Justia Mississippi Supreme Court Opinion Summaries

This appeal arose out of the tax sale of a piece of property located in the City of Horn Lake in DeSoto County. Until August 2003, Millennium of Mississippi, LLC, owned the property in question. On August 4, 2003, Millennium conveyed the property to DeSoto County Development, LLC, by warranty deed. At that time, DeSoto Development granted Marshall Investments Corporation, and Fred Spencer, as trustee, a deed of trust lien and mortgage on the property. Marshall Investments then appointed Franklin Childress Jr., Spencer Clift III, and K. David Waddell as substitute trustees for the deed of trust. Subsequently, DeSoto Development defaulted on its mortgage, and Marshall Investments foreclosed on the property. Marshall Investments purchased the property at the foreclosure sale and, in December 2007, executed a substitute trustee's deed to MIC-Rocky, LLC. DeSoto County and the City of Horn Lake levied $520,508 in ad valorem taxes on the property for the tax year ending December 31, 2007. These taxes were never paid and became delinquent on February 1, 2008. The property was offered for sale at public auction by the DeSoto County tax collector on August 25, 2008, to collect the delinquent taxes. SASS Muni-V, LLC was the successful bidder at the auction. No purported property owner or lienholder attempted to redeem the property within the two-year statutory redemption period. Approximately a year after the expiration of the redemption period, SASS filed a complaint in DeSoto County Chancery Court, asking the court to declare the tax sale void and to order a refund of the purchase price. SASS Muni-V appealed the Chancery Court's order dismissing its complaint seeking to void its 2008 tax-sale purchase of real property. Because the trial court erred in finding that SASS Muni-V lacked standing to pursue its claims, the Supreme Court reversed the dismissal of SASS's complaint and remanded this case for further proceedings. View "Sass Muni-V, LLC v. DeSoto County" on Justia Law

In June 2011 the Department of Revenue assessed additional individual, sales, and corporate taxes against taxpayers Southside, Inc. d/b/a Wines, Etc. and Barry and Sarabeth Artz. They appealed a Board of Tax ruling without satisfying the statutory requirements of paying the disputed taxes under protest before appealing or posting a surety bond with their appeal. Because the chancery court lacked appellate jurisdiction to hear the appeal, the chancellor granted the Department of Revenue’s motion to dismiss. Finding no reversible error, the Supreme Court affirmed. View "Southside, Inc. d/b/a Wines, Etc. v. Mississippi Department of Revenue" on Justia Law

Karmjit Virk appealed an increase in his tax liability to the Mississippi Department of Revenue’s Board of Review. When Virk failed to appear at his Board of Review hearing, his appeal was involuntarily withdrawn. Virk’s appealed to the Board of Tax Appeals and the Chancery Court; both were dismissed. Finding no error, the Supreme Court affirmed the decisions of the Board of Review, the Board of Tax Appeals, and the Chancery Court.View "Virk v. Mississippi Department of Revenue" on Justia Law

In a case of first impression, the issue this case presented to the Mississippi Supreme Court was whether money a corporation received as prepayment for future services was subject to franchise taxation during the year in which it was received. The Mississippi Department of Revenue (MDOR) assessed additional franchise tax against Fishbelt Feeds, Inc. for its failure to include a "deferred revenue" account, which represented money it had received through prepaid contracts, in its franchise tax base. Fishbelt appealed MDOR’s order to the chancery court, and the chancellor granted summary judgment to MDOR. On appeal to the Supreme Court, Fishbelt argued that the chancery court erred in granting summary judgment to MDOR and should have conducted a full evidentiary hearing on the issues presented. Fishbelt also argued that its "deferred revenue" account is excepted from franchise taxation. Finding no reversible error, the Supreme Court affirmed the award of summary judgment to MDOR. View "Fishbelt Feeds, Inc. v. Mississippi Department of Revenue" on Justia Law

