Justia Mississippi Supreme Court Opinion Summaries

This case involves a dispute over a tax sale of a property in Jackson County, Mississippi. The property was owned by Deborah Hallford, who failed to pay property taxes in 2014, leading to the property being sold at a tax sale in 2015. Pierre Thoden, a resident of New York, purchased the property at the sale. Hallford failed to redeem the property within the redemption period, and Thoden later received title after he paid the delinquent taxes for 2015-18. After learning of the tax sale, Hallford filed a complaint to set aside the tax sale, claiming that due to a lack of proper notice, the sale was void. The chancery court found in Hallford’s favor and voided the tax sale based on insufficient notice.Thoden appealed the chancery court's decision, arguing that he was entitled to a statutory lien and reimbursement for appliances, costs, and expenses on the property. The Supreme Court of Mississippi affirmed the chancery court’s finding that the tax sale was void but held that Thoden was entitled to a hearing to present proof of his damages. The case was remanded for a hearing to determine the amount Thoden was owed as damages.On remand, the chancery court found that Thoden was unjustly enriched by the rent he collected from tenants and that he could not keep money he collected on property where he was in the nature of a trespasser. The court also found that Thoden was entitled to the amount he paid in taxes, plus interest. However, the court denied Thoden’s claim to reimbursement for his repairs on, improvements to, and maintenance of the property. Thoden appealed these findings.The Supreme Court of Mississippi affirmed in part and reversed and rendered in part. The court held that Thoden was entitled to a refund of his purchase price and interest on that price, and that he was not entitled to reimbursement of the cost of repairs, improvements, and maintenance. The court also held that Hallford was entitled to a $4,500 set-off. However, the court reversed the chancery court's determination that Thoden was not entitled to the taxes he paid on the property for 2015-18, and awarded Thoden $2,231.06. View "Thoden v. Hallford" on Justia Law

The case involves Toolpushers Supply Co., a Wyoming-based company with a retail location in Mississippi that sells supplies and items used in the oil-and-gas industry. In 2016, the Mississippi Department of Revenue (MDOR) audited Toolpushers’ sales and concluded that the company owed an additional $124,728 based on the failure to remit sales tax on certain sales. Toolpushers considered these sales wholesale and thus tax-exempt, but the MDOR determined they were not qualified as wholesale. Toolpushers appealed to the MDOR’s Board of Review, which affirmed the decision. The company then appealed to the Mississippi Board of Tax Appeals, which also affirmed. Toolpushers continued to appeal to the Hinds County Chancery Court, First Judicial District, and both Toolpushers and the MDOR sought summary judgment. The chancellor denied Toolpushers’ motion and granted the MDOR’s. Toolpushers then appealed to the Supreme Court of Mississippi.The Supreme Court of Mississippi stated that the chancery court correctly applied the de novo standard of review. The Supreme Court affirmed the decisions of the Court of Appeals and the chancery court, which in turn affirmed the MDOR’s decision. The Supreme Court agreed with the chancery court that Toolpushers could not establish its claim that the sales were wholesale. The court emphasized that the amended Mississippi Code Section 27-77-7(5) made it clear that the chancery court should give no deference to the decision of the Board of Tax Appeals, the Board of Review, or the Department of Revenue when trying the case de novo and conducting a full evidentiary judicial hearing on all factual and legal issues raised by the taxpayer. The court declared that the Court of Appeals' decision to discuss and apply caselaw addressing the pre-2015 version of Section 27-65-77, seemingly giving deference to the MDOR’s tax decision, was an error but was not reversible. View "Toolpushers Supply Co. v. Mississippi Department of Revenue" on Justia Law

In Mississippi, Jackson Sales & Storage Co. (JSSC), a subsidiary of National Presto Industries, was granted an annual exemption from ad valorem property taxes by Hinds County for almost forty years. This exemption was based on a free-port-warehouse license issued to JSSC by the State Tax Commission in 1981. In 2019, however, Hinds County denied the exemption and assessed JSSC back taxes for 2012-18, arguing JSSC lacked the requisite free-port-warehouse license. JSSC sought relief in Hinds County Circuit Court, which held that JSSC’s license remained valid and in effect since 1981 and was not subject to renewal. The Circuit Court also ruled that JSSC owed no taxes for 2012-19. On appeal, the Supreme Court of Mississippi partially affirmed and partially reversed the lower court's ruling. The Supreme Court agreed that JSSC's license was valid since 1981 and that JSSC owed no taxes for 2012-18. However, the Supreme Court disagreed with the lower court’s finding that the license wasn’t subject to renewal and that JSSC owed no taxes for 2019. The Supreme Court held that the county could require JSSC to renew its license and that JSSC owes Hinds County the remaining $290,724.52 in ad valorem taxes for 2019. The court clarified that moving forward, the board of supervisors has discretion over whether it grants JSSC an exemption and over the period of time that exemption is in effect. View "Stokes v. Jackson Sales & Storage Co" on Justia Law

