Pascagoula School District v. Tucker, 2012 Miss. LEXIS 189

PSD in Pascagoula, Jackson County, collects ad valorem taxes on a Chevron refinery and Gulf LNG terminal and distributes them to its schools under interlocal arrangements.
Mississippi SB 2403 codified as 19-9-171 requires ad valorem revenue from LNG terminals and certain refineries after July 1, 2007 to be distributed to all county public school districts by proportional ADA.
PSD, City of Pascagoula, and individual taxpayers sued, challenging 19-9-171 as unconstitutional and seeking injunctive relief; trial court granted summary judgment for defendants.
Plaintiffs alleged 19-9-171 violates Article 8, §206 by forcing cross-district distribution and conflicts with §§37-57-1(2) and 37-57-105(1) on tax deposits and expenditures.
The Mississippi Supreme Court conducted de novo review, addressing whether §206 is violated, and ultimately held §19-9-171 violates §206; the court reversed and remanded.
Dissenting opinions argued the issue should be decided by the chancery court and that the majority improperly addressed an unraised §206 claim; the majority did not focus on §112 because of the §206 holding.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Does 19-9-171 violate Article 8, §206 by distributing taxes to all districts?	PSD argues §206 requires taxes to maintain its own schools only.	Defendants contend legislature may distribute revenue under plenary taxation power and general law.	Yes; §19-9-171 violates §206.
May the Court consider an unasserted §206 challenge on appeal due to unusual circumstances?	Plaintiffs contend the issue was raised below and should be reviewed.	Defendants argue the issue was not pleaded below and is barred on appeal.	Yes, unusual circumstances justify consideration.

City of Belmont v. Mississippi State Tax Comm’n, 860 So.2d 289 (Miss. 2003) (legislature controls public treasury; taxation distribution powers)
McCullen v. State ex rel. Alexander for Use of Hinds County, 63 So.2d 856 (Miss. 1953) (legislature plenary power to distribute taxation)
Adams v. Kuykendall, 35 So. 830 (Miss. 1903) (legislature supreme in devising taxation machinery)
Board of Levee Comm’rs, 932 So.2d 12 (Miss. 2006) (purpose of tax limits use of revenue; exclusionary interpretation)
Harrison County School District v. Long Beach School District, 700 So.2d 286 (Miss. 1997) (distinction when funds flow from legislative acts versus constitutional limits)
Miller v. State, 94 So. 706 (Miss. 1923) (historic interpretation of §206 regarding distribution)