The Mississippi Department of Revenue (MDOR) audited Mississippi Power Company and assessed use taxes attributed to Mississippi Power’s purchase and installation of low-NOx burners. After unsuccessfully pursuing administrative remedies, Mississippi Power appealed to the chancery court. The chancery court reversed and granted summary judgment in favor of Mississippi Power. The MDOR appealed, arguing: (1) the chancery court lacked jurisdiction over Mississippi Power’s amended petition for appeal and review; and (2) (assuming the chancery court had appellate jurisdiction over Mississippi Power’s appeal) the court erred in finding the definition of “pollution control equipment” in Mississippi Code Section 27-65-101(1)(w)) was unambiguous, and failed to afford deference to the MDOR’s interpretation of “pollution control equipment” in Mississippi Administrative Code 35.IV.7.03(302). The Supreme Court found: (1) the chancery court had jurisdiction over the appeal; and (2) the chancellor correctly concluded that Mississippi Administrative Code 35.IV.7.03(302) was an invalid regulation. The chancellor further was correct that the low-NOx burners qualified for the tax exemption under the plain language of Section 27-65-101(1)(w) and the evidence produced by Mississippi Power. Therefore, the chancellor correctly ordered that the MDOR refund Mississippi Power the use taxes assessed on the low-NOx burners, plus penalties and interest. View "Mississippi Department of Revenue v. Mississippi Power Company" on Justia Law

The Mississippi Department of Revenue assessed taxes, penalties, and interest against Isle of Capri Casino, Inc. and its affiliated entities for tax years 2004, 2005, 2006, and 2007. The Department based the assessment on the application of the license fees as a credit, claiming that only the tax liability of four Isle of Capri entities that actually held the licenses were eligible for offset, and could not benefit the affiliated group as a whole. Isle of Capri appealed the Department's assessment first to the Board of Review and then to the Board of Tax Appeals; both affirmed the assessment with minor changes. Isle of Capri appealed again, and the chancery court granted summary judgment in its favor. The Department subsequently appealed. Finding no error in the chancery court's decision, the Supreme Court affirmed. View "Mississippi Department of Revenue v. Isle of Capri Casino, Inc." on Justia Law

The issue before the Supreme Court in this case centered on local ad valorem taxes on real estate developments that use federal tax credits to construct and maintain restrictive properties that rent only to lower-income households. Specifically, the question was whether local governments could include the value of federal tax credits in their valuation of the properties for tax assessment purposes. The Court held that Mississippi Code Section 27-35-50(4)(d) prohibits them from doing so. View "Willow Bend Estates, LLC v. Humphries County Board of Supervisors " on Justia Law

A group of property owners filed suit against the Diamondhead Fire Protection District (DFPD) board of commissioners and several current and former DFPD officers, seeking declaratory judgment that a fee charged for fire-protection services was an impermissible tax. The trial court entered a judgment in favor of the DFPD. The property owners appealed, challenging: (1) whether the monthly fee is an illegal tax; and (2) whether the power to tax should be construed narrowly. Upon review, the Supreme Court found that the trial court correctly decided that the challenged fees for DFPD's services were lawful. Therefore, the Court affirmed the trial court's judgment. View "Alfonso v. Diamondhead Fire Protection District" on Justia Law

Equifax, Inc. appealed the State Tax Commission's income tax assessment. Equifax contended its Mississippi taxable income was zero; after an audit, the Commission found that the standard apportionment method prescribed by regulation did not fairly reflect Equifax's business in the state. The Commission used an alternative method and then issued assessments against Equifax. After exhausting administrative remedies, Equifax petitioned the Chancery Court for relief. The Court affirmed the Commission's decision, but the Court of Appeals reversed. Upon review, the Supreme Court concluded that the Chancery Court did not err, and that the alternative apportionment method was not a violation of the State Administrative Procedures Act. Accordingly, the Court reversed the Court of Appeals and reinstated the Chancery Court's judgment. View "Equifax, Inc. v. Mississippi Department of Revenue" on Justia Law

The issue before the Supreme Court in this case centered on whether federal law preempted state law from taxing medical equipment sold to individuals covered by the Federal Employees Health Benefits Plan or its participating insurance carriers. The Court concluded that the state tax on Mobility Medical Inc.'s gross sales was not a tax on the Plan or any other health-benefits plan. View "Mobility Medical, Inc. v. Mississippi Dept. of Revenue" on Justia Law