241 So. 3d 1279
Miss.2018Background
- Lakeland Income Properties, LLC (LIP) leased a 5.20-acre parcel from Jackson Municipal Airport Authority and operated a shopping plaza there.
- Rankin County Board of Supervisors assessed ad valorem taxes to LIP; LIP claimed exemption under Miss. Code § 61-3-21 (airport leases for commercial/compatible development).
- LIP appealed to the circuit court under Miss. Code § 11-51-77 without first filing an objection/application under § 27-35-93 or § 27-35-143.
- The circuit court granted LIP summary judgment, held the § 61-3-21 exemption applied (for 2015), and ordered a refund for 2015 taxes but denied refunds for 2012–2014.
- Board appealed jurisdiction and exemption rulings; LIP cross-appealed seeking refunds for 2012–2014 under Miss. Code § 27-73-7.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether LIP had to file objections/application with the Board before appealing under § 11-51-77 | LIP: No; exemption is automatic/self‑executing so § 27-35-93 objection not required | Board: Yes; general appeal statute yields to specific assessment objection rules (§§ 27-35-93, 27-35-143) | Court: No objection required when taxpayer claims an exemption that is automatic/self‑operating; appeal properly before circuit court (affirmed) |
| Whether LIP’s lease qualifies for exemption under § 61-3-21 (commercial use and airport‑compatible/buffer area) | LIP: Lease is for commercial purposes (shopping center) and lies in airport‑compatible/buffer area, so exemption applies | Board: Use not “in connection with operation of airport”; exemption not met; disputed factual showing | Court: Lease is commercial and falls within "airport‑compatible development/buffer area"; exemption applies and is automatic (summary judgment for LIP affirmed) |
| Whether exemption is automatic (so no pre‑appeal factfinding required) | LIP: Creation of lease for commercial/compatible purpose automatically triggers exemption | Board: Exemption requires inquiry and is not self‑executing here | Court: Exemption is automatic/self‑operating upon creation of qualifying lease; no pre‑appeal objection required (affirmed) |
| Whether LIP may recover refunds for 2012–2014 under § 27-73-7 | LIP: § 27-73-7 allows refunds for taxes paid in error (whether protested or not) and § 15-1-49 controls limitations; seeks 2012–2015 refunds | Board: Refunds for prior years require year‑by‑year objections (City of Jackson v. Sly) | Court: § 27-73-7 authorizes refunds for erroneously paid ad valorem taxes even if not protested; LIP entitled to refunds for 2012–2015 subject to limitations; trial court reversed/remanded on this issue |
Key Cases Cited
- Horne v. Green, 52 Miss. 452 (1876) (board decisions not final where statutory/constitutional exemption claimed; longstanding rule favoring appeal for exemptions)
- City of Meridian v. Philips, 4 So. 119 (Miss. 1888) (reaffirming that property exempt by law cannot be taxed by board action)
- N. Am. Old Roman Catholic Diocese v. Havens, 144 So. 473 (Miss. 1932) (distinguishes automatic exemptions from fact‑driven exemptions requiring inquiry)
- Gray v. Steelman, 137 So. 2d 797 (Miss. 1962) (exemptions that arise by creation of an interest operate automatically)
- Morco Indus., Inc. v. City of Long Beach, 530 So. 2d 141 (Miss. 1988) (taxpayer entitled to exemption from inception; court addressed refund entitlement)
- City of Jackson v. Sly, 343 So. 2d 473 (Miss. 1977) (held objections required under different exemption scheme; distinguished here)