In a case of great constitutional significance, a Chancery Court rejected a challenge to a 2007 Mississippi law which distributes new school tax revenue from oil refinery and natural gas facilities to all school districts located within a Mississippi County.

The firm represented Jackson County which was sued by the City of Pascagoula and the Pascagoula School District. The statute at issue would distribute school tax revenue from Jackson County's new liqufied natural gas (LNG) facility, based on student population ratios. The District and the City assert the LNG facility is located entirely within the District's boundaries.  Both the District and the City sought a judgment declaring the statute unconstitutional, entitling them to receive all the school tax revenue to the exclusion of the other three school districts in Jackson County.

On motions for summary judgment filed by the parties, the Chancery Court upheld the constitutionality of the statute, specifically finding the Legislature has the authority to determine the manner in which school tax revenue is distributed.

Jimmy Heidelberg and Jessica Dupont represented Jackson County, and its Tax Assessor and Tax Collector who were also named as defendants in the lawsuit. An appeal is expected to be filed by the District and the City.  The firm will continue to represent Jackson County as the case moves to the Mississippi Supreme Court.