No City Permits for State Billboards: Mississippi Supreme Court Reaffirms that Municipal Sign and Zoning Ordinances Do Not Reach State-Owned Property Absent Express Legislative Authorization

No City Permits for State Billboards: Mississippi Supreme Court Reaffirms that Municipal Sign and Zoning Ordinances Do Not Reach State-Owned Property Absent Express Legislative Authorization

Case: Busby Outdoor LLC and Mississippi Department of Agriculture and Commerce v. City of Jackson, Mississippi, The Lamar Company, LLC and Kane Ditto

Court: Supreme Court of Mississippi | Date: August 28, 2025 | Result: Reversed, Vacated, and Rendered

Introduction

This decision is a significant reaffirmation of state sovereignty in Mississippi over the regulation of state-owned property located within municipal boundaries. The Supreme Court of Mississippi held that the City of Jackson lacked authority to enforce its sign ordinance (and related zoning restrictions) against a state-owned, state-controlled LED billboard on the Mississippi State Fairgrounds. The case arose from a public–private arrangement under which Busby Outdoor, LLC constructed and operates a three-sided LED billboard for the Mississippi Department of Agriculture and Commerce (MDAC) on MDAC’s property at the intersection of High Street and Jefferson Street in Jackson.

After the City, joined by The Lamar Company and former Jackson mayor Kane Ditto, sued to stop the billboard’s operation for alleged violations of the City’s sign and zoning rules (including a High Street Overlay District), the chancellor enjoined the billboard until MDAC and Busby complied with the City’s ordinance. On appeal, the Mississippi Supreme Court reversed, vacated the injunction, and rendered judgment dismissing the City’s complaint with prejudice.

The key issue was straightforward but consequential: Can a municipality enforce its sign and zoning ordinances against the State (here, MDAC) for activities occurring on state-owned land? The Supreme Court’s answer: No—unless the legislature has specifically and clearly authorized municipal regulation of the State, general municipal ordinances do not bind the State on its own property. The Court further held that the nuisance ruling, premised entirely on the purported ordinance violations, could not stand. Requests concerning procedural irregularities and attorney’s fees were rendered moot or denied under the governing statute.

Summary of the Judgment

  • The Supreme Court conducted de novo review, treating the core question—municipal power to regulate state property—as a pure legal issue.
  • Applying the long-standing rule that general statutes do not bind the State absent explicit inclusion, the Court held that Mississippi’s municipal zoning enabling statutes (Miss. Code Ann. §§ 17-1-3, -19) do not authorize a city to regulate the State or its agencies on state property.
  • MDAC possesses plenary statutory authority over the State Fairgrounds, including the authority to allow advertising and to lease interests in Fairgrounds property (Miss. Code Ann. §§ 69-5-3, 69-1-48, and related provisions). Nothing in those statutes subjects MDAC’s exercise of that authority to municipal permitting.
  • Reliance on Robinson v. Indianola Municipal Separate School District and City of Hattiesburg v. Region XII Commission was misplaced because those cases involved disputes between coequal political subdivisions (not the State itself) and did not involve municipal constraints that negate a state agency’s statutorily delegated powers.
  • The chancery court’s nuisance ruling failed because it rested exclusively on alleged ordinance violations; since the ordinances do not apply to the State on state property, there was no predicate violation.
  • The Court reversed the chancery court, vacated the injunction, and rendered judgment for MDAC and Busby, dismissing the City’s complaint with prejudice. Busby’s request for attorney’s fees under Miss. Code Ann. § 11-13-37 was denied as inapplicable.

Detailed Analysis

Precedents Cited and Their Influence

The Court anchored its decision in a line of Mississippi authority that delineates the State’s sovereign immunity from general statutory and municipal regulation absent explicit legislative command.