Gulf South Pipeline Company, LLC owned an underground natural gas storage facility in Rankin County, Mississippi. It owned additional properties that ran through thirty-two Mississippi counties. As a public service corporation with property situated in more than one Mississippi county, property belonging to Gulf South was assessed centrally by the Mississippi Department of Revenue rather than by individual county tax assessors. After conducting the central assessment, MDOR apportions the tax revenues among the several counties in which the property is located. A significant amount of the natural gas stored in Gulf South’s Rankin County facility is owned by Gulf South’s customers and, therefore, it is excluded from MDOR’s central assessment. The Rankin County tax assessor requested that Gulf South disclose the volume of natural gas owned by each of its customers. Following Gulf South’s refusal to provide these data, in September 2021 the Rankin County tax assessor gave notice of its intention to assess Gulf South more than sixteen million dollars for approximately four billion cubic feet of natural gas stored by Gulf South but owned by its customers. Gulf South filed suit at the Chancery Court in Hinds County, seeking to enjoin the assessment and seeking a declaratory judgment that MDOR was the exclusive entity with the authority to assess a public service corporation with property located in more than one Mississippi county. On interlocutory appeal, the Mississippi Supreme Court was asked to determine whether venue was proper in Hinds County when Rankin County was named as a defendant and MDOR was joined as a necessary party. The Court held that, under the venue provisions of Mississippi Code Section 11-45-17 and the Court’s consistent construction of these statutory provisions as mandatory and controlling, venue was proper only in Rankin County. Therefore, the chancellor erred by denying Rankin County’s motion to transfer venue. View "Rankin County v. Boardwalk Pipeline Partners, L.P., et al." on Justia Law

The Board of Supervisors for Lowndes County appealed the trial court’s grant of summary judgment in favor of the Lowndes County School District. The Board argued that the trial court erred in its interpretation of Mississippi Code Section 37-57-107(1) (Rev. 2014) and that the trial court lacked jurisdiction to review the Board’s September 15, 2020 decision to exclude $3,352,0751 from the District’s requested ad valorem tax effort. The Mississippi Supreme Court found that the District appealed the decision of a county board of supervisors. As such, the District’s exclusive remedy was Section 11-51-75. Because the District failed to meet these requirements and because Section 11-51-75 was the District’s exclusive remedy, the chancery court was without jurisdiction to hear this matter and issue a declaratory judgment. Therefore, the trial court’s grant of summary judgment was reversed, and the matter remanded to the chancery court for it to enter an order dismissing the case for lack of jurisdiction. View "Board of Supervisors for Lowndes County v. Lowndes County School District" on Justia Law

The taxpayer, Saltwater Sportsman Outfitters, LLC (SSO), was a one-man operation that sold clothing online and at trade shows, conventions, and other events. SSO kept few records of what it had sold or where, though its sole member testified that most of its sales occurred out of state. After an audit, the Mississippi Department of Revenue (MDOR) assessed additional sales tax liability, ultimately settling on about $80,000 based on the disparity between SSO’s wholesale purchases and the sales taxes it had paid in Mississippi and other states. MDOR’s assessment was appealed to the circuit court, which granted summary judgment in favor of MDOR. SSO appealed. The Mississippi Supreme Court concluded that SSO’s failure to keep adequate records rendered MDOR’s assessment presumptively correct. The Court found no merit to SSO’s various arguments on appeal, including that the promoters of the events at which SSO sold were the true parties liable for the taxable sales. The Court therefore affirmed the circuit court’s grant of summary judgment. View "Saltwater Sportsman Outfitters, LLC v. Mississippi Dept. of Revenue" on Justia Law

Mississippi Hub, LLC ("MS HUB") operated an underground natural gas storage facility mostly located in Simpson County. In 2007, MS HUB and Simpson County entered into a fee-in-lieu agreement regarding ad valorem taxes on the first phase of the facility. It was agreed that, in exchange for locating the facility in Simpson County, for ten years MS HUB would pay a third of what its taxes would have otherwise been. It was also agreed that the facility was industrial personal property for taxation purposes, that the value of the property would be determined in accordance with Mississippi Code Section 27-35-50 (Supp. 2021), and that economic obsolescence would be considered by the tax assessor at the request of the company. In 2017, MS HUB contacted the Simpson County Tax Assessor regarding market changes in the natural gas storage industry and how those changes affected the value of the MS HUB facility. The assessor ultimately concluded that a reduction of 20 percent for economic obsolescence should be applied for the 2019 tax year. The Simpson County Board of Supervisors, however, assessed the property at $56,527,560—which would correspond to a true value of $376,850,400, the assessed true value without the adjustment for economic obsolescence. MS HUB objected to the assessment at the board’s August 5, 2019 equalization meeting. The board dismissed the objections made by MS HUB without giving a written explanation. MS HUB thereafter filed a “Petition for Declaratory Judgment and, in the alternative, Petition for Appeal from Determination of Ad Valorem Tax Assessment.” Simpson County and its tax assessor, Charles Baldwin, were named as defendants. Simpson County argued that the appeal by MS HUB was untimely and its expert based his opinion on the wrong approach to valuation. The circuit court granted summary judgment, but the Mississippi Supreme Court reversed, finding there were no grounds upon which summary judgment should have been granted. Judgment was reversed and the matter remanded for further proceedings. View "Mississippi Hub, LLC v. Baldwin" on Justia Law

