Chapter 1. Assessors and County Tax Collectors

General Provisions

§ 27-1-1. Bond; oath.

The assessor of each county, except in those counties wherein the office of assessor and the office of tax collector are combined as provided in Section 27-1-7, shall take and file the oath of office required by the Constitution and give bond, with sufficient surety, to be payable, conditioned and approved as provided by law, in a penalty equal to Fifty Thousand Dollars ($50,000.00).

HISTORY: Codes, 1880, § 348; 1892, § 114; 1906, § 115; Hemingway’s 1917, § 3459; 1930, § 100; 1942, § 9088; Laws, 1890, p. 36; Laws, 1986, ch. 458, § 32; Laws, 1992, ch. 400, § 1, eff from and after July 1, 1992.

Cross References —

Provision that assessors shall be elected in 1995 and every four years thereafter, see §23-15-193.

Nominations for state, district, county, and county district offices which are elective, see §23-15-291 et seq.

Taking oath of office, generally, see §25-1-9.

Assessment of ad valorem taxes, generally, see §27-35-1 et seq.

RESEARCH REFERENCES

Am. Jur.

72 Am. Jur. 2d, State and Local Taxation § 619 et seq.

16B Am. Jur. Legal Forms 2d, State and Local Taxation § 238:9 (bond of official taxation).

CJS.

84 C.J.S., Taxation § 558 et seq.

§ 27-1-3. Assessor may appoint deputies; oath of office; bond; appointment process.

The assessor may, with the approval of the board of supervisors of the county, appoint deputies, who shall take the oath of office, and shall be required by the assessor to give bond to him in an amount not less than Ten Thousand Dollars ($10,000.00) for the faithful discharge of their duties. The appointment shall be in writing, filed with the clerk of the board of supervisors, whose approval shall be entered on the minutes of such board.

HISTORY: Codes, 1857, ch. 3, art 4; 1880 § 349; 1892, § 115; 1906, § 116; Hemingway’s 1917, § 3460; 1930, § 101; 1942, § 9089; Laws, 2009, ch. 467, § 12; Laws, 2009, 2nd Ex Sess, ch. 91, § 1, eff from and after July 1, 2009.

Editor’s Notes —

Laws of 2009, 2nd Ex Sess, ch. 91, § 3, provides as follows:

“SECTION 3. Section 1 of this act shall take effect and be in force from and after July 1, 2009. Section 2 of this act shall take effect and be in force from and after October 1, 2009.”

Amendment Notes —

The 2009 amendment inserted “in an amount not less than Fifty Thousand Dollars ($50,000.00)” near the end of the first sentence and made a minor stylistic change.

The 2009 2nd Ex Sess, amendment substituted “Ten Thousand Dollars ($10,000.00)” for “Fifty Thousand Dollars ($50,000.00).”

JUDICIAL DECISIONS

1. In general.

Compensation of deputy tax assessor which is paid by tax assessor himself was exempt from garnishment. Pickle v. McLaughlin, 162 Miss. 693, 139 So. 157, 1932 Miss. LEXIS 116 (Miss. 1932).

OPINIONS OF THE ATTORNEY GENERAL

A county board of supervisors has no authority to appoint deputy tax assessors. Barber, Oct. 5, 2001, A.G. Op. #01-0631.

Tax assessors/collectors may, in their discretion, maintain a separate independent system of personnel administration for their respective employees. However, such policies of a board of supervisors or of a tax assessor would not be binding on a successor board or assessor. Mathis, Dec. 1, 2003, A.G. Op. 03-0648.

§ 27-1-5. Duties and compensation.

The assessor shall perform all of the duties required of him by this chapter, and such other duties as may be required by law, and he shall be compensated as provided in Chapter 3 of Title 25 of the Mississippi Code of 1972.

HISTORY: Codes, 1892, § 116; 1906, § 117; Hemingway’s 1917, § 3461; 1930, § 102; 1942, § 9090.

Cross References —

Suspension of defaulting tax collector, see §7-1-57.

Compensation of assessors, see §§25-3-3,25-3-7.

Advice and instructions by state tax commission, see §27-3-31.

Prosecutions and actions by Commissioner of Revenue for defaults and violations under tax laws, see §27-3-33.

Increased compensation for tax assessors upon completion of Mississippi Education and Certification Program for appraisals, see §27-3-52.

Annual conference of county tax assessors, see §27-3-59.

Liability of tax assessors and collectors, see §27-29-29.

Duties with respect to homestead exemptions, see §27-33-33.

Providing tax list forms to tax assessors, see §27-35-17.

Providing assessment roll forms to tax assessors, see §27-35-25.

County tax collector’s duty to collect tax on sale or use of motor vehicles, see §27-65-201.

Criminal offense for officer’s failure to perform duty, see §97-11-37.

JUDICIAL DECISIONS

1. In general.

An assessment of vendor’s lien notes and the real estate for which the notes were given is not double taxation. Adams v. Kuykendall, 83 Miss. 571, 35 So. 830, 1903 Miss. LEXIS 76 (Miss. 1903).

If the taxpayer renders to the assessor a list of lands so defectively described as not to identify it, the assessor does not violate his duty by assessing the land under an accurate description, although it be assessed to an unknown owner. Crawford v. McLauren, 83 Miss. 265, 35 So. 209, 1903 Miss. LEXIS 40 (Miss. 1903).

Under a statute (L 1894, c. 33) providing that the board of supervisors “may” allow an assessor not exceeding ten cents for each individual assessed on the personal roll, it is within the discretion of the board whether any amount, and, if any, what amount, should be allowed. Williams v. Board of Sup'rs, 74 Miss. 122, 20 So. 860 (Miss. 1896).

OPINIONS OF THE ATTORNEY GENERAL

A county board of supervisors does not have the authority to contract away the duties of the tax assessor; however, it is within the authority of the board of supervisors to survey, map, and appraise the property in the county. Barber, Oct. 5, 2001, A.G. Op. #01-0631.

RESEARCH REFERENCES

Am. Jur.

72 Am. Jur. 2d, State and Local Taxation § 620.

CJS.

84 C.J.S., Taxation §§ 562, 579, 590, 591.

§ 27-1-7. Assessor to be tax collector; bond; duties; effect of failure to qualify as tax collector.

The assessor of each county, except as otherwise provided in this chapter, shall be the tax collector therein; and he shall give one (1) bond for the combined office of assessor and tax collector, with sufficient surety, to be payable, conditioned and approved as provided by law, in a penalty equal to five percent (5%) of the sum of all the state and county taxes shown by the assessment rolls and the levies to have been collectible in the county for the year immediately preceding the commencement of the term of office for such collector; however, such bond shall not exceed the amount of One Hundred Thousand Dollars ($100,000.00). He shall also take and file the oath of office as tax collector. Such assessors and tax collectors shall collect all taxes heretofore collected by the sheriffs in said counties, including, but not limited to, ad valorem and privilege taxes, charges and fees of every kind and nature heretofore comprising a portion of the tax collecting duties of the sheriffs of said counties and shall, by the twentieth day of the month following collection, pay same to the collecting political subdivision without retaining any portion thereof for his services. Provided, however, regardless of the political subdivision or fund for which the tax was collected, the assessor and tax collector shall pay at least the percentage of such tax heretofore retained by the sheriff as his fee directly into the general fund of the concerned county, and said payment shall be made by the twentieth day of the month following collection. In case of the failure of the assessor to qualify as tax collector within the same time allowed for taking the oath of office and giving bond as assessor, he shall thereby vacate the office of assessor and the vacancy, as assessor and tax collector, shall be filled according to law. Such assessors and tax collectors shall perform all of the tax collecting duties heretofore performed by the sheriffs thereof with the full and complete authority and liabilities heretofore possessed by or imposed upon said sheriffs. However, an assessor and tax collector shall not be liable for ad valorem taxes, privilege taxes, charges and fees collected by him, payment for which was made by a check, draft or other order for the payment of money which has been returned to the assessor and tax collector because of insufficient funds in the account on which such check, draft or order was drawn, if the assessor and tax collector has exhausted all reasonable means of collecting such instrument, including the filing of a civil suit or presentation to the district attorney for collection under Section 97-19-73 et seq.

HISTORY: Codes, 1942, § 9098-01; Laws, 1968, ch. 369, § 6; Laws, 1972, ch. 464, § 1; Laws, 1986, ch. 458, § 33; Laws, 1989, ch. 391, § 1; Laws, 1991, ch. 604, § 4; Laws, 1992, ch. 400, § 2, eff from and after July 1, 1992.

Cross References —

County tax collector’s duties with respect to licensing of flea market vendors, see §27-17-162.

County tax collector’s duty to collect tax on sale or use of motor vehicles, see §27-65-201.

OPINIONS OF THE ATTORNEY GENERAL

Tax collector is required to accept payment of taxes tendered to him, regardless of whether tax collector/assessor challenges validity of change in assessment made by Board of Supervisors. Hosey, May 9, 1991, A.G. Op. #91-0369.

If a check is returned for insufficient funds subsequent to a tax sale, the tax collector should first give notice as required by statute to the drawer/owner and, if the owner does not satisfy the outstanding check, the tax collector should utilize one of the courses of action provided by law for collection on the check; if this action fails, the tax collector should sell the property for taxes at the next regular tax sale. LaRosa, Feb. 28, 2003, A.G. Op. #03-0666.

RESEARCH REFERENCES

Am. Jur.

72 Am. Jur. 2d, State and Local Taxation § 619 et seq.

16B Am. Jur. Legal Forms 2d, State and Local Taxation § 238:9 (bond of tax official).

CJS.

85 C.J.S., Taxation § 1151 et seq.

§ 27-1-9. Office of assessor and tax collector; budget; finances.

The following shall be applicable to all counties and shall pertain to the operation of the assessor and tax collector’s office:

Each assessor and tax collector shall appoint a sufficient number of deputies to assist him in carrying out the duties of his office and fix their compensation, subject to the budget for the assessor and tax collector’s office approved by the county board of supervisors. No deputy shall receive a salary which exceeds the salary of the assessor and tax collector. Each deputy assessor shall give bond for the faithful discharge of his duties as provided in Section 27-1-3. Each deputy tax collector shall give bond to be payable, conditioned and approved as provided by law in an amount not less than Fifty Thousand Dollars ($50,000.00) for the faithful discharge of his duties.

The assessor and tax collector shall, at the July meeting of the board of supervisors, submit a budget of estimated expenses of his office for the ensuing fiscal year beginning October 1 in such form as shall be prescribed by the Director of the State Department of Audit. The board shall examine this proposed budget and determine the amount to be expended by the assessor and tax collector in the performance of his duties for the fiscal year and may increase or reduce said amount as it deems necessary and proper.

The budget shall include amounts for compensating deputies and other employees of the assessor and tax collector’s office, for travel and transportation expenses of the assessor and tax collector and deputies, for theft insurance premiums, for equipment and supplies of his office, and for such other expenses as may be incurred in the performance of the duties of his office. In addition, the budget shall include amounts for the payment of premiums on bonds and other insurance for the assessor and tax collector and his deputies which, in the opinion of the board of supervisors, are deemed necessary to protect the interests of the county, or the assessor and tax collector and his deputies. Such amounts may include official bonds and any bonds required of his deputies by the assessor and tax collector; fire and other hazards insurance; and hospitalization insurance as provided for in Sections 25-15-101 and 25-15-103, Mississippi Code of 1972.

The board of supervisors shall, at its first meeting of each quarter beginning on October 1, January 1, April 1, and July 1, appropriate a lump sum for the assessor and tax collector for the expenses of his office during the current quarter. The quarterly appropriation shall be one-fourth (1/4) of the amount approved in the annual budget unless the assessor and tax collector requests a different amount. Except in case of emergency, as provided in the county budget law, the appropriation for the quarter beginning in October of the last year of the assessor and tax collector’s term shall not exceed one-fourth (1/4) of the annual budget.

The assessor and tax collector shall file a report of all expenditures of his office during the preceding month with the board of supervisors for approval at its regular monthly meeting in a form to be prescribed by the Director of the State Department of Audit and upon filing thereof and approval by the board, the clerk of the board shall issue warrants in payment thereof but not to exceed the budget appropriation for that quarter. Any appropriated funds which are unexpended at the end of the fiscal year shall remain in the county general fund.

The budget for the assessor and tax collector’s office may be revised at any regular meeting by the board of supervisors; and upon recommendation of the assessor and tax collector, the board may at any regular meeting make supplemental appropriations to his office.

The budget for the assessor and tax collector’s office may include amounts to cover necessary expenses to provide equipment and personnel to file, store, retain or reproduce all records, filings or documents using microfilm, microfiche, data processing, computers, magnetic tape, optical discs or any other electronic process which correctly and legibly stores and reproduces or which forms a medium for storing, copying or reproducing documents, files and records.

HISTORY: Codes, 1942, § 9098-02; Laws, 1968, ch. 369, § 9; Laws, 1972, ch. 407, § 1; Laws, 1973, ch. 337, § 1; Laws, 1994, ch. 521, § 28; Laws, 2009, 2nd Ex Sess, ch. 91, § 2, eff from and after October 1, 2009.

Editor’s Notes —

Laws of 2009, 2nd Ex Sess, ch. 91, § 3, provides as follows:

“SECTION 3. Section 1 of this act shall take effect and be in force from and after July 1, 2009. Section 2 of this act shall take effect and be in force from and after October 1, 2009.”

Amendment Notes —

The 2009 2nd Ex Sess amendment added the last two sentences of (a); and made a minor stylistic change.

Cross References —

Method of operation where offices of assessor and collector are separate, see §27-1-15.

OPINIONS OF THE ATTORNEY GENERAL

Tax assessor/collector in county not required to operate on countywide system of road administration, who by law is authorized to employ personnel, is not required to adopt countywide personnel administration system established by county board of supervisors. Guice, July 22, 1992, A.G. Op. #92-0518.

Tax collector should request all travel expenses desired by him in his budget subject to right of board of supervisors to approve amount; tax collector must submit itemized and documented claim for travel and expenses actually and necessarily incurred to board of supervisors for approval. Austin, Dec. 10, 1992, A.G. Op. #92-0842.

A county board of supervisors has no authority to appoint deputy tax assessors. Barber, Oct. 5, 2001, A.G. Op. #01-0631.

Within reason, the county board of supervisors must provide the necessities for the tax assessor’s office to do business, including postage, stationery, and all necessary articles. Barber, Oct. 5, 2001, A.G. Op. #01-0631.

When the board of supervisors has established a budget for the tax assessor or tax collector, but has failed to establish quarterly allocations as required by law, those budgets are rendered annual lump sum budgets which have no allocation periods. Crook, Jan. 25, 2002, A.G. Op. #02-0041.

Board of supervisors’ authority does not extend to establishing a quarterly budget allocation for the office of the chancery clerk. Crook, Nov. 1, 2002, A.G. Op. #02-0638.

County tax collector’s employment of her husband as a part time mobile home inspector would violate the nepotism statute. Creekmore, July 25, 2003, A.G. Op. 03-0379.

Tax assessors/collectors may, in their discretion, maintain a separate independent system of personnel administration for their respective employees. However, such policies of a board of supervisors or of a tax assessor would not be binding on a successor board or assessor. Mathis, Dec. 1, 2003, A.G. Op. 03-0648.

A tax assessor/collector may, within the limits of his board approved budget, employ the number of employees that he deems necessary and fix the compensation for each employee. Johnson, Mar. 5, 2004, A.G. Op. 04-0070.

§ 27-1-11. Tax collector as separate officer in certain counties; reconsolidation of offices.

In counties with a total assessed valuation of Sixty-Five Million Dollars ($65,000,000.00) or above, the board of supervisors, in its discretion, may separate the office of tax collector from the office of assessor by resolution spread upon the minutes of the board, provided that such resolution shall come into effect with the succeeding term of office and shall not affect any duly elected official during the performance of his term.

Any such resolution to separate the offices shall be adopted on or before February 1, 1971, or on or before February 1 of any succeeding year in which general county and statewide elections are held.

After the offices have been separated, they shall remain separate until consolidated by like resolution of the board of supervisors for the succeeding term; provided, however, such resolution to consolidate the offices, having been once separated, shall become effective only after the affirmative vote of a majority of the qualified voters of the county participating in an election to be held in conformity, in all respects, with the applicable statutes governing special elections.

HISTORY: Codes, 1942, § 9098-03; Laws, 1968, ch. 369, § 10, eff from and after passage (approved August 8, 1968).

§ 27-1-13. Tax collector as separate officer; election; bond; powers and duties.

In any such county that has properly adopted a resolution to separate such offices, there shall be a separate tax collector therein who shall possess the same qualifications and be elected at the same time and in the same manner as provided by law for the assessor. He shall give bond, with sufficient surety, to be payable, conditioned and approved as provided by law, in a penalty equal to five percent (5%) of the sum of all the state and county taxes shown by the assessment rolls and the levies to have been collectible in the county for the year immediately preceding the commencement of the term of office for said collector, and he shall also take and file the oath of office as tax collector; however, such bond shall not exceed the amount of One Hundred Thousand Dollars ($100,000.00). Such tax collector shall collect all taxes heretofore collected by sheriffs or assessors, as the case may be, in said counties, including but not limited to ad valorem and privilege taxes, charges and fees of every kind and nature heretofore comprising a portion of the tax collecting duties of the sheriffs or assessors of said counties and shall pay same monthly to the collecting political subdivision without retaining any portion thereof for his services. Provided, however, regardless of the political subdivision or fund for which the tax was collected, the tax collector shall pay at least the percentage of such tax heretofore retained by the sheriff as his fee directly into the general fund of the concerned county, and said payment shall be made by the twentieth day of the month following collection. Such tax collectors shall perform all of the tax collecting duties in such counties heretofore performed by the sheriffs or assessors thereof, as the case may be, with the full and complete authority and liabilities heretofore possessed by or imposed upon said sheriffs or assessors. However, a tax collector shall not be liable for ad valorem taxes, privilege taxes, charges and fees collected by him, payment for which was made by a check, draft or other order for the payment of money which has been returned to the tax collector because of insufficient funds in the account on which such check, draft or order was drawn, if the tax collector has exhausted all reasonable means of collecting such instrument, including the filing of a civil suit or presentation to the district attorney for collection under Section 97-19-73 et seq.

HISTORY: Codes, 1942, § 9098-04; Laws, 1968, ch. 369, § 11; Laws, 1972, ch. 464, § 2; Laws, 1986, ch. 458, § 34; Laws, 1989, ch. 391, § 2; Laws, 1991, ch. 604, § 5, eff from and after July 1, 1991.

Cross References —

County tax collector’s duty to collect tax on sale or use of motor vehicles, see §27-65-201.

OPINIONS OF THE ATTORNEY GENERAL

The provisions of §§9-5-131,9-7-121,19-3-5,19-4-9,21-1-7,21-17-5(1), and27-1-13, only mandate the use of tax assessment rolls and the avails to be collected from levies thereon in calculating the amount of the bonds therein required. Bryant, January 29, 1999, A.G. Op. #99-0011.

The calculation of a bond pursuant to §§9-5-131,9-7-121,19-3-5,19-4-9,21-1-7,21-17-5(1), and27-1-13, includes all assessment rolls upon which a board of supervisors may levy ad valorem taxes. Bryant, January 29, 1999, A.G. Op. #99-0011.

The calculation pursuant to §§9-5-131,9-7-121,19-3-5,19-4-9,21-1-7,21-17-5(1), and27-1-13, includes all ad valorem tax levies listed on the certified levy sheet, including school district levies. Bryant, January 29, 1999, A.G. Op. #99-0011.

The calculation pursuant to §§9-5-131,9-7-121,19-3-5,19-4-9,21-1-7,21-17-5(1), and27-1-13, includes all classes of property upon which ad valorem taxes are levied and collected. Bryant, January 29, 1999, A.G. Op. #99-0011.

In calculating the amount of a bond pursuant to §§9-5-131,9-7-121,19-3-5,19-4-9,21-1-7,21-17-5(1), and27-1-13, the total amount of ad valorem taxes to be collected, rather than the actual amount collected, must be used. Bryant, January 29, 1999, A.G. Op. #99-0011.

If a check is returned for insufficient funds subsequent to a tax sale, the tax collector should first give notice as required by statute to the drawer/owner and, if the owner does not satisfy the outstanding check, the tax collector should utilize one of the courses of action provided by law for collection on the check; if this action fails, the tax collector should sell the property for taxes at the next regular tax sale. LaRosa, Feb. 28, 2003, A.G. Op. #03-0666.

RESEARCH REFERENCES

Am. Jur.

72 Am. Jur. 2d, State and Local Taxation § 769 et seq.

16B Am. Jur. Legal Forms 2d, State and Local Taxation § 238:9 (bond of tax official).

CJS.

85 C.J.S., Taxation § 1239 et seq.

§ 27-1-15. Method of operation where offices of assessor and tax collector are separated.

In the event the offices of assessor and tax collector shall have been separated in any such county, then each of the said officers shall operate his office according to the provisions of Section 27-1-9 of this chapter which prescribes the method of operation of the combined office of assessor and tax collector.

HISTORY: Codes, 1942, § 9098-05; Laws, 1968, ch. 369, § 13, eff from and after the first Monday in January, 1972.

§ 27-1-17. May demand list of employees.

The county tax assessor may require any person, firm or corporation having any person or persons in their employ, to deliver to him in his official capacity a list of all such persons or employees, showing the names, ages, sex, and residence, if such information is available in the records of the reporting person, firm or corporation.

HISTORY: Codes, 1930, § 106; 1942, § 9094.

RESEARCH REFERENCES

CJS.

84 C.J.S., Taxation §§ 541, 542, 544.

85 C.J.S., Taxation §§ 1834, 1903, 2189.

§ 27-1-19. To gather and record data; electronic filing and storage.

The county assessor shall from time to time by personal inspection and examination, by himself or deputies, gather and record, in writing, any and all available data and information bearing upon the location, number, amount, kind and value of any and all property and persons which he is required by law to assess; and he shall keep a list of all persons subject to assessment in his county and shall note thereon all removals from the county or from one precinct to another within the county, and shall add thereto the names of all persons subject to assessment moving into his county. The information required to be collected and preserved shall be filed and systematically indexed and remain a permanent part of the record of the assessor’s office in such manner that the same may be available for the use of the board of supervisors and other officials of the county and state performing duties with reference to the assessment of property and the collection of taxes.

Such records may be generated, filed, stored, retained, copied or reproduced by microfilm, microfiche, data processing, computers, magnetic tape, optical discs or any other electronic process which correctly and legibly stores and reproduces or which forms a medium for storing, copying or reproducing documents, files and records in addition to, or in lieu of the paper documents, files and records.

HISTORY: Codes, 1930, § 107; 1942, § 9095; Laws, 1994, ch. 521, § 29, eff from and after passage (approved March 25, 1994).

Cross References —

Advice of Commissioner of Revenue, see §27-3-31.

Informational forms furnished by Department of Revenue, see, §27-3-53.

Homestead exemption duties of tax assessor, see §27-33-33.

Requirement of taxpayer to furnish list of taxable personal property, see §27-35-23.

Taxpayer’s valuation of his property, see §27-35-29.

Taxation of corporations and joint stock companies, see §27-35-31.

Assessment of lands, see §27-35-49.

Assessor’s report of cotton ginners to Department of Agriculture and Commerce, see §69-1-13.

RESEARCH REFERENCES

Am. Jur.

72 Am. Jur. 2d, State and Local Taxation § 627.

2 Am. Jur. Trials, Locating Public Records § 16.

CJS.

84 C.J.S., Taxation §§ 622, 623.

§ 27-1-21. Shall examine records.

The assessor shall have the right and power and it shall be his duty to inquire into the purchase price paid for any property, real or personal, and to ascertain and acquaint himself with any sales or transfers of property of like description or value made or effected in the vicinity, within the year or years next preceding the listing for assessment then being made; and the price paid for property at such sales or transfers shall be considered by the assessor in determining the value of property to be listed for assessment.

HISTORY: Codes, 1930, § 108; 1942, § 9096.

Cross References —

Exercise of authority granted by this section by Commissioner of Revenue during annual visits to counties, see §27-3-51.

OPINIONS OF THE ATTORNEY GENERAL

A county board of supervisors does not have the authority to contract away the duties of the tax assessor; however, it is within the authority of the board of supervisors to survey, map, and appraise the property in the county. Barber, Oct. 5, 2001, A.G. Op. #01-0631.

§ 27-1-23. Authority to inspect property and demand data.

  1. The county and municipal tax assessor in person, or by deputy, shall have the right, power and authority and it shall be his duty to require of any property owner an inspection of his books and accounts, papers, memoranda and records, and he shall have the right to examine in full the same, and may from his books and accounts make an estimate of the value of all property to be assessed. Such assessors shall also, if in their opinion it be necessary, put upon oath the owner, agent or employees of the owner, and propound to him or them, such questions as will elicit from him, or them, the actual cash value of any property subject to assessment. Such assessors shall have the right and power to inquire into and ascertain the insured value of any and all property, or into the value at which the same has been insured previously and to ascertain the amount of fire insurance carried on any and all property which shall include fire insurance carried on stocks of merchandise, or goods kept for use or sale, machinery, fixtures or other property, and in fixing the value of property for assessment the amount of fire insurance carried and the value of the property as shown by the books and accounts of the owner shall be taken into consideration. If such assessors are advised or have reason to believe that the list of taxable property furnished by any person is incomplete or incorrect, or if any property has been undervalued, they shall assess the same and add it to the assessment roll at its true value.
  2. In the performance of the duties and in the exercise of the powers herein vested in and imposed upon the tax assessor, such assessors and their deputies shall have the authority to enter, during reasonable hours, the premises or places of business of any person other than a house, used as a place of residence.
  3. In the performance of a contract entered into pursuant to Section 27-35-165(2)(a), the employees of private firms who actually appraise property shall have the authority to enter, during reasonable hours, the premises or places of business of any person other than a house, used as a place of residence.
  4. Private consultants hired pursuant to Section 27-35-165(2)(b) who actually appraise property shall have the authority to enter, during reasonable hours, the premises or places of business of any person other than a house, used as a place of residence.

HISTORY: Codes, 1930, § 109; 1942, § 9097; Laws, 1956, ch. 401; Laws, 2003, ch. 468, § 3, eff from and after Oct. 1, 2003.

Cross References —

Exercise of authority granted by this section by Commissioner of Revenue during annual visits to counties, see §27-3-51.

OPINIONS OF THE ATTORNEY GENERAL

The Tax Assessor may require receipts to verify a particular land use. Goff, March 27, 1998, A.G. Op. #98-0136.

While a county board of supervisors has ample authority in the law to examine property listed on the tax rolls as tax exempt and to ask for information from the property owner in order to determine the correctness of the exemption, there is no authority under the home rule statute for the county to monitor hospitals for compliance with §27-31-1(f). Haque, Feb. 22, 2002, A.G. Op. #02-0039.

RESEARCH REFERENCES

ALR.

Presumptions and evidence respecting identification of land on which property taxes were paid to establish adverse possession. 36 A.L.R.4th 843.

§ 27-1-25. To devote full time to office.

The county assessor shall devote his entire time to the duties of his office. The office of the assessor shall be open for business at all such times as other county offices within the county are required, pursuant to Section 25-1-99, Mississippi Code of 1972, to be open for business and, except when necessarily absent on official business, the assessor, or his deputy, shall remain in the assessor’s office during the time the office is open for business.

HISTORY: Codes, 1930, § 105; 1942, § 9093.

OPINIONS OF THE ATTORNEY GENERAL

A board of supervisors is vested with the power to purchase real estate on which to construct public health buildings and clinics sponsored by the public health units of any county, or a public health building to house the county health department, out of the general fund and, provided that ultimate control and management of the facilities remains in the hands of local government, the operation of the building may be done pursuant to contract. Gex, January 9, 1998, A.G. Op. #97-0801.

§ 27-1-27. Supervisors to provide office.

The board of supervisors of each county shall provide for the use of the county assessor a suitable office which shall be located at a place where the county assessor is required to maintain his office pursuant to Section 25-1-99, Mississippi Code of 1972.

HISTORY: Codes, Hemingway’s 1921 Supp. § 3811k; 1930, § 219; 1942, § 9098; Laws, 1920, ch. 131.

OPINIONS OF THE ATTORNEY GENERAL

A municipality may not enforce violations of a zoning ordinance by discontinuing utility services. Section 17-1-27 sets forth the penalties which a municipality may incorporate in a zoning ordinance. Davis, February 7, 1996, A.G. Op. #96-0039.

§ 27-1-29. Delivery of books and other documents to successors in office.

At the expiration of his term of office, each assessor and tax collector or assessor shall deliver to his successor all books, papers, receipts, assessment rolls, and other documents pertaining to the office of assessor in like manner as the tax collector under the provisions of Section 27-29-31, Mississippi Code of 1972. Each sheriff and tax collector whose term of office shall expire in 1972 shall deliver documents of his office to the succeeding tax collector whether the holder of a separate office or the assessor and tax collector.

HISTORY: Codes, 1942, § 9098-07; Laws, 1968, ch. 369, § 16, eff from and after passage (approved August 8, 1968).

§ 27-1-31. Repealed.

Repealed by Laws, 1972, ch. 478, § 2, eff from and after October 1, 1973.

[Codes, 1942, § 9098-06; Laws, 1968, ch. 369, § 14; 1972, ch. 478, § 1]

Editor’s Notes —

Former §27-1-31 related to a supplemental tax levy in certain counties.

§ 27-1-32. Additional funds for offices of sheriff, tax assessor, and tax collector in certain counties.

Should the board of supervisors of any county in the state with a total assessed valuation of less than One Hundred Fifty Million Dollars ($150,000,000.00) determine that the fees to be collected by the offices of sheriff, assessor, tax collector, or assessor and tax collector shall be insufficient to pay the operating budget of any one or more of said offices, said board may set aside, appropriate and expend moneys from the general fund for the purpose of supplementing the budget of any one or more of said offices.

Provided, further, the board of supervisors of any Class 1 county bordering on the Pearl River, having two (2) judicial districts, wherein is housed the seat of State Government, and wherein U.S. Highways 80 and 49 intersect is hereby authorized to set aside, appropriate and expend moneys from the general fund for the purpose of supplementing the budget of the offices of sheriff, tax collector and tax assessor.

Provided, further, the board of supervisors of any Class 1 county bordering on the State of Alabama traversed by U.S. Highway 90 and having an assessed valuation according to the 1972 assessment rolls of One Hundred Thirty-two Million Seven Hundred Seventy-two Thousand Sixty-seven Dollars ($132,772,067.00) may, in its discretion, set aside, appropriate and expend moneys from the general fund for the purpose of supplementing the budget of the tax collector, tax assessor and sheriff.

HISTORY: Laws, 1973, ch. 461, §§ 1, 2; Laws, 1975, ch. 378, § 1; Laws, 1976, ch. 461; Laws, 1986, ch. 400, § 19, eff from and after October 1, 1986.

§ 27-1-33. Tax collection authority of sheriff limited.

The sheriffs shall retain all authority and liabilities heretofore possessed by or imposed upon said sheriffs but it shall not be their responsibility to collect taxes except under levy of execution.

HISTORY: Codes, 1942, § 9098-01; Laws, 1968, ch. 369, § 6, eff from and after the first Monday in January, 1972.

§§ 27-1-35 and 27-1-37. Repealed.

Repealed by Laws of 2009, ch. 546, § 24, effective upon passage, April 15, 2009.

§27-1-35. [Codes, 1906, § 118; Hemingway’s 1917, § 3462; 1930, § 103; 1942, § 9091.]

§27-1-37. [Codes, 1906, § 119; Hemingway’s 1917, § 3463; 1930, § 104; 1942, § 9092.]

Editor’s Notes —

Former §27-1-35 required county assessors to make an annual enumeration of all the ex-confederate soldiers and widows of deceased confederate soldiers.

Former §27-1-37 provided for compensation to county assessor for enumeration.

Mississippi Tax Collectors Education and Certification Program

§ 27-1-51. Mississippi Tax Collectors Education and Certification Program; levels of certification; reimbursement of certain expenses for attending certified collection school; salary supplement for attaining certain levels of certification.

    1. The Office of the State Auditor shall establish and implement a Mississippi Tax Collectors Education and Certification Program under which county tax collectors and assessor-tax collectors and their deputies may attain certification as a tax collector or assessor-tax collector of state, county or municipal revenue. The Education and Certification Board, created under Section 27-1-53, in cooperation with the Center for Governmental Training and Technology within the Mississippi State University Extension Service, shall administer and conduct the education and training programs and examinations as may be appropriate for those persons to attain the certification, as directed by the Office of the State Auditor through its rules and regulations for the efficient administration of the programs and examinations authorized under Sections 27-1-51 through 27-1-69. There shall be three (3) levels of certification: Collector of Revenue I (CR 1), Collector of Revenue II (CR 2), and the Mississippi Collector of Revenue (MCR).
    2. Counties having not more than fifteen thousand (15,000) parcels of real property shall have a minimum of two (2) Collectors of Revenue I (CR 1), and counties having more than fifteen thousand (15,000) parcels of real property shall have a minimum of three (3) Collectors of Revenue I (CR 1).
    1. In any year in which a county tax collector or assessor-tax collector takes office for the first time, the Office of the State Auditor shall require training sessions to be conducted in accordance with rules and regulations adopted by the office for these new officials. These sessions shall be held at sufficiently convenient locations throughout the state and at times that are sufficient to provide each county tax collector and assessor-tax collector with an opportunity to attend the training.
    2. To ensure that all newly elected or appointed tax collectors and assessor-tax collectors have an opportunity to attend the training sessions required by this section, the Office of the State Auditor shall require the training sessions to be conducted in each congressional district within the state.
  1. When any tax collector, assessor-tax collector, or the deputy thereof, travels outside of his county to attend a certified collection school approved by the Office of the State Auditor, that person shall receive a reimbursement of expenses for the travel at the same rate for mileage, food and lodging as allowed under Section 25-3-41. However, mileage shall not be authorized when the travel occurs by use of a motor vehicle owned by the county. All expenses reimbursed for attending a certified collection school shall be charged against the approved budget of the county tax collector or assessor-tax collector.
  2. The Office of the State Auditor shall have plenary authority to prescribe forms and to promulgate rules and regulations necessary to implement the provisions of Sections 27-1-51 through 27-1-69.
  3. The county tax collector or assessor-tax collector shall select a candidate from among his deputies to attend the certification program described in Sections 27-1-51 through 27-1-69.
    1. When any tax collector or deputy tax collector holds a valid certificate of educational recognition from the Education and Certification Board as established by Section 27-1-67 by attaining certification as a Collector of Revenue I (CR 1), he shall receive an additional Two Thousand Dollars ($2,000.00) annually beginning the next fiscal year after completion.
    2. When any tax collector or deputy tax collector holds a valid certificate of educational recognition from the Education and Certification Board as established by Section 27-1-67 by attaining certification as a Collector of Revenue II (CR 2), he shall receive an additional Two Thousand Dollars ($2,000.00) annually beginning the next fiscal year after completion.
    3. When any tax collector or deputy tax collector holds a valid certificate of educational recognition from the Education and Certification Board as established by Section 27-1-67 by attaining certification as a Mississippi Collector of Revenue (MCR), he shall receive an additional Two Thousand Five Hundred Dollars ($2,500.00) annually beginning the next fiscal year after completion.

HISTORY: Laws, 2010, ch. 434, § 1; Laws, 2011, ch. 383, § 1; Laws, 2014, ch. 337, § 1, eff from and after Oct. 1, 2014.

Editor’s Notes —

By letter dated July 15, 2010, the United States Attorney General interposed no objection under Section 5 of the Voting Rights Act of 1965, as amended and extended, to the addition of this section by Laws of 2010, ch. 434.

Amendment Notes —

The 2011 amendment deleted “such travel shall be approved in advance by the board of supervisors of that county on its minutes. If approved” following “Office of the State Auditor” at the end of the first sentence in (3) and added the last sentence.

The 2014 amendment added (6).

§ 27-1-53. Education and Certification Board created; board to administer and conduct education and training programs and examinations and set minimum requirements for obtaining certification; composition of board.

A seven-member Education and Certification Board is created to administer and conduct the education and training programs and examinations under the Mississippi Tax Collectors Education and Certification Program.The Education and Certification Board shall set the minimum requirements for obtaining certification of each level of certification.The board shall consist of the following members:

The President of the Mississippi Assessors and Collectors Association, who shall serve on the board during his term as president;

The State Auditor, or his designee;

One (1) member to be appointed by the State Auditor;

One (1) member appointed by the President of the Mississippi Assessors and Collectors Association;

One (1) member representing the Center for Governmental Training and Technology; and

Two (2) members appointed by the Commissioner of Revenue.

HISTORY: Laws, 2010, ch. 434, § 2, eff October 1, 2010.

