Taxes; exempt leases and subleases of state park lands to nonprofits., the official text

MISSISSIPPI LEGISLATURE

2026 Regular Session

To: Finance

By: Senator(s) Blount

Senate Bill 3109

(As Sent to Governor)

AN ACT TO AMEND SECTION 55-3-47, MISSISSIPPI CODE OF 1972,
TO EXEMPT LEASEHOLD INTERESTS OR SUBLEASES THEREOF CONVEYED TO NONPROFIT
ORGANIZATIONS FOR THE DEVELOPMENT, SUPPORT, IMPROVEMENT, ADMINISTRATION AND/OR
OPERATION OF STATE PARK LANDS FROM ALL STATE AND LOCAL AD VALOREM TAXES; TO
AMEND SECTION 27-31-1, MISSISSIPPI CODE OF 1972, TO CONFORM; AND FOR RELATED
PURPOSES.

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

SECTION 1.  Section
55-3-47, Mississippi Code of 1972, is amended as follows:

55-3-47.  (1)  In order to
carry out its management responsibilities over all state park lands which are
now or which may hereafter come under its jurisdiction, the Mississippi
Department of Wildlife, Fisheries and Parks is hereby authorized to lease, and
to grant easements and rights-of-way over and across, any part of such state
park lands.  Such leases, easements and rights-of-way may be granted for such
consideration, and upon such terms and conditions, as the department may deem
to be in the best interest of the state, consistent with the use of said lands
for recreational purposes, and subject to the following limitations:  The
department shall lease such lands for a term not exceeding twenty-five (25)
years and shall grant in the original lease contract a nonnegotiable option to
renew such lease for an additional term not to exceed twenty-five (25) years.
Both the original lease contract and the option to renew such lease shall be
transferable contracts.  Further, the department shall not lease such lands for
purposes which are incompatible with recreational use and may place such terms,
limitations, restrictions and conditions in such leases as are deemed necessary
to ensure the proper utilization of such lands.  Any easement for a utility
line shall be granted for that period of time which the department deems to be
in the best interest of a state park.

(2)  The department is
further authorized to enter into such agreements as may be required, upon such
terms as may be found to be in the best interest of the state, in settlement of
disputes or litigation regarding the title to or boundaries of any state park
lands within the jurisdiction of the department, provided such settlement
agreements shall be negotiated and drafted with the advice, counsel and
assistance of the Attorney General and shall be approved by the Department of
Finance and Administration.

(3)  In case any of the real
estate within any state park under the jurisdiction of the department shall
cease to be used or useful for state park purposes, or becomes the subject of
boundary or title disputes or litigation, the department may sell and convey
the same, with the approval of the Department of Finance and Administration,
upon such terms as the Department of Finance and Administration may elect and
may, in addition, exchange the same, with the approval of the department, for
real estate belonging to any other political subdivision or state, county or
local governmental agency or department.  The department is authorized to sell
and convey or otherwise transfer any state park or historical site as described
in subsection (2) of Section 55-3-33.  Before any such sale or transfer, except
as may occur in settlement of title or boundary disputes or litigation, the
department shall publish notice of its intention to sell the park land by
public sale to the highest and best bidder at least once each week for three
(3) consecutive weeks in at least one (1) public newspaper of general
circulation in the county where such land is located and also in at least one
(1) newspaper of general circulation throughout the state.  Prior to any such
sale, the department shall obtain at least two (2) separate and independent
appraisals of the land to be sold and may not accept any bid lower than the
average of all appraisals made.  The department may reject any and all bids.
The owner or any co-owner of record next preceding the state in title to any
lands sold hereunder by public bid, excluding any entity which may have
exercised the power of eminent domain to assist the state in acquiring said
lands, shall have the opportunity to reacquire such lands by matching the
successful bid therefor.  If the owner or any co-owner of record next preceding
the state in title, or the heirs or estate of such owner or co-owner, acquires
said lands, then the department shall not reserve unto the state any minerals
owned by the state underlying the conveyed lands.  However, if anyone other
than such owner or co-owner, or his heirs or estate, acquires said lands, then
the department shall reserve unto the state one-half (1/2) of the minerals
owned by the state underlying the conveyed lands, except for lands sold in
settlement of title or boundary disputes or litigation, in which case the
department may, in its discretion, reserve said minerals.  Appraisal fees shall
be shared equally by the department and purchaser.

(4)  In exercising the
authority granted in this section, the department may act by and through its
executive director in the execution of any document or instrument prepared
hereunder.  Any lease, deed or settlement agreement executed under the
provisions of this section shall bear the seal and attest of the Secretary of
State, with whom said instrument or document shall be filed and recorded in
addition to any other recording requirements of state law.

This section shall not apply
to sixteenth section school lands or lieu lands included within any state park,
except as may be necessary or appropriate for the department to ratify or
confirm any action taken by the agency or department having jurisdiction over
such school or lieu lands.

All revenues collected by
the department by virtue of any transaction consummated under the provisions of
this section shall be deposited in the Mississippi Park Fund created by Section
55-3-41, from which funds shall be expended only as authorized by the
legislative appropriations process.

(5)  This section shall not
apply to the donation and conveyance of the Nanih Waiya State Park to the
Mississippi Band of Choctaw Indians.

(6)  Any leasehold
interest or sublease thereof conveyed to any nonprofit organization for the
development, support, improvement, administration and/or operation of any state
park lands under this section shall be exempt from all state and local ad
valorem taxes.

SECTION 2.  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 foundation organized as a nonprofit corporation that
is exempt from federal income taxation under Section 501(c)(3) of the Internal
Revenue Code and that receives, invests and administers private support for a
state-supported institution of higher learning, a public community college or
junior college located in the State of Mississippi or a nonprofit private
university or college located in the State of Mississippi, as the case may be.
For the sole purpose of applying the preceding sentence, all property, real or
personal, belonging to an entity that is wholly owned by and controlled by such
a foundation shall be treated as belonging to the foundation, provided such
property is not leased or otherwise used to generate revenue that is not used
exclusively to benefit an institution described above.  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.

(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.  All property, real or personal, belonging to a federally
qualified health center where all the income from such center 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 start-up 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 start-up
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.

(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)
All property, real or personal, that is owned, operated and managed by a not
for profit corporation qualified under Section 501(c)(3) of the Internal Revenue
Code, and used to provide, free of charge, (i) a practice facility for a public
school district swim team, and (ii) a facility for another not for profit
organization as defined under Section 501(c)(3) of the Internal Revenue Code to
conduct water safety and lifeguard training programs.  This section shall not
apply to real or personal property owned by a country club, tennis club with a
pool, or any club requiring stock ownership for membership.

(oo)  Any all-terrain
vehicle, as defined in Section 63-21-5, when held by a retailer on a
consignment or floor plan basis.

(pp)  Any leasehold
interest or sublease thereof conveyed to any nonprofit organization for the
development, support, improvement, administration and/or operation of any state
park lands under Section 55-3-47.

SECTION 3.  This act
shall take effect and be in force from and after January 1, 2026.