Following a 2020 audit, the Mississippi Department of Revenue (MDOR) issued a $65,957 sales tax assessment against EKB, Inc., a wedding photography business owned and operated by Scott Burton. EKB provided Burton’s photography services and sold the copyrights to the digital still images he creates. Neither activity was subject to sales tax. Because EKB did not engage in taxable sales, the Mississippi Supreme Court affirmed the chancery court’s order vacating the MDOR’s sales tax assessment. View "Mississippi Department of Revenue v. EKB, Inc., et al." on Justia Law

At issue in this appeal was the computation of the broadband credit limits that a taxpayer may use against its franchise-tax and income-tax liabilities. During the tax periods at issue, AT&T Mobility II, LLC, and BellSouth Telecommunications operated telecommunications enterprises and made significant investments in broadband technology developments throughout Mississippi, generating Broadband Investment Credits (Broadband Credits) under Mississippi Code Section 57-87-5. BellSouth Mobile Data, SBC Alloy Holdings, New BellSouth Cannular Holdings, New Cingular Wireless Services, SBC Telecom, and Centennial were all direct or indirect corporate owners of AT&T Mobility II. The taxpayers here each filed a separate franchise-tax return and were included as affiliated group members in the combined corporate income-tax return filed on behalf of the affiliated group. The Mississippi Department of Revenue (MDOR) determined that the broadband credits the taxpayers had claimed had been improperly applied to an amount greater than the credit cap of 50 percent of the taxpayers’ tax liabilities according to Mississippi Code Section 57-87- 5(3) (Rev. 2014). The MDR disallowed portions of the broadband credits claimed by the taxpayers and assessed additional franchise taxes, interest and penalties to the taxpayers separately on several dates between December 22, 2014, and May 20, 2015. The taxpayers argue that each taxpayer is jointly and severally liable for the total combined income-tax liability of the affiliated group, therefore making the income-tax liability of each taxpayer the same as the total combined income-tax liability of the affiliated group. The chancellor granted summary judgment in favor of the taxpayers and ruled that the taxpayer’s tax liabilities under Chapters 7 and 13 of Title 271 of the Mississippi Code was the aggregate of the taxpayer’s separate franchise-tax liability and the total combined income-tax liability of the affiliated group. The Mississippi Supreme Court affirmed the chancellor's ruling on the credit-computation issue. "The plain and unambiguous language of Section 57-87-5 clearly limits broadband credits that a taxpayer may take in any given year to 50 percent of the aggregate of the taxpayers’ franchise-tax liability and the total combined income-tax liability of the affiliated group." View "Mississippi Dept. of Revenue v. SBC Telecom, Inc. et al." on Justia Law

The Mississippi Department of Revenue (MDOR) appealed a chancellor’s entry of summary judgment in favor of Comcast of Georgia/Virginia, Inc., n/k/a Comcast Communications, LLC. In July 2012, the MDOR commenced an audit of Comcast’s Corporate Income and Franchise Tax Returns for 2008, 2009, and 2010. At the conclusion of the audit, the MDOR determined that Comcast owed additional corporate franchise tax. Specifically, the MDOR found that Comcast’s preapportioned capital base and its Mississippi apportionment ratios should have been increased for each applicable year. The increase in Comcast’s capital base was attributable to the MDOR’s disallowance of the holding-company exclusion. The increase in Comcast’s Mississippi apportionment ratios was attributable to MDOR’s inclusion of all of Comcast’s Mississippi destination sales as gross receipts. The application of the audited apportionment ratios to the audited capital base resulted in additional taxable capital apportioned to Mississippi for each year, with a corresponding increase in franchise tax due for each year. The Mississippi Supreme Court determined that because the MDOR’s franchise-tax assessment does not fairly represent the true value of Comcast’s capital in Mississippi, the chancellor’s judgment was correct. View "Mississippi Dept. of Revenue v. Comcast Cable Communications, LLC" on Justia Law