owner of such real estate, must pay on the land under which the gas interest is located, pursuant to the provisions of Section 2 of this act.
SECTION 9. Section 27-25-307, Mississippi Code of 1972, is amended as follows:
27-25-307. (1) All salt under the ground or salt produced or processed on producing properties and owned by the producer and all leases in production, including mineral rights in producing properties, shall be exempt from all ad valorem taxes now levied or hereafter levied by the State of Mississippi, or any county, or any other taxing district within this state.
(2) The exemption from ad valorem taxes provided in this section shall not apply to the percentage of ad valorem taxes that the owner or holder of a nonproducing salt interest in real estate, which is owned or held separately and apart from and independently of the right owned in the surface owner of such real estate, must pay on the land under which the salt interest is located, pursuant to the provisions of Section 2 of this act.
SECTION 10. This act shall apply to any nonproducing oil, gas or other mineral interest in real estate which is owned or held separate and apart from and independently of the rights owned in the surface of such real estate, regardless of whether such interest was created or became nonproducing before or after the effective date of this act.
SECTION 11. This act shall take effect and be in force from and after July 1, 2020.