Editor’s Notes —

Laws of 2010, ch. 434, § 12, provides:

“SECTION 12. This act shall take effect and be in force from and after the date it is effectuated under Section 5 of the Voting Rights Act of 1965, as amended and extended, or October 1, 2010, whichever occurs later.”

By letter dated July 15, 2010, the United States Attorney General interposed no objection under Section 5 of the Voting Rights Act of 1965, as amended and extended, to the addition of this section by Laws of 2010, ch. 434.

§ 27-1-55. Frequency and location of certification courses.

  1. As required in the rules and regulations adopted by the Office of the State Auditor, the Education and Certification Board, in cooperation with the Center for Governmental Training and Technology within the Mississippi State University Extension Service, shall conduct the continuing education sessions for tax collectors, assessor-tax collectors and their deputies on an annual basis.These sessions shall be held at sufficiently convenient locations throughout the state.
  2. Sessions shall be offered a number of times that are sufficient to provide each Collector of Revenue I assessor and Collector of Revenue II assessor with an opportunity to attend continuing education sessions every two (2) years to maintain certification for each level.

HISTORY: Laws, 2010, ch. 434, § 3, eff October 1, 2010.

Editor’s Notes —

Laws of 2010, ch. 434, § 12, provides:

“SECTION 12. This act shall take effect and be in force from and after the date it is effectuated under Section 5 of the Voting Rights Act of 1965, as amended and extended, or October 1, 2010, whichever occurs later.”

By letter dated July 15, 2010, the United States Attorney General interposed no objection under Section 5 of the Voting Rights Act of 1965, as amended and extended, to the addition of this section by Laws of 2010, ch. 434.

§ 27-1-57. Board to conduct examination and certification program for collector of Revenue I and II certifications and administer program for Mississippi Collector of Revenue certification.

  1. The Education and Certification Board shall conduct a tax collector and assessor-tax collector examination and certification program for Collector of Revenue I and Collector of Revenue II certifications, and administer a program for Mississippi Collector of Revenue tax collector and assessor-tax collector certification.
  2. At the direction of the Office of the State Auditor, the board shall design and implement the programs in a manner that maximizes the number of certified county tax collectors and assessor-tax collectors involved in the tax collection process.

HISTORY: Laws, 2010, ch. 434, § 4, eff October 1, 2010.

Editor’s Notes —

Laws of 2010, ch. 434, § 12, provides:

“SECTION 12. This act shall take effect and be in force from and after the date it is effectuated under Section 5 of the Voting Rights Act of 1965, as amended and extended, or October 1, 2010, whichever occurs later.”

By letter dated July 15, 2010, the United States Attorney General interposed no objection under Section 5 of the Voting Rights Act of 1965, as amended and extended, to the addition of this section by Laws of 2010, ch. 434.

§ 27-1-59. Collector of Revenue I and Collector of Revenue II examinations; subjects covered in examinations.

The Education and Certification Board, in cooperation with the Center for Governmental Training and Technology within the Mississippi State University Extension Service, shall design two (2) tax collector and assessor-tax collector examinations, to be called “Collector of Revenue I” and “Collector of Revenue II.”All citizens of Mississippi are eligible to apply for and to be examined under “Collector of Revenue I” and “Collector of Revenue II” examinations, subject only to the resources and limitations of the board in conducting the examinations.Both examinations shall cover the subjects of real estate appraising, accounting, property tax law and collection procedures.Successful performance on the Collector of Revenue I examination requires the minimum knowledge needed for effective performance as a county tax collector or assessor-tax collector.Success on the Collector of Revenue II examination requires substantial knowledge of the subjects covered in the examination.

HISTORY: Laws, 2010, ch. 434, § 5, eff October 1, 2010.

Editor’s Notes —

Laws of 2010, ch. 434, § 12, provides:

“SECTION 12. This act shall take effect and be in force from and after the date it is effectuated under Section 5 of the Voting Rights Act of 1965, as amended and extended, or October 1, 2010, whichever occurs later.”

By letter dated July 15, 2010, the United States Attorney General interposed no objection under Section 5 of the Voting Rights Act of 1965, as amended and extended, to the addition of this section by Laws of 2010, ch. 434.

§ 27-1-61. Frequency, location and design of examinations.

  1. Examinations shall be held each year at the times prescribed by the Education and Certification Board in Jackson, Mississippi, and at not less than four (4) other convenient locations chosen by the board.
  2. The Education and Certification Board may not limit the number of individuals who take the examination and shall provide an opportunity for all enrollees at each session to take the examination at that session.
  3. The Education and Certification Board shall:
    1. Give both the Collector of Revenue I examination and the Collector of Revenue II examination in a format prescribed by the board; and
    2. Design both examinations to approximate the work that a county tax collector or assessor-tax collector is required to perform, including the use of appropriate computer applications.

HISTORY: Laws, 2010, ch. 434, § 6, eff October 1, 2010.

Editor’s Notes —

Laws of 2010, ch. 434, § 12, provides:

“SECTION 12. This act shall take effect and be in force from and after the date it is effectuated under Section 5 of the Voting Rights Act of 1965, as amended and extended, or October 1, 2010, whichever occurs later.”

By letter dated July 15, 2010, the United States Attorney General interposed no objection under Section 5 of the Voting Rights Act of 1965, as amended and extended, to the addition of this section by Laws of 2010, ch. 434.

§ 27-1-63. Board to design curriculum for tax collector and assessor-tax collector certification candidates.

The Education and Certification Board shall design a curriculum for Mississippi Collector of Revenue county tax collector and assessor-tax collector certification candidates that:

Consists of tested courses offered by nationally recognized assessing organizations; and

Requires superior knowledge of assessment administration and property valuation concepts.

HISTORY: Laws, 2010, ch. 434, § 7, eff October 1, 2010.

Editor’s Notes —

Laws of 2010, ch. 434, § 12, provides:

“SECTION 12. This act shall take effect and be in force from and after the date it is effectuated under Section 5 of the Voting Rights Act of 1965, as amended and extended, or October 1, 2010, whichever occurs later.”

By letter dated July 15, 2010, the United States Attorney General interposed no objection under Section 5 of the Voting Rights Act of 1965, as amended and extended, to the addition of this section by Laws of 2010, ch. 434.

§ 27-1-65. Eligibility to apply for and take examinations.

Any county tax collector, assessor-tax collector, or the deputy thereof, may apply for and take the Collector of Revenue I examination.Any person who is successful on the Collector of Revenue I examination may apply for and take the Collector of Revenue II examination.Any person who is successful on the Collector of Revenue II examination may apply for Mississippi Collector of Revenue certification.

HISTORY: Laws, 2010, ch. 434, § 8, eff October 1, 2010.

Editor’s Notes —

Laws of 2010, ch. 434, § 12, provides:

“SECTION 12. This act shall take effect and be in force from and after the date it is effectuated under Section 5 of the Voting Rights Act of 1965, as amended and extended, or October 1, 2010, whichever occurs later.”

By letter dated July 15, 2010, the United States Attorney General interposed no objection under Section 5 of the Voting Rights Act of 1965, as amended and extended, to the addition of this section by Laws of 2010, ch. 434.

§ 27-1-67. Certification as Collector of Revenue I, Collector of Revenue II or Mississippi Collector of Revenue; revocation of certificate; notice and hearing.

  1. The Education and Certification Board shall certify all persons who successfully complete a certification program under Sections 27-1-51 through 27-1-69 and shall furnish each successful certification applicant with a certificate that prominently displays the person’s name and the fact that the person is a certified Mississippi county tax collector or assessor-tax collector with the designation as a Collector of Revenue I, Collector of Revenue II or Mississippi Collector of Revenue.
  2. The Education and Certification Board shall revoke the certification of an individual if the board reasonably determines that the individual committed fraud or misrepresentation with respect to:
    1. The preparation, administration or taking of the examination for Collector of Revenue I or Collector of Revenue II certification; or
    2. Completion of the curriculum for Mississippi Collector of Revenue certification.
  3. The Education and Certification Board shall give notice and hold a hearing to consider all of the evidence about the fraud or misrepresentation before deciding whether to revoke an individual’s certification.

HISTORY: Laws, 2010, ch. 434, § 9, eff October 1, 2010.

Editor’s Notes —

Laws of 2010, ch. 434, § 12, provides:

“SECTION 12. This act shall take effect and be in force from and after the date it is effectuated under Section 5 of the Voting Rights Act of 1965, as amended and extended, or October 1, 2010, whichever occurs later.”

By letter dated July 15, 2010, the United States Attorney General interposed no objection under Section 5 of the Voting Rights Act of 1965, as amended and extended, to the addition of this section by Laws of 2010, ch. 434.

At the direction of the co-counsel for the Joint Legislative Committee on Compilation, Revision and Publication of Legislation, an error in the text of subsection (1) was corrected by inserting the word “program” following “. . . persons who successfully complete a certification.”

§ 27-1-69. Collection by Center for Governmental Training and Technology of fees for examinations and certifications; use of funds.

The Education and Certification Board shall establish a fair and reasonable fee for the examinations and certifications of county tax collectors, assessor-tax collectors and their deputies authorized under Sections 27-1-51 through 27-1-69. Such fee shall be collected by the Center for Governmental Training and Technology within the Mississippi State University Extension Service and used for:

Testing and training of county tax collectors, assessor-tax collectors and their deputies; and

Administration of the Mississippi Collector of Revenue Certification Program and the design of its curriculum under Sections 27-1-57 and 27-1-63.

HISTORY: Laws, 2010, ch. 434, § 10; Laws, 2011, ch. 383, § 2, eff from and after passage (approved Mar. 14, 2011.).

Editor’s Notes —

By letter dated July 15, 2010, the United States Attorney General interposed no objection under Section 5 of the Voting Rights Act of 1965, as amended and extended, to the addition of this section by Laws of 2010, ch. 434.

Amendment Notes —

The 2011 amendment rewrote the section.

Chapter 3. Department of Revenue

Editor’s Notes —

This chapter was amended extensively by Laws of 2009, ch. 492, effective from and after July 1, 2010.

§ 27-3-1. Department of Revenue created; Commissioner of Revenue; term; qualifications; bond; removal from office.

  1. There is hereby created a Department of Revenue, the head of which shall be the Commissioner of Revenue, who shall be appointed by the Governor, with the advice and consent of the Senate. Each term of office of the Commissioner of Revenue shall be for six (6) years, or until his successor shall be appointed and qualified. The Governor shall include in his appointment, the expiration date of the appointment. Vacancies shall be filled by the Governor for the unexpired portion of the term in which the vacancy occurs.
  2. The Commissioner of Revenue shall be a qualified elector, shall have at least a bachelor’s degree from an accredited college or university, and shall possess a special knowledge of taxation and revenue as pertaining to the State of Mississippi. The Commissioner of Revenue shall be full time and shall not be actively engaged in any other business or occupation.
  3. The Commissioner of Revenue shall, before entering upon the discharge of the duties of his office, take and subscribe to the oath of office prescribed by the Constitution, shall file the oath in the Office of the Secretary of State, and shall execute a bond in some surety company authorized to do business in the state, to be approved by the Governor, and filed in the Office of the Secretary of State in the penal sum of Two Hundred Fifty Thousand Dollars ($250,000.00), conditioned for the faithful and impartial discharge of the duties of his office. The premium on the bond shall be paid as provided by law out of funds appropriated to the Department of Revenue.
  4. The Commissioner of Revenue is not subject to removal from office other than by impeachment or by removal from office as provided for under Section 25-5-1, except that in addition to impeachment and removal, the Commissioner of Revenue may also be removed from office for a criminal conviction for violating the Internal Revenue Code.

HISTORY: Codes, 1942, §§ 9197, 9198; Laws, 1932, ch. 119; Laws, 1938, ch. 150; Laws, 1973, ch. 431, § 1; Laws, 1980 ch. 561, § 6; Laws, 2009, ch. 492, § 9, eff from and after July 1, 2010.

Editor’s Notes —

Laws of 2009, ch. 492, § 146 provides:

“SECTION 146. Section 145 of this act shall take effect and be in force from and after July 1, 2009, and the remainder of this act shall take effect and be in force from and after July 1, 2010.”

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

Amendment Notes —

The 2009 amendment, effective July 1, 2010, rewrote the section.

Cross References —

Administration of homestead exemption law, see §27-33-41.

Department of Revenue as assessors of railroads and other public service corporations, see §27-35-301.

Collection by Department of Revenue of sums due state from reserved mineral interests, see §29-1-125 et seq.

Administration of local option alcoholic beverage control law, see §67-1-19.

RESEARCH REFERENCES

ALR.

Validity, construction, and application of regulation regarding outside employment of governmental employees or officers. 94 A.L.R.3d 1230.

Am. Jur.

16B Am. Jur. Legal Forms 2d, State and Local Taxation § 238:9 (bond of tax official).

§ 27-3-2. Name of proposed commissioner to be submitted to senate for advice and consent; chairman of State Tax Commission to serve as Commissioner of Revenue until person appointed by governor has been appointed and qualified.

  1. No person appointed by the Governor as Commissioner of Revenue under the terms of Section 27-3-1 shall be eligible to take office unless his name shall have been submitted to the Mississippi Senate for its advice and consent at least thirty (30) days prior to the scheduled adjournment of the regular session of the Legislature being held in the calendar year in which the term of the office of the incumbent shall expire.
  2. As to the appointment of the Commissioner of Revenue under Section 27-3-1 for the term that begins on July 1, 2010, and expires on June 30, 2016, for purposes of subsection (1) of this section, the Chairman of the State Tax Commission whose term expires on June 30, 2010, shall be deemed to be the incumbent of this position and shall serve as the Commissioner of Revenue until the person appointed by the Governor to fill this term has been appointed and qualified.
  3. If for any reason an appointment by the Governor under Section 27-3-1 is not given the advice and consent of the Mississippi Senate prior to the adjournment of such regular session, the Governor may submit another appointment at any time to the Mississippi Senate for its advice and consent at a regular or extraordinary session of the Legislature.
  4. The prohibition contained in subsection (1) of this section shall not apply when a vacancy shall occur by death or resignation of the incumbent.

HISTORY: Laws, 1973, ch. 431, § 2; Laws, 2002, 1st Ex. Sess., ch. 1, § 1; Laws, 2009, ch. 492, § 10, eff from and after July 1, 2010.

Editor’s Notes —

Laws of 2009, ch. 492, § 146 provides:

“SECTION 146. Section 145 of this act shall take effect and be in force from and after July 1, 2009, and the remainder of this act shall take effect and be in force from and after July 1, 2010.”

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

Amendment Notes —

The 2009 amendment, effective July 1, 2010, rewrote the section.

§ 27-3-3. Commissioner of Revenue of Department of Revenue to be executive officer.

The Commissioner of Revenue of the Department of Revenue shall be the executive officer of the Department of Revenue. He shall have the power and authority to perform all duties and powers prescribed by the laws of this state to be performed by the Chairman of the State Tax Commission, the Commissioner of Revenue, the State Tax Commission or the Department of Revenue. The commissioner shall have the power and authority to enforce all rules and regulations promulgated by him, the Chairman of the State Tax Commission or the State Tax Commission.

HISTORY: Codes, 1942, § 9198; Laws, 1932, ch. 119; Laws, 1938, ch. 150; Laws, 1980, ch. 561, § 7; Laws, 2009, ch. 492, § 11, eff from and after July 1, 2010.

Editor’s Notes —

Laws of 2009, ch. 492, § 146 provides:

“SECTION 146. Section 145 of this act shall take effect and be in force from and after July 1, 2009, and the remainder of this act shall take effect and be in force from and after July 1, 2010.”

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

Amendment Notes —

The 2009 amendment, effective July 1, 2010, rewrote the section.

Cross References —

Taxation of annuity contracts under optional retirement program for employees of state institutions of higher learning, see §25-11-419.

Duties of the state fire marshal with respect to administration of provisions regarding liquified petroleum gas, see §75-57-3.

§ 27-3-4. Transfer of powers, duties and functions of State Tax Commission and Chairman of the State Tax Commission to Commissioner of Revenue acting through the Department of Revenue.

  1. Except for the duties and powers devolved upon the Board of Tax Appeals by Section 27-4-3, the Commissioner of Revenue acting through the Department of Revenue shall on and after July 1, 2010, exercise those powers, duties and functions heretofore vested in the Mississippi State Tax Commission, the State Tax Commission, the Tax Commission, the Commissioner of Revenue, the Chairman of the Mississippi State Tax Commission, the Chairman of the State Tax Commission and/or the Chairman of the Tax Commission.
  2. Except for those minutes, orders and records of the three-member State Tax Commission which are in the possession of the Secretary of the State Tax Commission and any other property which is transferred from the State Tax Commission to the Board of Tax Appeals, all files, documents, records, property, tangible and intangible, data and funds belonging to and/or in the possession of the State Tax Commission immediately prior to July 1, 2010 shall pass to the Department of Revenue on July 1, 2010, without the need of the execution of any documents. In regard to such files, documents, records, property, data and funds, the creation of the Department of Revenue on July 1, 2010, shall be treated as only a change in the name of the entity owning or possessing such files, documents, records, property, data and funds from that of the State Tax Commission to the Commissioner of Revenue of the Department of Revenue with ownership, possession and custody remaining in the same entity.
  3. In regard to any action taken by the Chairman of the State Tax Commission and/or by the State Tax Commission prior to July 1, 2010, the creation of the Department of Revenue and the transfer of powers, duties and functions to the Commissioner of Revenue of the Department of Revenue from the Chairman of the State Tax Commission and from the State Tax Commission as set out in subsection (1) of this section shall be treated as only a change in the name of the entity taking such action from the Chairman of the State Tax Commission to the Commissioner of Revenue of the Department of Revenue or from the State Tax Commission to the Department of Revenue, and the Commissioner of Revenue acting through the Department of Revenue shall succeed to any right, duty or obligation as the result of such action and shall be treated as the same entity that took such action without the execution and/or filing of any document. Any action taken by the Commissioner of Revenue, including those taken by and through the Department of Revenue, after July 1, 2010, in regard to any interest, right, duty or obligation arising from the actions of the Chairman of the State Tax Commission and/or the State Tax Commission prior to July 1, 2010, shall be taken in the name of the Commissioner of Revenue of the Department of Revenue or in the name of the Department of Revenue and be treated as an action by the official or entity which originally took the action that gave rise to such interest, right, duty or obligation, including, but not limited to, any interest, right or obligation arising from the execution or performance of a contract or agreement, the issuance of a tax assessment, the issuance of a tax lien, the issuance and execution of a distress warrant and the issuance of a notice to extend the time period for issuing a tax assessment.
  4. In regard to the promulgation and adoption of any rule or regulation by the State Tax Commission and/or the Chairman of the State Tax Commission prior to July 1, 2010, the creation of the Department of Revenue and the transfer of powers, duties and functions to the Commissioner of Revenue of the Department of Revenue from the State Tax Commission and Chairman of the State Tax Commission as set out in subsection (1) of this section shall be treated as only a change in the name of the official or agency that adopted and promulgated such rules and regulations from the Chairman of the State Tax Commission or the State Tax Commission to the Commissioner of Revenue of the Department of Revenue, and after July 1, 2010, the Commissioner of Revenue of the Department of Revenue is authorized and empowered to enforce such rules or regulations as the official or agency that originally adopted and promulgated such rules and regulations without having to readopt or re-promulgate such rules and regulations. In such rules and regulations, after July 1, 2010, any reference to Mississippi State Tax Commission, the State Tax Commission, the Tax Commission and/or commission shall mean Department of Revenue and any reference to the Commissioner of Revenue, the Chairman of the Mississippi State Tax Commission, the Chairman of the State Tax Commission, the Chairman of the Tax Commission and/or chairman shall mean Commissioner of Revenue of the Department of Revenue.
  5. The terms “Mississippi State Tax Commission,” “State Tax Commission,” “Tax Commission” and “commission” appearing in the laws of this state in connection with the performance of the duties and functions by the Mississippi State Tax Commission, the State Tax Commission or Tax Commission shall mean the Department of Revenue, and, more particularly, such words or terms shall mean the Department of Revenue whenever they appear in Sections 7-5-25, 7-7-49, 9-21-51, 11-51-77, 13-3-157, 13-3-169, 17-17-53, 17-17-219, 17-17-327, 17-17-415, 17-17-423, 19-2-11, 19-5-357, 19-9-151, 21-29-229, 21-29-233, 21-33-3, 21-33-5, 21-33-9, 21-33-13, 21-33-43, 21-33-45, 21-33-47, 21-33-205, 21-33-207, 21-33-209, 21-45-21, 25-1-73, 25-1-87, 25-3-1, 25-3-3, 25-3-15, 25-15-9, 25-17-9, 25-53-151, 25-55-15, 25-58-21, 25-60-1, 25-65-5, 25-65-7, 27-5-101, 27-5-103, 27-5-155, 27-5-159, 27-7-901, 27-7-903, 27-8-19, 27-17-423, 27-19-11, 27-19-27, 27-19-31, 27-19-39, 27-19-40, 27-19-41, 27-21-7, 27-21-19, 27-31-1, 27-31-31, 27-31-37, 27-31-38, 27-31-87, 27-31-101, 27-31-107, 27-31-109, 27-31-113, 27-35-15, 27-35-17, 27-35-19, 27-35-23, 27-35-25, 27-35-35, 27-35-50, 27-35-55, 27-35-75, 27-35-77, 27-35-81, 27-35-97, 27-35-111, 27-35-119, 27-35-123, 27-35-127, 27-35-131, 27-35-133, 27-35-135, 27-35-141, 27-35-143, 27-35-145, 27-35-147, 27-35-165, 27-35-167, 27-35-301, 27-35-303, 27-35-305, 27-35-307, 27-35-310, 27-35-313, 27-35-321, 27-35-327, 27-35-337, 27-35-509, 27-35-511, 27-35-513, 27-35-515, 27-35-519, 27-35-525, 27-35-527, 27-35-531, 27-37-19, 27-37-21, 27-37-23, 27-37-27, 27-37-29, 27-37-31, 27-37-301, 27-37-303, 27-38-5, 27-38-7, 27-39-317, 27-39-319, 27-39-325, 27-39-329, 27-41-21, 27-41-37, 27-41-101, 27-45-21, 27-51-13, 27-51-15, 27-51-17, 27-51-21, 27-71-501, 27-71-503, 27-71-507, 27-73-9, 27-75-16, 27-103-209, 27-103-211, 27-104-13, 27-104-17, 27-107-75, 27-107-95, 27-107-115, 27-107-135, 27-107-157, 27-107-205, 27-107-321, 29-1-125, 29-1-127, 29-1-129, 29-5-77, 31-1-1, 31-3-21, 31-17-3, 31-19-29, 31-25-27, 31-25-28, 31-31-11, 37-7-301, 37-107-3, 41-3-16, 41-29-177, 41-29-181, 43-1-23, 43-13-121, 43-13-145, 43-13-303, 43-19-46, 45-3-21, 45-11-5, 49-7-251, 49-7-255, 49-15-36, 49-15-64, 49-15-201, 49-15-205, 49-17-65, 49-17-67, 49-17-69, 49-17-70, 49-17-83, 49-17-87, 49-17-407, 49-31-5, 51-15-129, 57-1-257, 57-1-363, 57-4-13, 57-10-409, 57-10-411, 57-10-413, 57-13-23, 57-26-3, 57-28-3, 57-30-3, 57-39-205, 57-43-11, 57-61-15, 57-62-3, 57-62-9, 57-62-11, 57-62-13, 57-62-15, 57-67-17, 57-73-21, 57-73-23, 57-73-25, 57-73-27, 57-75-17, 57-80-9, 57-89-7, 57-91-9, 57-99-3, 57-99-7, 57-99-9, 57-101-1, 57-101-3, 57-105-1, 61-15-1, 61-15-7, 61-15-9, 61-15-13, 63-2-5, 63-5-34, 63-5-39, 63-7-61, 63-7-87, 63-7-311, 63-11-51, 63-11-53, 63-17-76, 63-23-7, 63-25-9, 65-1-46, 65-26-23, 65-26-17, 65-26-19, 65-39-35, 67-9-1, 69-9-13, 69-10-13, 69-29-1, 69-44-11, 69-48-13, 71-5-359, 71-5-389, 71-11-3, 75-24-209, 75-57-119, 75-79-7, 75-85-9, 77-3-87, 77-7-47, 77-9-483, 77-9-493, 77-11-201, 79-4-14.22, 79-4-15.32, 79-11-351, 79-15-125, 79-16-23, 83-1-13, 83-1-27, 83-1-29, 83-1-31, 83-1-37, 83-1-39, 83-5-215, 83-31-45, 83-34-39, 83-47-9, 83-49-45, 91-7-283, 93-11-153, 97-3-111, 97-17-4, 97-32-5, 97-33-73, 97-43-11, 99-27-39 and 99-27-41.
  6. The terms “Chairman of the Mississippi State Tax Commission,” “Chairman of the State Tax Commission,” “Chairman of the Tax Commission” and “chairman” appearing in the laws of this state in connection with the performance of the duties and functions by the Chairman of the Mississippi State Tax Commission, the Chairman of the State Tax Commission or the Chairman of the Tax Commission shall mean the Commissioner of Revenue of the Department of Revenue, and, more particularly, such words or terms shall mean the Commissioner of Revenue of the Department of Revenue whenever they appear in Sections 7-5-25, 13-3-157, 13-3-169, 21-33-205, 21-33-207, 21-33-209, 25-53-151, 25-60-1, 27-31-31, 27-41-69, 27-75-16, 31-17-3, 31-19-29, 57-62-9, 57-73-21, 65-1-46 and 75-57-2.

HISTORY: Laws, 2009, ch. 492, § 6, eff from and after July 1, 2010.

Editor’s Notes —

Laws of 2009, ch. 492, § 146 provides:

“SECTION 146. Section 145 of this act shall take effect and be in force from and after July 1, 2009, and the remainder of this act shall take effect and be in force from and after July 1, 2010.”

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

Section 27-31-87 referred to in (5) was repealed by Laws of 2008, ch. 381, § 5, effective from and after January 1, 2009.

Section 83-34-49 referred to in (5) was repealed by its own terms, effective from and after July 1, 2010.

§§ 27-3-5 and 27-3-7. Repealed.

Repealed by Laws, 1980, ch. 561, § 42, eff from and after July 2, 1980.

§§27-3-5 and27-3-7. [Codes, 1942, § 9198; Laws, 1932, ch. 119; Laws, 1938, ch. 150.]

Editor’s Notes —

Former §§27-3-5 and27-3-7 pertained to the powers and duties of an ad valorem commissioner, and an excise commissioner, respectively.

§ 27-3-9. Compensation of Commissioner of Revenue.

The Commissioner of Revenue shall receive an annual salary fixed by the State Personnel Board. The actual traveling expenses of the commissioners and of the employees of the Department of Revenue incurred in the performance of their official duties shall be allowed, and such salaries and expenses shall be payable out of funds appropriated for the expenses of the Department of Revenue.

HISTORY: Codes, 1942, § 9203; Laws, 1932, ch. 119; Laws, 2009, ch. 492, § 12, eff from and after July 1, 2010.

Editor’s Notes —

Laws of 2009, ch. 492, § 146 provides:

“SECTION 146. Section 145 of this act shall take effect and be in force from and after July 1, 2009, and the remainder of this act shall take effect and be in force from and after July 1, 2010.”

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

Amendment Notes —

The 2009 amendment, effective July 1, 2010, rewrote the first sentence, substituted “Department of Revenue” for “commission/State Tax Commission”; and deleted former last sentence, which read: “The chairman shall require itemized statements of all of the expenditures for travel or other expenses by the members and employees of the commission, and shall audit, or cause to be audited such accounts, before approving the same for payment.”

§ 27-3-11. Repealed.

Repealed by Laws, 2009, ch. 492, § 143, effective from and after July 1, 2010.

§27-3-11. [Codes, 1942, § 9199; Laws, 1932, ch. 119; Laws, 1938, ch. 150.]

Editor’s Notes —

Former §27-3-11 provided for a secretary of the tax commission.

§ 27-3-13. Employees.

The Commissioner of Revenue is empowered to employ such accountants, appraisers, information systems programmers, information systems technicians, information systems managers, clerical help, stenographers, and such other assistants and/or attorneys as he may deem necessary to the proper discharge of the duties of the Department of Revenue, to prescribe their duties and to fix the compensation of each employee within the rules, regulations and guidelines of the State Personnel Board. Such employees may be used interchangeably in the administration of the various duties imposed by law upon the commissioner in the several offices of the Department of Revenue. Further, the Commissioner of Revenue may designate any ten (10) employees of the commission to be law enforcement officers, as defined in Section 45-6-3, with police powers to enforce any laws administered by the Department of Revenue. Temporary employees may be employed as hereinabove, when in the opinion of the commissioner a seasonal press of business requires, except that such temporary employees shall be retained no longer than is necessary to the discharge of the duties imposed by law upon the department.

The Commissioner of Revenue may require any employee with access to federal tax information to be fingerprinted and the commissioner may request a background check regarding such employee from any state or federal agency.

HISTORY: Codes, 1942, §§ 9200, 9213-02; Laws, 1932, ch. 119; Laws, 1962, ch. 588, § 2; Laws, 1970, ch. 542, § 10; Laws, 1980, ch. 561, § 8; Laws, 1993, ch. 432, § 1; Laws, 2009, ch. 492, § 13; Laws, 2016, ch. 317, § 1, eff from and after passage (approved Apr. 4, 2016.).

Editor’s Notes —

Laws of 2009, ch. 492, § 146 provides:

“SECTION 146. Section 145 of this act shall take effect and be in force from and after July 1, 2009, and the remainder of this act shall take effect and be in force from and after July 1, 2010.”

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

Amendment Notes —

The 2009 amendment, effective July 1, 2010, rewrote the section.

The 2016 amendment added the last paragraph.

Cross References —

County regulation of minimum requirements for certification of tax assessors as appraisers, see §27-3-52.

Commission’s agents to administer tobacco tax law, see §27-69-71.

RESEARCH REFERENCES

Am. Jur.

16B Am. Jur. Legal Forms 2d, State and Local Taxation §§ 238:5-238:8 (employment contract for tax investigator).

§ 27-3-14. Repealed.

Repealed by Laws of 1992, ch. 496, § 25, eff from and after July 1, 1992.

[Laws, 1981, ch. 366, § 10, eff from and after November 1, 1981].

Editor’s Notes —

Former §27-3-14 provided for a training course for employees enforcing weight laws and motor vehicle privilege tax laws. Similar provisions can now be found in §65-1-44.

§ 27-3-15. Bonds of employees.

The Commissioner of Revenue may require such of his employees as authorized by this chapter to execute bonds in some surety company authorized to do business in the State of Mississippi in such sum as it may order not to exceed for any one (1) employee the sum of Twenty-five Thousand Dollars ($25,000.00), and the premium on the bond shall be paid out of any money appropriated for the general expenses of the Department of Revenue.

HISTORY: Codes, 1930, § 7020; 1942, § 9215; 1930, ch. 240; Laws, 2009, ch. 492, § 14, eff from and after July 1, 2010.

Editor’s Notes —

Laws of 2009, ch. 492, § 146 provides:

“SECTION 146. Section 145 of this act shall take effect and be in force from and after July 1, 2009, and the remainder of this act shall take effect and be in force from and after July 1, 2010.”

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

Amendment Notes —

The 2009 amendment, effective July 1, 2010, substituted “Commissioner of Revenue” for “State Tax Commissioner”, “Department of Revenue” for “commission”; and made minor stylistic changes.

RESEARCH REFERENCES

Am. Jur.

16B Am. Jur. Legal Forms 2d, State and Local Taxation § 238:9 (bond of tax official).

§ 27-3-17. Quarters and equipment for Department of Revenue.

It is the duty of the Department of Finance and Administration to provide suitable and adequate quarters and equipment for the Department of Revenue, for its office force and for filing its records, books, papers and assessment rolls.

HISTORY: Codes, Hemingway’s 1921 Supp. § 7769f; 1930, § 7003; 1942, § 9206; Laws, 1918, ch. 228; Laws, 2009, ch. 492, § 15, eff from and after July 1, 2010.

Editor’s Notes —

Laws of 2009, ch. 492, § 146 provides:

“SECTION 146. Section 145 of this act shall take effect and be in force from and after July 1, 2009, and the remainder of this act shall take effect and be in force from and after July 1, 2010.”

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

Amendment Notes —

The 2009 amendment, effective July 1, 2010, substituted “Department of Finance and Administration” for “capitol commission” and “Department of Revenue” for “state tax commission,” and made minor stylistic changes.

§ 27-3-19. Official seal.

  1. The Department of Revenue shall have a seal which shall be in the form of a circle with the image of an eagle in the center and around the margin the words: “Commissioner, Mississippi Department of Revenue,” and under the image of the eagle the word: “Official.” The seal, in the discretion of the Commissioner of Revenue, may be of a raised or engraved design or printed.
  2. The Commissioner of Revenue or any employee of the Department of Revenue in the performance of duties assigned to the Commissioner of Revenue or to the Department of Revenue shall affix the seal prescribed in this section to every document where required by law, and to every certificate and other official paper executed by the Commissioner of Revenue or in his name under his authority where necessary or proper; and all documents authenticated with the seal and signed by the commissioner or issued under his name shall be received as evidence in all courts, investigations, and proceedings authorized by law, and may be recorded in the same manner and with like effect as a deed; and all copies of papers in the office of the Department of Revenue, certified by the Commissioner of Revenue and authenticated by the seal, shall be accepted in all matters equally and in like manner as the original.

HISTORY: Codes, 1930, § 7005; 1942, § 9207; Laws, 1926, ch. 329; Laws, 2002, ch. 306, § 1; Laws, 2009, ch. 492, § 16, eff from and after July 1, 2010.

Editor’s Notes —

Laws of 2009, ch. 492, § 146 provides:

“SECTION 146. Section 145 of this act shall take effect and be in force from and after July 1, 2009, and the remainder of this act shall take effect and be in force from and after July 1, 2010.”

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

Amendment Notes —

The 2009 amendment, effective July 1, 2010, rewrote the section.

§ 27-3-21. Repealed.

Repealed by Laws of 2009, ch. 492, § 143, effective from and after July 1, 2010.

§27-3-21. [Codes, 1942, § 9201; Laws, 1932, ch. 119.]

Editor’s Notes —

Former §27-3-21 required the state tax commission to accumulate a library on revenue laws and taxation.

§ 27-3-23. Audit of department.

The Commissioner of Revenue may forthwith have prepared a complete audit and survey of the books, records, accounts, operations and affairs of the Department of Revenue to the end of obtaining a comprehensive outline of the conditions thereof, and of securing a more economical administration of the business, duties and operations of the department. The expense incident to such audit and survey shall be paid out of the contingent fund of the department.

HISTORY: Codes, 1942, § 9202; Laws, 1932, ch. 119; Laws, 2009, ch. 492, § 17, eff from and after July 1, 2010.

Editor’s Notes —

Laws of 2009, ch. 492, § 146 provides:

“SECTION 146. Section 145 of this act shall take effect and be in force from and after July 1, 2009, and the remainder of this act shall take effect and be in force from and after July 1, 2010.”

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

Amendment Notes —

The 2009 amendment, effective July 1, 2010, substituted “Commissioner of Revenue” for “chairman,” “Department of Revenue” for “office of State Tax Commission” and “department” for “commission” both times it appears.

Cross References —

Information to be provided to the tax collector to assist in the enforcement and collection of the local privilege tax on drilling rigs, see §27-17-423.

§§ 27-3-25 and 27-3-27. Repealed.

Repealed by Laws of 2009, ch. 492, § 143, effective from and after July 1, 2010.

§27-3-25. [Codes, 1942, § 9204; Laws, 1932, ch. 119.]

§27-3-27. [Codes, 1942, § 9198; Laws, 1932, ch. 119; Laws, 1938, ch. 150; Laws, 1980, ch. 561, § 9, eff from and after July 2, 1980.]

Editor’s Notes —

Former §27-3-25 divided the state into tax districts.

Former §27-3-27 related to commission meetings.

§ 27-3-29. Repealed.

Repealed by Laws, 2005, ch. 499, § 36 effective from and after July 1, 2005.

§27-3-29. [Codes, 1942, § 9198; Laws, 1932, ch. 119; Laws, 1938, ch. 150; Laws, 1980, ch. 561, § 10; Laws, 1986, ch. 391, eff from and after July 1, 1986.]

Editor’s Notes —

Former §27-3-29 provided for hearings and appeals from certain actions of the State Tax Commission.

§ 27-3-31. Specific duties and powers.

