Mississippi AG Clarifies Ad Valorem Tax Liability on Sixteenth Section Leases

The Mississippi Attorney General (AG) issued an opinion addressing ad valorem tax liability on leases of sixteenth section lands. The AG held that lessees of sixteenth section lands who fail to pay ad valorem taxes on leaseholds when the original lease expires, and the school district later enters a new lease with a subsequent lessee are personally liable for the delinquent taxes owed. The AG further concluded that delinquent ad valorem taxes cannot be waived or forgiven, but the debt could be recorded as uncollectable in the county’s books. Additionally, there is no prohibition against leasing sixteenth section land or ...