Reed Manufacturing, Inc. v. Itawamba County Board of Supervisors

Summary

The Mississippi Supreme Court reviewed whether a privately held leasehold interest in county-owned property was exempt from ad valorem taxation and whether the county could assess omitted taxes for prior years. The court held that the statutory exemptions and prohibition on retroactive assessments applied to privately held leasehold interests in property belonging to political subdivisions. It reversed the circuit court’s judgment and rendered judgment for Reed Manufacturing, while concluding that the constitutional challenge to the statutes was procedurally barred.

Holdings

1. Mississippi Code sections 27-31-33, 27-31-34, and 27-35-155 apply to privately held leasehold interests in property belonging to the State of Mississippi or its political subdivisions.
2. When a county has omitted a qualifying leasehold interest from the ad valorem tax rolls, section 27-35-155 bars assessment of ad valorem taxes for any past year based on that omission.
3. Reed's leasehold exemption could not exceed ten years under Article 7, section 182 of the Mississippi Constitution; because the lease began in 1977, the exemption ended in 1987.

Questions Presented

1. Whether Mississippi Code sections 27-31-33, 27-31-34, and 27-35-155 apply to privately held leasehold interests in property owned by the State or a political subdivision.
2. Whether Mississippi Code section 27-35-155 bars the County from assessing ad valorem taxes for prior years in which Reed's leasehold interest was omitted from the tax rolls.
3. Whether Reed's leasehold interest was exempt from ad valorem taxation under Mississippi Code sections 27-31-33 and 27-31-34, and for how long.

Disposition

reversed_and_remanded