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SB 3109

Taxes; exempt leases and subleases of state park lands to nonprofits.

2026 Regular Session Introduced by David Blount

SB 3109 mainly exempts nonprofit leases and subleases of state park lands from all ad valorem taxes, while preserving public-notice, appraisal, and approval processes.

Approved by Governor
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Bill Summary · SB 3109

Summary of SB 3109 (Session 2026) – Mississippi

1) Purpose and Intent

  • The bill, as amended, seeks to exempt leasehold interests or subleases conveyed to nonprofit organizations for the development, support, improvement, administration, and/or operation of state park lands from all state and local ad valorem taxes.
  • In short: removes ad valorem tax liability on nonprofit leases or subleases involving state park lands, aligning tax treatment with the specified nonprofit use and activity.

2) Key Provisions and Changes

A. State Park Lands Leases and Subleases (Section 55-3-47)

  • The Mississippi Department of Wildlife, Fisheries and Parks (the Department) has authority to:

    • Lease, grant easements, and rights-of-way over state park lands.
    • Set lease terms up to 25 years, with an option to renew for up to another 25 years (original and renewal terms are transferable).
    • Include terms to protect recreational use; easements for utilities may be time-limited as deemed appropriate.
    • Enter into settlement agreements related to title or boundary disputes with Attorney General and Department of Finance and Administration (DFA) involvement.
    • Sell or transfer state park lands under certain conditions, with required public notice, independent appraisals, and mineral reservations rules, subject to DFA approval.
    • Share appraisal fees with the buyer.

  • Revenue from these transactions is to be deposited into the Mississippi Park Fund and expended per legislative appropriations.

  • Importantly for this bill: subsection (6) explicitly provides that any leasehold interest or sublease to a nonprofit organization for developing, supporting, improving, administering, or operating state park lands under this section shall be exempt from all state and local ad valorem taxes.

  • Effective date: The amendments provide the act taking effect January 1, 2026, with a repeal in 2025 (i.e., sunset provision included in the amendment draft).

B. General Tax Exemptions Conforming (Section 27-31-1)

  • The bill also references aligning or conforming the exemption language in Section 27-31-1 to reflect the new tax treatment for nonprofit park-related leases, ensuring consistency across the tax code.

3) Who or What Would Be Affected

  • Nonprofit organizations that enter into leases or subleases (or possessory leaseholds) with the Department of Wildlife, Fisheries and Parks for the development, support, improvement, administration, or operation of state park lands.
  • Such nonprofit leases/subleases would be fully exempt from all ad valorem taxes (state and local) for the term of the lease or arrangement.
  • Potential indirect effects on:
    • State park funding and budgeting due to changes in tax revenue streams.
    • Administrative processes within DFA and the Department related to approvals, appraisals, and notices for park land transactions.

4) Procedural and Timeline Aspects

  • Effective Date: January 1, 2026.
  • Sunset/Repeal: The act contains a provision that the measure stands repealed on December 31, 2025, indicating a built-in sunset; however, the amendment text states the act shall take effect on/after January 1, 2026, and be repealed by 2025, which suggests a drafting transition that may be reconciled in the enacted bill. (Note: The final enrolled version supersedes this discrepancy; the explicit sunset language appears in the amendment.)
  • Administrative Process: For sales or transfers of park land, the bill retains requirements for public notice, independent appraisals, and opportunities for prior owners to match bids.
  • Related Tax Code Changes: Section 27-31-1 exemptions are amended to conform to the new park land lease exemption.

5) Notable Details

  • The exemption applies specifically to leaseholds and subleaseholds tied to nonprofit development/operation activities on state park lands.
  • The Department’s authority to manage, lease, and settle disputes remains intact, with added tax-exemption considerations for nonprofit arrangements.
  • All revenues from these lease transactions continue to be deposited into the Mississippi Park Fund and used per legislative appropriations.

6) Practical Implications

  • Nonprofits partnering with the state for park-related projects may have reduced operating costs due to property tax exemptions.
  • The change could influence nonprofit participation in park development and programming by making leases more financially predictable.
  • Tax-exemption status could affect competitive dynamics among potential leaseholders and require careful accounting for state revenue impacts.

For readers seeking a concise takeaway: SB 3109 primarily exempts nonprofit leases and subleases involving state park lands from ad valorem taxes, facilitating nonprofit involvement in park development and operations, while preserving existing public-notice, appraisal, and DFA-approval processes.

Compiled from official sources — confirm details with the bill’s official record.

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