The city of Pascagoula has filed a lawsuit challenging the constitutionality of a law that requires it share property tax proceeds from the local Chevron refinery expansion.

A 2007 law changed how property taxes from crude oil refinery expansion, including liquefied natural gas terminals, would be divided. The new law divides those taxes up among all four public school districts in Jackson County, even though Chevron is located in Pascagoula.

Under the new law, Pascagoula officials say the school district will lose 50 percent of its current tax revenues to other districts.

Pascagoula officials have filed a lawsuit in Jackson County Chancery Court.