  1. It shall specifically be the duty of the Commissioner of Revenue, and he shall have power and authority:
    1. To adopt, amend or repeal those rules or regulations necessary and proper to effectively administer the Department of Revenue and implement the duties assigned to the commissioner in this section and in any other statute as well as any duties assigned to the Department of Revenue.
    2. To develop, implement and decide questions of policy as it relates to the operation of the Department of Revenue and/or any law which the commissioner or the Department of Revenue is required to administer.
    3. To supervise and direct all administrative and technical activities of the Department of Revenue.
    4. To organize the offices, bureaus and divisions of the Department of Revenue.
    5. To coordinate the activities of the various offices, bureaus and divisions of the Department of Revenue.
    6. To delegate such administrative functions, duties or powers as he deems necessary to carry out the efficient operation of the Department of Revenue.
    7. To make, execute and effectuate any and all agreements or contracts, including contracts for the purchase of goods and services, as are necessary.
    8. To enter into long-term or multiyear leases of real property with other state agencies.
    9. To appeal any decision of the Board of Tax Appeals that he determines should be appealed.
    10. To defend, pursue and/or appeal any suit or appeal brought by or against the Department of Revenue and/or by or against the Commissioner of Revenue in his official capacity.
    11. To confer with and advise assessing officers, boards of supervisors and other county officers as to their duties relative to ad valorem taxation under the law; and to advise them in the collection, filing and preservation of data relative to matters of assessment.
    12. To become familiar with property values and general conditions in the counties of the state and to direct the collection and preservation of data and information pertaining to the quantity and value of property in each county in the state, subject to assessment, necessary to enable the commissioner to determine the assessed value of classes of property and whether assessments comply with acceptable performance standards as required by Section 27-35-113.
    13. To direct the collection, preparation and preservation of data and information pertaining to the quantity, value and location of property belonging to railroads, persons, corporations and associations which is required to be assessed by the commissioner.
    14. To supervise and direct the preparation of forms for the assessment of property of railroads and public service corporations assessed by the commissioner, and the filing of their rolls or schedules of assessment.
    15. To determine the location of all property subject to assessment by the commissioner in the various counties of the state, the municipalities and taxing districts therein, and to ascertain and report as far as practicable the value and ownership of all such property.
    16. To keep informed of the work of the assessors and supervisors of the various counties of the state as required by Section 27-3-51, and to have charge of the details necessary to the equalization by the commissioner of assessments among the various counties pursuant to Section 27-35-113.
    17. To prepare all forms for tax lists, assessment rolls and perform other duties relating thereto.
    18. To prepare data and statistics relating to property assessments which are deemed advisable for publication or which may be required by the Legislature.
    19. To confer with assessors, supervisors and other local taxing officials who may have business with the Department of Revenue.
    20. To consider and approve or disapprove all orders of boards of supervisors granting homestead exemptions.
    21. To administer and enforce the “Local Option Alcoholic Beverage Control Law,” being Section 67-1-1 et seq.
    22. To adopt and enforce rules and regulations prescribing the manner and method by which tax returns and documents may be filed with the Department of Revenue as provided under Section 27-3-83.
  2. The Commissioner of Revenue and any agent duly authorized by the commissioner are empowered to administer and certify oaths.

HISTORY: Codes, 1930, § 7016; 1942, § 9213; Laws, 1930, ch. 238; Laws, 1962, ch. 588, § 21; Laws, 1980, ch. 561, § 31; Laws, 1990, ch. 498, § 4; Laws, 1995, ch. 365, § 2; Laws, 2009, ch. 492, § 18, eff from and after July 1, 2010.

Editor’s Notes —

Laws of 2009, ch. 492, § 146 provides:

“SECTION 146. Section 145 of this act shall take effect and be in force from and after July 1, 2009, and the remainder of this act shall take effect and be in force from and after July 1, 2010.”

Laws, 1990, ch. 498 § 8, provides as follows:

“SECTION 8. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the ad valorem tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the ad valorem tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.”

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

Amendment Notes —

The 2009 amendment, effective July 1, 2010, rewrote the section.

Cross References —

Cooperation with accounting department, see §7-7-49.

Responsibilities and duties of Department of Revenue with respect to tax on premium of fire and lightning insurers, for purposes of Public Employees’ Retirement System, see §§21-29-229,21-29-233.

Certification of property reappraisal as affecting repayment of money borrowed by municipalities in anticipation of taxes, see §21-33-325.

Tax assessors and collectors, see §27-1-1 et seq.

Information to be provided to the tax collector to assist in the enforcement and collection of the local privilege tax on drilling rigs, see §27-17-423.

Duty of the Department of Revenue to administer the motor vehicle privilege tax, see §27-19-1.

Duty of the Department of Revenue to establish and maintain a vehicle registration renewal system, see §27-19-31.

Responsibilities of Department of Revenue regarding collection of motor vehicle taxes, see §27-19-99.

Enforcement of the gasoline tax by the Department of Revenue, see §27-55-1.

Administration by the Department of Revenue of the tax on lubricating oils, see §27-57-1.

Duties of the Department of Revenue with respect to administration of the tax on liquefied compressed gas, see §27-59-1.

Administration of the interstate commercial carriers motor fuel tax by the Department of Revenue, see §27-61-1.

Water Pollution Control Revolving Fund, see §49-17-81 et seq.

Duties of the Department of Revenue with respect to the environmental protection fee on motor fuels, see §49-17-407.

Duties of Department of Revenue with respect to approval of educational seminars for applicants for used motor vehicle dealer’s license, see §63-17-76.

Duties of the Department of Revenue in connection with the automated statewide motor vehicle title registration system, see §63-21-18.

Role of Mississippi Department of Revenue in seizure of and disposition of property subject to forfeiture for unlawful possession of alcoholic beverages and related property, see §§67-1-17,67-1-18.

Duties of the Department of Revenue with respect to the licensing requirement for a transient vendor to transact business, see §75-85-9.

Duties of Department of Revenue with respect to tax on gross revenues of public utilities to defray operating expenses of public service commission, see §77-3-87.

Necessity that corporation applying for reinstatement after being administratively dissolved submit certification from Department of Revenue reciting that all taxes owed by corporation have been paid, see §79-4-14.22.

Administration by Department of Revenue of tax imposed on premiums for legal expense insurance, see §83-49-45.

§ 27-3-32. Repealed.

Repealed by Laws of 2009, ch. 492, § 143, effective from and after July 1, 2010.

§27-3-32. [Laws, 2007, ch. 580, § 17, eff from and after passage (approved Apr. 21, 2007.)]

Editor’s Notes —

Former §27-3-32 was entitled: Authority to enter into certain leases of real property with other state agencies.

§ 27-3-33. Prosecutions, actions, proceedings, and suits; levy on compensation owing to delinquent taxpayer.

  1. The Commissioner of Revenue shall have the power, authority and duty to direct that proceedings, actions and prosecutions be instituted to enforce the laws relating to the penalties, liabilities, and punishment of all persons, officers or agents or corporations, or others required by law to make returns of taxable property, for failure or neglect to comply with such provisions of the tax law; and to cause complaints to be made against assessors, boards of supervisors, and other officers, whose duties concern assessments, in any court of competent jurisdiction for their removal for official misconduct or neglect of such duty, as provided by law in such cases.
  2. The Commissioner of Revenue shall have the power, authority and duty to proceed by suit in the chancery court of the residence of the taxpayer or, in the case of a nonresident, in the Chancery Court of the First Judicial District of Hinds County, against all persons, corporations, companies and associations of persons for all past-due and unpaid taxes, together with any penalties, damages and interest due thereon, of any kind whatever, either of the state or any county, municipality, drainage, levee, or other taxing district, or any subdivision thereof, and for all past-due obligations and indebtedness of any character due and owing to them or any of them; but not, however, including penalties for the violation of the antitrust laws; and, provided that the duty and obligation of the Commissioner of Revenue hereunder accrues only at such time as the tax collector of the county, municipality, drainage, levee, or other taxing district, or any subdivision thereof, primarily responsible for the collection of taxes for the district has exhausted all legal remedies provided by the laws of this state.
  3. All suits by the Commissioner of Revenue under the provisions of this section, or under the provisions of Section 27-3-37 or Section 27-3-39, shall be in his official capacity for the use of the state, county, municipality, levee board or other taxing district interested; and he shall not be liable for costs, and may appeal without bond. Such suits may be tried at the return term and shall take precedence over other suits.
  4. All warrants issued by the Commissioner of Revenue for the collection of any taxes imposed by statute and collected by the Department of Revenue shall be used to levy on salaries, compensation or other monies due the delinquent taxpayer. The warrants shall be served by mail or by delivery by an agent of the Department of Revenue on the person or entity responsible or liable for the payment of the monies to the delinquent taxpayer. Once served, the employer or other person owing compensation due the delinquent taxpayer shall pay the monies over to the Department of Revenue in complete or partial satisfaction of the tax liability. Except as otherwise provided in Section 85-13-3, an answer shall be made within thirty (30) days after service of the warrant in the form and manner determined satisfactory by the commissioner. Failure to pay the money over to the Department of Revenue as required by this section shall result in the served party being personally liable for the full amount of the monies owed and the levy and collection process may be issued against the party in the same manner as other taxes. Except as otherwise provided by this section, the answer, the amount payable under the warrant and the obligation of the payor to continue payment shall be governed by the garnishment laws of this state but shall be payable to the Department of Revenue.

HISTORY: Codes, 1930, § 7016; 1942, §§ 9213, 9213-02, 9213-08; Laws, 1930, ch. 238; Laws, 1962, ch. 588, §§ 2, 8, 21; Laws, 1970, ch. 542, § 10; Laws, 1992, ch. 457, § 1; Laws, 2001, ch. 310, § 1; Laws, 2005, ch. 380, § 1; Laws, 2006, ch. 350, § 1; Laws, 2009, ch. 492, § 19; Laws, 2017, ch. 407, § 4, eff from and after July 1, 2017.

Editor’s Notes —

Laws of 2009, ch. 492, § 146 provides:

“SECTION 146. Section 145 of this act shall take effect and be in force from and after July 1, 2009, and the remainder of this act shall take effect and be in force from and after July 1, 2010.”

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

Amendment Notes —

The 2005 amendment deleted “certified or registered” preceding “mail or by delivery” in the second sentence of (4).

The 2006 amendment, in (4), added “in the form and manner determined satisfactory by the commissioner” at the end of the fourth sentence, and added “Except as otherwise provided by this section” at the beginning of the last sentence.

The 2009 amendment, effective July 1, 2010, substituted “Department of Revenue” for “State Tax Commission” throughout the section and inserted “of Revenue” following “Commissioner” in the first sentence of (4).

The 2017 amendment added the exception at the beginning of the fourth sentence of (4); and made minor stylistic changes.

Cross References —

Representation of Department of Revenue by Attorney General and district attorneys, see §7-5-51.

Judicial appeal from tax assessments, generally, see §11-51-77.

Suspension of Commissioner of Revenue for failure to render accounts and settle accounts, see §27-3-45.

Recovery of interest and penalties, see §27-3-69.

Liability of assessors and collectors of taxes, see §27-29-29.

Collection by Department of Revenue of sums due state from reserved mineral interests, see §29-1-125 et seq.

Role of Department of Revenue in seizure of and disposition of property subject to forfeiture for unlawful possession of alcoholic beverages and related property, see §§67-1-17,67-1-18.

Criminal offense for officer’s failure to perform duty, see §97-11-37.

JUDICIAL DECISIONS

1-5. [Reserved for future use.]

6. Under Former §27-11-49.

1-5. [Reserved for future use.]

6. Under Former § 27-11-49.

On an appeal from an order of an administrative agency, the court is limited to determining whether the order was supported by substantial evidence, was capricious or arbitrary, was beyond the agency’s power, or violated some legal right of the complaining party, and the tax commission and the taxpayer could not by agreement confer jurisdiction on the circuit court to retry, de novo, the issue of the commission’s assessment and collection of a tax. Mississippi State Tax Com. v. Mississippi-Alabama State Fair, 222 So. 2d 664, 1969 Miss. LEXIS 1538 (Miss.), cert. denied, 396 U.S. 940, 90 S. Ct. 374, 24 L. Ed. 2d 241, 1969 U.S. LEXIS 277 (U.S. 1969).

RESEARCH REFERENCES

Am. Jur.

72 Am. Jur. 2d, State and Local Taxation § 752 et seq.

22 Am. Jur. Pl and Pr Forms (Rev), State and Local Taxation, Forms 171 et seq.

22 Am. Jur. Pl and Pr Forms (Rev), State and Local Taxation, Forms 191 et seq.

CJS.

85 C.J.S., Taxation § 1276 et seq.

§ 27-3-35. Subpoena of witnesses.

In all cases of valuation or ownership of property which has escaped taxation, the Commissioner of Revenue may have subpoenaed witnesses to testify before any board of supervisors, board of mayor and aldermen, or other municipal governing authority, or before the commissioner himself, his designee or any other lawful taxing authority.

HISTORY: Codes, 1942, § 9213-02; Laws, 1962, ch. 588, § 2; Laws, 1970, ch. 542, § 10; Laws, 2009, ch. 492, § 20, eff from and after July 1, 2010.

Editor’s Notes —

Laws of 2009, ch. 492, § 146 provides:

“SECTION 146. Section 145 of this act shall take effect and be in force from and after July 1, 2009, and the remainder of this act shall take effect and be in force from and after July 1, 2010.”

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

Amendment Notes —

The 2009 amendment, effective July 1, 2010, substituted “Commissioner of Revenue” for “State Tax Commission” and “commissioner himself” for “State Tax Commission itself,” and inserted “his designee.”

Cross References —

Subpoena for witnesses, generally, see §§13-3-93,99-9-11.

§ 27-3-37. Negligent or defaulting official to be made party to suit.

In all suits against delinquent taxpayers under the provisions of Section 27-3-33 or Section 27-3-39, the officer charged with the duty of collecting the tax shall be made a party; and if it shall appear that the failure of the taxpayer to properly pay his taxes was caused by any willful default or negligence of the officer charged with the duty of collecting the tax, judgment shall be rendered against such officer for the amount of twenty percent (20%) of the amount of tax involved in addition to the amount of the recovery against the delinquent taxpayer, which additional twenty percent (20%) shall be paid into the general fund of the state treasury.

HISTORY: Codes, 1942, § 9213-09; Laws, 1962, ch. 588, § 9, eff from and after January 1, 1964.

Cross References —

Suspension of Commissioner of Revenue for failure to render accounts and settle accounts, see §27-3-45.

§ 27-3-39. Investigations of property escaping taxation; additional assessments.

The Commissioner of Revenue shall investigate and ascertain what property, if any, is escaping taxation or assessment. After the first day of February should the Commissioner of Revenue discover that any person, corporation, property, business, occupation or calling has escaped taxation for the previous calendar year or years by reason of not being assessed by either a county or municipality, it shall be his duty to give notice to the county or municipal tax assessor in writing, and the assessor shall, within ten (10) days thereafter, make the proper assessment by way of an additional assessment and file the assessment with the clerk of the board of supervisors or the clerk of the municipality, as the case may be, who shall enter the assessment on the last approved roll or rolls in his hands, and the clerk shall give ten (10) days’ notice in writing to the person or corporation whose property is thus assessed, and all objections to the assessment shall be heard at the next meeting of the board of supervisors of the county or the governing authorities of the municipality. The board of supervisors or governing authorities of the municipality shall also be notified in writing by the assessor of the assessment, and the Commissioner of Revenue or his designee may appear at the meeting, and an appeal to the circuit court may be taken from the order of the board approving or disapproving the assessment by either party. If the assessment is approved and no appeal is taken, the clerk shall certify this to the Commissioner of Revenue and if the taxes are not paid within thirty (30) days thereafter, the property, if it is real estate, shall be ordered sold as provided for by law, and if it is personal the Commissioner of Revenue shall proceed to collect by distress or otherwise. If the tax assessor fails or refuses to make an assessment and report the assessment as required by this section, he shall be liable on his bond for the amount of taxes properly collectible and ten percent (10%) damages thereon.

HISTORY: Codes, Hemingway’s 1917, § 7769; 1930, § 7012; 1942, §§ 9212, 9213-07; Laws, 1916, ch. 98; Laws, 1962, ch. 588, § 7; Laws, 2009, ch. 492, § 21, eff from and after July 1, 2010.

Editor’s Notes —

Laws of 2009, ch. 492, § 146 provides:

“SECTION 146. Section 145 of this act shall take effect and be in force from and after July 1, 2009, and the remainder of this act shall take effect and be in force from and after July 1, 2010.”

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

Amendment Notes —

The 2009 amendment, effective July 1, 2010, substituted “Commissioner of Revenue” for “State Tax Commission” throughout the section and made minor stylistic changes throughout.

Cross References —

Limitation on suits for assessment of property which has escaped taxation, see §27-3-41.

Suspension of Commissioner of Revenue for failure to render accounts and settle accounts, see §27-3-45.

Performance of duties enumerated in this section by Commissioner of Revenue or his designees during annual visits to counties, see §27-3-51.

Assessment of persons and property escaping taxation, generally, see §27-35-155.

Assessment of railroad property escaping taxation, see §27-35-325.

Role of Department of Revenue in seizure of and disposition of property subject to forfeiture for unlawful possession of alcoholic beverages and related property, see §§67-1-17,67-1-18.

RESEARCH REFERENCES

Am. Jur.

72 Am. Jur. 2d, State and Local Taxation § 675 (assessment of omitted property).

CJS.

84 C.J.S., Taxation § 687.

§ 27-3-41. Limitation.

The power of the Commissioner of Revenue to institute proceedings for the assessment of property which has escaped taxation by reason of not being assessed shall expire at the end of seven (7) years from the date when his right so to do first accrued, and it shall bring all suits he is authorized to bring within six (6) years after the cause of action accrues and not thereafter.

HISTORY: Codes, 1942, § 9213-10; Laws, 1962, ch. 588, § 10; Laws, 2009, ch. 492, § 22, eff from and after July 1, 2010.

Editor’s Notes —

Laws of 2009, ch. 492, § 146 provides:

“SECTION 146. Section 145 of this act shall take effect and be in force from and after July 1, 2009, and the remainder of this act shall take effect and be in force from and after July 1, 2010.”

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

Amendment Notes —

The 2009 amendment, effective July 1, 2010, substituted “Commissioner of Revenue” for “State Tax Commissioner” and made minor stylistic changes.

Cross References —

Limitation of actions, generally, see §15-1-1 et seq.

RESEARCH REFERENCES

Am. Jur.

72 Am. Jur. 2d, State and Local Taxation §§ 767, 768 (time for instituting proceedings for collection).

CJS.

85 C.J.S., Taxation §§ 1301-1303.

§ 27-3-43. Certain land purchased by commissioner as successful bidder may be sold or retained in best interest of state.

When land is purchased by the Commissioner of Revenue as the successful bidder in accordance with Section 27-7-63, 27-13-37 or 27-65-65, the Commissioner of Revenue may then sell the state’s interest in the land at a public or private sale to the best interest of the state. If after such purchase, the Commissioner of Revenue determines that it is not in the best interest of the state for him to sell the state’s interest in the land, he shall, after the expiration of any applicable redemption period, render a full description of the land to the land commissioner, and after such rendering, the land shall be registered at the land office and sold as other state lands.

HISTORY: Codes, 1942, § 9213-11; Laws, 1962, ch. 588, § 11; Laws, 2009, ch. 492, § 23, eff from and after July 1, 2010.

Editor’s Notes —

Laws of 2009, ch. 492, § 146 provides:

“SECTION 146. Section 145 of this act shall take effect and be in force from and after July 1, 2009, and the remainder of this act shall take effect and be in force from and after July 1, 2010.”

Pursuant to Section 7-11-4, effective January 1, 1980, the words “state land commissioner,” “land commissioner,” “state land office” and “land office” shall mean the secretary of state.

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

Amendment Notes —

The 2009 amendment, effective July 1, 2010, rewrote the section.

Cross References —

Suspension of Commisioner of Revenue for failure to render accounts and settle accounts, see §27-3-45.

Department of Revenue’s bidding at income tax sales, see §27-7-63.

Conduct of sale of land for taxes, see §27-41-59.

Land commissioner’s recording of tax sales to state, see §29-1-21.

RESEARCH REFERENCES

Am. Jur.

72 Am. Jur. 2d, State and Local Taxation §§ 857-858 (purchase by state or municipality).

CJS.

85 C.J.S., Taxation § 1451 et seq.

§ 27-3-45. Settlements with State Treasurer’s reports to State Auditor of public accounts.

The Department of Revenue shall settle with the State Treasurer, and pay over daily to the State Treasurer all monies collected by it each day; and it shall make a report to the State Auditor at the end of the fiscal year, giving a full account of all collections by it under the provisions of Sections 27-3-33, 27-3-37, 27-3-39, 27-3-43, 27-3-47 and 27-3-71 during the preceding fiscal year and of whom and on whose account collected. For a failure to render such account and settle and pay over all collections made by it, as required by law, the Commissioner of Revenue shall be suspended from office by the Governor in the same manner as in the case of a defaulting State Treasurer.

HISTORY: Codes, 1942, § 9213-12; Laws, 1962, ch. 588, § 12; Laws, 1984, ch. 478, § 7; Laws, 2009, ch. 492, § 24, eff from and after July 1, 2010.

Editor’s Notes —

Laws of 2009, ch. 492, § 146 provides:

“SECTION 146. Section 145 of this act shall take effect and be in force from and after July 1, 2009, and the remainder of this act shall take effect and be in force from and after July 1, 2010.”

Laws of 1984, ch. 478, § 3, effective July 1, 1984, provides:

“SECTION 3. For purpose of this section, requirements that funds be deposited on the same day “collected” shall mean when remittances of tax collections and reports in connection therewith shall have been subjected to only minimum essential but expeditious processing.”

Laws of 1984, ch. 478, § 35, effective July 1, 1984, provides:

“SECTION 35. The provisions of this act shall control if in conflict with any other statute, the operation of which would tend to frustrate the purposes of this act.”

Section 7-7-2 provides that the words “State Auditor of Public Accounts,” “State Auditor,” and “Auditor” appearing in the laws of this state in connection with the performance of Auditor’s functions shall mean the State Fiscal Officer.

Section 27-104-6 provides that whenever the term “State Fiscal Officer” appears in any law it shall mean “Executive Director of the Department of Finance and Administration”.

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

Amendment Notes —

The 2009 amendment, effective July 1, 2010, substituted “Department of Revenue” for “State Tax Commission”, “State Auditor” for “auditor of public accounts”, and “Commissioner of Revenue” for “State Tax Commission.”

Cross References —

Suspension of defaulting tax collector, see §7-1-57.

RESEARCH REFERENCES

Am. Jur.

72 Am. Jur. 2d, State and Local Taxation § 769 (rights, duties and liabilities of collectors and sureties with respect to remitting payment).

§ 27-3-47. Political subdivisions of state not chargeable with fees; fees not to be deducted from certain funds.

No county, municipality, drainage district, levee board, or other administrative body, shall be chargeable with any fees or expenses on account of any investigation, demand or suit made or instituted by the Commissioner of Revenue; nor shall any fees or commissions be deducted or retained from any funds collected for or belonging to the state, any county, municipality, drainage district, levee district or other political subdivision, from any state or any other subdivision or department thereof. Nothing in this section shall be construed, however, to prohibit the Commissioner of Revenue from expending funds appropriated for the support of the Department of Revenue in administering the provisions hereof, and in making investigations and demands and bringing and maintaining suits and other actions hereunder.

HISTORY: Codes, 1942, § 9213-14; Laws, 1962, ch. 588, § 14; Laws, 2009, ch. 492, § 25, eff from and after July 1, 2010.

Editor’s Notes —

Laws of 2009, ch. 492, § 146 provides:

“SECTION 146. Section 145 of this act shall take effect and be in force from and after July 1, 2009, and the remainder of this act shall take effect and be in force from and after July 1, 2010.”

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

Amendment Notes —

The 2009 amendment, effective July 1, 2009, substituted “Commissioner of Revenue” for “State Tax Commission” throughout and substituted “for the support of the Department of Revenue” for “for its support” in the last sentence.

Cross References —

Suspension of Commissioner of Revenue for failure to render accounts and settle accounts, see §27-3-45.

§ 27-3-49. Commissioner of Revenue to investigate taxation and make recommendations to legislature.

The Commissioner of Revenue shall investigate all matters of taxation and recommend to the Legislature, at each regular session, such changes and alterations in the tax laws of the state as in his judgment he may deem best to bring about a more perfect, equitable, adequate, just and thorough system of taxation and valuation of property for state and county taxation.

HISTORY: Codes, Hemingway’s 1917, § 7764; 1930, § 7008; 1942, § 9208; Laws, 1916, ch. 98; Laws, 1970, ch. 541, § 1; Laws, 2009, ch. 492, § 26, eff from and after July 1, 2010.

Editor’s Notes —

Laws of 2009, ch. 492, § 146 provides:

“SECTION 146. Section 145 of this act shall take effect and be in force from and after July 1, 2009, and the remainder of this act shall take effect and be in force from and after July 1, 2010.”

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

Amendment Notes —

The 2009 amendment, effective July 1, 2010, substituted “Commissioner of Revenue” for “State Tax Commission” and made minor stylistic changes.

§ 27-3-51. Annual visits to each county of the state; information concerning realty transfers; requests for and verification of realty sales data.

  1. In order that the Commissioner of Revenue may be familiar with the character and values of the several classes of property within each of the several counties of the state and of the economic conditions therein, and throughout the state, the Commissioner of Revenue, or his designees, shall annually visit each of the several counties of the state. In the course of his visitation within each county, the Commissioner of Revenue, or his designees, shall perform the duties enumerated in Sections 27-3-39 and 27-3-53, and he shall investigate the work and methods adopted by the board of supervisors and county tax assessors and confer with such officers and other well-informed persons, ascertain wherein existing laws are defective or improperly or negligently administered and shall be authorized to exercise the authority granted under Sections 27-1-21 and 27-1-23. However, any language in Section 27-1-21 and Section 27-1-23 relative to the actual assessing or appraising of property by the county or municipal tax assessor is not granted to the Commissioner of Revenue. He shall report the results of his investigation and the facts ascertained to the Governor, from time to time, when required by him, and to each session of the Legislature.
  2. The chancery clerk shall require that the current mailing address and current business or employment telephone number, if any, and current residential telephone number, if any, of each grantor and grantee be included on all deeds as a prerequisite for the deed to be filed for record after July 1, 1987. If the residential telephone number is unlisted, the grantor or grantee shall include on the deed a telephone number where he or she can be reached during business hours. If the grantee may receive mail at the address of the property transferred, then the address of the transferred property shall be the mailing address of the grantee for the purposes of this section. The information provided by the grantor and grantee shall be true and correct and complete to the best of his or her knowledge and belief under penalty of perjury under Section 97-9-61. The chancery clerk may refuse to accept delivery of any deed for filing that does not contain on the deed the information required in this section. The fact that the information provided by the grantor or grantee may be incorrect, incomplete or false, however, shall not invalidate the deed or the filing thereof for record. The Commissioner of Revenue shall annually audit the deeds filed with the chancery clerk of each county and assess a penalty of One Hundred Dollars ($100.00) against the county for each deed filed in violation of this section, and the aggregate of such sum shall be withheld by the Commissioner of Revenue from the next installment of homestead exemption reimbursement due under Section 27-33-41.
  3. The Commissioner of Revenue or his designees are hereby authorized to verify sales data regarding the transfer of real property by obtaining such information from the grantor or grantee. The information provided by the grantor or grantee to the Commissioner of Revenue or his designee shall be true, correct and complete to the best of his or her knowledge and belief under penalty of perjury under Section 97-9-61. Any information obtained in this manner shall be shared with the county tax assessors and used only for the purpose of valuing property.
  4. The Commissioner of Revenue may request sales data of Class I and Class II property from the county tax assessors in order to develop sales ratios. If a county tax assessor fails to supply accurate information requested by the Commissioner of Revenue, the commissioner shall reject the county’s tax roll. The avails of the one (1) mill levy as provided for in Section 27-39-329(2)(b) shall not be expended until the county complies with such request.

HISTORY: Codes, Hemingway’s 1917, § 7768; 1930, § 7009; 1942, §§ 9198, 9209; Laws, 1916, ch. 98; Laws, 1932, ch. 119; Laws, 1938, ch. 150; Laws, 1980, ch. 505, § 11, ch. 561, § 12; Laws, 1987, ch. 507, § 1; Laws, 1987, ch. 517; Laws, 2009, ch. 492, § 27, eff from and after July 1, 2010.

Editor’s Notes —

Laws of 2009, ch. 492, § 146 provides:

“SECTION 146. Section 145 of this act shall take effect and be in force from and after July 1, 2009, and the remainder of this act shall take effect and be in force from and after July 1, 2010.”

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

Amendment Notes —

The 2009 amendment, effective July 1, 2010, substituted “Commissioner of Revenue” for “State Tax Commission” throughout; rewrote the second and third sentences in (1); and made minor stylistic changes.

Cross References —

Requirement that commissioners keep informed of the work of the assessors and supervisors in the various counties, see §27-3-31.

JUDICIAL DECISIONS

1. In general.

Where the record title holder’s true address was never on the quitclaim deed because the record title holder’s cousin purchased the property in the record title holder’s name and the record title holder intentionally gave the record title holder’s daughter’s address instead of the record title holder’s own address; the tax sale was valid in spite of the failure of the clerk to send notice of the tax sale to the record title holder’s address, the tax deed properly vested title in the purchaser at the tax sale, the purchaser’s subsequent quitclaim deed to the buyers was valid, all clouds upon the title to the property were removed and canceled, and the title to the property was properly vested in the buyers. Rush v. Wallace Rentals, LLC, 837 So. 2d 191, 2003 Miss. LEXIS 40 (Miss. 2003).

§ 27-3-52. Counties to have certified appraisal personnel; continuing education; increases in compensation.

  1. The Department of Revenue shall promulgate rules and regulations setting forth the minimum requirements for which tax assessors and/or their deputy assessors or assistants, appropriate state employees, employees of planning and development districts or other persons may attain certification as an appraiser. The Department of Revenue shall establish and conduct such educational and training programs as may be appropriate to assist such persons in attaining such certification.
  2. Counties having not more than five thousand (5,000) applicants for homestead exemption shall have at least one (1) certified appraiser, and counties having more than five thousand (5,000) applicants for homestead exemption shall have at least two (2) certified appraisers; however, any county may employ any certified appraiser on a part-time basis.
  3. When any tax assessor and/or his deputies or assistants travel outside of their county to attend an appraisal school, seminar or workshop approved by the Department of Revenue, such persons shall receive as reimbursement of expenses of such travel the same mileage and actual and necessary expenses for food, lodging and travel by public carrier or private motor vehicles as is allowed under Section 25-3-41. However, mileage shall not be authorized when such travel is done by a motor vehicle owned by the county.
  4. The county board of supervisors shall reimburse the assessors, tax collectors and deputies for reasonable and necessary expenses sustained in attending annual conferences, regional conferences, schools and seminars. The Department of Revenue shall have the authority to prescribe forms and to promulgate rules and regulations necessary to implement the provisions of this section. No expenses authorized herein shall be reimbursed unless the expenses have been authorized or approved by an order of the board duly made and spread upon the minutes of such board.
  5. When any tax assessor and/or his deputies or assistants attend and successfully complete all qualifications pursuant to the Mississippi Education and Certification Program and receive the certification level of Track II, Evaluator I, they shall receive an additional Two Thousand Dollars ($2,000.00) annually beginning the next fiscal year after completion.
  6. When any tax assessor and/or his deputies or assistants attend and successfully complete all qualifications pursuant to the Mississippi Education and Certification Program and receive the certification level of Track II, Evaluator II, they shall receive an additional Two Thousand Dollars ($2,000.00) annually beginning the next fiscal year after completion.
  7. When any tax assessor and/or his deputies or assistants attend and successfully complete all qualifications pursuant to the Mississippi Education and Certification Program and receive the certification level of Mississippi Assessment Evaluator (MAE), they shall receive an additional Two Thousand Five Hundred Dollars ($2,500.00) annually beginning the next fiscal year after completion.
  8. When any deputy tax assessor successfully completes all qualifications to become a licensed certified residential real estate appraiser under Sections 73-34-1 through 73-34-63, or completes all qualifications to earn the International Association of Assessing Officers’ professional designation of Residential Evaluation Specialist (RES), on the recommendation of the tax assessor, the county board of supervisors may pay, in its discretion, an additional amount not to exceed Three Thousand Dollars ($3,000.00) annually to the deputy beginning the next fiscal year after the completion of such qualifications.
  9. When any deputy tax assessor successfully completes all qualifications to become a licensed certified general real estate appraiser under Sections 73-34-1 through 73-34-63, or completes all qualifications to earn the International Association of Assessing Officers professional designation of Certified Assessment Evaluator (CAE) on the recommendation of the tax assessor, the county board of supervisors may pay, in its discretion, an additional amount not to exceed Five Thousand Dollars ($5,000.00) annually to the deputy beginning the next fiscal year after the completion of such qualifications.
  10. The accumulative total of all educational increases authorized under subsections (5), (6), (7), (8) and (9) of this section shall not exceed Eleven Thousand Five Hundred Dollars ($11,500.00) and shall be paid out of the common county fund from proceeds of the one (1) mill ad valorem tax as provided in Section 27-39-329.
  11. In order to receive the additional annual payment or payments provided for in subsections (5), (6), (7), (8) and (9) of this section, the tax assessor or deputies or assistants who completed the Mississippi Education and Certification Program and were certified as provided herein shall be personally involved in the conduct, administration and/or supervision of the appraisal of the property of the county and in the maintenance of such appraisal.

HISTORY: Laws, 1980, ch. 505, § 12; Laws, 1984, ch. 470; Laws, 1987, ch. 507, § 2; Laws, 1989, ch. 517, § 6; Laws, 1990, ch. 447, § 1; Laws, 1997, ch. 414, § 1; Laws, 2003, ch. 468, § 4; Laws, 2009, ch. 492, § 28, eff from and after July 1, 2010; Laws, 2019, ch. 337, § 1, eff from and after July 1, 2019.

Editor’s Notes —

Laws of 2009, ch. 492, § 146 provides:

“SECTION 146. Section 145 of this act shall take effect and be in force from and after July 1, 2009, and the remainder of this act shall take effect and be in force from and after July 1, 2010.”

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

Amendment Notes —

The 2009 amendment, effective July 1, 2010, substituted “Department of Revenue” for “State Tax Commission” throughout; designated the previously undesignated second, fourth and sixth through eleventh paragraphs as (2), (4) and (6) through (11) respectively and redesignated the remaining subsections accordingly; and rewrote (10) and (11).

The 2019 amendment substituted “Two Thousand Dollars ($2,000.00)” for “One Thousand Dollars ($1,000.00)” in (5) and (6); substituted “Two Thousand Five Hundred Dollars ($2,500.00)” for “One Thousand Five Hundred Dollars ($1,500.00)” in (7); inserted “or completes all qualifications...Residential Evaluation Specialist (RES)” in (8); inserted “or completes all qualifications...Certified Assessment Evaluator (CAE)” in (9); and substituted “Eleven Thousand Five Hundred Dollars ($11,500.00)” for “Eight Thousand Five Hundred Dollars ($8,500.00)” in (10).

Cross References —

County ad valorem tax levy for payment of bonds or notes and for other authorized purposes, see §27-39-329.

OPINIONS OF THE ATTORNEY GENERAL

State Tax Commission has power to promulgate rules and regulations setting up required education and training programs for appraisers. Barnes, Oct. 28, 1992, A.G. Op. #92-0770.

Under subsection (1), appraisers must be employees of the county, not contract appraisers. Stringer, July 19, 2002, A.G. Op. #02-0352.

A private for-profit company or individual who is not a deputy tax-assessor may not obtain certification pursuant to §27-3-52. Barber, Oct. 3, 2002, A.G. Op. #02-0374.

A private for-profit company or individual cannot be exempt from §73-34-5 and practice real estate appraisal without a license as an appraiser under §27-3-52. Barber, Oct. 3, 2002, A.G. Op. #02-0374.

The board of supervisors must determine, in accordance with fact, whether an individual making a claim for additional compensation pursuant to subsection (3) of this section has satisfied the two conditions precedent which entitle the individual to that compensation. Carroll, Sept. 3, 2004, A.G. Op. 04-0411.

Even though a county board of supervisors faced an extreme financial crisis as a result of Hurricane Katrina, as a matter of law, given the mandatory language Section 27-3-52, there was no authority for the board to exercise discretion in the awarding of compensation increases provided therein. Meadows, Nov. 14, 2005, A.G. Op. 05-0551.

§ 27-3-53. Informational forms.

The Department of Revenue shall prepare and furnish forms for obtaining the information hereinafter provided for, whenever they may deem it necessary

Amount of fire insurance carried on all buildings and on personal property of every description.

All individuals, firms, partnerships and corporations engaged wholly or in part in mercantile, manufacturing or any other business, (except banks and insurance companies) occupation or calling, shall, on demand by the Department of Revenue in writing, furnish a sworn statement of their taxable property, as of January first of each year; and of their assets and liabilities on that date. Any person or concern failing or refusing to furnish the information required within thirty (30) days after written notice so to do from the Department of Revenue shall be guilty of a misdemeanor, and on conviction shall be punished as for a misdemeanor. The information herein provided for shall be confidential, and shall not be given anyone by the Department of Revenue, except to county and municipal tax assessors. And for the illegal disclosure of any information provided for under this section, the injured party shall have a right of action against the Commissioner of Revenue or the assessor, on their or his official bond, for any actual damages sustained.