1) The “General Statutes Do Not Bind the State” Rule

  • Josselyn v. State, 28 Miss. 753 (1855): Longstanding doctrine that the general words of a statute do not include the State unless specifically named or necessarily intended.
  • Coleman v. Whipple, 191 Miss. 287, 2 So. 2d 566, 568 (1941): Reaffirmed that general statutory language ordinarily does not restrict the State’s sovereign actions.
  • City of Jackson v. State ex rel. Mitchell, 156 Miss. 306, 126 So. 2, 4 (1930): Where a statute would restrict the State or its political subdivisions, it applies only if the State is expressly included or necessarily implicated.

These cases supplied the foundational principle: a statute (or local ordinance authorized by statute) must specifically subject the State to its restrictions; silence or general applicability is insufficient.

2) City of Jackson v. Mississippi State Building Commission (Jackson I), 350 So. 2d 63 (Miss. 1977)

Jackson I controlled the outcome. There, the City argued it could require a state commission to secure a municipal building permit for a state building constructed within city limits. The Court rejected that claim because the municipal building-code statute did not expressly bind the State or empower cities to require state agencies to obtain permits; by contrast, the State Building Commission had specific statutory authority to erect and supervise state buildings. The Court concluded, memorably, that the “building code of the City must therefore yield to the sovereignty of the State.”

In this case, the Supreme Court extended the Jackson I logic to municipal sign and zoning ordinances. Just as cities cannot force state agencies to obtain municipal building permits absent express statutory authorization, they likewise cannot demand compliance with a city’s sign ordinances for state projects on state land when the legislature has given the agency plenary authority in the subject matter.

3) Distinguishing Cases Involving Coequal Political Subdivisions

  • Robinson v. Indianola Municipal Separate School District, 467 So. 2d 911 (Miss. 1985): The Court allowed enforcement of a city’s off-street parking ordinance against a municipal school district, emphasizing both entities were arms of the sovereign (coequal subdivisions) and that the ordinance protected municipal street safety—a core municipal concern. Importantly, neither the city nor the school district was the State itself, and the school district lacked plenary power comparable to the state building commission in Jackson I.
  • City of Hattiesburg v. Region XII Commission on Mental Health & Retardation, 654 So. 2d 516 (Miss. 1995): The Court allowed reasonable municipal zoning restrictions to be applied to a regional mental health commission. Again, the dispute was between coequal subdivisions, not a municipality attempting to regulate the State on its own property, and there was no conflict with a state agency’s plenary statutory powers.

The Supreme Court in the present case emphasized that those precedents do not authorize municipalities to regulate the State when a state agency acts on state land under a specific legislative grant of authority.

Statutory Framework and the Court’s Legal Reasoning

Municipal Powers Are Statutory and General; They Do Not Reach the State by Default

The City relied on the municipal zoning enabling statutes (Miss. Code Ann. §§ 17-1-3(1), -19), which confer general police and zoning powers to protect health, safety, and welfare. The Supreme Court held that because these statutes are silent on applying to the State, they cannot be used to restrict a state agency acting on state property. The City’s argument that the State is bound unless expressly exempted “flips the legal standard on its head.” Under Mississippi law, general statutes do not apply to the State unless the State is expressly included or necessarily implicated.

MDAC’s Plenary Authority Over the State Fairgrounds

MDAC’s enabling statutes establish broad power over the State Fairgrounds, which include:

  • Charge and full authority over the State Fairgrounds (Miss. Code Ann. § 69-5-3(3)).
  • Authority to allow commercial entities to use, publish, and advertise their names on Fairgrounds buildings, improvements, or grounds for consideration (Miss. Code Ann. § 69-5-3(6)).
  • Authority to allow public, private, commercial, or charitable entities to advertise on department property and in its publications (Miss. Code Ann. § 69-1-48(3)(a)).
  • Authority to enter into leases or rights-of-way with third parties for land or buildings on the Fairgrounds (Miss. Code Ann. § 69-5-3(8)).
  • Broader duties to promote agricultural programs and products (Miss. Code Ann. §§ 69-1-13(a), (n), 69-1-203).

