Can a Mississippi public improvement district use the county's real property sale statute to sell tax-forfeited property it owns?

Plain-English summary

Parkway East is a public improvement district created by ordinance of the Madison County Board of Supervisors under the Mississippi Public Improvement Act, Miss. Code Ann. §§ 19-31-1 et seq. In 2018, the Secretary of State conveyed certain tax-forfeited properties to Parkway East via tax land patents. The district wanted to sell those properties and asked whether it could use the county real property sale statute, § 19-7-3, as a procedural path.

The AG said yes, and added a second option. Section 19-31-17(c) gives a public improvement district the power "to acquire by purchase, gift, devise or otherwise, and to dispose of real and personal property." The Public Improvement Act itself does not specify a procedure for sales. A 2009 AG opinion (Shows) had pointed to § 21-17-1 as a vehicle to determine fair market value, but the AG clarifies that this earlier opinion was about determining value, not limiting the statutory paths for selling.

Two paths are now available:
1. § 19-7-3 (county real property sales, including property acquired by tax sale). The AG treats a public improvement district as a county-created political subdivision that may use the county sales process.
2. § 17-25-25 (county or municipal governing authority surplus property), enacted after the Shows opinion. This statute lets the governing authority of a county or municipality sell or dispose of personal or real property when it has ceased to be used for public purposes or when, in the authority's judgment, a sale would promote the best interest of the governing authority. The district can use this if it makes the requisite factual findings.

So a public improvement district has flexibility, but each path has its own procedural requirements. The district has to follow whichever statute it chooses.

Currency note

This opinion was issued in 2020. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Background and statutory framework

The Mississippi Public Improvement Act, codified at §§ 19-31-1 et seq., authorizes counties to create special-purpose development districts to finance and undertake infrastructure improvements within designated areas. Section 19-31-17(c) gives those districts broad property powers ("to acquire ... and to dispose of real and personal property") but leaves the procedural details unspecified.

The 2009 Shows opinion addressed how to determine fair market value when a public improvement district sold surplus real property. The AG pointed to § 21-17-1(2)(b)(i), the municipal surplus property statute, as a means of determining fair market value, even though that statute is technically about municipalities and not about public improvement districts. The 2020 opinion clarifies that Shows did not limit a district's options; it gave one workable approach.

Two statutes provide more direct paths after Shows.

Section 19-7-3 is the county real property sale statute. It includes property acquired through tax sale in its scope. The AG reads it as available to a public improvement district because the district is a political subdivision created by the county under the Public Improvement Act. The structural argument: if § 19-7-3 governs how the county sells property, and a public improvement district is a creature of the county acting under county-granted authority, the same procedure can apply.

Section 17-25-25 was enacted after Shows. It applies to "governing authority of a county or municipality" and authorizes sale or disposition of real or personal property when the property has ceased to be used for public purposes or when sale would promote the best interest of the governing authority. The AG reads this as available to a public improvement district as a county-created political subdivision.

Each path has its own findings and notice/auction requirements. The district has to look at the specific statute and follow it.

Common questions

Q: Does the district have to use § 19-7-3 or § 17-25-25?
A: The opinion says these are available paths, not required ones. The Shows-era approach (use § 21-17-1 to determine fair market value, then sell) remains a viable framework as well. The opinion confirms multiple paths.

Q: What is the difference between § 19-7-3 and § 17-25-25?
A: Section 19-7-3 is specifically about real property (including tax-forfeited property) and lays out a procedural process for county sales. Section 17-25-25 is a broader surplus-property statute reaching both real and personal property when it has ceased to be useful or when sale promotes the governing authority's best interest. The two have different findings, notice, and bidding requirements.

Q: Are these options also available for districts created by municipalities under the Public Improvement Act?
A: The opinion focuses on Parkway East, which was created by Madison County. The structural reasoning (a public improvement district is a creature of the creating government using its authority) likely extends to municipally-created districts using municipal sale statutes, but that scenario is not directly addressed.

Q: What is a "tax land patent"?
A: When the Secretary of State holds tax-forfeited properties (typically from tax sales the state has acquired), they can be conveyed to public bodies through tax land patents, a kind of state deed. Parkway East received these patents in 2018.

Q: Does the district have to receive fair market value?
A: The Shows opinion said yes, in the absence of a contrary statutory provision. The 2020 opinion does not disturb that baseline rule. Each of the available statutes (§ 19-7-3, § 17-25-25) has its own value/process requirements that should be followed.

What this means for you

For public improvement districts selling real property: Pick the statute that fits the property and circumstance, then follow that statute's exact procedure. Document the choice on the district's minutes. Section 19-7-3 is the tested path for tax-forfeited property; § 17-25-25 may suit other surplus property.