HISTORY: Codes, Hemingway’s 1921 Supp. §§ 7769g, 7769h; 1930, § 7010; 1942, § 9210; Laws, 1918, ch. 228; Laws, 2009, ch. 492, § 29, eff from and after July 1, 2010.

Editor’s Notes —

Laws of 2009, ch. 492, § 146 provides:

“SECTION 146. Section 145 of this act shall take effect and be in force from and after July 1, 2009, and the remainder of this act shall take effect and be in force from and after July 1, 2010.”

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

Amendment Notes —

The 2009 amendment, effective July 1, 2010, substituted “Department of Revenue” for “State Tax Commission”and “Commissioner of Revenue or the assessor” for “State Tax Commission or the assessor”; and made minor stylistic changes throughout.

Cross References —

Gathering and recording data by tax assessors, see §27-1-19.

Performance of duties enumerated in this section by Commissioner of Revenue or his designees during annual visits to counties, see §27-3-51.

Notice, hearing, and rights of taxpayer with regard to confidentiality of state and federal personal income tax returns, see §27-7-83.

§ 27-3-55. Repealed.

Repealed by Laws of 2009, ch. 492 § 143, effective from and after July 1, 2010.

§27-3-55. [Codes, Hemingway’s 1921 Supp. § 7769e; 1930, § 7011; 1942, § 9211; Laws, 1918, ch. 228.]

Editor’s Notes —

Former §27-3-55 was entitled: Publication of revenue laws.

§ 27-3-57. Deposit of funds; apportionment of collections; bonding.

All funds collected by the Commissioner of Revenue and by the Department of Revenue under the provisions of any law are designated as public funds of the State of Mississippi. All such funds shall be deposited in the State Treasury on the same day in which the funds are collected, in accordance with Section 7-9-21. The State Treasurer shall transfer such monies to municipalities, counties and other special accounts, as provided by law.

The Commissioner of Revenue shall determine amounts due all municipalities, counties and such special funds as provided by law and shall certify to the State Treasurer at the end of each month the amount due each municipality, county or special fund. All tax collections to be apportioned by the Department of Revenue pursuant to Sections 27-65-75, 27-19-159, 27-5-101 and 27-5-103 shall be distributed to the proper sources as provided by law by the State Treasurer upon the certification of apportionment by the Department of Revenue. The State Treasurer shall requisition monies from the Treasury in such amounts as determined and certified by the Department of Revenue. The Department of Finance and Administration shall deliver the warrant to the State Treasurer who shall transfer such funds to each municipality, county or other such special fund by warrant or by electronic funds transfer on the due date.

Officers charged with the responsibility of handling such funds shall be required to provide fidelity bonds in the amount provided by law.

HISTORY: Codes, 1942, § 9213.5; Laws, 1958, ch 582; Laws, 1979, ch. 417, § 2, 1984, ch. 478, § 8; Laws, 2009, ch. 492, § 30, eff from and after July 1, 2010.

Editor’s Notes —

Laws of 2009, ch. 492, § 146 provides:

“SECTION 146. Section 145 of this act shall take effect and be in force from and after July 1, 2009, and the remainder of this act shall take effect and be in force from and after July 1, 2010.”

Laws of 1984, ch. 478, § 3, effective July 1, 1984, provides:

“SECTION 3. For purpose of this section, requirements that funds be deposited on the same day “collected” shall mean when remittances of tax collections and reports in connection therewith shall have been subjected to only minimum essential but expeditious processing.”

Laws of 1984, ch. 478, § 35, effective July 1, 1984, provides:

“SECTION 35. The provisions of this act shall control if in conflict with any other statute, the operation of which would tend to frustrate the purposes of this act.”

Section 7-7-2 provides that the words “State Auditor of Public Accounts,” “State Auditor,” and “Auditor” appearing in the laws of this state in connection with the performance of Auditor’s functions shall mean the State Fiscal Officer.

Section 27-104-6 provides that whenever the term “State Fiscal Officer” appears in any law it shall mean “Executive Director of the Department of Finance and Administration”.

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

Amendment Notes —

The 2009 amendment, effective July 1, 2010, substituted “Commissioner of Revenue” for “ chairman of the State Tax Commission” , “Department of Revenue” for “state tax commission” and “Department of Finance and Administration” for “State Auditor” throughout the section.

Cross References —

Deposit of gasoline tax funds collected by the Department of Revenue, see §27-55-47.

Deposit of funds collected pursuant to tax on lubricating oils, see §27-57-35.

Deposit of taxes collected on the use of natural gas, compressed gas, and locomotive fuels, see §27-59-321.

State depositories, see §27-105-1 et seq.

§ 27-3-58. Department of Revenue authorized to retain portion of proceeds collected from tax levied under authority of local and private law.

For any tax levied and collected under the authority of a local and private law of the State of Mississippi, and collected and paid to the Department of Revenue in the same or similar manner that state sales taxes are collected and paid, the Department of Revenue may retain three percent (3%) of the proceeds of such tax for the purpose of defraying the costs incurred by the Department of Revenue in the collection of the tax.

HISTORY: Laws, 2002, ch. 460, § 1; Laws, 2009, ch. 492, § 31, eff from and after July 1, 2010.

Editor’s Notes —

Laws of 2009, ch. 492, § 146 provides:

“SECTION 146. Section 145 of this act shall take effect and be in force from and after July 1, 2009, and the remainder of this act shall take effect and be in force from and after July 1, 2010.”

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

Amendment Notes —

The 2009 amendment, effective July 1, 2010, substituted “Department of Revenue” for “State Tax Commission” throughout the section.

§ 27-3-59. Assessors’ and collectors’ conferences.

It shall be the duty of the Department of Revenue to call an annual conference of the county tax assessors and collectors. The meeting shall be held within the State of Mississippi for the purpose of giving systematic instruction in finding, listing and for the fair and just valuation and assessment of every kind of property subject to taxation under the laws of this state, and as to their practical duty in every step in connection therewith and for instruction in the administration of the Homestead Exemption Law. The conference shall continue not more than five (5) days. It shall be the duty of every county tax assessor and collector to attend and participate in the meeting and if by reason of illness or other unavoidable cause, any tax assessor or collector is unable to attend, he shall require one (1) of his deputies to attend and participate in his place. The Department of Revenue shall prepare, in advance, subjects for discussion by the conference, which shall include the revenue laws of the state, questions relating to matters of assessment of property for taxation and the duties of the tax assessors and collectors, and the Commissioner of Revenue or his designee shall preside as chairman of the conference and the secretary of the conference shall be appointed by the presiding chairman of the conference. The Department of Revenue may call regional conferences during the year for the aforesaid purposes and it shall be the duty of the tax assessors and collectors, or deputies, to attend and participate in these regional conferences and each tax assessor and collector, or his deputy, who attends and participates in these regional conferences shall be reimbursed for his expenses in the same manner as those attending the annual conference.

Each tax assessor and collector attending and participating in the annual or regional conferences in person, or by deputy, shall be entitled to receive as expenses for attending the conferences, travel, meals, lodging and other necessary expenses at the rate provided for in Section 25-3-41, which expenses shall be paid from the county general fund or proceeds from the levy imposed for the maintenance of the reappraisal program in such county.

The Department of Revenue shall have the authority to prescribe forms and to promulgate rules and regulations necessary to implement the provisions of this section.

Forms to be used for payment and reimbursement of expenses and forms of certificate of attendance to be furnished the tax assessors and collectors by the Department of Revenue, requisition and expense vouchers to be made on the State Auditor, the entire expense to be paid from the county general fund. The requisition and voucher shall be supported by a certificate of attendance to the conferences from the Department of Revenue before any payment shall be made. A newly elected county tax assessor or collector who has not qualified and taken office shall be entitled to receive the same payment and reimbursement for expenses in attending the conferences as the retiring county tax assessor or collector is entitled to receive.

HISTORY: Codes, 1930, § 7017; 1942, § 9214; Laws, 1930, ch. 238; Laws, 1950, ch. 274; Laws, 1966, ch. 552, § 1; Laws, 1972, ch. 358, § 1; Laws, 1986, ch. 500, § 6; Laws, 2009, ch. 492, § 32, eff from and after July 1, 2010.

Editor’s Notes —

Laws of 2009, ch. 492, § 146 provides:

“SECTION 146. Section 145 of this act shall take effect and be in force from and after July 1, 2009, and the remainder of this act shall take effect and be in force from and after July 1, 2010.”

Section 7-7-2 provides that the words “State Auditor of Public Accounts,” “State Auditor,” and “Auditor” appearing in the laws of this state in connection with the performance of Auditor’s functions shall mean the State Fiscal Officer.

Section 27-104-6 provides that whenever the term “State Fiscal Officer” appears in any law it shall mean “Executive Director of the Department of Finance and Administration”.

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

Amendment Notes —

The 2009 amendment, effective July 1, 2010, substituted “Department of Revenue” for “State Tax Commission” and “the Commissioner of Revenue or his designee” for “(1) member of the Tax Commission” in the fifth sentence of the first paragraph.

Cross References —

Tax assessors and collectors, see §27-1-1 et seq.

County regulation of minimum requirements for certification of tax assessor as appraiser, see §27-3-52.

§ 27-3-61. Filing, preservation and disposition of records; digital or electronic preservation; destruction of paper record after digital or electronic preservation.

  1. The Department of Revenue and the Commissioner of Revenue shall file and preserve for the time specified by this section, and as required by any other laws of this state, complete and full records of their official acts with respect to the laws which the Department of Revenue and/or the Commissioner of Revenue are required to enforce and administer, including, but not limited to, copies or reproductions of such copies of the land and personal assessment rolls, and the assessment rolls of railroads and other persons, corporations and associations required to be assessed by the Commissioner of Revenue as the state assessor of railroad. The Department of Revenue and the Commissioner of Revenue shall preserve, in their office, copies or reproductions of such copies of the land assessment rolls of the counties in this state for ten (10) years, and copies or reproductions of such copies of the personal assessment rolls of the counties in this state for three (3) years, the time to begin on the first day of January of the year in which such assessment rolls were made, the assessment rolls of railroads, persons, corporations or associations assessed by the commissioner for ten (10) years, and all other records, documents and papers for three (3) years. The records and documents required by this subsection to be filed and preserved by the Department of Revenue and the Commissioner of Revenue may be preserved digitally and/or electronically.
  2. When the records, documents, rolls, or reproductions of such rolls, papers and correspondence have been preserved by the Department of Revenue and the Commissioner of Revenue for the period of time required by subsection (1) of this section, all of the records, or such parts thereof as may be considered useless, may be disposed of in accordance with approved records control schedules. No records, however, may be destroyed without the approval of the Director of the Department of Archives and History. Nothing in this subsection shall prevent the Department of Revenue and/or the Commissioner of Revenue from destroying the paper copy of any record or document after it has been preserved digitally or electronically.

HISTORY: Codes, 1942, §§ 9216, 9217; Laws, 1934, ch. 158; Laws, 1981, ch. 501, § 20; Laws, 1984, ch. 422, § 1; Laws, 2009, ch. 492, § 33, eff from and after July 1, 2010.

Editor’s Notes —

Laws of 2009, ch. 492, § 146 provides:

“SECTION 146. Section 145 of this act shall take effect and be in force from and after July 1, 2009, and the remainder of this act shall take effect and be in force from and after July 1, 2010.”

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

Amendment Notes —

The 2009 amendment, effective July 1, 2010, rewrote the section.

Cross References —

Archives and Records Management Law, generally, see §25-59-1 et seq.

For requirement that consent of director of department of archives and history be obtained prior to destruction of public records, see §§25-59-21,25-59-31.

JUDICIAL DECISIONS

1. In general.

Destruction by the tax commission of the original state income tax returns does not preclude a deficiency assessment by reason of a change in net income made by the Federal Internal Revenue Service. Davis v. Barr, 250 Miss. 54, 157 So. 2d 505, 1963 Miss. LEXIS 535 (Miss. 1963), cert. denied, 377 U.S. 965, 84 S. Ct. 1647, 12 L. Ed. 2d 736, 1964 U.S. LEXIS 1091 (U.S. 1964).

§ 27-3-63. Audit of books outside of state to determine tax liability.

When, in the judgment of the Department of Revenue, an audit, examination or inspection of the books, records, invoices, papers, memoranda or other data appears to be required or necessary to determine the assessment of a tax, or to establish a tax liability, or to verify a payment of a tax, under the income, any privilege, sales, and excise tax laws of any kind of this state, of a taxpayer doing business both within and without the state and maintaining his principal place of business outside the state; such audit, or examination, or inspection may be made at the principal place of business outside the state to the same extent and same effect as audits, examinations, or inspections are made of books, records, invoices, papers, memoranda or other data located in this state.

The Department of Revenue, when directly charged with the duty of assessing and collecting any tax under any law which requires a taxpayer to keep adequate books, records, papers, invoices, memoranda or other data, at a place in this state, reflecting his liability for any tax due the state, and which taxpayer conducts his business both within and without Mississippi, and maintains his principal place of business outside this state at which his books, records, etc., are located, may elect to audit, examine or inspect all books, records, papers, invoices, memoranda or other data reflecting upon the Mississippi tax assessment and tax liability at the principal place of business of the taxpayer, rather than require the taxpayer to transport all of his books, records, papers, invoices, memoranda and other data to some place in this state.

HISTORY: Codes, 1942, § 9218; Laws, 1942, ch. 126; Laws, 2009, ch. 492, § 34, eff from and after July 1, 2010.

Editor’s Notes —

Laws of 2009, ch. 492, § 146 provides:

“SECTION 146. Section 145 of this act shall take effect and be in force from and after July 1, 2009, and the remainder of this act shall take effect and be in force from and after July 1, 2010.”

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

At the direction of the co-counsel for the Joint Legislative Committee on Compilation, Revision and Publication of Legislation, a typographical error in the second paragraph was corrected by substituting “…are located, may elect to audit, examine or inspect all books…” for “are located; may elect to audit, examine or inspect all books…”

Amendment Notes —

The 2009 amendment, effective July 1, 2010, substituted “Department of Revenue” for “State Tax Commission” near the beginning of the first and second paragraphs.

§ 27-3-65. Audit of books outside state to determine tax liability; designation of agents to make audit.

When the Department of Revenue in the course of directly administering any of the tax laws enumerated in Section 27-3-63 shall elect to audit, examine or inspect the books, records, papers, invoices, memoranda or other data of a taxpayer at his principal place of business outside this state, it shall designate, in writing, the agent or agents, employee or employees, to make the audit, examination or inspection at the principal place of business of the taxpayer, and shall state the kind of tax for which the audit, examination or inspection is thereby made, but for an inspection in regard to those taxes administered by the Department of Revenue there shall be no charge of any kind made against the taxpayer for the expenses of such inspection.

HISTORY: Codes, 1942, § 9219; Laws, 1942, ch. 126; Laws, 1958, ch. 553; Laws, 2009, ch. 492, § 35, eff from and after July 1, 2010.

Editor’s Notes —

Laws of 2009, ch. 492, § 146 provides:

“SECTION 146. Section 145 of this act shall take effect and be in force from and after July 1, 2009, and the remainder of this act shall take effect and be in force from and after July 1, 2010.”

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

Amendment Notes —

The 2009 amendment, effective July 1, 2010, substituted “Department of Revenue” for “State Tax Commission” throughout the section.

§ 27-3-67. State taxing agency to have access to confidential information of other state taxing agencies.

  1. Any agency, instrumentality or department of the State of Mississippi, which is charged by law with the collection of any taxes or fees whatsoever, shall be entitled, under the conditions hereinafter set forth, to have access to and obtain information from the books and records of any other agency, instrumentality or department of the state which is also charged by law with the collection of any taxes or fees whatsoever, if the purpose for which the information is sought or desired relates to and is connected with the statutory or constitutional duties of the agency, instrumentality or department desiring or seeking same.
  2. In order to be entitled to have access to and obtain information from the books and records of such other agency, instrumentality or department, the head of the agency, instrumentality or department desiring and seeking same shall make request therefor, in writing, to the Governor of the State of Mississippi, which request shall specify in detail the information sought and desired, and shall contain a full statement of the purpose for which such information is sought. If the Governor be of the opinion that the request relates to and is connected with the statutory or constitutional duties of the agency, instrumentality or department seeking same, and that such request is proper and reasonable and should be granted, then he shall transmit such request to the head of the agency, instrumentality or department from which the information is desired, together with his direction, in writing, that the information requested be furnished or that access to the books and records be given.
  3. The Governor shall have full and complete discretion to determine whether any request submitted to him shall be approved or disapproved, and his decision thereon shall be final; and he shall have the authority to approve same in part and disapprove same in part, and the authority to prescribe the manner in which the requested information shall be furnished and the terms and conditions under which access to the books and records shall be had.
  4. The terms and provisions of this section shall apply only to such books and records as are by statute or by their nature confidential and privileged, and shall not apply to such books and records as are declared by law to be, or are by their nature, public records, or records which are not confidential and privileged, and such records which are public records or not declared by law to be, or are not by their nature, confidential and privileged, may be inspected and information obtained therefrom as a matter of course without following the procedure herein prescribed.

HISTORY: Codes, 1942, § 9217.5; Laws, 1946, ch. 232, §§ 1-4.

Cross References —

Notice, hearing, and rights of taxpayer with regard to confidentiality of state and federal personal income tax returns, see §27-7-83.

§ 27-3-69. Recovery of interest and penalties; apportionment.

All penalties or interest and all penalties and interest imposed or authorized to be imposed by any state law or municipal ordinance, accrued or which may accrue hereafter, shall be recoverable by the officer authorized to sue for or collect the tax in respect to which said penalties or interest are imposed or authorized to be collected as a part of the tax with respect to which they are imposed or authorized to be collected, and all such penalties and interest shall be apportioned as provided for the apportionment of the tax on which such penalties or interest are collected.

HISTORY: Codes, 1942, § 9186.5; Laws, 1954, ch. 388, § 1.

Cross References —

Prosecutions and actions by Commissioner of Revenue for defaults and violations under tax laws, see §27-3-33.

Apportionment of gasoline taxes, see §27-5-101.

RESEARCH REFERENCES

ALR.

Debts arising from tax penalties as exceptions to bankruptcy discharge under § 523(a)(7)(A) and (B) of Bankruptcy Code of 1978 (11 U.S.C.S. § 523(a)(7)(A) and (B)). 157 A.L.R. Fed. 313.

Am. Jur.

72 Am. Jur. 2d, State and Local Taxation § 738 et seq. (penalties, interest and costs).

CJS.

85 C.J.S., Taxation § 1851 et seq.

§ 27-3-71. Transfer of other powers and duties.

  1. Any other duties and powers heretofore vested in the office of the State Tax Collector not specifically transferred to the State Tax Commission or specifically repealed by Chapter 588, Laws of 1962, are transferred to and vested in the State Tax Commission, and any and all fees, commissions or other remuneration heretofore authorized to be retained by the state tax collector out of any moneys collected by said office shall be paid into the State Treasury or to the proper officer of the political subdivision entitled thereto, as the case may be.
  2. The powers formerly vested in the office of the State Tax Collector which have been transferred to and vested in the State Tax Commission shall be deemed to be cumulative and supplemental to all other powers conferred by law upon said State Tax Commission and the members thereof and shall not be construed so as to supersede, repeal or annul any other power or authority conferred upon the State Tax Commission or any member thereof by virtue of any other statute.

HISTORY: Codes, 1942, §§ 9213-18, 9213-19; Laws, 1962, ch. 588, §§ 27, 28, eff from and after January 1, 1964.

Editor’s Notes —

Section 27-3-4 provides that the term “State Tax Commission” shall mean “Department of Revenue.”

At the direction of the co-counsel for the Joint Legislative Committee on Compilation, Revision and Publication of Legislation, an error in (1) was corrected by substituting “Chapter 588, Laws of 1962” for “this act.”

Cross References —

Suspension of members of Department of Revenue for failure to render accounts and settle accounts, see §27-3-45.

§ 27-3-73. Secrecy of tax returns; release of certain information about individuals who are delinquent in payment of child support or under investigation for fraud or abuse of state or federal program.

  1. Except in accordance with proper judicial order or as otherwise provided in this section or as authorized in Section 27-4-3, it shall be unlawful for the Commissioner of Revenue, or any deputy, agent, clerk or other officer or employee of the Department of Revenue, to divulge or make known in any manner the amount of income or any particulars set forth or disclosed in any report or return required on any taxes collected by reports received by the Department of Revenue. This provision relates to all taxes collected by the Department of Revenue and not referred to in Sections 27-7-83, 27-13-57 and 27-65-81, requiring confidentiality of income tax, franchise tax and sales tax returns. All system edits, thresholds, and any other automated system calculations used by the Department of Revenue in the processing of returns or statistics or used to determine the correct tax due for all taxes administered by the department shall be considered confidential information and may not be divulged or made known. Nothing in this section shall be construed to prohibit the publication of statistics, so classified as to prevent the identification of particular reports or returns and the items thereof, or the inspection by the Attorney General, or any other attorney representing the state, of the report or return of any taxpayer who shall bring action to set aside the tax thereon, or against whom an action or proceeding has been instituted to recover any tax or penalty imposed. Additionally, nothing in this section shall prohibit the Commissioner of Revenue from making available information necessary to recover taxes owing the state pursuant to the authority granted in Section 27-75-16.

    The term “proper judicial order” as used in this section shall not include subpoenas or subpoenas duces tecum but shall include only those orders entered by a court of record in this state after furnishing notice and a hearing to the taxpayer and the Department of Revenue. The court shall not authorize the furnishing of such information unless it is satisfied that the information is needed to pursue pending litigation wherein the return itself is in issue, or the judge is satisfied that the need for furnishing the information outweighs the rights of the taxpayer to have such information secreted.

    However, information relating to possible tax liability to other states or the federal government may be furnished to the revenue departments of those states or the federal government when the states or federal government grant a like comity to Mississippi.

  2. The State Auditor and the employees of his office shall have the right to examine only such tax returns as are necessary for auditing the Department of Revenue, and the same prohibitions against disclosure which apply to the Department of Revenue shall apply to the State Auditor and his office.
  3. Officers and employees of the Mississippi Development Authority who execute a confidentiality agreement with the Department of Revenue shall be authorized to discuss and examine information to which this section applies at the offices of the Mississippi Department of Revenue. This disclosure is limited to information necessary to properly administer the programs under the jurisdiction of the Mississippi Development Authority. The Department of Revenue is authorized to disclose to officers and employees of the Mississippi Development Authority who execute a confidentiality agreement the information necessary under the circumstances. The same prohibitions against disclosure which apply to the Department of Revenue shall apply to the officers or employees of the Mississippi Development Authority.
  4. Information required by the University Research Center to prepare the analyses required by Sections 57-13-101 through 57-13-109 shall be furnished to the University Research Center upon request. It shall be unlawful for any officer or employee of the University Research Center to divulge or make known in any manner the amount of income or any particulars set forth or disclosed in any information received by the center from the Department of Revenue other than as may be required by Sections 57-13-101 through 57-13-109 in an analysis prepared pursuant to Sections 57-13-101 through 57-13-109.
  5. Information required by the Mississippi Development Authority to prepare the reports required by Section 57-1-12.2 shall be furnished to the Mississippi Development Authority upon request. It shall be unlawful for any officer or employee of the Mississippi Development Authority to divulge or make known in any manner the amount of income or any particulars set forth or disclosed in any information received by the Mississippi Development Authority from the Department of Revenue other than as may be required by Section 57-1-12.2 in a report prepared pursuant to Section 57-1-12.2.
  6. Information necessary to comply with Chapter 13, Title 85 may be furnished to financial institutions. It shall be unlawful for any officer or employee of the financial institution to divulge or make known in any manner the amount of income or any particulars set forth or disclosed in any information received by the financial institution from the Department of Revenue other than as may be authorized by Chapter 13, Title 85.
  7. Any person who violates the provisions of this section shall be guilty of a misdemeanor and, on conviction thereof, shall be fined not more than One Thousand Dollars ($1,000.00) or imprisoned not more than six (6) months in the county jail, or both.
  8. The Commissioner of Revenue and the Department of Revenue are authorized to disclose to the Child Support Unit and to the Fraud Investigation Unit of the Department of Human Services without the need for a subpoena or proper judicial order the name, address, social security number, amount of income, amount of sales tax, source of income, assets and other relevant information, records and tax forms for individuals who are delinquent in the payment of any child support as defined in Section 93-11-101 or who are under investigation for fraud or abuse of any state or federal program or statute as provided in Section 43-1-23.

HISTORY: Laws, 1975, ch. 516, § 1; Laws, 1986, ch. 389; Laws, 1988, ch. 349, § 2; Laws, 2009, ch. 492, § 36; Laws, 2010, ch. 323, § 1; Laws, 2010, ch. 385, § 1; Laws, 2010, ch. 388, § 2; Laws, 2010, ch. 481, § 1; Laws, 2014, ch. 517, § 8; Laws, 2017, ch. 407, § 5, eff from and after July 1, 2017.

Joint Legislative Committee Note —

Section 1 of ch. 481, Laws of 2010, effective July 1, 2010 (approved April 7, 2010), amended this section. Section 1 of ch. 323, Laws of 2010, effective July 1, 2010 (approved March 15, 2010), Section 2 of ch. 388, Laws of 2010, effective July 1, 2010 (approved March 17, 2010), and Section 1 of ch. 385, Laws of 2010, effective July 1, 2010 (approved March 17, 2010), also amended this section. As set out above, this section reflects the language of Section 1 of ch. 481, Laws of 2010, which contains language that specifically provides that it supersedes §27-3-73 as amended by Laws of 2010, chs. 323, 385 and 388.

Pursuant to Section 1-1-109, the Joint Legislative Committee on Compilation, Revision and Publication of Legislation corrected typographical errors in the internal statutory references. The Joint Committee ratified the correction at its July 24, 2014, meeting.

Editor’s Notes —

Section 7-7-2 provides that the words “State Auditor of Public Accounts,” “State Auditor,” and “Auditor” appearing in the laws of this state in connection with the performance of Auditor’s functions shall mean the State Fiscal Officer.

Section 27-104-6 provides that whenever the term “State Fiscal Officer” appears in any law it shall mean “Executive Director of the Department of Finance and Administration”.

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

Amendment Notes —

The 2009 amendment, effective July 1, 2010, substituted “Department of Revenue” for “State Tax Commission” throughout, and made minor stylistic changes.

The first 2010 amendment (ch. 323) added the third sentence in (1).

The second 2010 amendment (ch. 385), in (1), in the first sentence, inserted “or as otherwise provided in this section,” and in the last two sentences, substituted “Nothing in this section” for “Nothing herein” and “Additionally, nothing in this section” for “Additionally, nothing herein,” respectively; and added (3) and redesignated former (3) as (4).

The third 2010 amendment (ch. 388), in the first paragraph in (1), inserted “or as authorized in Section 27-4-3” near the beginning of the first sentence, and substituted “in this section” for “herein” in the last two sentences.

The fourth 2010 amendment (ch. 481) deleted “Mississippi Code of 1972” at the end of the first paragraph of (1); and added (5).

The 2014 amendment added (4) and (5) and redesignated the remaining subsections accordingly.

The 2017 amendment added (6) and redesignated the remaining subsections accordingly.

Cross References —

Imposition of standard state assessment in addition to all court imposed fines or other penalties for any misdemeanor violation, see §99-19-73.

RESEARCH REFERENCES

ALR.

Validity, construction, and effect of state laws requiring public officials to protect confidentiality of income tax returns or information. 1 A.L.R.4th 959.

§ 27-3-75. Repealed.

Repealed by Laws of 2009, ch. 492, § 143, effective from and after July 1, 2010.

§27-3-75. [Laws, 1980, ch 505, § 13; Laws, 1984, ch. 488, § 176, eff from and after July 1, 1984.]

Editor’s Notes —

Former §27-3-75 authorized the state tax commission to contract for aerial photography in order to effectuate statewide reappraisal of property.

§ 27-3-77. Certain individual tax records exempt from public access requirement.

Records in the possession of a public body, as defined by paragraph (a) of Section 25-61-3 which would disclose information about a person’s individual tax payment or status, shall be exempt from the provisions of the Mississippi Public Records Act of 1983.

HISTORY: Laws, 1983, ch. 424, § 14, eff from and after July 1, 1983.

Editor’s Notes —

“The Mississippi Public Records Act of 1983”, referred to in this section, is Laws of 1983, ch. 424, §§ 1-9, which appears as §25-61-1 et seq.

OPINIONS OF THE ATTORNEY GENERAL

Gross salaries of state employees are considered to be matter of public record within meaning of Section 25-61-5(1) but net salaries and tax exemption status of state employees are exempt from public access under provisions of Section 27-3-77. Stringer, March 23, 1994, A.G. Op. #93-0900.

No state law would prevent the provision by a county tax collector/assessor of information as to the amount due or paid by an individual for a motor vehicle privilege license to the municipalities. Ray, Dec. 16, 2005, A.G. Op. 05-0560.

§ 27-3-79. Penalties for tax evasion; statute of limitations for tax evasion.

  1. The State Tax Commission shall develop and implement a tax amnesty program in accordance with the provisions of this section. The program shall begin on September 1, 2004, and end on December 31, 2004. The program shall apply to all taxes that are required to be collected by the State Tax Commission or commissioner and that were first due and payable for the year 1999 and after. Tax amnesty shall be available to any individuals or corporations who are liable for those taxes and who have failed to pay all or any portion of their taxes, failed to file returns or filed inaccurate returns; however, tax amnesty shall not be available to individuals or corporations subject to tax-related criminal investigations or prosecution, or where the taxes have been previously assessed by the commission, or to estimated tax payments required to be made under Section 27-7-319. All civil and criminal penalties for nonpayment of taxes, including the penalties set forth in subsection (2) of this section, shall be waived for any eligible individual or corporation who, during the tax amnesty period, makes total payment of the taxes due. The State Tax Commission is authorized to do all things necessary to carry out the tax amnesty programs that are not inconsistent with this section.
  2. Any person eligible for the tax amnesty program and who fails to make total payment of the taxes due during the tax amnesty period, or any person who willfully attempts in any manner to evade or defeat any tax imposed by the State Tax Commission or the Department of Revenue, or assists in the evading of that tax or the payment thereof, including violations determined under Section 27-3-80, shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, shall be fined not more than One Hundred Thousand Dollars ($100,000.00) and, in the case of a corporation, not more than Five Hundred Thousand Dollars ($500,000.00), or imprisoned not more than five (5) years, or both.
  3. Any prosecutions for tax evasion as described in this section shall be begun within six (6) years next after the statutory due date for the taxes in issue.

HISTORY: Laws, 1986, ch. 500, § 5; Laws, 1992, ch. 401, § 1; Laws, 2004, ch. 352, § 2; Laws, 2004, ch. 595, § 14; Laws, 2009, ch. 492, § 37, eff from and after July 1, 2010.

Joint Legislative Committee Note —

Section 2 of ch. 352 Laws of 2004, effective from and after July 1, 2004 (approved April 19, 2004), amended this section. Section 14 of ch. 595, Laws of 2004, effective from and after July 1, 2004 (approved May 27, 2004), also amended this section. As set out above, this section reflects the language of Section 14 of ch. 595, Laws of 2004, pursuant to Section 1-3-79, which provides that whenever the same section of law is amended by different bills during the same legislative session, and the effective dates of the amendments are the same, the amendment with the latest approval date shall supersede all other amendments to the same section approved on an earlier date.

Editor’s Notes —

Laws of 2009, ch. 492, § 146 provides:

“SECTION 146. Section 145 of this act shall take effect and be in force from and after July 1, 2009, and the remainder of this act shall take effect and be in force from and after July 1, 2010.”

Section 27-3-4 provides that the term “State Tax Commission” shall mean “Department of Revenue.”

Laws of 2004, ch. 352, § 3, effective July 1, 2004, provides:

“SECTION 3. The Attorney General is authorized to promulgate any necessary rules and regulations to carry out the provisions of this act.”

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

Amendment Notes —

The first 2004 amendment (ch. 352) deleted former (1) and redesignated the remaining subdivisions accordingly; and rewrote present (1).

The second 2004 amendment (ch. 595) rewrote the section.

The 2009 amendment, effective July 1, 2010, inserted “or the Department of Revenue” in (2).

Cross References —

Imposition of standard state assessment in addition to all court imposed fines or other penalties for any felony violation, see §99-19-73.

JUDICIAL DECISIONS

1. In general.

Substantial evidence existed to support defendant’s conviction for tax evasion, despite defendant’s contention that he was disinterested in his candy-making business. Defendant had established a wide network of vendors, and his daughters-in-law testified that defendant would beat them if he felt that they did not bring home enough in proceeds. King v. State, 897 So. 2d 981, 2004 Miss. App. LEXIS 689 (Miss. Ct. App. 2004), cert. denied, 896 So. 2d 373, 2005 Miss. LEXIS 224 (Miss. 2005).

Convictions and sentences for attempting to evade payment of personal income tax were affirmed because (1) there was sufficient evidence, in the form of testimony from three Mississippi State Tax Commission employees, for the jury to find that defendant committed the crime, thus, the trial court did not commit error by denying defendant’s motion for directed verdict; (2) during the jury instruction, the trial court properly denied a jury instruction that improperly commented on the evidence and properly denied two instructions regarding willfulness as there was no evidence to support them; and (3) it was not an abuse of discretion for the trial judge to impose on defendant the maximum sentence of five years for the felony counts because the sentence imposed was within the statutory limits. Salman v. State, 2004 Miss. App. LEXIS 72 (Miss. Ct. App. Feb. 3, 2004), cert. denied, 882 So. 2d 234, 2004 Miss. LEXIS 993 (Miss. 2004).

Section27-3-79(2), which declares unlawful wilful attempts “to evade or defeat any tax imposed by the State Tax Commission” [emphasis added], was enforceable against a defendant who allegedly wilfully evaded the payment of retail sales tax, even though the State Tax Commission has no power to impose or levy a tax and “imposed” does not mean the same thing as “collect.” No reasonable person could read §27-3-79(2) in conjunction with the sales tax statutes and those creating and empowering the Commission (and, as well, the general title in the Mississippi Code regarding taxation) and not know that post-July 1, 1986, wilful attempts to evade collection and payment of the required sales taxes was unlawful and rendered the defendant amenable to prosecution therefor. State v. Burnham, 546 So. 2d 690, 1989 Miss. LEXIS 316 (Miss. 1989).

RESEARCH REFERENCES

ALR.

Defamation: Actionability of accusation or imputation of tax evasion. 32 A.L.R.3d 1427.

Constitutional provision against imprisonment for debt as applicable to nonpayment of tax. 48 A.L.R.3d 1324.

Am. Jur.

72 Am. Jur. 2d, State and Local Taxation § 712 et seq. (obligation to pay and manner of payment).

13 Am. Jur. Trials, Defending Tax Evasion Cases §§ 1-74.

CJS.

85 C.J.S., Taxation § 1228 et seq.

Law Reviews.

1989 Mississippi Supreme Court Review: Statutory Interpretation. 59 Miss. L. J. 876, Winter, 1989.

§ 27-3-80. Creation of task force to facilitate investigation and prosecution of drug trafficking kingpins regarding tax evasion and other crimes; reporting and determination of possible violations of law; employment of criminal investigator; confidentiality of information; definitions.

  1. The Attorney General, the Department of Revenue, the Department of Public Safety and the Bureau of Narcotics shall create a task force to facilitate the transfer of information from law enforcement agencies to the Attorney General indicating that an individual is a drug trafficking kingpin, is laundering money received from drug trafficking and is likely evading the income reporting requirements of state law. The Attorney General shall examine all relevant information to determine the probability that such violations of law exist. The Attorney General may enlist the aid of any other law enforcement agency in the state in an investigation under this section. If the Attorney General determines that tax evasion is probably occurring, he shall forward the information to the Department of Revenue with a request that the Department of Revenue perform a criminal tax evasion investigation. The Department of Revenue shall report its preliminary findings to the Attorney General within one hundred twenty (120) days after receiving the information.
  2. If the report of the Department of Revenue to the Attorney General indicates that the individual who is the subject of the investigation has failed to report income as required by law and such failure constitutes a criminal violation, the Attorney General is authorized to prosecute the individual for criminal tax violations. The Attorney General is authorized to file an ex parte petition for release of tax information to the Bureau of Narcotics for presentation to appropriate state or federal prosecutors for the prosecution of federal tax offenses or other applicable offenses.
  3. Subject to available funding, the Department of Revenue is authorized to employ a criminal investigator to carry out the investigative and reporting requirements of this section.
  4. Any information received by the Attorney General, the Department of Revenue, the Bureau of Narcotics or other law enforcement agency shall be confidential except to the extent that disclosure is necessary to pursue tax evasion or other criminal tax charges or unless a proper judicial order is obtained. Information received under this section is exempt from the Mississippi Public Records Act of 1983.
  5. As used in this section:
    1. “Drug trafficking kingpin” means an individual who directs or participates in directing the illegal activities of a kingpin organization.
    2. “Kingpin organization” means a group of individuals, operating as a group either formally or informally, who sell, transport, manufacture and/or deliver controlled substances in felony violation of the Uniform Controlled Substances Law. To qualify as a kingpin organization, the group would either have to distribute major quantities of controlled substances, or their trafficking activities would have to occur in or affect more than one (1) circuit court district.

