MS HB107

Surface owners of real estate become exempt from paying 25% of ad valorem taxes when oil, gas, or other mineral interests are owned separately, provided they submit an attorney's title opinion to the tax assessor by April 1 each year.

Owners or holders of nonproducing oil, gas, or other mineral interests owned separately from surface rights must pay a prorated portion of 25% of ad valorem taxes due on the land, payable at the same time and manner as regular property taxes.

Nonproducing mineral interests can be sold for nonpayment of taxes using the same procedure as land sales, with surface owners given notice and secondary redemption rights after the mineral interest owner.

If a separately owned mineral interest is offered for sale but receives no bids, it reverts to the surface owner, who then becomes liable for the delinquent taxes and their prorated share of the 25% ad valorem tax obligation.

Tax collectors must provide separate lists to chancery court clerks documenting nonproducing mineral interests sold for taxes or that reverted to surface owners due to lack of bidders, effective July 1, 2019.