JACKSON, Miss. (Legal Newsline) – A Mississippi city won’t be allowed to swallow surrounding areas in what the trial court judge called a tax-grab.
The City of Petal, which was incorporated in 1974 and is located in Forrest County, wanted to add six pieces of land to its city limits but found resistance from gas companies Gulf South Pipeline and Lone Star NGL Hattiesburg and other businesses in the area.
Judge Robert Lancaster ruled in March 2019 against much of the city’s efforts to annex six areas totaling six square miles after a six-day trial. The state Supreme Court affirmed his decision on Sept. 10, siding with nine companies who want the land in Area 2 to remain part of Forrest County.
“(T)he City expressly avoided annexing existing subdivisions near the City because ‘rooftops do not pay their way,’” Lancaster wrote. “This annexation seeks to take primarily undeveloped lands from which to create a tax base in Areas 4 and 6 and to take Area 2 for an existing tax base.
“(T)he only possible need for the City to annex Area 2 is to increase the amount of taxes it can collect.”
During the trial, the City presented officials who argued their services were needed in the areas. Opposition presented experts who refuted those claims and argued county services were working fine.
Businesses also testified to the increased tax burden from being part of Petal. Ultimately, Lancaster granted annexation of two areas to cure errors made during a 2003 annexation, but rejected annexation of the other four. Areas 3 and 5 give Petal an extra .9 square miles.
“Judge Lancaster also questioned what services the City actually provided,” Justice James Maxwell wrote. “We share the same concern.
“The City has no electric department; electricity is instead provided by Mississippi Power Company or Dixie EPA.
“The City only provides potable water within the original 1974 limits… And the City no longer treats its own sewage. Instead, the City contracted with the City of Hattiesburg to treat its sewage and now sends sewage across the Leaf River to Hattiesburg’s lagoon and treatment facility.”