None of these statutes makes MDAC’s exercise of its advertising and leasing powers subject to municipal sign or zoning processes; none requires MDAC to obtain city permits or variances for structures like the LED billboard at issue. The Court essentially treated MDAC’s powers over the Fairgrounds as “plenary” in the Jackson I sense: when the legislature grants specific, comprehensive authority to a state agency over its property and mission (here, including advertising and leasing), general municipal ordinances cannot intrude absent explicit legislative direction to the contrary.

Applying the Principle to the Facts

MDAC entered into a licensing agreement with Busby, under which Busby donated, constructed, and operates a sophisticated LED billboard on Fairgrounds land, under MDAC’s supervision, for a 20-year term. The City’s suit alleged noncompliance with its sign ordinance and the High Street Overlay District. The chancellor concluded the zoning ordinance exempted state institutions but held the sign ordinance applied because MDAC’s authority was “general” rather than “specific.” The Supreme Court rejected that characterization and the legal conclusion flowing from it: MDAC’s authority is rooted in specific statutes authorizing it to allow advertising and to lease or grant rights of use on Fairgrounds property. More fundamentally, even if municipal zoning laws are valid generally, they do not bind the State absent express legislative inclusion. Accordingly, the City’s effort to require MDAC/Busby to secure a city permit, variance, or compliance review was ultra vires as against the State.

Nuisance

The chancery court’s nuisance determination was derivative: it declared the billboard a public nuisance because it was purportedly operating in continuous violation of the City’s sign ordinance. Once the Supreme Court held the ordinance inapplicable to the State on state land, the premise for “nuisance per se” evaporated. The Court therefore reversed the nuisance ruling as well. The opinion did not address any separate, evidentiary “nuisance in fact” claim grounded in non-ordinance considerations; none appears to have been adjudicated independently of the ordinance theory.

Other Issues

  • Procedural arguments about how the injunction was issued, bonding, and Rule 58 finality were deemed moot after the Court resolved the dispositive question of municipal authority.
  • Busby’s request for damages and attorney’s fees under Miss. Code Ann. § 11-13-37 was denied. The statute applies to dissolution of an injunction in chancery upon a motion to dissolve; the procedural posture here did not trigger the statute.

Impact and Implications

1) Clear Boundary: Municipal Ordinances vs. State Property

The decision decisively clarifies that Mississippi municipalities cannot enforce their sign or zoning ordinances against state agencies for projects on state-owned land unless the legislature has specifically authorized such municipal control. This is not a mere procedural win; it realigns local-state relations consistent with Jackson I and the State’s sovereign prerogative. Municipal officials should not assume their ordinances reach state agencies acting on state property.

2) Practical Effects for State Agencies and Public–Private Partnerships

  • State agencies can plan, construct, and operate structures like billboards on state land under their statutory grants without seeking municipal permits, so long as their statutes authorize the activity.
  • Public–private agreements similar to the Busby–MDAC arrangement gain legal certainty, which may encourage innovative revenue-generating or mission-promoting uses of state property (subject to state-level constraints and oversight).
  • Agencies remain bound by state and federal law (e.g., state procurement rules, state-level building and safety requirements, applicable federal highway advertising regulations, if any), but not by municipal ordinances unless the legislature says otherwise.

3) Municipal Strategy and Legislative Pathways

  • Cities concerned about the aesthetics or safety impacts of state projects on local streets cannot rely on local permitting to control state property. Instead, they should pursue:
    • Intergovernmental agreements or memoranda of understanding with state agencies,
    • Cooperative planning processes, and
    • Legislative change that explicitly subjects specified state activities to municipal standards or review.
  • The legislature retains the option to require state agencies to coordinate with or comply with certain municipal standards, but such requirements must be clearly stated.

