Does Mississippi's three-year limitations period bar a city's old claim against a county for taxes under an interlocal agreement?

Plain-English summary

The Madison County Board of Supervisors discovered that the County tax collector had failed to remit certain ad valorem tax commissions to the City of Canton for fiscal years 2008 through 2022. The remittances were required under three separate interlocal agreements between the County and the City. The unpaid period stretches back roughly 14 years.

The County's attorney asked the AG: is the County prohibited from paying these old claims by Mississippi's three-year statute of limitations in § 15-1-49 (the residual statute of limitations for actions with no other prescribed limitation period)?

The AG said no.

Section 104 of the Mississippi Constitution has the controlling rule: "Statutes of limitation in civil causes shall not run against the State, or any subdivision or municipal corporation thereof." The opinion notes § 15-1-51 to the same effect, and cites Jones Cnty. Sch. Dist. v. Dep't of Revenue, 111 So. 3d 588, 607 (Miss. 2013), for the holding that Section 104 "applies even in a suit between governmental entities." So the three-year residual limitation in § 15-1-49 "would not apply to a claim by a municipality against a county for taxes collected pursuant to an interlocal agreement."

The opinion is careful about its limits. It states that "opinions of this office are limited to prospective questions of state law" (§ 7-5-25), that "[t]his office cannot validate or invalidate past actions," and that it therefore "offer[s] no opinion on prior payments or the validity or amount of the alleged taxes owed by Madison County to the city of Canton." The opinion is "limited to the applicability of the three-year statute of limitation to claims between governmental entities."

What this means for you

County and city attorneys

The opinion holds that under § 104, "the three-year statute of limitation in Section 15-1-49 for actions for which no other period of limitation is prescribed would not apply to a claim by a municipality against a county for taxes collected pursuant to an interlocal agreement." It does not decide the validity or amount of Canton's alleged claim.

What the opinion does and does not decide

The opinion answers only the limitations question. It states it "offer[s] no opinion on prior payments or the validity or amount of the alleged taxes owed by Madison County to the city of Canton," because those are matters it cannot reach under § 7-5-25. Whether the underpayment occurred and how much is owed are left to the parties.

State Auditor

The opinion describes a county tax collector who "failed to remit certain ad valorem tax commissions to the city of Canton for the fiscal years 2008-2022" under three interlocal agreements. The opinion resolves only that no three-year time-bar applies; the accounting itself is outside its scope.

Common questions

Q: Can the county pay a back-tax claim going back to 2008?
A: The opinion holds the three-year statute of limitation in § 15-1-49 "would not apply to a claim by a municipality against a county for taxes collected pursuant to an interlocal agreement," because § 104 provides that statutes of limitation do not run against the state or its subdivisions.

Q: What is Section 104 of the Mississippi Constitution?
A: The opinion quotes it: "Statutes of limitation in civil causes shall not run against the State, or any subdivision or municipal corporation thereof." It notes § 15-1-51 to the same effect.

Q: Why does that override the three-year statute?
A: The opinion cites Jones Cnty. Sch. Dist. v. Dep't of Revenue, in which the Mississippi Supreme Court held that Section 104 "applies even in a suit between governmental entities."

Q: Could Madison County refuse to pay on other grounds?
A: The opinion does not address that. It expressly declines to opine on "prior payments or the validity or amount of the alleged taxes owed," limiting itself to the statute-of-limitations question.

Q: Did the AG say the county actually owes the money?
A: No. The opinion states it "cannot validate or invalidate past actions" and offers no view on whether or how much is owed.

Background and statutory framework

The opinion arises from a county tax collector's failure "to remit certain ad valorem tax commissions to the city of Canton for the fiscal years 2008-2022," remittances "required under three separate interlocal agreements." The County's attorney asked whether § 15-1-49's three-year limitation, or any other statute, barred paying a claim dating back to 2008.

The opinion answers through § 104 of the Mississippi Constitution:

Statutes of limitation in civil causes shall not run against the State, or any subdivision or municipal corporation thereof.

It notes § 15-1-51 to the same effect and relies on Jones Cnty. Sch. Dist. v. Dep't of Revenue, 111 So. 3d 588, 607 (Miss. 2013), which held that Section 104 "applies even in a suit between governmental entities." On that basis it concludes the § 15-1-49 three-year limitation "would not apply to a claim by a municipality against a county for taxes collected pursuant to an interlocal agreement." It does not reach the underlying factual questions of whether, or how much, the county owes.

Citations and references

Constitution:

• Miss. Const. § 104 (statutes of limitation do not run against the state or political subdivisions)

Statutes:

• Miss. Code Ann. § 7-5-25 (AG opinion authority)
• Miss. Code Ann. § 15-1-49 (three-year residual statute of limitations for civil actions)
• Miss. Code Ann. § 15-1-51 (statutes of limitations do not run against the state)

Cases:

• Jones Cnty. Sch. Dist. v. Dep't of Revenue, 111 So. 3d 588 (Miss. 2013) (Section 104 applies in suits between governmental entities)

Source

• Landing page: https://attorneygenerallynnfitch.com/divisions/opinions-and-policy/recent-opinions/
• Original PDF: https://attorneygenerallynnfitch.com/wp-content/uploads/2024/02/M.Espy-February-7-2024-Statutes-of-Limitation-and-Governmental-Entities.pdf

Original opinion text

February 7, 2024

Mike Espy, Esq.
Attorney, Madison County Board of Supervisors
Post Office Box 608
Canton, Mississippi 39046

Re: Statutes of Limitation and Governmental Entities

Dear Mr. Espy:

The Office of the Attorney General has received your request for an official opinion.

Background

According to your request, it has come to the attention of the Madison County Board of Supervisors that the county tax collector failed to remit certain ad valorem tax commissions to the city of Canton for the fiscal years 2008-2022. These remittances were required under three separate interlocal agreements. Citing Mississippi Code Annotated Section 15-1-49, which provides a three-year statute of limitation for all actions for which no other period of limitation is prescribed, and Section 104 of the Mississippi Constitution, which provides that statutes of limitation in civil cases do not run against the state or political subdivisions, you seek clarity on the applicable statute of limitation.

Question Presented

Is the Madison County Board of Supervisors prohibited by Section 15-1-49, or any other applicable statute, from paying a claim dating back to 2008 for taxes owed to the city of Canton pursuant to an interlocal agreement?

Brief Response

Pursuant to Section 104 of the Mississippi Constitution, statutes of limitation do not run against the state or political subdivisions. Thus, the three-year statute of limitation in Section 15-1-49 for actions for which no other period of limitation is prescribed would not apply to a claim by a municipality against a county.

Applicable Law and Discussion

As an initial matter, opinions of this office are limited to prospective questions of state law. Miss. Code Ann. § 7-5-25. This office cannot validate or invalidate past actions. Therefore, we offer no opinion on prior payments or the validity or amount of the alleged taxes owed by Madison County to the city of Canton. This opinion is limited to the applicability of the three-year statute of limitation to claims between governmental entities.

Section 104 of the Mississippi Constitution provides: "Statutes of limitation in civil causes shall not run against the State, or any subdivision or municipal corporation thereof." See also Miss. Code Ann. § 15-1-51. The Mississippi Supreme Court has held that Section 104 applies even in a suit between governmental entities. Jones Cnty. Sch. Dist. v. Dep't of Revenue, 111 So. 3d 588, 607 (Miss. 2013). Accordingly, it is the opinion of this office that the three-year statute of limitation in Section 15-1-49 for actions for which no other period of limitation is prescribed would not apply to a claim by a municipality against a county for taxes collected pursuant to an interlocal agreement.

If this office may be of any 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