HISTORY: Laws, 2004, ch. 352, § 1; Laws, 2009, ch. 492, § 38, eff from and after July 1, 2010.

Editor’s Notes —

Laws of 2009, ch. 492, § 146 provides:

“SECTION 146. Section 145 of this act shall take effect and be in force from and after July 1, 2009, and the remainder of this act shall take effect and be in force from and after July 1, 2010.”

Laws of 2004, ch. 352, § 3, effective July 1, 2004, provides:

“SECTION 3. The Attorney General is authorized to promulgate any necessary rules and regulations to carry out the provisions of this act.”

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

Amendment Notes —

The 2009 amendment, effective July 1, 2010, substituted “Department of Revenue” for “State Tax Commission” throughout the section.

Cross References —

Mississippi Public Records Act of 1983, see §25-61-1 et seq.

Uniform Controlled Substances Law, see §41-29-101 et seq.

§ 27-3-81. Required payment of taxes, when liability exceeds certain sum, by wire transfer or other means making funds immediately available; penalty and interest.

The Department of Revenue may require, consistent with the cash management policies of the State Treasurer, that any person owing Twenty Thousand Dollars ($20,000.00) or more in connection with any return, report or other document to be filed with the Department of Revenue shall pay any such tax liability to the state no later than the date such payment is required by law to be made in funds which are immediately available to the state on the date of payment. Payment in immediately available funds may be made by wire transfers of funds through the Federal Reserve System or by any other means established by the Department of Revenue, with the approval of the State Treasurer, which ensures availability of such funds to the state on the date of payment. Evidence of such payment shall be furnished to the Department of Revenue on or before the due date of the tax as established by law. Failure to timely make such payment in immediately available funds or failure to provide such evidence of payment in a timely manner shall subject the taxpayer to penalty and interest as provided by law for delinquent or deficient tax payments. If payment is timely made in other than immediately available funds, penalty and interest shall be added to the amount of tax due from the due date of the tax payment to the date that the funds for the tax payment become available to the state.

HISTORY: Laws, 1993, ch. 364, § 1; Laws, 2009, ch. 492, § 39, eff from and after July 1, 2010.

Editor’s Notes —

Laws of 2009, ch. 492, § 146 provides:

“SECTION 146. Section 145 of this act shall take effect and be in force from and after July 1, 2009, and the remainder of this act shall take effect and be in force from and after July 1, 2010.”

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

Amendment Notes —

The 2009 amendment, effective July 1, 2010, substituted “Department of Revenue” for “State Tax Commission” throughout the section.

RESEARCH REFERENCES

Am. Jur.

72 Am. Jur. 2d, State and Local Taxation § 721 (medium of payment).

CJS.

85 C.J.S., Taxation §§ 1160-1162.

§ 27-3-83. Regulation of manner and method of filing of tax returns and other tax documents and information submitted to Department of Revenue; electronic filing mandate for certain taxpayers; exception; alternative forms of signature; effect of electronic or paper reproduction of form or document; penalties for violations of regulations; signing document filed with department is swearing under oath that all information provided is true and correct; release of information to authorized individuals.

  1. The Commissioner of Revenue may specify by rule or regulation the manner and method, either manually or electronically, by which tax returns, supporting schedules, information returns, applications for permits, licenses or titles, powers of attorney, review board appeal petitions, and other documents and information may be filed with the Department of Revenue. The commissioner may require certain taxpayers to submit any or all tax returns, schedules or other documents and information electronically; however, the commissioner shall not require the submission of returns, schedules or other documents and information electronically by taxpayers that do not have the capability to make the submissions electronically.
  2. The Commissioner of Revenue may specify by rule or regulation alternative forms of electronic signature that may be allowed or required on tax returns and other documents. Such an electronic signature shall have the same legal effect as that of a manual signature.
  3. An electronic or paper reproduction of a form or document, or the reproduction of the information placed on computer storage devices by electronic means, shall be deemed to be an original of the form or document for all purposes and is admissible in evidence without further foundation in all courts and administrative hearings if the following certification by the Commissioner of Revenue, along with his official seal, is affixed to the reproduction:

    The Commissioner of Revenue, official custodian of all records of the Department of Revenue, hereby certifies this document is a true reproduction of the information contained in the official records of this agency.

  4. If a person fails to comply with the rules and regulations promulgated by the commissioner under the provisions of subsection (1) or (2) of this section; fails to comply with any electronic filing mandate; fails to complete any return, supporting schedule, information return or other document or fails to remit any required schedule or additional information, the commissioner may impose a penalty of Twenty-five Dollars ($25.00) for the first instance of noncompliance and Five Hundred Dollars ($500.00) for each additional instance of noncompliance. Any penalty imposed under this section shall be collected in the same manner as that set forth for the collection of penalties under the Mississippi Sales Tax Law, being Section 27-65-1 et seq.
  5. By manually signing or affixing an electronic signature to a document that may be filed with the department, the person signing the document or affixing the electronic signature to the document is swearing under oath that all information contained in the document is true and correct and that he or she has the same authority to sign the document or affix the electronic signature to the document as the person filing the document or as the duly authorized representative of the person or entity for whom the document is being filed. Should the person signing or affixing an electronic signature to a document filed with the Department of Revenue knowingly submit information in the document that is false or sign or affix an electronic signature to the document on the behalf of another person or entity without the authority to do so, he or she shall be guilty of perjury and, upon conviction, shall be punished by imprisonment in the State Penitentiary for a term not exceeding ten (10) years.
  6. Notwithstanding the confidentiality of the information and documents in its possession, the Department of Revenue may release any information or a copy of any document in its possession and custody to any person designated to receive the information or document in a power of attorney or other document authorizing the release of the information or document which has been properly executed by the person or the duly authorized representative of the entity to whom the information or document pertains and where the authorization has not expired, been revoked, cancelled or otherwise rendered ineffective by death or other circumstances. The Department of Revenue may require the prepayment of the cost of the production of such information or records. The Department of Revenue retains the right to deny the release of information and documents for good cause, including, but not limited to, interference with its operation or with an ongoing tax, criminal, permit or regulatory investigation or prosecution, and the possible violation of any federal law, state law or exchange agreement with the Internal Revenue Service, other federal agency, another state agency or the revenue department of another state.

HISTORY: Laws, 1995, ch. 365, § 1; Laws, 2009, ch. 492, § 40; Laws, 2010, ch. 323, § 2; Laws, 2012, ch. 566, § 1, eff from and after July 1, 2012.

Joint Legislative Committee Note —

Pursuant to Section 1-1-109, the Joint Legislative Committee on Compilation, Revision and Publication of Legislation corrected two typographical errors in subsection (4). The word “subsections” was changed to “subsection” following “promulgated by the commission under the provisions of” in the first sentence. The word “Sections” was changed to “Section” preceding “27-65-1 et seq” in the last sentence. The Joint Committee ratified the correction at its May 31, 2006, meeting.

Editor’s Notes —

Laws of 2012, ch. 566, § 10, provides:

“SECTION 10. Sections 8 and 9 of this act shall take effect and be in force from and after its passage [May 23, 2012], and the remaining sections of this act shall take effect and be in force from and after July 1, 2012.”

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

Amendment Notes —

The 2009 amendment, effective July 1, 2010, substituted “Commissioner of Revenue” for “State Tax Commission,” for “Tax Commission,” for “Chairman of the Tax Commission,” and for “Chairman of the Mississippi State Tax Commission”’ substituted “Department of Revenue” for “commission” in (1) and for “Mississippi State Tax Commission” in the certification language in (3); and substituted “commissioner” for “commission” in (4).

The 2010 amendment, in (1), inserted “either manually or electronically” and “supporting schedules, information returns” in the first sentence, and substituted the present last sentence for the former last sentence, which read: “Such filings may be accomplished by submitting the forms or documents manually or by submitting them electronically”; and in the first sentence in (4), inserted “fails to comply with any electronic filing mandate; fails to complete any return, supporting schedule, information return or other tax document or fails to remit any required schedule or additional information,” substituted “the first instance of noncompliance” for “each instance of noncompliance” and added “and Five Hundred Dollars ($500.00) for each additional instance of noncompliance.”

The 2012 amendment rewrote (1) and (2); added (5) and (6); and made a minor stylistic change.

JUDICIAL DECISIONS

1. Notice sufficient.

Because the evidence in the record supported the chancery court’s determination that the Mississippi Department of Revenue (MDOR) complied with the statute’s notice requirements for assessments on unfiled tax returns, the taxpayer did not lack proper notice of the assessments; the MDOR provided a copy of electronic records to establish that it issued one tax assessment by regular mail, and it provided proof that it issued another assessment by regular mail. Williams v. Morgan, 201 So.3d 1073, 2016 Miss. App. LEXIS 578 (Miss. Ct. App. 2016).

There was no abuse of discretion in the chancery court’s finding that the Mississippi Department of Revenue (MDOR) provided sufficient notice to the taxpayer of his tax assessments because the MDOR presented sufficient proof of the taxpayer’s receipt of the tax assessments; the MDOR presented the chancellor with a copy of electronically recorded information documenting the taxpayer’s receipt of the certified-mail notices. Williams v. Morgan, 201 So.3d 1073, 2016 Miss. App. LEXIS 578 (Miss. Ct. App. 2016).

RESEARCH REFERENCES

Am. Jur.

71 Am. Jur. 2d, State and Local Taxation, § 494 et seq.

CJS.

55 C.J.S., Mandamus § 167.

85 C.J.S., Taxation §§ 1429-1432.

Chapter 4. Board of Tax Appeals

§ 27-4-1. Board of Tax Appeals; appointment, qualifications, terms of office, oath, bond, removal from office, and compensation of members.

  1. The Board of Tax Appeals is established as an independent agency which shall not in any way be subject to the supervision or control of the Department of Revenue.
  2. The Board of Tax Appeals shall consist of three (3) members: a chairman and two (2) associate members.Except as provided in subsection (5) of this section, the chairman and associate members shall be appointed by the Governor with the advice and consent of the Senate.Each member of the board shall be a qualified elector, shall have at least a bachelor’s degree from an accredited college or university, and shall possess a special knowledge of taxation and revenue in the State of Mississippi.The members of the Board of Tax Appeals, while holding office, shall not engage in any other occupation or business interfering with or inconsistent with their official duties on the board.
  3. The initial term of the Chairman of the Board of Tax Appeals shall begin on July 1, 2010, and expire on June 30, 2016.The initial term of one (1) associate member of the board shall expire June 30, 2012.The initial term of the other associate member shall expire June 30, 2014.Upon the expiration of the initial terms, the term of office of each member shall be for six (6) years, or until his successor is appointed and qualified.The Governor shall include in his appointment of the chairman and associate members the expiration date of each appointment.Vacancies shall be filled by the Governor for the unexpired portion of the term in which the vacancy occurs.
  4. No person appointed by the Governor to the Board of Tax Appeals shall be eligible to take office unless his name shall have been submitted to the Mississippi Senate for its advice and consent at least thirty (30) days prior to the scheduled adjournment of the regular session of the Legislature being held in the calendar year in which the term of the office of the incumbent shall expire; however, if for any reason an appointment is not given the advice and consent of the Mississippi Senate prior to the adjournment of such regular session, the Governor may submit another appointment at any time to the Mississippi Senate for its advice and consent at a regular or extraordinary session of the Legislature. The foregoing prohibition shall not apply when a vacancy shall occur by death or resignation of the incumbent.
  5. On July 1, 2010, the Associate Commissioner of the State Tax Commission whose appointment as associate commissioner has an expiration date of June 30, 2012, shall fill the position of the associate member of the Board of Tax Appeals whose term expires on June 30, 2012.On July 1, 2010, the Associate Commissioner of the State Tax Commission whose appointment as associate commissioner has an expiration date of June 30, 2014, shall fill the position of the associate member of the Board of Tax Appeals whose term expires on June 30, 2014. This change of positions from an Associate Commissioner of the State Tax Commission to an associate member of the Board of Tax Appeals shall be treated as a continuation of the same appointment without the need for an additional appointment by the Governor or the advice and consent of the Senate.
  6. Each member of the Board of Tax Appeals shall, before entering upon the discharge of the duties of his office, take and subscribe to the oath of office prescribed by the Constitution and shall file the oath in the Office of the Secretary of State, and each member, including the chairman, shall execute a bond in some surety company authorized to do business in the state, to be approved by the Governor, and filed in the Office of the Secretary of State in the penal sum of Fifty Thousand Dollars ($50,000.00), conditioned for the faithful and impartial discharge of the duties of his office.The premium on the bonds shall be paid as provided by law out of funds appropriated to the Board of Tax Appeals.
  7. The members of the Board of Tax Appeals are not subject to removal from office other than by impeachment or by removal from office as provided for under Section 25-5-1, except that in addition to such impeachment and removal, a member of the Board of Tax Appeals may also be removed from office for a criminal conviction for violating the Internal Revenue Code.
  8. It is the duty of the Department of Finance and Administration to provide suitable and adequate quarters and equipment for the Board of Tax Appeals, for the executive director and employees of the board and for filing their records, books and papers.
  9. The members of the Board of Tax Appeals shall receive an annual salary fixed by the State Personnel Board.The actual traveling expenses of the board members, the executive director of the board and the employees of the board incurred in the performance of their official duties shall be allowed, and such salaries and expenses shall be payable out of funds appropriated for the expenses of the Board of Tax Appeals.

HISTORY: Laws, 2009, ch. 492, § 1, eff from and after July 1, 2010.

Editor’s Notes —

Laws of 2009, ch. 492, § 146 provides:

“SECTION 146. Section 145 of this act shall take effect and be in force from and after July 1, 2009, and the remainder of this act shall take effect and be in force from and after July 1, 2010.”

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

§ 27-4-3. Powers, duties and jurisdiction of the Board of Tax Appeals.

  1. The Board of Tax Appeals shall have the following powers and duties:
    1. To adopt, amend or repeal those rules or regulations necessary to implement the duties assigned to the board.
    2. To have jurisdiction over all administrative appeals to the board from decisions of the review board and administrative hearing officers of the Department of Revenue under Sections 27-77-5, 27-77-9, 27-77-11 and 27-77-12, to arrange the time and place of the hearing on any such appeal, and where required, to arrange for any evidence presented to the board at such hearing to be transcribed or otherwise preserved for purposes of making a record of the hearing.
    3. To have jurisdiction over all administrative appeals regarding certain decisions and actions by the Department of Revenue under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., and under the Mississippi Native Wine Law of 1976, Section 67-5-1 et seq., as provided for under Section 67-1-72, to arrange the time and place of the hearing on any such appeal and to arrange for any evidence presented to the board at such hearing to be transcribed or otherwise preserved for purposes of making a record of the hearing.
    4. To have jurisdiction over all administrative appeals under Sections 27-33-37 and 27-33-41 to the board from decisions of the Department of Revenue to deny an objection of a board of supervisors to the rejection by the Department of Revenue of an application for homestead exemption and to arrange the time and place of the hearing on any such appeal.
    5. To have jurisdiction over all administrative appeals under Section 27-35-113 to the board from the decision of the Department of Revenue regarding its examination of the recapitulations of the assessment rolls of a county and to arrange the time and place of the hearing on any such appeal.
    6. To have jurisdiction to hear any objection to an assessment by the Department of Revenue pursuant to Section 27-35-311, 27-35-517 or 27-35-703 and to arrange the time and place of the hearing on any such objection.
    7. To perform all other duties which are now or may hereafter be imposed upon the board by law.
    8. To obtain, review, receive into evidence and/or otherwise examine and consider applications, returns, reports and any particulars set forth or disclosed in any application report or return required on any taxes collected by reports received by the Department of Revenue and any other documents and information received, generated and/or maintained by the Department of Revenue. The authority of the board under this paragraph is not barred or otherwise restricted by the confidentiality of such documents and information under Sections 27-3-73, 27-7-83, 27-13-57 and/or 27-65-81, and the disclosure of such documents and information to the board shall be an exception to the prohibition on disclosure of such documents and information contained in Sections 27-3-73, 27-7-83, 27-13-57 and/or 27-65-81.
  2. Each member of the board is empowered to administer and certify oaths.
  3. Each member of the board is empowered to perform all other duties which are now or may hereafter be imposed on him by law.

HISTORY: Laws, 2009, ch. 492, § 2; Laws, 2010, ch. 388, § 1, eff from and after July 1, 2010.

Editor’s Notes —

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

Amendment Notes —

The 2010 amendment added (1)(h).

§ 27-4-5. Executive director of the Board of Tax Appeals; qualifications, powers, duties and responsibilities; removal from office.

  1. Except as provided in subsection (7) of this section, the Chairman of the Board of Tax Appeals shall appoint an executive director of the board who will serve at the will and pleasure of the chairman, but the executive director is subject to removal from office as provided for under Section 25-5-1; however, the executive director may also be removed from office for a criminal conviction for violating the Internal Revenue Code.
  2. The executive director shall be admitted to practice law in this state and have a familiarity with the tax appeals process sufficient to fulfill the duties of the office of executive director. The salary of the executive director shall be set by the State Personnel Board. The executive director shall devote full time to the duties assigned to him by the board and/or its chairman.
  3. The Executive Director of the Board of Tax Appeals shall keep the minutes of the board and make a record of all official orders, findings and acts of the board. The executive director shall file and preserve as a record, all papers, exhibits and documents, filed with the board in any proceeding before it, and shall perform such other duties as the chairman of the board may direct. He shall certify copies of such records as are in his custody, and such copies, when so certified, shall be accepted in all matters equally and in like manner as the original.
  4. The Executive Director of the Board of Tax Appeals shall direct and supervise the preparation of any record of a hearing before the Board of Tax Appeals to be filed in any court of the state.
  5. The Executive Director of the Board of Tax Appeals is hereby empowered to employ clerical personnel, stenographers and such other assistants and/or attorneys as he may deem necessary for the proper discharge of his duties and the duties of the Board of Tax Appeals.
  6. The Executive Director of the Board of Tax Appeals shall also have the following powers:
    1. To supervise and direct all administrative and technical activities of the Board of Tax Appeals;
    2. To make, execute and effectuate any and all agreements or contracts, including contracts for the purchase of goods and services, as are necessary;
    3. To enter into long-term or multiyear leases of real property with other state agencies;
    4. To perform such other acts he deems necessary to carry out the duties assigned to him by the Chairman of the Board of Tax Appeals or imposed on him by law.
  7. On July 1, 2010, the person who immediately prior to that date held the position of Secretary of the State Tax Commission shall fill the position of the Executive Director of the Board of Tax Appeals. This change of positions from the Secretary of the State Tax Commission to the Executive Director of the Board of Tax Appeals shall be treated as a continuation of the same position with the position being transferred from the State Tax Commission to the Board of Tax Appeals with the effective date of such transfer being July 1, 2010. Upon assuming the position of the Executive Director of the Board of Tax Appeals on July 1, 2010, this person, who had previously been Secretary of the State Tax Commission, shall serve in the position of Executive Director of the Board of Tax Appeals at the will and pleasure of the Chairman of the Board of Tax Appeals and will be subject to removal from that position as set out in subsection (1) of this section.
  8. Since the Board of Tax Appeals is the successor to the three-member State Tax Commission in regard to administrative appeals, the Secretary of the State Tax Commission shall take with him, when he assumes the position of the Executive Director of the Board of Tax Appeals, all minutes and orders of the three-member State Tax Commission and all papers, exhibits and documents filed with the three-member State Tax Commission that had been previously preserved as a record of that body by the Secretary of the State Tax Commission and shall continue to preserve these minutes, orders and records of the three-member State Tax Commission in accordance with any record retention schedule established for such records. He shall continue to perform any other duties and responsibilities of the Secretary of the State Tax Commission in regard to these minutes, orders and records, including, but not limited to, certifying copies of such records, and such copies, when so certified, shall be accepted in all matters equally and in like manner as the original.

HISTORY: Laws, 2009, ch. 492, § 3, eff from and after July 1, 2010.

Editor’s Notes —

Laws of 2009, ch. 492, § 146 provides:

“SECTION 146. Section 145 of this act shall take effect and be in force from and after July 1, 2009, and the remainder of this act shall take effect and be in force from and after July 1, 2010.”

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

§ 27-4-7. Board of Tax Appeals seal.

The Board of Tax Appeals shall have a seal which shall be in the form of a circle with the image of an eagle in the center and around the margin the words: “Mississippi Board of Tax Appeals,” and under the image of the eagle the word: “Official.” The seal, in the discretion of the executive director of the board, may be of a raised or engraved design or printed. The Executive Director of the Board of Tax Appeals shall affix the seal prescribed herein to every document where it is required by law, and to every certificate and other official paper executed by him or the board where necessary or proper. All documents authenticated with the seal and signed by the executive director shall be received as evidence in all courts, investigations and proceedings authorized by law, and may be recorded in the same manner and with like effect as a deed. All copies of papers in the office of the board, certified by him and authenticated by the seal, shall be accepted in all matters equally and in like manner as the original.

HISTORY: Laws, 2009, ch. 492, § 4, eff from and after July 1, 2010.

Editor’s Notes —

Laws of 2009, ch. 492, § 146 provides:

“SECTION 146. Section 145 of this act shall take effect and be in force from and after July 1, 2009, and the remainder of this act shall take effect and be in force from and after July 1, 2010.”

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

§ 27-4-9. Meetings; quorum.

The Board of Tax Appeals shall meet at least one (1) day in each month, or more frequently if called by the chairman of the board, at such place as may be designated by the chairman, for the purpose of hearing and considering matters necessary to facilitate the performance of its duties. Any two (2) members of the board shall constitute a quorum, and if two (2) members be unavoidably absent, such fact shall be noted on the minutes and all matters for consideration shall be continued to the next meeting.

HISTORY: Laws, 2009, ch. 492, § 5, eff from and after July 1, 2010.

Editor’s Notes —

Laws of 2009, ch. 492, § 146 provides:

“SECTION 146. Section 145 of this act shall take effect and be in force from and after July 1, 2009, and the remainder of this act shall take effect and be in force from and after July 1, 2010.”

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

Chapter 5. Motor Vehicle Comptroller

General Provisions [Repealed]

§§ 27-5-1 through 27-5-21. Repealed.

Repealed by Laws of 1980, ch. 561, § 42, eff from and after July 2, 1980.

§§27-5-1 through27-5-21. [Codes, 1942, §§ 10008-01 to 10010, 10012; Laws, 1936, ch. 162; Laws, 1938, chs. 144, 155; Laws, 1946, ch. 237, §§ 1-3,6,8,11,20; Laws, 1946, ch. 372, § 4; Laws, 1948, ch. 321, §§ 2,4,7,9; Laws, 1948, ch. 323, §§ 1-6; Laws, 1952, ch. 344, §§ 1,2,5-10, 12; Laws, 1956, ch. 385; Laws, 1958, ch. 490, §§ 1,2; Laws, 1960, ch. 418, §§ 1-3; Laws, 1966, ch. 445, §§ 35-37]

Editor’s Notes —

Former §§27-5-1 through27-5-21 pertained to the motor vehicle comptroller whose functions were transferred to the State Tax Commission, now the Department on Revenue (see §27-5-151 et seq).

§ 27-5-22. Repealed.

Repealed by Laws of 1984, ch. 478, § 34, eff from and after July 1, 1984.

[En Laws, 1979, ch. 417, § 8]

Editor’s Notes —

Former §27-5-22 related to certain tax collection and disbursement procedures of the State Tax Commission, now the Department of Revenue.

§§ 27-5-23 through 27-5-35. Repealed.

Repealed by Laws of 1980, ch. 561, § 42, eff from and after July 2, 1980.

§§27-5-23 through §27-5-35. [Codes, 1942, §§ 10008-11, 10008-17 to 10008-22; Laws, 1946, ch. 237, §§ 4,12,16-19; Laws, 1948, ch. 321, §§ 12-14; Laws, 1950, ch. 485, § 3; Laws, 1950, ch. 487, § 4; Laws, 1952, ch. 344, §§ 11,17-22; Laws, 1971, ch. 410, § 1]

Editor’s Notes —

Former §§27-5-23 through27-5-35 pertained to the motor vehicle comptroller whose functions were transferred to the State Tax Commission, now the Department of Revenue (see §27-5-151 et seq.)

Inspection Stations

§ 27-5-71. Definition of inspection station.

The term “inspection station” as used in Sections 27-5-71 through 27-5-77, Mississippi Code of 1972, shall be deemed to mean and include establishments, either permanent or of a temporary nature, set up adjacent to or near any highway, road, street or other way or place of vehicular travel within the State of Mississippi, for the purpose of aiding in the enforcement and administration of the laws of this state with reference to the levying and collection of taxes on gasoline, oil and other petroleum products; the laws relating to the grades, standards and specifications of gasoline, oil and other petroleum products; the laws relating to the levying and collection of motor vehicle privilege license taxes or other motor vehicle taxes; the laws relating to the size and weight of vehicles operating or to be operated on the roads, streets or highways of this state or with reference to other physical qualifications of any vehicle to be operated on such roads, streets or highways; laws with reference to the nature and extent of any cargo being or to be transported over the roads, streets or highways of this state; the laws with reference to the fitness of a driver or operator of any vehicle which is being or is to be operated over the roads, streets or highways of this state; and laws with reference to the inspection of any vehicle, driver or operator, or cargo when the roads, streets or highways of this state are being or are to be traversed.

HISTORY: Codes, 1942, § 10008-14; Laws, 1946, ch. 372, § 3; Laws, 1948, ch. 325, § 2; Laws, 1952, ch. 344, § 14; Laws, 1992, ch. 496, § 15, eff from and after July 1, 1992.

Cross References —

Duty of inspection station employees to enforce the laws mentioned in this section, see §27-5-75.

RESEARCH REFERENCES

ALR.

Authority of Public Official, Whose Duties or Functions Generally Do Not Entail Traffic Stops, To Effectuate Traffic Stop of Vehicle. 18 A.L.R.6th 519.

§ 27-5-73. Construction of inspection stations.

The Mississippi Department of Transportation is hereby authorized and directed to establish and maintain inspection stations adjacent to or near such highways as it may deem necessary and desirable, and at such locations as it may deem necessary. At least forty (40) of the inspection stations, when established, shall be kept open twenty-four (24) hours per day, seven (7) days per week, unless the transportation department determines that adequate enforcement can be maintained by reducing the number of hours that a particular inspection station should remain open. Such inspection stations may be established upon existing rights-of-way or upon additional rights-of-way if it be deemed necessary by the transportation department to acquire such rights-of-way. Necessary driveways shall be constructed across such rights-of-way to the inspection stations and, if necessary, drive-out spaces on the opposite side of the highway from the inspection stations. All inspection stations shall be so located and all drive-outs established and maintained in such a manner that it shall not be necessary for any vehicle to stop with any portion of the vehicle on or within five (5) feet of the paved or traveled portion of the highway. When any inspection station is required to be constructed or reconstructed, the transportation department shall construct the inspection station area with its own forces or by contract.

HISTORY: Codes, 1942, § 10008-13; Laws, 1946, ch. 372, § 3; Laws, 1948, ch. 325, § 3; Laws, 1950, ch. 485, § 1; Laws, 1952, ch. 344, § 13; Laws, 1970, ch. 495, § 1, 1981, ch. 366, § 8; Laws, 1992, ch. 496, § 16, eff from and after July 1, 1992.

Cross References —

Trip permits for common and contract carriers, see §27-19-79.

Common and contract carriers stopping at inspection stations, see §27-19-93.

Gasoline carriers stopping at inspection stations, see §27-55-57.

JUDICIAL DECISIONS

1. In general.

Taking of property alongside a highway for the purpose of constructing a weighing scale to enforce the regulations regarding weights of loads and vehicles is within the contemplation of the eminent domain statutes. Roberts v. Mississippi State Highway Com., 309 So. 2d 156, 1975 Miss. LEXIS 1864 (Miss. 1975).

§ 27-5-75. Duties of employees; uniforms; bearing of arms; mandatory retirement.

All employees upon duty at any such inspection station shall have the authority, and it shall be their duty, to enforce the provisions of all laws mentioned in Section 27-5-71, and in the performance of their duties such employees shall have the right to bear arms, and shall have the authority to make arrests and hold and impound any vehicle which is being operated in violation of any of the truck weight and/or privilege tax laws administered by the State Tax Commission specified in Section 27-5-71.

The field inspectors shall also have the right to bear arms while in the performance of their official duties.

All inspection station employees and all field inspectors employed by the State Tax Commission shall wear uniforms furnished by the State Tax Commission while in performance of their official duties.

From and after July 1, 1985, all inspection station employees and all field inspectors who attain the age of sixty-two (62) years on or before June 30, 1986, and those who attain the age of sixty (60) years thereafter shall be retired forthwith.

HISTORY: Codes, 1942, § 10008-15; Laws, 1946, ch. 372, § 3; Laws, 1948, ch. 325, § 8; Laws, 1952, ch. 344, § 15; Laws, 1974, ch. 376; Laws, 1984, ch. 518, § 1; Laws, 1984, 1st Ex Sess, ch. 28, § 1; Laws, 1985, ch. 504, § 5, eff from and after July 1, 1985.

Editor’s Notes —

Section 27-3-4 provides that the term “State Tax Commission” shall mean the “Department of Revenue.”

Laws of 1984, ch. 518, § 5, provides as follows:

“SECTION 5. (1) Nothing in Section 27-5-75 or 49-1-15 shall be construed to require employees who were hired prior to July 1, 1985, to retire prior to attaining the age of sixty-five (65) years unless, after attaining the age of sixty-two (62) years on or before June 30, 1986, and those who attain the age of sixty (60) years thereafter, they have completed four (4) years of creditable service for purposes of the Public Employees’ Retirement System, at which time they shall be retired forthwith.

“(2) Nothing in Section 27-5-75 or 49-1-15 shall be construed to prevent the State Tax Commission or the Mississippi Department of Wildlife Conservation from operating under an interim retirement policy until June 30, 1985, provided that said policy conforms with the provisions of The Age Discrimination In Employment Act of 1967, 29 U.S.C., Sections 621 et seq., including Section 623(f) thereof.

“(3) No inspection station employee or field inspector employed by the State Tax Commission, or conservation officer employed in the Bureau of Fisheries and Wildlife, shall be dismissed prior to July 1, 1985, solely because of his age, if said employee has not reached the age of seventy (70) years.” (Amended, Laws, 1984, 1st Extra Sess., ch 28, § 3; 1985, ch. 504, § 7).”

Cross References —

Prohibition of gifts to inspectors, see §27-19-125.

JUDICIAL DECISIONS

1. In general.

Officers at a vehicle inspection station had the authority to administer field sobriety tests to the defendant truck driver, to arrest him for driving while impaired by drugs, and to arrest him after finding illegal drugs in his truck during a valid vehicle inspection. Edwards v. State, 795 So. 2d 554, 2001 Miss. App. LEXIS 241 (Miss. Ct. App. 2001).

In challenge to mandatory retirement provisions of §27-5-75, employer may not rely on health and fitness qualifications to retire older officers if it does not seek to maintain minimum levels of these qualifications among younger officers; in this case, although trainees are required to provide extensive physician’s certification form, actual practice indicates that there is no commitment to maintain or enforce specific and detailed qualifications contained in that form, and thus State Tax Commission failed to establish bona fide occupational qualification justifying mandatory retirement. EEOC v. Mississippi State Tax Com., 848 F.2d 526, 1988 U.S. App. LEXIS 9238 (5th Cir. Miss. 1988).

RESEARCH REFERENCES

ALR.

Authority of Public Official, Whose Duties or Functions Generally Do Not Entail Traffic Stops, To Effectuate Traffic Stop of Vehicle. 18 A.L.R.6th 519.

§ 27-5-77. Penalties.

If any owner, operator or driver of any carrier of property having a gross vehicle weight in excess of ten thousand (10,000) pounds shall willfully fail or refuse to stop at any inspection station and submit to an inspection or if any owner, operator or driver of any other vehicle which is required by any law or by any rule or regulation of the Mississippi Department of Transportation or State Tax Commission to stop at any inspection station and submit to an inspection shall willfully fail or refuse so to do, then such person shall be guilty of a misdemeanor and, upon conviction, shall be punished by a fine of not more than One Thousand Dollars ($1,000.00), or by confinement in the county jail for not more than thirty (30) days, or by both such fine and jail sentence, in addition to any other penalty or assessment as provided by law.

HISTORY: Codes, 1942, § 10008-16; Laws, 1946, ch. 372, § 3; Laws, 1948, ch. 325, § 9; Laws, 1952, ch. 344, § 16; Laws, 1992, ch. 496, § 17; Laws, 1994, ch. 382, § 1, eff from and after July 1, 1994.

Editor’s Notes —

Section 27-3-4 provides that the term “State Tax Commission” shall mean the “Department of Revenue.”

Cross References —

Imposition of standard state assessment in addition to all court imposed fines or other penalties for any misdemeanor violation, see §99-19-73.

Apportionment of Taxes

§ 27-5-101. Apportionment of tax by the State Tax Commission.

[With regard to any county which is exempt from the provisions of Section 19-2-3, this section shall read as follows:]

Unless otherwise provided in this section, on or before the fifteenth day of each month, all gasoline, diesel fuel or kerosene taxes which are levied under the laws of this state and collected during the previous month shall be paid and apportioned by the State Tax Commission as follows:

(i) Except as otherwise provided in Section 31-17-127, from the gross amount of gasoline, diesel fuel or kerosene taxes produced by the state, there shall be deducted an amount equal to one-sixth (1/6) of principal and interest certified by the State Treasurer to the State Tax Commission to be due on the next semiannual bond and interest payment date, as required under the provisions of Chapter 130, Laws of 1938, and subsequent acts authorizing the issuance of bonds payable from gasoline, diesel fuel or kerosene tax revenue on a parity with the bonds issued under authority of said Chapter 130. The State Treasurer shall certify to the State Tax Commission on or before the fifteenth day of each month the amount to be paid to the “Highway Bonds Sinking Fund” as provided by said Chapter 130, Laws of 1938, and subsequent acts authorizing the issuance of bonds payable from gasoline, diesel fuel or kerosene tax revenue, on a parity with the bonds issued under authority of said Chapter 130; and the State Tax Commission shall, on or before the twenty-fifth day of each month, pay into the State Treasury for credit to the “Highway Bonds Sinking Fund” the amount so certified to him by the State Treasurer due to be paid into such fund each month. The payments to the “Highway Bonds Sinking Fund” shall be made out of gross gasoline, diesel fuel or kerosene tax collections before deductions of any nature are considered; however, such payments shall be deducted from the allocation to the Mississippi Department of Transportation under paragraph (c) of this section.

From collections derived from the portion of the gasoline excise tax that exceeds Seven Cents (7¢) per gallon, from the portion of the tax on aviation gas under Section 27-55-11 that exceeds Six and Four-tenths Cents (6.4¢) per gallon, from the portion of the special fuel tax levied under Sections 27-55-519 and 27-55-521, at Eighteen Cents (18¢) per gallon that exceeds Ten Cents (10¢) per gallon, from the portion of the taxes levied under Section 27-55-519, at Five and Three-fourths Cents (5.75¢) per gallon that exceeds One Cent (1¢) per gallon on special fuel and Five and One-fourth Cents (5.25¢) per gallon on special fuel used as aircraft fuel, from the portion of the excise tax on compressed gas used as a motor fuel that exceeds the rate of tax in effect on June 30, 1987, and from the portion of the gasoline excise tax in excess of Seven Cents (7¢) per gallon and the diesel excise tax in excess of Ten Cents (10¢) per gallon under Section 27-61-5 there shall be deducted:

1. An amount as provided in Section 27-65-75(4) to the credit of a special fund designated as the “Office of State Aid Road Construction.”

2. An amount equal to the tax collections derived from Two Cents (2¢) per gallon of the gasoline excise tax for distribution to the State Highway Fund to be used exclusively for the construction, reconstruction and maintenance of highways of the State of Mississippi or the payment of interest and principal on bonds when specifically authorized by the Legislature for that purpose.