4) Nuisance Litigation Going Forward

Labeling a state activity a “public nuisance per se” based solely on a municipal ordinance will fail where the ordinance does not (and cannot) apply to the State. If a municipality believes a state installation creates genuine safety hazards or public harms, any nuisance claim must rest on independent legal grounds and evidence, cognizant of sovereign immunity and jurisdictional limits.

5) Doctrinal Continuity with a Targeted Extension

Doctrinally, the decision hews closely to Jackson I but concretely extends it into the realm of signage and advertising by state agencies. It also sharpens the distinction between disputes involving coequal political subdivisions (Robinson, Hattiesburg) and disputes where a municipality attempts to regulate the State itself on state property. The Court signals that when the legislature has conferred plenary authority on an agency in a particular domain and property, local law must yield unless the legislature expressly provides otherwise.

Complex Concepts Simplified

  • General vs. Specific Statutes: General statutes are broad, default rules. In Mississippi, general statutes do not bind the State unless the State is clearly included. Specific statutes grant targeted powers or impose targeted duties; a specific grant to a state agency can preempt local regulation.
  • Plenary Power: When an agency is given comprehensive authority in a certain area (e.g., to manage and use the State Fairgrounds and to authorize advertising/leases), that authority is “plenary” and typically not subject to erosion by local rules absent explicit legislative direction.
  • Necessary Implication: Even if a statute does not name the State, if its application to the State is unmistakably necessary to fulfill legislative intent, the State may be bound. The Court found no such necessary implication here.
  • Nuisance Per Se vs. Nuisance in Fact: A nuisance per se is unlawful by its very existence (e.g., when prohibited by an applicable statute or ordinance). A nuisance in fact depends on evidence that an activity unreasonably interferes with public rights or safety. If the underlying ordinance does not apply, a nuisance per se theory collapses.
  • Overlay District: A zoning overlay is a supplemental set of standards that applies to a defined area and imposes additional requirements beyond base zoning. Overlay rules are still municipal ordinances; they do not reach state property absent express legislative authorization.
  • Reverse, Vacate, and Render: “Reverse” overturns the lower court’s decision; “vacate” nullifies its orders (e.g., the injunction); “render” means the appellate court enters the judgment that should have been entered below (here, dismissal with prejudice).
  • De Novo Review: The appellate court decides the issue anew, without deference to the trial court’s conclusions, typically used for questions of law and statutory interpretation.

Conclusion and Key Takeaways

The Mississippi Supreme Court’s decision squarely reaffirms the State’s immunity from general municipal regulation on state property. Municipal sign and zoning ordinances do not bind the State or its agencies absent an express legislative command. MDAC’s statutory authority to control and promote the State Fairgrounds—including allowing advertising and leasing space for that purpose—constitutes the kind of plenary authority that displaces local efforts to impose municipal permitting regimes.

The ruling eliminates the injunction against the Fairgrounds billboard, rejects nuisance claims predicated on inapplicable ordinances, and clarifies the limits of municipal reach. For city leaders, the case signals the need for collaboration with, or legislative recourse against, state agencies when local aesthetics or safety concerns arise. For state agencies and private partners, it offers legal clarity and planning certainty—provided the agency’s actions stay within the scope of its enabling statutes.

Key Takeaways

  • A Mississippi municipality cannot enforce its sign or zoning ordinances on state-owned property without a specific statutory grant authorizing such enforcement.
  • MDAC’s statutory control over the State Fairgrounds, including authority to allow advertising and to lease interests in the property, is plenary and not conditioned on municipal permits.
  • City of Jackson v. Mississippi State Building Commission (1977) remains controlling; this case extends that principle to signage and advertising on state land.
  • Cases involving coequal political subdivisions (e.g., school districts or regional commissions) do not change the rule when the State itself is involved.
  • Nuisance per se claims cannot be grounded in violations of ordinances that do not apply to the State.
  • Legislative action would be required to subject state agencies to specific municipal standards on state property.

Comments