For attorneys representing public improvement districts: Build a procedural checklist for each available path so the district can quickly decide and execute. The 2009 Shows opinion is useful background but not the only roadmap.

For county attorneys: When advising on the creation or operation of a public improvement district, include a property-disposition framework so the district has clear authority and process from day one.

For purchasers from public improvement districts: Ask the seller to identify the statutory authority for the sale and confirm that the procedural requirements (findings, notice, bidding) have been met. Title insurance underwriters will want this documentation.

Citations and references

Statutes:
- Miss. Code Ann. § 19-31-17(c) (public improvement district property powers)
- Miss. Code Ann. §§ 19-31-1 et seq. (Mississippi Public Improvement Act)
- Miss. Code Ann. § 19-7-3 (county real property sale)
- Miss. Code Ann. § 17-25-25 (governing-authority surplus property)
- Miss. Code Ann. § 21-17-1 (municipal property; fair market value framework via § 21-17-1(2)(b)(i))

Source

• Landing page: https://attorneygenerallynnfitch.com/divisions/opinions-and-policy/recent-opinions/
• Original PDF: https://attorneygenerallynnfitch.com/wp-content/uploads/2020/07/J.Martin_June-5-2020-Land-Sale-by-a-Public-Improvement-District.pdf

Original opinion text

June 5, 2020

John P. Martin, Esq.
Attorney for Parkway East
Post Office Box 1039
Canton, Mississippi 39046

Re: Land Sale by a Public Improvement District

Dear Mr. Martin:

The Office of the Attorney General is in receipt of your request for the issuance of an official opinion.

Question Presented

May Parkway East, a Mississippi public improvement district, utilize the provisions of the county real property sale statute, Miss. Code Ann. Section 19-7-3, as an alternative to the municipal land sale statute to sell real property that it owns?

Background Facts

Parkway East was created by ordinance of the Madison County Board of Supervisors as a special purpose development district under the Mississippi Public Improvement Act, Miss. Code Ann. Sections 19-31-1, et seq. In 2018, the Secretary of State conveyed certain tax forfeited properties to Parkway East by tax land patents. Parkway East now wishes to sell these tax forfeited properties.

Brief Response

A public improvement district may utilize Miss. Code Ann. Section 19-7-3 or Section 17-25-25 to sell or otherwise dispose of real property acquired by the district.

Applicable Law and Discussion

Section 19-31-17(c) grants public improvement districts the power "to acquire by purchase, gift, devise or otherwise, and to dispose of real and personal property."

In your request, you reference an opinion issued by our office in 2009 regarding the sale of surplus property by the Lakes of Grandview Public Improvement District. MS AG Op., Shows (August 14, 2009). In Shows, we opined that,

[t]here is no method specified in Section 19-31-1 et seq. for the disposal of real property by a public improvement district. In the absence of a valid statutory provision stating otherwise, a public improvement district must receive fair market value for the sale of real property. While the procedure set forth in Section 21-17-1(2)(b)(i) is applicable to municipalities, and not public improvement districts, the procedure has been approved by the Legislature as a means of determining the "fair market price" for the sale of surplus municipal real property. . . . It is the opinion of this office that the Lakes of Grandview Public Improvement District may use the procedure set forth in Section 21-17-1(2)(b)(i) for determining the fair market value of surplus real property owned by the district.

This opinion did not limit the statutory authority pursuant to which property may be sold by a public improvement district. Rather, it proposed Section 21-17-1 as a legal means by which the fair market value of property may be determined.

Parkway East was created as a public improvement district by county ordinance pursuant to Section 19-31-1, et seq. Miss. Code Ann. Section 19-7-3 sets forth the process by which a county may sell real property, including real property acquired by reason of tax sale. It is, therefore, the opinion of this office that, a public improvement district, as a political subdivision created by the county pursuant to Section 19-31-1, et seq., may sell or otherwise dispose of real property pursuant to and in accordance with Section 19-7-3.

Furthermore, since the issuance of the Shows opinion, the Legislature enacted Miss. Code Ann. Section 17-25-25, which enables the governing authority of a county or municipality to sell or dispose of personal property or real property belonging to the governing authority when the property has ceased to be used for public purposes or when, in the authority's judgment, a sale would promote the best interest of the governing authority. Thus, this section may likewise afford Parkway East a statutory means by which to sell or dispose of that property acquired by tax sale, should the district make the requisite factual findings as required by the statute.

If this office may be of further assistance to you, please do not hesitate to contact us.

Sincerely,

LYNN FITCH, ATTORNEY GENERAL

By: /s/ Beebe Garrard
Beebe Garrard
Special Assistant Attorney General