3. The balance shall be deposited in the State Treasury to the credit of the State Highway Fund.

Subject to the provisions that said basis of distribution shall in no wise affect adversely the amount specifically pledged in paragraph (a) of this section to be paid into the “Highway Bonds Sinking Fund,” the following shall be deducted from the amount produced by the state tax on gasoline, diesel fuel or kerosene tax collections, excluding collections derived from the portion of the gasoline excise tax that exceeds Seven Cents (7¢) per gallon, from the portion of the tax on aviation gas under Section 27-55-11 that exceeds Six and Four-tenths Cents (6.4¢) per gallon, from the portion of the special fuel tax levied under Sections 27-55-519 and 27-55-521, at Eighteen Cents (18¢) per gallon that exceeds Ten Cents (10¢) per gallon, from the portion of the taxes levied under Section 27-55-519, at Five and Three-fourths Cents (5.75¢) per gallon that exceeds One Cent (1¢) per gallon on special fuel and Five and One-fourth Cents (5.25¢) per gallon on special fuel used as aircraft fuel, from the portion of the excise tax on compressed gas used as a motor fuel that exceeds the rate of tax in effect on June 30, 1987, and from the portion of the gasoline excise tax in excess of Seven Cents (7¢) per gallon and the diesel excise tax in excess of Ten Cents (10¢) per gallon under Section 27-61-5:

Twenty percent (20%) of such amount which shall be earmarked and set aside for the construction, reconstruction and maintenance of the highways and roads of the state, provided that if such twenty percent (20%) should reduce any county to a lesser amount than that received in the fiscal year ending June 30, 1966, then such twenty percent (20%) shall be reduced to a percentage to provide that no county shall receive less than its portion for the fiscal year ending June 30, 1966;

The amount allowed as refund on gasoline or as tax credit on diesel fuel or kerosene used for agricultural, maritime, industrial, domestic, and non highway purposes;

Five percent (5%) of such amount shall be paid to the State Highway Fund;

The amount or portion thereof authorized by legislative appropriation to the Fisheries and Wildlife Fund created under Section 59-21-25;

The amount for deposit into the special aviation fund under paragraph (d) of this section; and

The remainder shall be divided on a basis of nine-fourteenths (9/14) and five-fourteenths (5/14) (being the same basis as Four and One-half Cents (4-1/2¢) and Two and One-half Cents (2-1/2¢) is to Seven Cents (7¢) on gasoline, and six and forty-three one-hundredths (6.43) and three and fifty-seven one-hundredths (3.57) is to Ten Cents (10¢) on diesel fuel or kerosene). The amount produced by the nine-fourteenths (9/14) division shall be allocated to the Transportation Department and paid into the State Treasury as provided in this section and in Section 27-5-103 and the five-fourteenths (5/14) division shall be returned to the counties of the state on the following basis:

1. In each fiscal year, each county shall be paid each month the same percentage of the monthly total to be distributed as was paid to that county during the same month in the fiscal year which ended April 9, 1960, until the county receives One Hundred Ninety Thousand Dollars ($190,000.00) in such fiscal year, at which time funds shall be distributed under the provisions of paragraph (b)(vi)4 of this section.

2. If after payments in 1 above, any county has not received a total of One Hundred Ninety Thousand Dollars ($190,000.00) at the end of the fiscal year ending June 30, 1961, and each fiscal year thereafter, then any available funds not distributed under 1 above shall be used to bring such county or counties up to One Hundred Ninety Thousand Dollars ($190,000.00) or such funds shall be divided equally among such counties not reaching One Hundred Ninety Thousand Dollars ($190,000.00) if there is not sufficient money to bring all the counties to said One Hundred Ninety Thousand Dollars ($190,000.00).

3. When a county has been paid an amount equal to the total which was paid to the same county during the fiscal year ended April 9, 1960, such county shall receive no further payments during the then current fiscal year until the last month of such current fiscal year, at which time distribution will be made under 2 above, except as set out in 4 below.

4. During the last month of the current fiscal year, should it be determined that there are funds available in excess of the amount distributed for the year under 1 and 2 above, then such excess funds shall be distributed among the various counties as follows:

One-third (1/3) of such excess to be divided equally among the counties;

One-third (1/3) of such excess to be paid to the counties in the proportion which the population of each county bears to the total population of the state according to the last federal census;

One-third (1/3) of such excess to be paid to the counties in the proportion which the number of square miles of each county bears to the total square miles in the state.

5. It is the declared purpose and intent of the Legislature that no county shall be paid less than was paid during the year ended April 9, 1960, unless the amount to be distributed to all counties in any year is less than the amount distributed to all counties during the year ended April 9, 1960.

The Municipal Aid Fund as established by Section 27-5-103 shall not participate in any portion of any funds allocated to any county hereunder over and above One Hundred Ninety Thousand Dollars ($190,000.00).

In any county having countywide road or bridge bonds, or supervisors district or district road or bridge bonds outstanding, which exceed, in the aggregate, twelve percent (12%) of the assessed valuation of the taxable property of the county or district, it shall be the duty of the board of supervisors to set aside not less than sixty percent (60%) of such county’s share or district’s share of the gasoline, diesel fuel or kerosene taxes to be used in paying the principal and interest on such road or bridge bonds as they mature.

In any county having such countywide road or bridge bonds or district road or bridge bonds outstanding which exceed, in the aggregate, eight percent (8%) of the assessed valuation of the taxable property of the county, but which do not exceed, in the aggregate, twelve percent (12%) of the assessed valuation of the taxable property of the county, it shall be the duty of the board of supervisors to set aside not less than thirty-five percent (35%) of such county’s share of the gasoline, diesel fuel or kerosene taxes to be used in paying the principal and interest of such road or bridge bonds as they mature.

In any county having such countywide road or bridge bonds or district road or bridge bonds outstanding which exceed, in the aggregate, five percent (5%) of the assessed valuation of the taxable property of the county, but which do not exceed, in the aggregate, eight percent (8%) of the assessed valuation of the taxable property of the county, it shall be the duty of the board of supervisors to set aside not less than twenty percent (20%) of such county’s share of the gasoline, diesel fuel or kerosene taxes to be used in paying the principal and interest of such road and bridge bonds as they mature.

In any county having such countywide road or bridge bonds or district road or bridge bonds outstanding which do not exceed, in the aggregate, five percent (5%) of the assessed valuation of the taxable property of the county, it shall be the duty of the board of supervisors to set aside not less than ten percent (10%) of such county’s share of the gasoline, diesel fuel or kerosene taxes to be used in paying the principal and interest on such road or bridge bonds as they mature.

The portion of any such county’s share of the gasoline, diesel fuel or kerosene taxes thus set aside for the payment of the principal and interest of road or bridge bonds, as provided for in this section, shall be used first in paying the currently maturing installments of the principal and interest of such countywide road or bridge bonds, if there be any such countywide road or bridge bonds outstanding, and secondly, in paying the currently maturing installments of principal and interest of district road or bridge bonds outstanding. It shall be the duty of the board of supervisors to pay bonds and interest maturing in each supervisors district out of the supervisors district’s share of the gasoline, diesel fuel or kerosene taxes of such district.

The remaining portion of such county’s share of the gasoline, diesel fuel or kerosene taxes, after setting aside the portion above provided for the payment of the principal and interest of bonds, shall be used in the construction and maintenance of any public highways, bridges, or culverts of the county, including the roads in special or separate road districts, in the discretion of the board of supervisors, or in paying the interest and principal of county road and bridge bonds or district road and bridge bonds, in the discretion of the board of supervisors.

In any county having no countywide road or bridge bonds or district road or bridge bonds outstanding, all such county’s share of the gasoline, diesel fuel or kerosene taxes shall be used in the construction, reconstruction, and maintenance of the public highways, bridges, or culverts of the county as the board of supervisors may determine.

In every county in which there are county road bonds or seawall or road protection bonds outstanding which were issued for the purpose of building bridges or constructing public roads or seawalls, such funds shall be used in the manner provided by law.

From the amount produced by the nine-fourteenths (9/14) division allocated to the Transportation Department, there shall be deducted:

The amount paid to the State Treasurer for the “Highway Bonds Sinking Fund” under paragraph (a) of this section;

Any amounts due counties in accordance with Section 65-33-45 which have outstanding bonds issued for seawall or road protection purposes, issued under provisions of Chapter 319, Laws of 1924, and amendments thereto;

Except as otherwise provided in Section 31-17-127, the remainder shall be paid by the State Tax Commission to the State Treasurer on the fifteenth day of each month next succeeding the month in which the gasoline, diesel fuel or kerosene taxes were collected to the credit of the State Highway Fund.

The funds allocated for the construction, reconstruction, and improvement of state highways, bridges, and culverts, or so much thereof as may be necessary, shall first be used in conjunction with funds supplied by the federal government for such purposes and allocated to the State Transportation Department to be expended on the state highway system. It is specifically provided hereby that the necessary portion of such funds hereinabove allocated to the State Transportation Department may be used for the prompt payment of principal and interest on highway bonds heretofore issued, including such bonds issued or to be issued under the provisions of Chapter 312, Laws of 1956, and amendments thereto.

Nothing contained in this section shall be construed to reduce the amount of such gasoline, diesel fuel or kerosene excise taxes levied by the state, allotted under the provisions of Title 65, Chapter 33, Mississippi Code of 1972, to counties in which there are outstanding bonds issued for seawall or road protection purposes issued under the provisions of Chapter 319, Laws of 1924, and amendments thereto; the amount of said gasoline, diesel fuel or kerosene excise taxes designated in this section for the payment of bonds and interest authorized and issued or to be issued under the provisions of Chapter 130, Laws of 1938, and subsequent acts authorizing the issuance of bonds payable from gasoline, diesel fuel or kerosene tax revenue, shall, in such counties, be considered as being paid “into the State Treasury to the credit of the State Highway Fund” within the meaning of Section 65-33-45 in computing the amount to be paid to such counties under the provisions of said section, and this section shall be administered in connection with Title 65, Chapter 33, Mississippi Code of 1972, and Sections 65-33-45, 65-33-47 and 65-33-49 dealing with seawalls, as if made a part of this section.

The proceeds of the Five and One-fourth Cents (5.25¢) of the tax per gallon on oils used as a propellant for jet aircraft engines, and Six and Four-tenths Cents (6.4¢) of the tax per gallon on aviation gasoline and the tax of One Cent (1¢) per gallon for each gallon of gasoline for which a refund has been made pursuant to Section 27-55-23 because such gasoline was used for aviation purposes, shall be paid to the State Treasury into a special fund to be used exclusively, pursuant to legislative appropriation, for the support and development of aeronautics as defined in Section 61-1-3.

State highway funds in an amount equal to the difference between Forty-two Million Dollars ($42,000,000.00) and the annual debt service payable on the state’s highway revenue refunding bonds, Series 1985, shall be expended for the construction or reconstruction of highways designated under the highway program created under Section 65-3-97.

“Gasoline, diesel fuel or kerosene taxes” as used in this section shall be deemed to mean and include state gasoline, diesel fuel or kerosene taxes levied and imposed on distributors of gasoline, diesel fuel or kerosene, and all state excise taxes derived from any fuel used to propel vehicles upon the highways of this state, when levied by any statute.

HISTORY: Codes, 1942, § 10013-38; Laws, 1936, ch. 162; Laws, 1938, ch. 144; Laws, 1946, ch. 264, § 38; Laws, 1950, ch. 473, § 5; Laws, 1952, ch. 287; Laws, 1960, ch. 477; Laws, 1964, ch. 528, § 1; Laws, 1966, ch. 645, § 40; Laws, 1981, ch. 309, § 1; Laws, 1981, ch. 464, § 28; Laws, 1984, ch. 446, § 4; Laws, 1987, ch. 322, § 4; Laws, 1988 Ex Sess, ch. 14, § 15; Laws, 1990, ch. 570, § 1; Laws, 1992, ch 548, § 1; Laws, 1994, ch. 557, § 22; Laws, 1999, ch. 461, § 36; Laws, 1999, ch. 575, § 3; Laws, 2002, ch. 582, § 4; Laws, 2005, 2nd Ex Sess, ch. 53, § 2, eff from and after July 1, 2005.

Joint Legislative Committee Note —

Section 36 of ch. 461, Laws of 1999, effective from and after September 1, 1999 (approved March 29, 1999) amended this section. Section 3 of ch. 575, Laws of 1999, effective from and after September 1, 1999 (approved April 21, 1999), also amended this section. As set out above, this section reflects the language of Section 3 of ch. 575, Laws of 1999, pursuant to Section 1-3-79 which provides that whenever the same section of law is amended by different bills during the same legislative session, and the effective dates of the amendments are the same, the amendment with the latest approval date shall supersede all other amendments to the same section approved on an earlier date.

Editor’s Notes —

Section 27-3-4 provides that the terms “‘Mississippi State Tax Commission,’ ‘State Tax Commission,’ ‘Tax Commission’ and ‘commission’ appearing in the laws of this state in connection with the performance of the duties and functions by the Mississippi State Tax Commission, the State Tax Commission or Tax Commission shall mean the Department of Revenue.”

Laws of 1999, ch. 461, §§ 50, 51, provide:

“SECTION 50. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under Title 27, Chapters 55, 57 and 61, Mississippi Code of 1972, prior to July 1, 1999, whether such assessments, appeals, suits, claims or actions shall have been begun before July 1, 1999, or shall thereafter be begun; and the provisions of the aforesaid laws and amendments thereto are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the executing of any warrant thereunder prior to July 1, 1999, or for the filing of reports, and for the imposition of any penalties, forfeitures or claims for failure to comply therewith.

“SECTION 51. Section 36 of this act shall take effect and be in force from and after September 1, 1999. The remainder of this act shall take effect and be in force from and after July 1, 1999.”

Amendment Notes —

The 2005 amendment, 2nd Ex Sess, ch. 53, deleted former (c)(iii) and redesignated former (c)(iv) as present (c)(iii) in both versions of the section.

Cross References —

Requirement that the Department of Revenue withhold all allocations otherwise payable under this section if a certificate of noncompliance to a county has been issued, see §19-2-11.

Apportionment of tax collections, see §27-3-57.

Distribution of a portion of proceeds of gasoline, diesel fuel, or kerosene taxes provided for in §27-5-101 to the Division of State Aid Road Construction Fund created by §65-9-17, see §27-65-75.

Distribution of motor vehicle privilege taxes, see §27-19-159.

Disposition of gasoline excise tax revenues in excess of the amount paid into the highway bonds sinking fund under the requirements of paragraph (a) of this section, see §27-55-11.

Proceeds of tax on gasoline, see §27-55-47.

Proceeds of tax on lubricating oils, see §§27-57-35,27-57-37.

Payment and apportionment of proceeds of liquefied compressed gas tax, see §27-59-49.

Proceeds of liquefied compressed gas tax, see §§27-59-49,27-59-51.

Payment and apportionment of interstate commercial carriers motor fuel taxes, see §§27-61-5,27-61-25.

Applicability of this section to distribution of tax and permit fees collected under Interstate Commercial Carriers Motor Fuel Tax, see §27-61-25.

Applicability of this section to the distribution of gasoline, diesel fuel and kerosene taxes to the Division of State Aid Road Construction Fund, see §27-65-75.

Bonds for cost of Four-Lane Highway Program, see §31-17-127.

Payment of state ports and harbors bonds, see §59-5-51.

Deduction from reimbursement for delinquencies in payments on obligations for establishment of port, harbor or waterway, see §59-5-51.

Control of highways by Mississippi Transportation Commission, see §65-1-47.

Authorization for borrowing to cover costs of construction or reconstruction of highways designated under §65-3-97, when revenues designated under §§27-5-101,27-19-99,27-19-325,27-57-37,27-65-75, and65-3-97 are insufficient to fund construction priorities under Four-Lane Highway Program, see § 65-3-97.

Use of gasoline tax to pay county road bonds, see §§65-15-9,65-15-11.

JUDICIAL DECISIONS

1. In general.

2. Construction and application.

Under Former Law

1. In general.

Neither §27-5-101 nor §27-5-103 violates the due process or equal protection clauses of the United States Constitution or the Mississippi Constitution of 1890. Mississippi Municipal Asso. v. State, 390 So. 2d 986, 1980 Miss. LEXIS 2151 (Miss. 1980).

No county has any vested right in any portion of the gasoline tax money except such right as the legislature may grant, and the legislature has the power to distribute a portion of the tax in any manner, upon any basis, and under any formula which it may prescribe. Schaeffer v. Sharp, 328 F. Supp. 762, 1971 U.S. Dist. LEXIS 12568 (S.D. Miss. 1971).

This section is not retrospective or retroactive, but all gasoline taxes collected by the comptroller on and after April 10, 1952, shall be distributed by him in accordance with said chapter 287, with the limitation that for each year after April 10, 1952, no county shall receive in excess of $190,000. McCullen v. State, 217 Miss. 256, 63 So. 2d 856, 1953 Miss. LEXIS 429 (Miss. 1953).

Statutes will be held to have a prospective operation only, unless there is clearly manifested an intention to make them effective retrospectively. McCullen v. State, 217 Miss. 256, 63 So. 2d 856, 1953 Miss. LEXIS 429 (Miss. 1953).

Amendment of 1952 to Gasoline Apportionment Statute is not retrospective in operation, but all gasoline taxes collected by comptroller on or after effective date of April 10, 1952, are to be distributed in accordance with the amendment, with a limitation that for each year no county shall receive in excess of $190,000. McCullen v. State, 217 Miss. 256, 63 So. 2d 856, 1953 Miss. LEXIS 429 (Miss. 1953).

2. Construction and application.

By this section, the legislature intended that the $190,000 limitation on the amount to be distributed to any county should be applied annually. McCullen v. State, 217 Miss. 256, 63 So. 2d 856, 1953 Miss. LEXIS 429 (Miss. 1953).

Under Former Law

Funds from gasoline taxes, by virtue of authority hereunder to expend such funds for construction and maintenance of highways, may be used by the state highway commission to appraise and reimburse county for paving highway to be utilized as part of final location of state highway under Code 1942, § 8036. State Highway Com. v. McGowen, 198 Miss. 853, 23 So. 2d 893, 1945 Miss. LEXIS 261 (Miss. 1945).

The intent of the statute is that the money shall be applied to roads, bridges and culverts wherever they may be in the county, according to their respective needs and benefit to the public, pursuant to the judgment of the entire board of supervisors, and not arbitrarily according to district lines. Board of Supervisors v. Hawkins, 192 Miss. 330, 5 So. 2d 684, 1942 Miss. LEXIS 12 (Miss. 1942).

Under former law, the percentage of allotment to the payment of maturing principal and interest of road and bridge bonds depends upon the aggregate amount of the bonds and the assessed valuation of the taxable property of the county, and the allotment is mandatory. Board of Supervisors v. Hawkins, 192 Miss. 330, 5 So. 2d 684, 1942 Miss. LEXIS 12 (Miss. 1942).

The legislature vested discretion in the supervisors as to how the remainder of the gasoline fund not set aside for payment of road and bridge bonds should be expended, and the supervisors, in performing their duty, should act fairly and in good faith, having in view the good of the entire public, and the courts are without power to interfere with the supervisors’ discretion, in the absence of fraud, or manifest abuse and oppression in its exercise. Board of Supervisors v. Hawkins, 192 Miss. 330, 5 So. 2d 684, 1942 Miss. LEXIS 12 (Miss. 1942).

The circuit court was without authority to apportion among the various districts of a county the portion of the gasoline fund remaining after placing 35 per cent in the county road bond fund, although the board of supervisors, while authorizing the clerk to divide such remainder, failed to make the allotment, since such power was vested by the statute in the supervisors. Board of Supervisors v. Hawkins, 192 Miss. 330, 5 So. 2d 684, 1942 Miss. LEXIS 12 (Miss. 1942).

An order of the county board of supervisors directing that 35 per cent of gasoline funds coming from the state should be placed in the county road bond fund, and the remainder divided in certain proportions among the various districts of the county, was void, since it did not find and adjudicate in the order the aggregate amount of the county-wide and district road and bridge bonds, and the assessed valuation of the taxable property, as the basis for the allotment of such 35 per cent of funds. Board of Supervisors v. Hawkins, 192 Miss. 330, 5 So. 2d 684, 1942 Miss. LEXIS 12 (Miss. 1942).

Highway commission held unauthorized to pay gasoline tax funds to state tax collector, suing for counties’ alleged statutory share. State Highway Com. v. Gulley, 167 Miss. 631, 145 So. 351, 1933 Miss. LEXIS 80 (Miss. 1933).

OPINIONS OF THE ATTORNEY GENERAL

Alleged violations of the countywide system of road administration, codified at Miss. Code Ann. §19-2-1 et seq., should be filed with the State Auditor, who has the duty to enforce the provisions of the county unit system by issuing certificates of noncompliance. Brooks, March 2, 2007, A.G. Op. #07-00093, 2007 Miss. AG LEXIS 87.

§ 27-5-101. Apportionment of tax by the State Tax Commission.

[With regard to any county which is required to operate on a countywide system of road administration as described in Section 19-2-3, this section shall read as follows:]

Unless otherwise provided in this section, on or before the fifteenth day of each month, all gasoline, diesel fuel or kerosene taxes which are levied under the laws of this state and collected during the previous month shall be paid and apportioned by the State Tax Commission as follows:

(i) Except as otherwise provided in Section 31-17-127, from the gross amount of gasoline, diesel fuel or kerosene taxes produced by the state, there shall be deducted an amount equal to one-sixth (1/6) of principal and interest certified by the State treasurer to the State Tax Commission to be due on the next semiannual bond and interest payment date, as required under the provisions of Chapter 130, Laws of 1938, and subsequent acts authorizing the issuance of bonds payable from gasoline, diesel fuel or kerosene tax revenue on a parity with the bonds issued under authority of said Chapter 130. The State Treasurer shall certify to the State Tax Commission on or before the fifteenth day of each month the amount to be paid to the “Highway Bonds sinking Fund” as provided by said Chapter 130, Laws of 1938, and subsequent acts authorizing the issuance of bonds payable from gasoline, diesel fuel or kerosene tax revenue, on a parity with the bonds issued under authority of said Chapter 130; and the State Tax Commission shall, on or before the twenty-fifth day of each month, pay into the State Treasury for credit to the “Highway Bonds Sinking Fund” the amount so certified to him by the State Treasurer due to be paid into such fund each month. The payments to the “Highway Bonds Sinking Fund” shall be made out of gross gasoline, diesel fuel or kerosene tax collections before deductions of any nature are considered; however, such payments shall be deducted from the allocation to the transportation Department under paragraph (c) of this section.

From collections derived from the portion of the gasoline excise tax that exceeds Seven Cents (7¢) per gallon, from the portion of the tax on aviation gas under Section 27-55-11 that exceeds six and Four-tenths Cents (6.4¢) per gallon, from the portion of the special fuel tax levied under Sections 27-55-519 and 27-55-521, at Eighteen Cents (18¢) per gallon that exceeds Ten cents (10¢) per gallon, from the portion of the taxes levied under Section 27-55-519, at Five and Three-fourths Cents (5.75¢) per gallon that exceeds One Cent (1¢) per gallon on special fuel and Five and One-fourth Cents (5.25¢) per gallon on special fuel used as aircraft fuel, from the portion of the excise tax on compressed gas used as a motor fuel that exceeds the rate of tax in effect on June 30, 1987, and from the portion of the gasoline excise tax in excess of Seven Cents (7¢) per gallon and the diesel excise tax in excess of Ten Cents (10¢) per gallon under Section 27-61-5 there shall be deducted:

1. An amount as provided in Section 27-65-75(4) to the credit of a special fund designated as the “Office of State Aid Road construction.”

2. An amount equal to the tax collections derived from Two Cents (2¢) per gallon of the gasoline excise tax for distribution to the State Highway Fund to be used exclusively for the construction, reconstruction and maintenance of highways of the State of Mississippi or the payment of interest and principal on bonds when specifically authorized by the Legislature for that purpose.

3. The balance shall be deposited in the State Treasury to the credit of the State Highway Fund.

Subject to the provisions that said basis of distribution shall in no wise affect adversely the amount specifically pledged in paragraph (a) of this section to be paid into the “Highway Bonds Sinking Fund,” the following shall be deducted from the amount produced by the state tax on gasoline, diesel fuel or kerosene tax collections, excluding collections derived from the portion of the gasoline excise tax that exceeds Seven Cents (7¢) per gallon, from the portion of the tax on aviation gas under Section 27-55-11 that exceeds Six and Four-tenths Cents (6.4¢) per gallon, from the portion of the special fuel tax levied under Sections 27-55-519 and 27-55-521, at Eighteen Cents (18¢) per gallon, that exceeds Ten Cents (10¢) per gallon, from the portion of the taxes levied under Section 27-55-519, at Five and Three-fourths Cents (5.75¢) that exceeds One Cent (1¢) per gallon on special fuel and Five and One-fourth Cents (5.25¢) per gallon on special fuel used as aircraft fuel, from the portion of the excise tax on compressed gas used as a motor fuel that exceeds the rate of tax in effect on June 30, 1987, and from the portion of the gasoline excise tax in excess of Seven Cents (7¢) per gallon and the diesel excise tax in excess of Ten Cents (10¢) per gallon under Section 27-61-5:

Twenty percent (20%) of such amount which shall be earmarked and set aside for the construction, reconstruction and maintenance of the highways and roads of the state, provided that if such twenty percent (20%) should reduce any county to a lesser amount than that received in the fiscal year ending June 30, 1966, then such twenty percent (20%) shall be reduced to a percentage to provide that no county shall receive less than its portion for the fiscal year ending June 30, 1966;

The amount allowed as refund on gasoline or as tax credit on diesel fuel or kerosene used for agricultural, maritime, industrial, domestic and nonhighway purposes;

Five percent (5%) of such amount shall be paid to the State Highway Fund;

The amount or portion thereof authorized by legislative appropriation to the Fisheries and Wildlife Fund created under Section 59-21-25;

The amount for deposit into the special aviation fund underparagraph (d) of this section; and

The remainder shall be divided on a basis of nine-fourteenths (9/14) and five-fourteenths (5/14) (being the same basis as Four and One-half Cents (4-1/2¢) and Two and One-half Cents (2-1/2¢) is to Seven Cents (7¢) on gasoline, and six and forty-three one-hundredths (6.43) and three and fifty-seven one-hundredths (3.57) is to Ten Cents (10¢) on diesel fuel or kerosene). The amount produced by the nine-fourteenths (9/14) division shall be allocated to the Transportation Department and paid into the State Treasury as provided in this section and in Section 27-5-103 and the five-fourteenths (5/14) division shall be returned to the counties of the state on the following basis:

1. In each fiscal year, each county shall be paid each month the same percentage of the monthly total to be distributed as was paid to that county during the same month in the fiscal year which ended April 9, 1960, until the county receives One Hundred Ninety Thousand Dollars ($190,000.00) in such fiscal year, at which time funds shall be distributed under the provisions of paragraph (b)(vi)4 of this section.

2. If after payments in 1 above, any county has not received a total of One Hundred Ninety Thousand Dollars ($190,000.00) at the end of the fiscal year ending June 30, 1961, and each fiscal year thereafter, then any available funds not distributed under 1 above shall be used to bring such county or counties up to One Hundred Ninety Thousand Dollars ($190,000.00) or such funds shall be divided equally among such counties not reaching One Hundred Ninety Thousand Dollars ($190,000.00) if there is not sufficient money to bring all the counties to said One Hundred Ninety Thousand Dollars ($190,000.00).

3. When a county has been paid an amount equal to the total which was paid to the same county during the fiscal year ended April 9, 1960, such county shall receive no further payments during the then current fiscal year until the last month of such current fiscal year, at which time distribution will be made under 2 above, except as set out in 4 below.

4. During the last month of the current fiscal year, should it be determined that there are funds available in excess of the amount distributed for the year under 1 and 2 above, then such excess funds shall be distributed among the various counties as follows:

One-third (1/3) of such excess to be divided equally among the counties;

One-third (1/3) of such excess to be paid to the counties in the proportion which the population of each county bears to the total population of the state according to the last federal census;

One-third (1/3) of such excess to be paid to the counties in the proportion which the number of square miles of each county bears to the total square miles in the state.

5. It is the declared purpose and intent of the Legislature that no county shall be paid less than was paid during the year ended April 9, 1960, unless the amount to be distributed to all counties in any year is less than the amount distributed to all counties during the year ended April 9, 1960.

The Municipal Aid Fund as established by Section 27-5-103 shall not participate in any portion of any funds allocated to any county hereunder over and above One Hundred Ninety Thousand Dollars ($190,000.00).

In any county having road or bridge bonds outstanding which exceed, in the aggregate, twelve percent (12%) of the assessed valuation of the taxable property of the county, it shall be the duty of the board of supervisors to set aside not less than sixty percent (60%) of such county’s share of the gasoline, diesel fuel or kerosene taxes to be used in paying the principal and interest on such road or bridge bonds as they mature.

In any county having such road or bridge bonds outstanding which exceed, in the aggregate, eight percent (8%) of the assessed valuation of the taxable property of the county, but which do not exceed, in the aggregate, twelve percent (12%) of the assessed valuation of the taxable property of the county, it shall be the duty of the board of supervisors to set aside not less than thirty-five percent (35%) of such county’s share of the gasoline, diesel fuel or kerosene taxes to be used in paying the principal and interest of such road or bridge bonds as they mature.

In any county having such road or bridge bonds outstanding which exceed, in the aggregate, five percent (5%) of the assessed valuation of the taxable property of the county, but which do not exceed, in the aggregate, eight percent (8%) of the assessed valuation of the taxable property of the county, it shall be the duty of the board of supervisors to set aside not less than twenty percent (20%) of such county’s share of the gasoline, diesel fuel or kerosene taxes to be used in paying the principal and interest of such road and bridge bonds as they mature.

In any county having such road or bridge bonds outstanding which do not exceed, in the aggregate, five percent (5%) of the assessed valuation of the taxable property of the county, it shall be the duty of the board of supervisors to set aside not less than ten percent (10%) of such county’s share of the gasoline, diesel fuel or kerosene taxes to be used in paying the principal and interest on such road or bridge bonds as they mature.

The portion of any such county’s share of the gasoline, diesel fuel or kerosene taxes thus set aside for the payment of the principal and interest of road or bridge bonds, as provided for in this section, shall be used in paying the currently maturing installments of the principal and interest of such road or bridge bonds, if there be any such road or bridge bonds outstanding.

The remaining portion of such county’s share of the gasoline, diesel fuel or kerosene taxes, after setting aside the portion above provided for the payment of the principal and interest of bonds, shall be used in the construction and maintenance of any public highways, bridges or culverts of the county, in the discretion of the board of supervisors.

In any county having no road or bridge bonds outstanding, all such county’s share of the gasoline, diesel fuel or kerosene taxes shall be used in the construction, reconstruction and maintenance of the public highways, bridges or culverts of the county, as the board of supervisors may determine.

In every county in which there are county road bonds or seawall or road protection bonds outstanding which were issued for the purpose of building bridges or constructing public roads or seawalls, such funds shall be used in the manner provided by law.

From the amount produced by the nine-fourteenths (9/14) division allocated to the Transportation Department, there shall be deducted:

The amount paid to the State Treasurer for the “Highway Bonds Sinking Fund” under paragraph (a) of this section;

Any amounts due counties in accordance with Section 65-33-45 which have outstanding bonds issued for seawall or road protection purposes, issued under provisions of Chapter 319, Laws of 1924, and amendments thereto; and

Except as otherwise provided in Section 31-17-127, the remainder shall be paid by the State Tax Commission to the State Treasurer on the fifteenth day of each month next succeeding the month in which the gasoline, diesel fuel or kerosene taxes were collected to the credit of the State Highway Fund.

The funds allocated for the construction, reconstruction and improvement of state highways, bridges and culverts, or so much thereof as may be necessary, shall first be used in conjunction with funds supplied by the federal government for such purposes and allocated to the Transportation Department to be expended on the state highway system. It is specifically provided hereby that the necessary portion of such funds herein above allocated to the Transportation Department may be used for the prompt payment of principal and interest on highway bonds heretofore issued, including such bonds issued or to be issued under the provisions of Chapter 312, Laws of 1956, and amendments thereto.

Nothing contained in this section shall be construed to reduce the amount of such gasoline, diesel fuel or kerosene excise taxes levied by the state, allotted under the provisions of Title 65, Chapter 33, Mississippi Code of 1972, to counties in which there are outstanding bonds issued for seawall or road protection purposes issued under the provisions of Chapter 319, Laws of 1924, and amendments thereto; the amount of said gasoline, diesel fuel or kerosene excise taxes designated in this section for the payment of bonds and interest authorized and issued or to be issued under the provisions of Chapter 130, Laws of 1938, and subsequent acts authorizing the issuance of bonds payable from gasoline, diesel fuel or kerosene tax revenue, shall, in such counties, be considered as being paid “into the State Treasury to the credit of the State Highway Fund” within the meaning of Section 65-33-45 in computing the amount to be paid to such counties under the provisions of said section, and this section shall be administered in connection with Title 65, Chapter 33, Mississippi Code of 1972, and Sections 65-33-45, 65-33-47 and 65-33-49 dealing with seawalls, as if made a part of this section.

The proceeds of the Five and One-fourth Cents (5.25¢) of the tax per gallon on oils used as a propellant for jet aircraft engines, and Six and Four-tenths Cents (6.4¢) of the tax per gallon on aviation gasoline and the tax of One Cent (1¢) per gallon for each gallon of gasoline for which a refund has been made pursuant to Section 27-55-23 because such gasoline was used for aviation purposes, shall be paid to the State Treasury into a special fund to be used exclusively, pursuant to legislative appropriation, for the support and development of aeronautics as defined in Section 61-1-3.

State highway funds in an amount equal to the difference between Forty-two Million Dollars ($42,000,000.00) and the annual debt service payable on the state’s highway revenue refunding bonds, Series 1985, shall be expended for the construction or reconstruction of highways designated under the highway program created under Section 65-3-97.

“Gasoline, diesel fuel or kerosene taxes” as used in this section shall be deemed to mean and include state gasoline, diesel fuel or kerosene taxes levied and imposed on distributors of gasoline, diesel fuel or kerosene, and all state excise taxes derived from any fuel used to propel vehicles upon the highways of this state, when levied by any statute.

HISTORY: Codes, 1942, § 10013-38; Laws, 1936, ch. 162; Laws, 1938, ch. 144; Laws, 1946, ch. 264, § 38; Laws, 1950, ch. 473, § 5; Laws, 1952, ch. 287; Laws, 1960, ch. 477; Laws, 1964, ch. 528, § 1; Laws, 1966, ch. 645, § 40; Laws, 1981, ch. 309, § 1; Laws, 1981, ch. 464, § 28; Laws, 1984, ch. 446, § 4; Laws, 1987, ch. 322, § 4; Laws, 1988 Ex Sess, ch. 14, § 15; Laws, 1990, ch. 570, § 1; Laws, 1992, ch 548, § 1; Laws, 1994, ch. 557, § 22; Laws, 1999, ch. 461, § 36; Laws, 1999, ch. 575, § 3; Laws, 2002, ch. 582, § 4; Laws, 2005, 2nd Ex Sess, ch. 53, § 2, eff from and after July 1, 2005.

§ 27-5-103. Municipal Aid Fund.

  1. There is hereby created a fund designated as the municipal aid fund.
  2. After the State Tax Commission has determined the amount of taxes due and distributable to the counties of the state under the provisions of Section 27-5-101, and before making payments to each county, he shall first deduct from each county’s share of the allocation of said taxes each month a sum equal to one-twelfth (1/12) of the product of the total population of all incorporated municipalities in such county multiplied by Seventy-five Cents (75¢). In no event, however, shall the amount of the deductions made and payable to any municipality from such county’s funds exceed Forty Thousand Dollars ($40,000.00) during any one (1) calendar year. The amount so deducted shall be paid into the State Treasury each month by the State Tax Commission, at the same time other gasoline, diesel fuel or kerosene tax funds are now distributed, to the credit of the municipal aid fund created by this section.
  3. From the gross amount of gasoline, diesel fuel or kerosene taxes determined to be due and distributable to the Mississippi Department of Transportation under the provisions of Section 27-5-101, the State Tax Commission shall, before distribution is made to the Mississippi Department of Transportation, deduct each month Eighty-Three Thousand, Three Hundred Thirty-Three Dollars and Thirty-three Cents ($83,333.33). The amount so deducted shall be paid into the State Treasury each month by the State Tax Commission, at the same time as other gasoline, diesel fuel or kerosene tax funds are now distributed, to the credit of the municipal aid fund created herein.
  4. The amount paid into the municipal aid fund under the provisions of paragraph (2) hereof shall be apportioned and paid to each incorporated municipality of the county in the proportion which the population of each incorporated municipality bears to the total population of all incorporated municipalities in such county, but in no event shall the amount paid to any one (1) municipality out of such county’s funds exceed Forty Thousand Dollars ($40,000.00) in any one (1) calendar year. When any one (1) municipality shall have been paid Forty Thousand Dollars ($40,000.00) during any part of a calendar year, then such municipality shall not be entitled to additional funds from such county’s funds during such calendar year. In determining the amount to be paid to each municipality, the population of each municipality which has been paid Forty Thousand Dollars ($40,000.00) in any part of a calendar year shall be excluded from the computation of the total population of the incorporated municipalities of such county.
  5. The amount paid into the municipal aid fund, under the provisions of subsection (3) hereof, shall be paid to the incorporated municipalities of this state in the following manner:
    1. Each municipality shall be paid the sum of Two Dollars and Fifty Cents ($2.50) annually per capita up to and including three thousand (3,000) population, with payments to be made monthly in proportionate amounts until the total payment provided herein shall have been made in full.
    2. The remainder of said amount paid into the municipal aid fund under the provisions of subsection (3) hereof and remaining after the payment authorized in paragraph (a) of this subsection, has been made shall be apportioned and paid to the incorporated municipalities of this state having more than three thousand (3,000) population in the proportion which the population of each such participating municipality in excess of three thousand (3,000) bears to the total population over and above the number three thousand (3,000) in each of the various municipalities of the state; provided, however, that the amount distributed under this subsection shall not exceed an amount which, when added to the amount distributed under subsection (4) of this section equals Sixty-five Thousand Dollars ($65,000.00). In determining the amount to be paid to each incorporated municipality, the population of each incorporated municipality which has been paid Sixty-five Thousand Dollars ($65,000.00) under the provisions of subsection (4) of this section or under the provisions of both subsection (4) and this subsection, in any part of a calendar year shall be excluded from the computation of the total population of the incorporated municipalities.
  6. Population figures referred to herein shall mean population as shown by the last available federal census, except municipalities which have been incorporated since the last federal census, or will be incorporated prior to the next federal census, in which case the population shall be in the official count used in procuring the charter of incorporation.
  7. In any county having a county seat which is not an incorporated municipality, the computation shall be made as though the county seat was an incorporated municipality; however, the funds computed to be due such county seat shall be paid to the county treasury wherein such county seat is located and such funds shall be used for road, bridge and street construction or maintenance.
  8. The distribution of funds under this section shall be made by the State Tax Commission by warrants drawn on the State Treasury payable from the municipal aid fund herein created.
  9. All funds paid into the municipal aid fund on and after January 1 of each year and up to and including June 30 of the same year shall be distributed, as provided herein, on or before July 20 of the year in which such funds were paid in. All funds paid into the municipal aid fund on and after July 1 of each year and up to and including December 31 of the same year shall be distributed, as provided herein, on or before January 20 of the next succeeding year.
  10. All funds received by any municipality under the provisions of this section shall be used solely for construction, maintenance or repair of streets, curbs, gutters, storm sewers, bridges, culverts or like street improvements and appurtenances or for payment of bonds and interest issued for such purposes.

    Any municipality may contract with its board of supervisors, or any member thereof, whereby said construction, maintenance or repair may be performed by said board or member in which event funds received under this section by such municipality shall first be applied to the payment of said bonds and interest, if any, and the remainder shall be paid over to the county treasury. In the event of such agreement, the contract shall be spread at large upon the minutes of the governing authorities of both such municipality and the board of supervisors of the county.

  11. The manner of apportionment of taxes under Section 27-5-101 shall not be disturbed by the provisions of this section. It is the intent of this section that from its apportionment of taxes under Section 27-5-101, each county shall share with the municipalities in said counties as provided by this section, and the payments made to the county or to municipalities within such county shall be considered as payments to the county in construing the aforementioned Section 27-5-101.

HISTORY: Codes, 1942, § 10013-38.7; Laws, 1955, Ex. ch. 97, §§ 1-11; Laws, 1966, ch. 645, § 41; Laws, 1994, ch. 418, § 1, eff from and after July 1, 1994.

Editor’s Notes —

Section 7-7-2 provides that the words “State Auditor of Public Accounts,” “State Auditor,” and “Auditor” appearing in the laws of this state in connection with the performance of Auditor’s functions shall mean the State Fiscal Officer.

Section 27-3-4 provides that the terms “‘Mississippi State Tax Commission,’ ‘State Tax Commission,’ ‘Tax Commission’ and ‘commission’ appearing in the laws of this state in connection with the performance of the duties and functions by the Mississippi State Tax Commission, the State Tax Commission or Tax Commission shall mean the Department of Revenue.”

Section 27-104-6 provides that whenever the term “State Fiscal Officer” appears in any law it shall mean “Executive Director of the Department of Finance and Administration.”

Cross References —

Apportionment of tax collections, see §27-3-57.

Nonparticipation of the municipal aid fund in money allocated in excess of a certain amount to any county from excise taxes on gasoline, diesel fuel, kerosene or oil, see §27-5-101.

Payment and apportionment of interstate commercial carriers motor fuel taxes, see §§27-61-5,27-61-25.

JUDICIAL DECISIONS

1. In general.

Neither §27-5-101 nor §27-5-103 violates the due process or equal protection clauses of the United States Constitution or the Mississippi Constitution of 1890. Mississippi Municipal Asso. v. State, 390 So. 2d 986, 1980 Miss. LEXIS 2151 (Miss. 1980).

OPINIONS OF THE ATTORNEY GENERAL

A municipality may use municipal aid funds to mow street rights-of-way, to construct and maintain street lights, and to clean and maintain ditches and other drainage structures and facilities which are necessary for drainage of public streets. Lampton, Nov. 20, 1991, A.G. Op. #91-0844.

§ 27-5-105. Repealed.

Repealed by Laws, 1987, ch. 527, § 4, effective from and after September 1, 1987.

[En Laws, 1987, ch. 322, § 5]

Editor’s Notes —

Former §27-5-105 provided for the deposit of moneys in a special fund designated as the “Division of State Aid Road Construction.” For a similar provision, see §27-65-75.

Laws of 1987, ch. 527, § 1, amending §27-65-75, provides in the last paragraph of subdivision (4) as follows:

“SECTION 1. Any reference in the general laws of this state or the Mississippi Code of 1972 to Section 5 of House Bill No. 1206, 1987 Regular Session [codified as Section 27-5-105], shall mean and be construed to refer and apply to subsection (4) of Section 27-65-75.”

Transfer of Functions to State Tax Commission

Cross References —

Transfer of powers, duties and functions of State Tax Commission and Chairman of the State Tax Commission to Commissioner of Revenue acting through the Department of Revenue, see §27-3-4.

§ 27-5-151. Purpose.

The Legislature hereby declares its intent and purpose to achieve a greater degree of economy and efficiency in the government of this state. Achievement of this end is essential to counter the accelerating rate of the cost and complexity of government, as well as to meet the continuing demand for services. By abolishing a multi-faceted governmental department, and thereupon transferring by function all of the duties and responsibilities of that department to existing agencies which can ably assume those duties and responsibilities, the intent and purpose of the legislature will be implemented.

HISTORY: Laws, 1980, ch. 561, § 1, eff from and after July 2, 1980.

§ 27-5-153. Abolition of Office of Motor Vehicle Comptroller; transfer of functions to State Tax Commission.

  1. The Office of Motor Vehicle Comptroller is hereby abolished. All of the functions of the office are hereby transferred to the State Tax Commission as provided in Sections 27-5-151 through 27-5-159, Mississippi Code of 1972, including but not limited to those functions enumerated in subsection (2) of this section. Whenever the term “Motor Vehicle Comptroller” or the word “comptroller,” meaning Motor Vehicle Comptroller, appears in the laws of the State of Mississippi, it shall mean “State Tax Commission.”
    1. The duties and responsibilities of the Office of Motor Vehicle Comptroller relative to the administration of all laws pertaining to the levying and collecting of excise taxes upon gasoline, oil, liquefied compressed gas used for motor vehicle fuel supply purposes and other petroleum products are hereby transferred to the State Tax Commission unless otherwise specified in Sections 27-5-151 through 27-5-159, Mississippi Code of 1972.
    2. The duties and responsibilities of the Office of Motor Vehicle Comptroller relative to the administration of all laws pertaining to the gauging and calibration of tank trucks are hereby transferred to the State Tax Commission unless otherwise specified in Sections 27-5-151 through 27-5-159, Mississippi Code of 1972.
    3. The duties and responsibilities of the Office of Motor Vehicle Comptroller relative to the administration of all laws pertaining to the titling and licensing of motor vehicles, all laws pertaining to motor vehicle fueling centers, and all laws pertaining to the weighing and inspection stations along the highways of this state, are hereby transferred to the State Tax Commission unless otherwise specified in Sections 27-5-151 through 27-5-159, Mississippi Code of 1972. However, from and after July 1, 1992, any duty and responsibility relative to the administration of laws pertaining to the weighing and inspection stations along the highways of this state are transferred to the Mississippi Department of Transportation.
    4. The duties and responsibilities of the Office of Motor Vehicle Comptroller relative to the inspection of all motor vehicles operating upon all roads and highways within this state and his authority to require them to submit to a weighing by means of portable scales are hereby transferred to the State Tax Commission; however, from and after July 1, 1992, such duties and responsibilities are transferred to the Mississippi Department of Transportation.
    5. The duties and responsibilities of the Office of Motor Vehicle Comptroller relative to the administration of all laws pertaining to storage, manufacture, refinement or distillation of liquefied compressed gases are hereby transferred to the State Tax Commission unless otherwise specified in Sections 27-5-151 through 27-5-159, Mississippi Code of 1972.
    6. The duties of the Motor Vehicle Comptroller relative to shop inspection of containers, pressure vessels and/or tanks which are manufactured or fabricated in this state are hereby transferred to the State Tax Commission.
    7. The duties and responsibilities of the Office of Motor Vehicle Comptroller relative to the levying and collecting of the annual motor vehicle privilege taxes are hereby transferred to the State Tax Commission.
    8. Any duties and responsibilities of the Office of Motor Vehicle Comptroller relative to the operation of the Petroleum Products Laboratory at Mississippi State University are hereby transferred to the State Tax Commission.
    9. The duties and responsibilities of the Office of Motor Vehicle Comptroller relative to the administration of all laws specifically pertaining to the regulation of the sale of antifreeze are hereby transferred to the State Tax Commission.

HISTORY: Laws, 1980, ch. 561, § 2; Laws, 1992, ch. 496, § 18, eff from and after July 1, 1992.

Editor’s Notes —

Section 27-3-4 provides that the term “State Tax Commission” shall mean the Department of Revenue.

The duties and responsibilities outlined in subsections (2)(h) and (2)(i) have been transferred to the State Chemist by Section 75-56-5 (regulation of sale of antifreeze) and Section 75-55-3 (operation of Petroleum Products Laboratory).

The duties and responsibilities outlined in subsection (2)(e) have been transferred to the State Fire Marshall’s office by Section 75-57-2.

The duties and responsibilities outlined in subsection (2)(f) were transferred to the State Fire Marshall’s office by former Section 75-57-53 [now repealed].

Cross References —

Transfer of powers, duties and functions of State Tax Commission to Commissioner of Revenue acting through the Department of Revenue, see §27-3-4.

§ 27-5-155. Assumption of contracts and liabilities; transfer of funds, assets, records, equipment and the like.

  1. The State Tax Commission shall assume and honor all contracts, indebtedness, liabilities and other obligations which have been incurred prior to July 1, 1980, by the office of motor vehicle comptroller as to those powers, responsibilities, duties, functions, privileges, or rights that are transferred by Sections 27-5-151 through 27-5-159, but only to the extent that the contracts, indebtedness, liabilities or other obligations were lawfully incurred by the office of motor vehicle comptroller.
  2. The State Tax Commission is hereby entitled to the receipt of all funds, assets, monies or accounts to which the office of motor vehicle comptroller has been, is or will be entitled, pursuant to the transfer of duties as provided in Sections 27-5-151 through 27-5-159.
  3. The State Tax Commission is hereby entitled to the receipt of all funds, assets, monies or accounts related to the transfer of duties pursuant to Sections 27-5-151 through 27-5-159 to which the motor vehicle comptroller has been, is or will be entitled, pursuant to the transfer of duties as provided in Sections 27-5-151 through 27-5-159.
  4. The State Tax Commission is hereby entitled to the receipt of all relevant and material records, reports, statistics, files or other documents and any equipment, automobiles, furniture or other property related thereto of the office of motor vehicle comptroller pursuant to the transfer of duties as provided in Sections 27-5-151 through 27-5-159.

HISTORY: Laws, 1980, ch. 561, § 3, eff from and after July 2, 1980.

Editor’s Notes —

Section 27-3-4 provides that the terms “‘Mississippi State Tax Commission,’ ‘State Tax Commission,’ ‘Tax Commission’ and ‘commission’ appearing in the laws of this state in connection with the performance of the duties and functions by the Mississippi State Tax Commission, the State Tax Commission or Tax Commission shall mean the Department of Revenue.”

§ 27-5-157. Preferential status of employees terminated due to consolidation.

Any individual whose employment is terminated because of a duplication of effort or position resulting from the agency consolidation provided for in Sections 27-5-151 through 27-5-159 may be given preferential status if he makes application for further state employment, all other qualifications being satisfied.

HISTORY: Laws, 1980, ch. 561, § 4, eff from and after July 2, 1980.

§ 27-5-159. Maintenance of books, records and accounts by persons liable for taxes; inspection by commission.

  1. All persons who are liable for any taxes under any law transferred to the state tax commission by the provisions of Sections 27-5-151 through 27-5-159 shall keep full, complete, adequate and intelligible records, books and accounts in the English language, which books, records and accounts shall truly and correctly show and disclose the amount and extent of the liability of such person for such taxes and all other pertinent and material matters and facts with reference to such person’s liability for such taxes. Such records shall be kept and preserved by such person for a period of three (3) years. The state tax commission shall have the power and authority to require all persons liable for any taxes under any of the laws which the commission is required to administer and enforce pursuant to Sections 27-5-151 through 27-5-159 to produce within this state, at such reasonable time and place as the commission may designate, any and all books, accounts, papers and records within or without this state pertaining to their liability for taxes under any of the laws which the commission is required to enforce pursuant to Sections 27-5-151 through 27-5-159, or for any other purpose relating to the enforcement and administration of such laws. The commission shall also have the power and authority to examine and inspect during the usual business hours of the day all records, books, papers and accounts of any person pertaining to the tax liability of such person under any of the laws which the commission is required to enforce pursuant to Sections 27-5-151 through 27-5-159 and for any other purpose in connection with such laws.
  2. The term “person” as used in this section shall mean any individual, partnership, corporation, firm or other legal entity.

HISTORY: Laws, 1980, ch. 561, § 5, eff from and after July 2, 1980.

Editor’s Notes —

Section 27-3-4 provides that the terms “‘Mississippi State Tax Commission,’ ‘State Tax Commission,’ ‘Tax Commission’ and ‘commission’ appearing in the laws of this state in connection with the performance of the duties and functions by the Mississippi State Tax Commission, the State Tax Commission or Tax Commission shall mean the Department of Revenue.”

Chapter 7. Income Tax and Withholding

Article 1. Income Tax.

§ 27-7-1. Citation of article.

This article may be cited as the Income Tax Law of 1952.

HISTORY: Codes, 1942, § 9220-01; Laws, 1952, ch. 402, § 1, eff from and after January 1, 1952.

Cross References —

Withholding of tax, see §27-7-301 et seq.

Mississippi S Corporation Income Tax, see §27-8-1 et seq.

Compliance with income tax law as condition to homestead exemption allowance, see §27-33-63.

Requirement of bond from contractors subject to sales tax for payment of income tax, see §27-65-21.

Amounts to be deposited in the Superconducting Super Collider Fund out of tax receipts, see §57-67-15.

JUDICIAL DECISIONS

1. Validity.

2. Construction and application.

1. Validity.

It is well settled by the federal supreme court that in imposing taxes for state purposes a state is not exercising any power which the federal Constitution has conferred upon Congress, but it is only when the tax operates to regulate commerce between the states or with foreign nations, to an extent which infringes the authority conferred upon Congress, that the tax exceeds the limitations imposed by the federal Constitution. State Tax Com. v. Memphis Natural Gas Co., 197 Miss. 583, 19 So. 2d 477, 1944 Miss. LEXIS 325 (Miss. 1944).

The state cannot tax interstate commerce in any form whatever. Miller v. Illinois C. R. Co., 146 Miss. 422, 111 So. 558, 1927 Miss. LEXIS 191 (Miss. 1927).

If all of same class for taxation are taxed alike, equality clauses of state and federal constitutions are complied with. State ex rel. Knox v. Gulf, M. & N. R. Co., 138 Miss. 70, 104 So. 689, 1925 Miss. LEXIS 106 (Miss. 1925).

State may impose tax on net income of residents and corporations created by it, and may include therein income derived from business without state. State ex rel. Knox v. Gulf, M. & N. R. Co., 138 Miss. 70, 104 So. 689, 1925 Miss. LEXIS 106 (Miss. 1925).

Income tax is an excise and not subject to constitutional requirement of taxing property in proportion to value and assessment under general laws according to value. State ex rel. Knox v. Gulf, M. & N. R. Co., 138 Miss. 70, 104 So. 689, 1925 Miss. LEXIS 106 (Miss. 1925).

Constitutional requirement that taxes shall be assessed by assessor and collected by sheriff does not apply to income taxes. State ex rel. Knox v. Gulf, M. & N. R. Co., 138 Miss. 70, 104 So. 689, 1925 Miss. LEXIS 106 (Miss. 1925).

Tax on net income is not burden on interstate commerce, although part is derived from such commerce. State ex rel. Knox v. Gulf, M. & N. R. Co., 138 Miss. 70, 104 So. 689, 1925 Miss. LEXIS 106 (Miss. 1925).

2. Construction and application.

The 1924 income tax statute was but an amendment and continuation of the 1912 statute. Fernwood Lumber Co. v. Mississippi State Tax Com., 167 Miss. 273, 149 So. 727, 1933 Miss. LEXIS 126 (Miss. 1933).

Income tax laws are to be strictly construed against the taxing power and doubts resolved in favor of the taxpayer. Miller v. Illinois C. R. Co., 146 Miss. 422, 111 So. 558, 1927 Miss. LEXIS 191 (Miss. 1927).

RESEARCH REFERENCES

ALR.

Liability for additions to deficiencies for fraud, imposed by income tax laws, as surviving taxpayer’s death. 15 A.L.R.2d 1036.

Reliance on attorney, accountant, or other expert in preparing income tax returns as defense against fraud penalties. 22 A.L.R.2d 972.

Deduction of cost of acquiring, protecting, or disposing of title to income-producing property as a nontrade or nonbusiness expense. 23 A.L.R.2d 902.

Income tax consequences to shareholder of dividend in kind. 56 A.L.R.2d 474.

Income tax: corporate assets as received in liquidation or by purchase where stock is purchased to acquire assets. 83 A.L.R.2d 718.

State tax on trust income as affected by foreign elements. 5 A.L.R.3d 606.

Am. Jur.

71 Am. Jur. 2d, State and Local Taxation § 358 et seq.

CJS.

85 C.J.S., Taxation § 1970 et seq.

Lawyers’ Edition.

Tax leglislation as violating Federal Constitution’s First Amendment-Supreme Court cases. 103 L. Ed. 2d 951.

State income tax as violating immunity of United States – Supreme Court cases. 103 L. Ed. 2d 1027.

§ 27-7-3. Definitions.

When used in this article:

“Taxpayer” includes any individual, partnership, corporation, association, trust or estate, subject to a tax imposed hereunder, or whose income is, in whole or in part, subject to a tax imposed hereunder.

“Domestic,” when applied to any corporation or association, including partnerships, means created or organized in the State of Mississippi.

“Foreign,” when applied to any corporation or association, including partnerships, means created or organized outside the State of Mississippi.

“Fiduciary” means a guardian, trustee, executor, administrator, receiver, conservator, or any person, whether individual or corporate, acting in any fiduciary capacity, for any person, trust, or estate.

“Resident” means a natural person and includes, for the purpose of determining liability for the tax imposed by this article upon or with reference to the income of any taxable year, any person domiciled in the State of Mississippi and any other person who maintains a legal or actual residence within the state.

“Nonresident,” when used in connection with this article, shall apply to any natural person whose domicile and place of abode is without the State of Mississippi.

“Foreign country” or “foreign government” means any jurisdiction other than the one embraced within the United States. The words “United States” includes the states, the District of Columbia, and the territorial possessions of the United States.

“State Tax Commission” or “Tax Commission” means the Department of Revenue. “Commission” or “department” also means the Department of Revenue except where such words are specifically given other meanings.

“Commissioner,” “Chairman of the Mississippi State Tax Commission,” “Chairman of the State Tax Commission,” “chairman of the commission” or “chairman” means the Commissioner of Revenue of the Department of Revenue.

“Taxable year” means the calendar year, or fiscal year ending during such calendar year, upon the basis of which the net income is computed hereunder. “Fiscal year” means an accounting period of twelve (12) months, ending on the last day of any month other than December.

“Paid or accrued” means paid or accrued, or paid or incurred, and these terms, “paid or incurred” or “paid or accrued,” shall be construed according to the method of accounting or the basis on which the net income is computed. The term “received for the purpose of computation of net income” means received or accrued, and the term “received or accrued” shall be construed according to the method of accounting or the basis on which the net income is computed.

“Dividend” means any distribution made by a corporation, association, trust or estate, to its shareholders or members, whether in cash, other property, or its own stock.

HISTORY: Codes, 1942, § 9220-02; Laws, 1934, ch. 120; Laws, 1952, ch. 402, § 2; Laws, 2009, ch. 492, § 41, eff from and after July 1, 2010.

Editor’s Notes —

Laws of 2009, ch. 492, § 146 provides:

“SECTION 146. Section 145 of this act shall take effect and be in force from and after July 1, 2009, and the remainder of this act shall take effect and be in force from and after July 1, 2010.”

Laws of 2009, ch. 492, § 144, effective July 1, 2010, provides:

“SECTION 144. Nothing in this act shall affect or defeat any assessment, refund claim, request for waiver of a tax penalty, the suspension, revocation, surrender, seizure or denial of permit, tag or title, the suspension, revocation or denial of a permit, approved manager status, qualified resort area or forfeiture under the Local Option Alcoholic Beverage Control Law, Section 67-1-1 et seq., the administrative appeal or judicial appeal of any of the foregoing acts or any other action taken by the Mississippi State Tax Commission or by the Chairman of the Mississippi State Tax Commission prior to the effective date of this act. The provisions of the laws relating to the administrative appeal or judicial review of such actions which were in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of providing an administrative appeal and/or judicial review, where previously provided, of such actions, except to the extent that any matter is pending on an administrative appeal before the three (3) member Mississippi State Tax Commission on the effective date will after the effective date of this act be heard and decided by the Board of Tax Appeals as the successor of the Mississippi State Tax Commission in regard to administrative appeals.”

Amendment Notes —

The 2009 amendment, effective July 1, 2010, added (h) and redesignated the remaining subsections accordingly; and rewrote (i).

Cross References —

Department of Revenue generally, see §27-3-1 et seq.

Transfer of powers, duties and functions of State Tax Commission and Chairman of the State Tax Commission to the Commissioner of Revenue acting through the Department of Revenue, see §27-3-4.

JUDICIAL DECISIONS

1. In general.

Taxpayers who maintained residences in both Mississippi and Tennessee would be liable for Mississippi personal income tax for the years 1980 through 1988, even though they established that they intended to make Tennessee their domicile during that time, since they retained sufficient ties to Mississippi and availed themselves of the privileges of state citizenship to be legal residents for tax purposes where they continued to vote in Mississippi elections, held Mississippi drivers licenses, and claimed a homestead exemption in Mississippi for 3 of those years. State Tax Comm'n v. Earnest, 627 So. 2d 313, 1993 Miss. LEXIS 400 (Miss. 1993).

The statutory definition of “legal resident” clearly indicates that domicile and legal or actual residence for purposes of incurring liability for income tax are separate and distinct concepts; the legislature intended to impose income tax liability on persons who were legal or actual residents even though, by their intent, they were domiciled elsewhere. State Tax Comm'n v. Earnest, 627 So. 2d 313, 1993 Miss. LEXIS 400 (Miss. 1993).

The court referred to this section in determining the proportion of income of a manufacturing company having plants in Mississippi and other states which is taxable in Mississippi. Reliance Mfg. Co. v. Barr, 245 Miss. 86, 146 So. 2d 569, 1962 Miss. LEXIS 535 (Miss. 1962).

The undivided share assigned to a nonresident stockholder in the assets of a dissolved foreign corporation, the business of which is continued upon its dissolution under the direction of its former chief stockholder and the property of which is not actually distributed in kind but kept intact, is not a liquidating dividend. Hewgley v. Stone, 200 Miss. 486, 27 So. 2d 693, 1946 Miss. LEXIS 313 (Miss. 1946).

The word “person” as used in a former statute was held to include both artificial and natural persons. Hattiesburg Grocery Co. v. Robertson, 126 Miss. 34, 88 So. 4, 1921 Miss. LEXIS 4 (Miss. 1921).

RESEARCH REFERENCES

ALR.

Domicile for state tax purposes of wife living apart from husband. 82 A.L.R.3d 1274.

§ 27-7-5. Imposition of the tax.

  1. There is hereby assessed and levied, to be collected and paid as hereinafter provided, for the calendar year 1983 and fiscal years ending during the calendar year 1983 and all taxable years thereafter, upon the entire net income of every resident individual, corporation, association, trust or estate, in excess of the credits provided, a tax at the following rates:
      1. Through calendar year 2017, on the first Five Thousand Dollars ($5,000.00) of taxable income, or any part thereof, the rate shall be three percent (3%);
      2. For calendar year 2018, on the first One Thousand Dollars ($1,000.00) of taxable income there shall be no tax levied, and on the next Four Thousand Dollars ($4,000.00) of taxable income, or any part thereof, the rate shall be three percent (3%);
      3. For calendar year 2019, on the first Two Thousand Dollars ($2,000.00) of taxable income there shall be no tax levied, and on the next Three Thousand Dollars ($3,000.00) of taxable income, or any part thereof, the rate shall be three percent (3%);
      4. For calendar year 2020, on the first Three Thousand Dollars ($3,000.00) of taxable income there shall be no tax levied, and on the next Two Thousand Dollars ($2,000.00) of taxable income, or any part thereof, the rate shall be three percent (3%);
      5. For calendar year 2021, on the first Four Thousand Dollars ($4,000.00) of taxable income there shall be no tax levied, and on the next One Thousand Dollars ($1,000.00) of taxable income, or any part thereof, the rate shall be three percent (3%);
      6. For calendar year 2022 and all taxable years thereafter, there shall be no tax levied on the first Five Thousand Dollars ($5,000.00) of taxable income;
    1. On taxable income in excess of Five Thousand Dollars ($5,000.00) up to and including Ten Thousand Dollars ($10,000.00), or any part thereof, the rate shall be four percent (4%); and
    2. On all taxable income in excess of Ten Thousand Dollars ($10,000.00), the rate shall be five percent (5%).
  2. An S corporation, as defined in Section 27-8-3(1)(g), shall not be subject to the income tax imposed under this section.
  3. A like tax is hereby imposed to be assessed, collected and paid annually, except as hereinafter provided, at the rate specified in this section and as hereinafter provided, upon and with respect to the entire net income, from all property owned or sold, and from every business, trade or occupation carried on in this state by individuals, corporations, partnerships, trusts or estates, not residents of the State of Mississippi.
  4. In the case of taxpayers having a fiscal year beginning in a calendar year with a rate in effect that is different than the rate in effect for the next calendar year and ending in the next calendar year, the tax due for that taxable year shall be determined by:
    1. Computing for the full fiscal year the amount of tax that would be due under the rates in effect for the calendar year in which the fiscal year begins; and
    2. Computing for the full fiscal year the amount of tax that would be due under the rates in effect for the calendar year in which the fiscal year ends; and
    3. Applying to the tax computed under paragraph (a) the ratio which the number of months falling within the earlier calendar year bears to the total number of months in the fiscal year; and
    4. Applying to the tax computed under paragraph (b) the ratio which the number of months falling within the later calendar year bears to the total number of months within the fiscal year; and
    5. Adding to the tax determined under paragraph (c) the tax determined under paragraph (d) the sum of which shall be the amount of tax due for the fiscal year.

HISTORY: Codes, 1942, § 9220-03; Laws, 1934, ch. 120; Laws, 1938, ch. 115; Laws, 1940, ch. 111; Laws, 1942, ch. 124; Laws, 1944, ch. 125, § 1; Laws, 1952, ch. 402, § 3; Laws, 1960, ch. 456, § 1; Laws, 1960, ch. 457, § 1; Laws, 1968, ch. 580, § 26; Laws, 1982, Ex Sess, ch. 17, § 31; Laws, 1984, 1st Ex Sess, ch. 10, § 1; Laws, 1992, ch. 484, § 7; Laws, 1993, ch. 456, § 12; Laws, 2016, ch. 499, § 1, eff from and after Jan. 1, 2016.

Editor’s Notes —

Section 7-7-2 provides that the words “State Auditor of Public Accounts,” “State Auditor,” and “Auditor” appearing in the laws of this state in connection with the performance of Auditor’s functions shall mean the State Fiscal Officer.

Section 27-104-1 provides that the term “Fiscal Management Board” shall mean the “Department of Finance and Administration”.

Section 27-104-6 provides that whenever the term “State Fiscal Officer” appears in any law it shall mean “Executive Director of the Department of Finance and Administration”.

Laws of 2016, ch. 499, § 6, effective January 1, 2016, provides:

“SECTION 6. This act shall be known and may be cited as the ‘Taxpayer Pay Raise Act of 2016.’ ”

Laws of 2016, ch. 499, § 7, effective January 1, 2016, provides:

“SECTION 7. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax law or corporation franchise tax law before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the income tax laws and corporation franchise tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.”

Amendment Notes —

The 2016 amendment, effective January 1, 2016, designated the formerly undesignated second through fourth paragraphs of (1) as (1)(a) through (c); in (1)(a), added “Through calendar year 2017” at the beginning, substituted “thereof, the rate shall be three” for “thereof, at the rate of three,” and added (ii) through (vi); rewrote (1)(b), which read: “On the next Five Thousand Dollars ($5,000.00) of taxable income, or any part thereof, at the rate of four percent (4%); and”; substituted “thereof, the rate shall be five” for “thereof, at the rate of five” in (1)(c); and in (4), rewrote the introductory paragraph, which read: “In the case of taxpayers having a fiscal year beginning in the calendar year 1982 and ending after the first day of January 1983, the tax due for that taxable year shall be determined by,” in (a), substituted “in which the fiscal year begins” for “1982” and in (b), substituted “in which the fiscal year ends” for “1983.”

Cross References —

Taxation of annuity contracts under optional retirement program for employees of state institutions of higher learning, see §25-11-419.

Tax credits against taxes imposed by this chapter, see §§27-7-22.3 through27-7-22.36.

Increase in tax imposed by this section by reason of inclusion of LIFO recapture amount in corporation’s income is payable in four equal installments, see §27-7-45.

Withholding of tax, see §27-7-301 et seq.

Refund to taxpayer, see §27-7-313.

Exemption of S corporations from tax imposed by this section, see §27-8-7.

Payment of income tax by S corporations on behalf of shareholders, see §27-8-19.

Premium taxes on insurance companies, see §27-15-103 et seq.

Contractor’s payment or security for payment of income taxes, see §27-65-21.

Transfer of remaining balance of Working Cash Balance Revolving Fund into the General Fund and the Working Cash-Stabilization Reserve Fund, see §27-103-207.

For provisions relating to the state bond commission and notes to maintain a working balance in the general fund, see §31-17-101 et seq.

Provisions relating to borrowing not to exceed an amount which can be repaid in the fiscal year of loan, see §31-17-123.

Applicability of the income tax provisions to the income and profits earned on bonds issued and sold by the Business Finance Corporation, see §57-10-255.

Tax levied under this chapter as exception to tax exempt status of bonds issued to finance economic development projects, see §57-10-439.

Amounts to be deposited in the Superconducting Super Collider Fund out of tax receipts, see §57-67-15.

Taxpayer claiming credit under §57-105-1 against the taxes imposed by this section not required to pay any additional tax under §27-15-123 as a result of claiming the credit, see §57-105-1.

Tax credits against taxes imposed by this chapter, see §§27-7-22.3 through27-7-22.40.

JUDICIAL DECISIONS

1. In general.

Under Former Law

1. In general.

Chancery court did not err in dismissing a taxpayer’s complaint against the Mississippi Department of Revenue (MDOR) for lack of subject-matter jurisdiction because the taxpayer failed to pursue the administrative remedies available to him; the MDOR provided sufficient notice to the taxpayer of his tax assessments. Williams v. Morgan, 201 So.3d 1073, 2016 Miss. App. LEXIS 578 (Miss. Ct. App. 2016).

Bankruptcy debtor failed to show that the debtor’s business was not profitable to excuse the debtor’s failure to file income tax returns or rebut the presumption that the agency’s assessment of the debtor’s income tax liability was correct. Blalock v. Miss. Dep't of Rev. (In re Blalock), 537 B.R. 284, 2015 Bankr. LEXIS 3120 (Bankr. S.D. Miss. 2015).

New Hampshire commuters’ income tax applicable to nonresidents only, with no corresponding tax on residents, was held violative of privileges and immunities clause. Austin v. New Hampshire, 420 U.S. 656, 95 S. Ct. 1191, 43 L. Ed. 2d 530, 1975 U.S. LEXIS 106 (U.S. 1975).

A state has the right to collect a tax on income earned in the taxing state, although the taxpayer is a citizen of a different state. McWilliams Dredging Co. v. McKeigney, 227 Miss. 730, 86 So. 2d 672, 1956 Miss. LEXIS 748 (Miss. 1956).

The purpose of the state income tax law, in so far as a foreign corporation is concerned, is to tax its income, which is earned in the state, and there is no purpose to tax such income where it is earned outside the state, as this is not permissible. McWilliams Dredging Co. v. McKeigney, 227 Miss. 730, 86 So. 2d 672, 1956 Miss. LEXIS 748 (Miss. 1956).

The law unquestionably favors the specific accounting by foreign corporations and theories of allocation have no place in determining income tax on corporation if net income within state can be distinguished from outside business. McWilliams Dredging Co. v. McKeigney, 227 Miss. 730, 86 So. 2d 672, 1956 Miss. LEXIS 748 (Miss. 1956).

Under Former Law

Tax on income from testamentary trust distributed annually to a large number of beneficiaries, only a few of whom resided in the state, was taxable to the beneficiaries and not to the trustees. State ex rel. Rice v. Stirling, 199 Miss. 555, 24 So. 2d 776, 1946 Miss. LEXIS 223 (Miss. 1946).

Neither Code 1942, § 9222 nor Code 1942, § 9231, imposing a tax on the net income derived from the sale by foreign corporation of natural gas at wholesale to a nonresident corporation doing business in Mississippi, delivered at various points in Mississippi along such corporation’s main pipeline extending from gas field in Louisiana, through Arkansas and Mississippi, and terminating at Memphis, Tennessee, contravened the commerce clause of the federal Constitution. State Tax Com. v. Memphis Natural Gas Co., 197 Miss. 583, 19 So. 2d 477, 1944 Miss. LEXIS 325 (Miss. 1944).

Code 1942, § 9222 and Code 1942, § 9231 imposed a tax on the net income of a foreign corporation attributable to its activities and ownership of property in Mississippi, although such property was used exclusively in the furtherance of the corporation’s interstate business. State Tax Com. v. Memphis Natural Gas Co., 197 Miss. 583, 19 So. 2d 477, 1944 Miss. LEXIS 325 (Miss. 1944).

Neither Code 1942, § 9222 nor Code 1942, § 9231, imposing a tax on the net income of a foreign corporation attributable to its activities and ownership of property in Mississippi, although such property was used exclusively in the furtherance of the corporation’s interstate business, violated the commerce clause of the Federal Constitution. State Tax Com. v. Memphis Natural Gas Co., 197 Miss. 583, 19 So. 2d 477, 1944 Miss. LEXIS 325 (Miss. 1944).

Income tax, graduated according to amount of income, did not violate requirement of equality of taxation, nor deny equal protection of laws. State ex rel. Knox v. Gulf, M. & N. R. Co., 138 Miss. 70, 104 So. 689, 1925 Miss. LEXIS 106 (Miss. 1925).

RESEARCH REFERENCES

ALR.

Income tax treatment of payment to spouse for relinquishment of inchoate marital rights in property of other spouse. 1 A.L.R.2d 1037.

Dividend in kind or stock dividend as affecting corporation’s income tax. 7 A.L.R.2d 750.

Income and excess profits tax of co-operative association and its patrons or members. 8 A.L.R.2d 925.

Income tax consequences to shareholder of dividend in kind. 56 A.L.R.2d 474.

Am. Jur.

71 Am. Jur. 2d, State and Local Taxation § 358 et seq. (income taxes).

CJS.

85 C.J.S., Taxation § 1975 et seq.

§ 27-7-7. Tax a debt.

The tax imposed by this article, and all increases, interest and penalties provided for in connection with such tax, shall be in addition to all other taxes imposed by law. The tax imposed pursuant to this article, and the increases, interest and penalties provided in connection with such tax shall, in addition to being a tax against the property, business, trade, profession or occupation, be and become from the time same is due and payable a personal debt of the taxpayer liable to pay the same to the state and said increases, interest and penalties which shall accrue shall be recoverable as a part of the tax with respect to which they are imposed.

HISTORY: Codes, 1942, § 9220-04; Laws, 1934, ch. 120; Laws, 1952, ch. 402, § 4-a; Laws, 1954, ch. 389.

§ 27-7-9. Gain or loss on disposition of property.

Except as provided in Sections 27-7-95 through 27-7-103, determination of amount of gain or loss.

  1. Computation of gain or loss.The gain from the sale or other disposition of property shall be the excess of the amount realized therefrom over the adjusted basis provided in subsection (c) for determining gain, and the loss shall be the excess of the adjusted basis provided in subsection (c) for determining loss over the amount realized.
  2. Amount realized.The amount realized from the sale or other disposition of property shall be the sum of any money received plus the fair market value of the property (other than money) received.
  3. Installment sales.Nothing in this section shall be construed to prevent (in the case of property sold under contract providing for payment in installments) the taxation of that portion of any installment payment representing gain or profit in the year in which such payment is received.
  4. Property acquired by bequests, devises and inheritance.If personal property was acquired by specific bequest, or if real property was acquired by general or specific devise or by intestacy, the basis shall be the fair market value of the property at the time of the death of the decedent. If the property was acquired by the decedent’s estate from the decedent, the basis in the hands of the estate shall be the fair market value of the property at the time of the death of the decedent. In all other cases, if the property was acquired either by will or by intestacy, the basis shall be the fair market value of the property at the time of the distribution to the taxpayer. In the case of property transferred in trust to pay the income for life to or upon the order or direction of the grantor, with the right reserved to the grantor at all times prior to his death to revoke the trust, the basis of such property in the hands of the persons entitled under the terms of the trust instrument to the property after the grantor’s death shall, after such death, be the same as if the trust instrument had been a will executed on the day of the grantor’s death.
  5. Property acquired by a transfer in trust.If the property was acquired by a transfer in trust (other than by a transfer in trust by a bequest or devise), the basis shall be the same as it would be in the hands of the grantor, increased in the amount of gain, or decreased in the amount of loss, recognized to the grantor upon such transfer under this section.
  6. Property acquired in tax-free exchanges.If the property was acquired upon an exchange described in subsection (f), the basis shall be the same as in the case of the property exchanged, decreased in the amount of any money received by the taxpayer and increased in the amount of gain or decreased in the amount of loss to the taxpayer that was recognized upon such exchange by the terms of this act. If the property so acquired consisted in part of the type of property permitted by subsection (f) to be received without recognition of gain or loss, and in part of other property, the basis provided in this subsection shall be allocated between the properties (other than money) received, and for the purpose of the allocation there shall be assigned to such other property an amount equivalent to its fair market value at the date of the exchange.
  7. Property acquired in tax-free distribution.If the property consists of stock or securities distributed to a taxpayer in connection with a transaction described in subsection (f), the basis in the case of the stock in respect of which the distribution was made shall be apportioned, under rules and regulations prescribed by the commissioner, between such stock and the stock or securities distributed.
  8. Property acquired in involuntary conversions.If the property was acquired as the result of a compulsory or involuntary conversion described in subsection (f), the basis shall be the same as in the case of property so converted, decreased in the amount of any money received by the taxpayer which was not expended in accordance with the provisions of said subsection determining the taxable status of the gain or loss upon such conversion, and increased in the amount of gain or decreased in the amount of loss to the taxpayer recognized upon such conversion.
  9. Property acquired in wash sales.If substantially identical property was acquired in place of stock or securities which were sold or disposed of and in respect of which loss was not allowed as a deduction under Section 27-7-17(d), the basis in the case of property so acquired shall be the basis in the case of the stock or securities so sold or disposed of, except that, if the repurchase price was in excess of the sales price, such basis shall be increased in the amount of the difference, or if the repurchase price was less than the sales price, such basis shall be decreased in the amount of the difference.
  10. Property acquired before March 16, 1912.The basis for determining the gain or loss from the sale or other disposition of property acquired before March 16, 1912, shall be:

    In determining the fair market value of stock in a corporation as of March 16, 1912, due regard shall be given to the fair market value of the assets of the corporation as of that date.

    Except as otherwise provided, the provisions of this subsection relating to the nonrecognition of gain, including the exception provided in subparagraph (B), shall apply only to an owner of the converted property who has held title to such property for a period at least three (3) years prior to the date of the disposition of the converted property, provided that an owner who acquired such property by bequest, devise, gift or inheritance shall be excluded from this limitation, if the preceding owner acquired title to such property at least three (3) years prior to the date of disposition. However, no gain shall be recognized on property that is compulsorily or involuntarily converted if no gain is recognized with regard to such property under Section 1033 of the Internal Revenue Code.

Recognition of gain or loss.Except as otherwise provided in this section, on the sale or exchange of property the entire amount of the gain or loss, determined under subsection (a), shall be recognized.

Adjusted basis for determining gain or loss.

In general.The adjusted basis for determining the gain or loss from the sale or other disposition of property, whenever acquired, shall be the basis determined under subsection (d) adjusted as provided in subsection (e).

Bargain sale to a charitable organization.If a deduction is allowed under Section 27-7-17 (relating to charitable contributions) by reason of a sale, then the adjusted basis for determining the gain from such sale shall be that portion of the adjusted basis which bears the same ratio to the adjusted basis as the amount realized bears to the fair market value of the property.

Basis of property.

Property acquired after March 16, 1912.The basis for ascertaining the gain derived or the loss sustained from the sale or other disposition of property, real, personal or mixed, shall be, in the case of property acquired after March 16, 1912, the cost of such property, except as otherwise provided in this subsection.

Inventory property.If the property should have been included in the last inventory, the basis shall be the last inventory value thereof.

Property acquired by gift.In the case of property acquired by gift after January 1, 1936, the basis shall be the same as that which it would have in the hands of the donor or the last preceding owner by whom it was not acquired by gift. If the facts necessary to determine such basis are unknown to the donee, the commissioner shall, if possible, obtain such facts from such donor, or last preceding owner, or any other person cognizant thereof. If the commissioner finds it impossible to obtain such facts, the commissioner shall establish a basis for the property from the best information available. In the case of property acquired by gift on or before January 1, 1936, the basis for ascertaining gain or loss from the sale or other disposition thereof shall be the fair market price or value of such property at the time of acquisition.

The cost of such property (or in the case of such property as is described in subsection (d)(2) or (4) of this section the basis as therein provided, or in the case of property acquired by gift or transfer in trust, the fair market value of such property at the time of such acquisition); or

The fair market value of such property as of March 16, 1912, whichever is greater.

Adjustments to basis.

In general.In computing the amount of gain or loss from the sale or other disposition of property, proper adjustment shall be made for any expenditure, receipt, loss or other item, properly chargeable to capital account since the basis date. The cost or other basis of the property shall also be diminished by the amount of the deductions for exhaustion, wear and tear, obsolescence, amortization and depletion, which have since the acquisition of the property been allowable in respect of such property whether or not such deductions were claimed by the taxpayer or formerly allowed. In the case of stock, the basis shall be diminished by the amount of distributions previously made in respect to such stock, to the extent provided under this section.

Substituted basis.Whenever it appears that the basis of the property in the hands of a taxpayer is a substituted basis, then the adjustments provided in subsection (e)(1) shall be made after first making in respect of such substituted basis proper adjustments of a similar nature in respect of the period during which the property was held by the transferor, donor or grantor, or during which the other property was held by the person for whom the basis is to be determined. The term “substituted basis” as used in this subsection means a basis determined under any provision of this section or under any corresponding provision of a prior Income Tax Law, providing that the basis shall be determined by reference to the basis in the hands of a transferor, donor or grantor, or, by reference to other property held at any time by the person for whom the basis is to be determined.

Recognition of gain or loss – exceptions.

Exchange solely in kind.

Property held for productive use or investment.No gain or loss shall be recognized if property held for productive use in trade or business or for investment (not including stock in trade or other property held primarily for sale, nor stocks, bonds, notes, choses in action, certificates of trust or beneficial interest, or other securities or evidence of indebtedness or interest) is exchanged solely for property of a like kind to be held either for productive use in trade or business or for investment. In addition, no gain or loss shall be recognized on any exchange of property if no gain or loss is recognized with regard to such exchange under Section 1031 of the Internal Revenue Code.

Stock for stock in same corporation.No gain or loss shall be recognized if common stock in a corporation is exchanged solely for common stock in the same corporation, or if preferred stock in a corporation is exchanged solely for preferred stock in the same corporation.

Transfers to corporation controlled by transferor.No gain or loss shall be recognized if property is transferred to a corporation by one or more persons solely in exchange for stock or securities in such corporation, and if immediately after the exchange such person or persons are in control of the corporation; but in the case of an exchange by two (2) or more persons, this subsection shall apply only if the amount of the stock and securities received by each is substantially in proportion to his interest in the property prior to the exchange.

Stock for stock on reorganization.No gain or loss shall be recognized if stock or securities in a corporation, a party to a reorganization, are, in pursuance of the plan of reorganization, exchanged solely for stock or securities in such corporation or in another corporation, a party to a reorganization.

Gain from exchanges not solely in kind.If an exchange would be within the provisions of subsection (f)(1) of this section, if it were not for the fact that the property received in exchange consists not only of property permitted by subsection (f)(1) to be received without the recognition of gain, but also of other property or money, then the gain, if any, to the recipient shall be recognized, but in an amount not in excess of the sum of such money and the fair market value of such other property so received.

Loss from exchanges not solely in kind.If an exchange would be within the provisions of subsection (f)(1) of this section, if it were not for the fact that the property received in exchange consists not only of property permitted by subsection (f)(1) to be received without the recognition of gain or loss but also of other property or money, then no loss from the exchange shall be recognized.

Distribution of stock on reorganization.If in pursuance of a plan of reorganization, there is distributed to a shareholder in a corporation, a party to the reorganization, stock or securities in such corporation or in another corporation, a party to the reorganization, without the surrender by such shareholder of stock or securities in such corporation, no gain to the distributee from the receipt of such stock or securities shall be recognized.

Distribution with effect of taxable dividend.If a distribution made in pursuance of a plan of reorganization is within the provisions of subsection (f)(4) of this section, but has the effect of the distribution of a taxable dividend, then there shall be taxed as a dividend to each distributee such an amount of the gain recognized under subsection (f)(2) as is not in excess of his ratable share of the undistributed earnings and profits of the corporation. The remainder, if any, of the gain recognized under subsection (f)(2) shall be taxed as a gain from the exchange of property.

Involuntary conversions.If property, as a result of its destruction in whole or in part, theft, seizure or requisition or condemnation, or threat or imminence thereof, is compulsorily or involuntarily converted:

Into property similar or related in service or use to the property so converted, no gain shall be recognized, but loss shall be recognized;

Into money, no gain shall be recognized if such money is expended, within a period ending two (2) years after the close of the first taxable year in which any part of the gain upon the conversion is realized, in the acquisition of other property similar or related in service or use to the property so converted, or in the acquisition of control of a corporation owning such other property, or in the establishment of a replacement fund, but loss shall be recognized. Such two-year period shall be extended to five (5) years with respect to property in the Hurricane Katrina disaster area, as defined in the Katrina Emergency Tax Relief Act of 2005, which is compulsorily or involuntarily converted on or after August 29, 2005, by reason of Hurricane Katrina, but only if substantially all of the use of the replacement property is in such area. If any part of the money is not so expended, the gain shall be recognized to the extent of the money which is not so expended, regardless of whether such money is received in one or more taxable years and regardless of whether or not the money which is not so expended constitutes gain. Provided, gain realized on property which is compulsorily or involuntarily converted for public use under Title 11, Chapter 27, Mississippi Code of 1972, or any federal law relating to the involuntary conversion of property for public use shall not be recognized. Provided further, that gain realized on property which is voluntarily converted for public use shall not be recognized after it becomes evident that eminent domain proceedings are probable.

Property exchanged treated as equivalent of cash.When property other than property specified in subsection (f)(1)(A) of this section is exchanged for other property, the property received in exchange shall, for the purpose of determining gain or loss, be treated as the equivalent of cash to the amount of its fair market value.

Distribution of assets of corporation.The distribution to the taxpayer of the assets of a corporation shall be treated as a sale of the stock or securities of the corporation owned by him, and the gain or loss shall be computed accordingly.

Organization of a corporation.In the case of the organization of a corporation, the stock and securities received shall be considered to take the place of property transferred therefor, and no gain or loss shall be deemed to arise therefrom.

Sales of certain interests in financial institutions domiciled in Mississippi, domestic corporations, domestic limited partnerships or domestic limited liability companies.No gain shall be recognized from the sale of authorized shares in financial institutions domiciled in Mississippi and domestic corporations, or partnership interests in domestic limited partnerships and domestic limited liability companies, that have been held for more than one (1) year; however, any gain that would otherwise be excluded by this provision shall first be applied against, and reduced by, any losses determined from sales or transactions described by this provision if the losses were incurred in the year of the gain or within the two (2) years preceding or subsequent to the gain.

Reorganization defined.The term “reorganization” means:

A statutory merger or consolidation;

The acquisition by one (1) corporation, in exchange solely for all or a part of its voting stock (or in exchange solely for all or a part of the voting stock of a corporation which is in control of the acquiring corporation), of stock of another corporation if, immediately after the acquisition, the acquiring corporation has control of such other corporation, or of substantially all the properties of another corporation;

A transfer by a corporation of all or a part of its assets to another corporation if immediately after the transfer the transferor, or one or more of its shareholders (including persons who were shareholders immediately before the transfer), or any combination thereof, is in control of the corporation to which the assets are transferred;

A recapitalization; or

A mere change in identity, form or place of organization, however effected.

Party to a reorganization defined.The term “a party to a reorganization” includes a corporation resulting from a reorganization and includes both corporations in the case of an acquisition by one (1) corporation of at least a majority of the voting stock and at least a majority of the total number of shares of all other classes of stock of another corporation.

Control defined.As used in this section, the term “control” means the ownership of at least eighty percent (80%) of the voting stock and at least eighty percent (80%) of the total number of shares of all other classes of stock of the corporation.

Special rules.

Liquidation of subsidiaries.A transfer to a parent corporation from its subsidiary of property distributed in complete liquidation of the subsidiary shall result in no recognized gain or loss if the basis of the property in the hands of the parent corporation is the same as it was in the hands of the subsidiary.

Gain or loss on sales or exchanges in connection with certain liquidations.Corporations adopting a plan of complete liquidation under the provisions of the Internal Revenue Code shall recognize the gain or loss from the sale or exchange of property by the corporation under said plan. The total gain or loss from the liquidating distributions shall be recognized by the shareholders; however, a credit for the tax paid by the liquidating corporation on the gain from the sale or exchange of property under the plan of liquidation will be allowed to the extent of any tax liability to the shareholders. The corporation shall provide to the Department of Revenue a list of all shareholders with their percentage of ownership, distribution, tax credit allowed and any other information requested.

Distribution of stock and securities of a controlled corporation.No gain shall be recognized on a distribution to a stockholder of a corporation if such gain would not be recognized to such stockholder for federal income tax purposes under the provisions of Section 355 of the Internal Revenue Code. With respect to the distributing corporation, no gain shall be recognized from such distribution provided the distribution is a part of a transaction that qualifies for tax-free treatment under the provisions of Section 355 or 368(a)(1)(D) of the Internal Revenue Code. Additionally, with respect to a distributing corporation, no gain shall be recognized from such distribution provided the distribution is pursuant to an overall plan to facilitate an ultimate distribution that qualifies for tax-free treatment under the provisions of Section 355 or 368(a)(1)(D) of the Internal Revenue Code.

Notwithstanding the other provisions of this section, a corporation or other entity that is involved in restructuring, reorganizing, distributing assets or profits, or changing ownership that results in an adjustment to its asset basis is required to report a gain in the year such transaction occurs on any such transaction when the transaction involves assets owned or used in this state, or otherwise represents assets owned or used in this state. If a transfer of income or a change in asset valuation occurs on the tax records of the taxpayer, such transaction shall result in taxation to this state to the extent of the transfer of income or change in asset valuation.

If a corporation or other entity makes an Internal Revenue Code Section 338 election, or other similar election under which the aggregate basis in assets are increased on the tax records of the taxpayer, then a similar election must also be made for Mississippi purposes, but the gain must be recognized by the corporation in which the increase in basis of the assets occurs. The corporation or other entity is allowed to increase its basis by the amount of gain recognized. An aggregate write-down of assets is not allowed. The parent corporation shall recognize the gain on the disposition of its stock.

For state tax purposes, a corporation or other legal entity is considered separate from its shareholders, affiliated corporations or other entities. If a corporation or other legal entity enters into any transaction that is for the benefit of its shareholders or for the benefit of an affiliated corporation without an equal mutual business benefit of the corporation, then, the transaction will be adjusted or eliminated to arrive at taxable income to this state. All transactions entered into by a corporation must be at “arms-length.” If requested by the commissioner, the taxpayer must be able to substantiate that the transaction occurred at “arms-length.” If not, the transaction may be adjusted to the satisfaction of the commissioner. In determining whether the transaction occurred at arms-length, the commissioner shall consider the following:

Whether the transaction is in compliance with the federal regulations promulgated under Internal Revenue Code Section 482;

Whether the transaction was done for a valid business purpose;

Whether the income being shifted by the transaction is subject to a tax in another state;

Whether the transaction is consistent with the results that would have been realized if uncontrolled taxpayers had engaged in the same transaction under the same circumstances; and

Other factors which support the conclusion that income is being shifted to avoid the tax imposed by this chapter.

Sale or exchange of residence.

Loss on sale or exchange of residence.Loss from the sale or exchange of property used by the taxpayer as his principal residence is not recognized and cannot be deducted.

Nonrecognition of gain.Gain shall be computed in accordance with the provisions of the Internal Revenue Code, rules, regulations and revenue procedures relating to the sale or exchange of a personal residence not in direct conflict with the provisions of the Mississippi Income Tax Law.

Gain on the sale or exchange of residence.A recognizable gain on the sale or exchange of a personal residence shall be included in gross income and treated as ordinary income.

Distributions by corporations.

Distributions of the property of a corporation, including partial and complete liquidations, shall be recognized by the distributing corporation and the gain or loss shall be computed on the difference of the fair market value of the assets distributed and their basis. The total gain or loss from the distributions to the shareholders shall be recognized by the shareholders subject to subsections (f)(8) and (j)(1); however, a credit for the tax paid by the distributing corporation on the gain from the sale or exchange of property under the plan of distribution will be allowed to the extent of any liability to the shareholders. The corporation shall provide to the Department of Revenue a list of all shareholders with their percentage of ownership, distribution, tax credit allowed and any other information requested.

Source of distributions.For the purposes of this act, every distribution is made out of earnings or profits to the extent thereof, and from the most recently accumulated earnings and profits. Any earnings or profit accumulated, or increase in value of property acquired, before March 16, 1912, may be distributed exempt from tax (after the earnings and profits accumulated after March 16, 1912, have been distributed), but any such tax-free distribution shall be applied against and reduce the basis of the stock provided in subsection (d).

Distributions in liquidation.Amounts distributed in complete liquidation of a corporation shall be treated as in full payment in exchange for the stock, and amounts distributed in partial liquidation of a corporation shall be treated as in part or full payment in exchange for the stock. The gain or loss to the distributee resulting from such exchange shall be determined under subsection (a), but shall be recognized only to the extent provided in subsection (f). In the case of amounts distributed in partial liquidation, the part of such distribution which is property chargeable to capital account shall not be considered a distribution of earnings or profits within the meaning of paragraph (2) of this subsection for the purpose of determining the taxability of subsequent distributions by the corporations.

Other distributions.If any distribution (not in partial or complete liquidation) made by a corporation to its shareholders, is not out of increase in value of property accrued before March 16, 1912, and is not out of earnings or profits, then the amount of such distribution shall be applied against and reduce the basis of the stock provided in subsection (d), and if in excess of such basis, such excess shall be taxable in the same manner as a gain from the sale or exchange of property.

Stock dividends.A stock dividend shall not be subject to tax.

Cancellation or redemption of stock.If a corporation cancels or redeems its stock (whether or not such stock was issued as a stock dividend) at such time and in such manner as to make the distribution and cancellation or redemption in whole or in part essentially equivalent to the distribution of a taxable dividend, the amount so distributed in redemption or cancellation of the stock, to the extent that it represents a distribution of earnings or profits accumulated after March 16, 1912, shall be treated as a taxable dividend.

“Amounts distributed in partial liquidation” defined.As used in this subsection, the term “amounts distributed in partial liquidation” means distribution by a corporation in complete cancellation or redemption of a part of its stock, or one of a series of distributions in complete cancellation or redemption of all or a portion of its stock.

Distributions of stock pursuant to order enforcing the Antitrust Laws.Any distribution of stock which is made pursuant to the order of any court enforcing the Antitrust Laws of the United States, or of any state, shall be a distribution which is not out of earnings and profits of the distributing corporation, but the value of the stock so distributed shall be applied against and reduce the basis of the stock of the distributing corporation provided in subsection (d), and if in excess of such basis, such excess shall be taxable in the same manner as a gain from the sale or exchange of property.

HISTORY: Codes, 1942, § 9220-05; Laws, 1936, ch. 151; Laws, 1950, ch. 534; Laws, 1952, ch. 402, § 4-b; Laws, 1958, ch. 554, § 1; Laws, 1978, ch. 527, § 1; Laws, 1980, ch. 461, § 1; Laws, 1982, ch. 339; Laws, 1984, ch. 447, § 1; Laws, 1985, ch. 52, § 1; Laws, 1988, ch. 391, § 1; Laws, 1989, ch. 485, § 1; Laws, 1991, ch. 524, § 6; Laws, 1994, ch. 474, § 1; Laws, 1995, ch. 478, § 1; Laws, 1997, ch. 396, § 1; Laws, 1998, ch. 543, § 1; Laws, 2001, ch. 586, § 1; Laws, 2003, ch. 319, § 1; Laws, 2005, ch. 469, § 1; Laws, 2007, ch. 491, § 1; Laws, 2012, ch. 482, § 1, eff from and after Jan. 1, 2012.

Editor’s Notes —

Laws of 1998, ch. 543, § 4, provides:

“SECTION 4. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the income tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.”

Laws of 2001, ch. 586, §§ 8, 9, provide as follows:

“SECTION 8. This act shall apply to taxable years beginning on or after January 1, 2001.

“SECTION 9. No rules or regulations shall be promulgated or enforced pursuant to this act unless such rules or regulations apply equally to each taxpayer affected by this act.”

At the direction of the co-counsel for the Joint Legislative Committee on Compilation, Revision and Publication of Legislation, an error in a statutory reference in (f)(6)(B) was corrected by substituting “Title 11, Chapter 27, Mississippi Code of 1972” for “Title II, Chapter 27, Mississippi Code of 1972”

Amendment Notes —

The 2005 amendment rewrote (f)(10) to remove the provision in the income tax law that provides no gain shall be recognized from the liquidation of certain assets of domestic corporations.

The 2007 amendment, in (f), added the last sentence in (1)(A), added the second sentence of the first paragraph of (6)(B), and in the second paragraph of (6)(B), added “Except as otherwise provided” at the beginning and added the last sentence.

The 2012 amendment substituted “Department of Revenue” for “State Tax Commission” in the last sentence of and the last sentence of ( l ); and in (j)(3), deleted “federal” preceding “Internal Revenue Code” at the end of the first sentence, and added the last two sentences.

Cross References —

Applicability of the adjusted basis of a certified pollution or environmental control for purposes of determining gain to computation of such a facility’s amortizable basis for purposes of a deduction with respect to amortization, see §27-7-17.

Treatment or losses from sales or exchanges of capital assets, see §§27-7-95 through27-7-103.

Federal Aspects—

Antitrust laws of the United States generally, see 15 USCS §§ 1 et seq.

Internal Revenue Code generally, see USCS, Title 26.

Sections 338, 355, 482, 1031, 1033 of the Internal Revenue Code, see 26 USCS §§ 338, 355, 482, 1031, 1033.

Katrina Emergency Tax Relief Act of 2005, P.L. 109-73, 119 Stat. 2016, see 26 USCS § 1 note.

Sections 338, 355, 368(a)(1)(D), 482, 1031, 1033 of the Internal Revenue Code, see 26 USCS §§ 338, 355, 368(a)(1)(D), 482, 1031, 1033.

JUDICIAL DECISIONS

1. In general.

jdufl

1. In general.

The 1997 amendment to Miss. Code Ann. §27-7-9(f)(10)(B) did nothing to alter the applicability of 26 U.S.C.S. § 1245 and its regulations to the recapture of depreciation/amortization under Miss. Code Ann. §27-7-9(f)(10)(B); on remand, the Mississippi State Tax Commission (MSTC) was to apply 26 U.S.C.S. § 1245 and its corresponding regulations in determining the amount realized in the same manner as it would have prior to the 1997 amendment, recognizing the limited change caused by the substitution of up to cost recapture for the pre-amendment recapture calculation contained in § 1245(a), and the MSTC had to recalculate and assess the taxes due for depreciation/amortization recapture. Barton v. Blount, 981 So. 2d 299, 2007 Miss. App. LEXIS 586 (Miss. Ct. App. 2007), cert. denied, 981 So. 2d 298, 2008 Miss. LEXIS 209 (Miss. 2008).

Mississippi Code §27-7-9(j)(3), as such subsection read in 1980, which required that 3 percent of the corporate distribution, following corporate liquidation under § 327 of the federal Internal Revenue Code, to be withheld from distribution to shareholders and paid over to the state tax commissioner, and further provided that payments to the commissioner would be treated as shareholders’ estimated tax payments under the Mississippi Tax Withholding Act, to be allocated pro rata to the shareholders’ tax payment account, was applicable to both Mississippi resident and nonresident shareholders, and, because of the benefits provided by the state, the subsection was constitutional as it applied to nonresident shareholders. Anderson v. Lambert, 494 So. 2d 370, 1986 Miss. LEXIS 2650 (Miss. 1986).

jdufl

Upon dissolution of a corporation, a stockholder is protected against being charged with a taxable gain through the transfer to him of his share of the corporation’s assets at an appreciated value, and likewise he should be denied the privilege of computing a nontaxable loss on the same basis. Urschel v. Stone, 198 Miss. 105, 21 So. 2d 466, 1945 Miss. LEXIS 172 (Miss. 1945).

RESEARCH REFERENCES

ALR.

Income tax: holding period for purposes of computation of gain or loss on sale of partner’s interest in firm. 7 A.L.R.2d 672.

Income tax: market value as ascribable to agreement to pay a life annuity to another for purpose of determining capital gain or loss. 12 A.L.R.2d 589.

Income tax consequences to shareholder of dividend in kind. 56 A.L.R.2d 474.

What constitutes trade or business under Internal Revenue Code (U.S.C.S. Title 26). 161 A.L.R. Fed. 245.

Am. Jur.

71 Am. Jur. 2d, State and Local Taxation, § 457 et seq.

20 Am. Jur. Proof of Facts 2d 565, Establishment of Intangible Asset as Amortizable.

CJS.

85 C.J.S., Taxation § 2018 et seq.

§ 27-7-11. Inventories.

Whenever, in the opinion of the commissioner, the use of inventories is necessary in order to clearly determine the income of any taxpayer, inventories shall be taken by such taxpayer upon such basis as the commissioner may prescribe, with the approval of the governor, in order to conform as nearly as may be to the best accounting practice in the trade or business, and in order to clearly reflect the income.

HISTORY: Codes, 1942, § 9220-06; Laws, 1934, ch. 120; Laws, 1952, ch. 402, § 5, eff from and after January 1, 1952.

Cross References —

Commissioner as meaning the Commissioner of Revenue of the Department of Revenue, see §27-7-3.

RESEARCH REFERENCES

Am. Jur.

72 Am. Jur. 2d, State and Local Taxation § 647 (inventory of merchandise).

CJS.

85 C.J.S., Taxation § 1901 et seq.

§ 27-7-13. Net income defined.

  1. The term “net income” means the gross income as defined hereunder, less allowable business expenses and expenses incurred in the taxpayer’s regular trade or profession.
  2. The net income which may be subjected to tax shall be determined upon the basis of the taxpayer’s annual accounting period, either fiscal or calendar year, and in keeping with the method or manner of accounting regularly employed by the taxpayer in maintaining his or its books of account. Any departure from such books of account shall be made only because of the necessity of omitting certain income excluded from gross income under the provisions of this article, or excluding such deductions which are not provided for herein; provided, however, that in the case of taxpayers subject to regulation by any federal governmental regulatory agency or by a regulatory agency of the State of Mississippi, adjustments will be made from the books of account, if necessary, so as to reflect the taxpayer’s true net income. Estimated deductions shall be subject to the approval of the commissioner.
  3. But, if no such method and manner of accounting has been employed, or if the method or manner employed does not clearly reflect the income, the computation shall be made upon such basis and in such manner as, in the opinion of the commissioner, clearly reflects the income.
  4. If the taxpayer’s annual accounting period is other than a fiscal year as defined in this article, or if he has no annual accounting period, or does not keep books, the net income shall be computed upon the basis of the calendar year.
  5. The taxpayer may elect to file his first return on the basis of receipts and disbursements or the accrual basis, but having exercised this election, he must secure the permission of the commissioner to change such basis.

HISTORY: Codes, 1942, § 9220-07; Laws, 1934, ch. 120; Laws, 1952, ch. 402, § 6; Laws, 1958, ch. 554, § 2; Laws, 1966, ch. 628, § 1, eff from and after passage (approved June 17, 1966).

Cross References —

Taxation of annuity contracts under optional retirement program for employees of state institutions of higher learning, see §25-11-419.

Establishment of “Victims of Domestic Violence Fund” and expenditure of monies from such fund, see §93-21-117.

RESEARCH REFERENCES

ALR.

Income tax consequences to shareholder of dividend in kind. 56 A.L.R.2d 474.

Federal income tax of corporate employee or officer in respect of stock option given him by corporation, or sold to him at less than its value. 72 A.L.R.2d 1352.

Decision to take foreign income taxes as federal credit under Section 901 of the Internal Revenue Code (26 USCS § 901) as precluding their deduction for state income tax purposes. 77 A.L.R.4th 823.

§ 27-7-15. Gross income defined.

  1. For the purposes of this article, except as otherwise provided, the term “gross income” means and includes the income of a taxpayer derived from salaries, wages, fees or compensation for service, of whatever kind and in whatever form paid, including income from governmental agencies and subdivisions thereof; or from professions, vocations, trades, businesses, commerce or sales, or renting or dealing in property, or reacquired property; also from annuities, interest, rents, dividends, securities, insurance premiums, reinsurance premiums, considerations for supplemental insurance contracts, or the transaction of any business carried on for gain or profit, or gains, or profits, and income derived from any source whatever and in whatever form paid. The amount of all such items of income shall be included in the gross income for the taxable year in which received by the taxpayer. The amount by which an eligible employee’s salary is reduced pursuant to a salary reduction agreement authorized under Section 25-17-5 shall be excluded from the term “gross income” within the meaning of this article.
  2. In determining gross income for the purpose of this section, the following, under regulations prescribed by the commissioner, shall be applicable:
    1. Dealers in property.Federal rules, regulations and revenue procedures shall be followed with respect to installment sales unless a transaction results in the shifting of income from inside the state to outside the state.
    2. Casual sales of property.
      1. Prior to January 1, 2001, federal rules, regulations and revenue procedures shall be followed with respect to installment sales except they shall be applied and administered as if H.R. 3594, the Installment Tax Correction Act of 2000 of the 106th Congress, had not been enacted. This provision will generally affect taxpayers, reporting on the accrual method of accounting, entering into installment note agreements on or after December 17, 1999. Any gain or profit resulting from the casual sale of property will be recognized in the year of sale.
      2. From and after January 1, 2001, federal rules, regulations and revenue procedures shall be followed with respect to installment sales except as provided in this subparagraph (ii). Gain or profit from the casual sale of property shall be recognized in the year of sale. When a taxpayer recognizes gain on the casual sale of property in which the gain is deferred for federal income tax purposes, a taxpayer may elect to defer the payment of tax resulting from the gain as allowed and to the extent provided under regulations prescribed by the commissioner. If the payment of the tax is made on a deferred basis, the tax shall be computed based on the applicable rate for the income reported in the year the payment is made. Except as otherwise provided in subparagraph (iii) of this paragraph (b), deferring the payment of the tax shall not affect the liability for the tax. If at any time the installment note is sold, contributed, transferred or disposed of in any manner and for any purpose by the original note holder, or the original note holder is merged, liquidated, dissolved or withdrawn from this state, then all deferred tax payments under this section shall immediately become due and payable.
      3. If the selling price of the property is reduced by any alteration in the terms of an installment note, including default by the purchaser, the gain to be recognized is recomputed based on the adjusted selling price in the same manner as for federal income tax purposes. The tax on this amount, less the previously paid tax on the recognized gain, is payable over the period of the remaining installments. If the tax on the previously recognized gain has been paid in full to this state, the return on which the payment was made may be amended for this purpose only. The statute of limitations in Section 27-7-49 shall not bar an amended return for this purpose.
    3. Reserves of insurance companies.In the case of insurance companies, any amounts in excess of the legally required reserves shall be included as gross income.
    4. Affiliated companies or persons.As regards sales, exchanges or payments for services from one to another of affiliated companies or persons or under other circumstances where the relation between the buyer and seller is such that gross proceeds from the sale or the value of the exchange or the payment for services are not indicative of the true value of the subject matter of the sale, exchange or payment for services, the commissioner shall prescribe uniform and equitable rules for determining the true value of the gross income, gross sales, exchanges or payment for services, or require consolidated returns of affiliates.
    5. Alimony and separate maintenance payments.The federal rules, regulations and revenue procedures in determining the deductibility and taxability of alimony payments shall be followed in this state.
    6. Reimbursement for expenses of moving.There shall be included in gross income (as compensation for services) any amount received or accrued, directly or indirectly, by an individual as a payment for or reimbursement of expenses of moving from one (1) residence to another residence which is attributable to employment or self-employment.
  3. In the case of taxpayers other than residents, gross income includes gross income from sources within this state.
  4. The words “gross income” do not include the following items of income which shall be exempt from taxation under this article:
    1. The proceeds of life insurance policies and contracts paid upon the death of the insured. However, the income from the proceeds of such policies or contracts shall be included in the gross income.
    2. The amount received by the insured as a return of premium or premiums paid by him under life insurance policies, endowment, or annuity contracts, either during the term or at maturity or upon surrender of the contract.
    3. The value of property acquired by gift, bequest, devise or descent, but the income from such property shall be included in the gross income.
    4. Interest upon the obligations of the United States or its possessions, or securities issued under the provisions of the Federal Farm Loan Act of 1916, or bonds issued by the War Finance Corporation, or obligations of the State of Mississippi or political subdivisions thereof.
    5. The amounts received through accident or health insurance as compensation for personal injuries or sickness, plus the amount of any damages received for such injuries or such sickness or injuries, or through the War Risk Insurance Act, or any law for the benefit or relief of injured or disabled members of the military or naval forces of the United States.
    6. Income received by any religious denomination or by any institution or trust for moral or mental improvements, religious, Bible, tract, charitable, benevolent, fraternal, missionary, hospital, infirmary, educational, scientific, literary, library, patriotic, historical or cemetery purposes or for two (2) or more of such purposes, if such income be used exclusively for carrying out one or more of such purposes.
    7. Income received by a domestic corporation which is “taxable in another state” as this term is defined in this article, derived from business activity conducted outside this state. Domestic corporations taxable both within and without the state shall determine Mississippi income on the same basis as provided for foreign corporations under the provisions of this article.
    8. In case of insurance companies, there shall be excluded from gross income such portion of actual premiums received from an individual policyholder as is paid back or credited to or treated as an abatement of premiums of such policyholder within the taxable year.
    9. Income from dividends that has already borne a tax as dividend income under the provisions of this article, when such dividends may be specifically identified in the possession of the recipient.
    10. Amounts paid by the United States to a person as added compensation for hazardous duty pay as a member of the Armed Forces of the United States in a combat zone designated by Executive Order of the President of the United States.
    11. Amounts received as retirement allowances, pensions, annuities or optional retirement allowances paid under the federal Social Security Act, the Railroad Retirement Act, the Federal Civil Service Retirement Act, or any other retirement system of the United States government, retirement allowances paid under the Mississippi Public Employees’ Retirement System, Mississippi Highway Safety Patrol Retirement System or any other retirement system of the State of Mississippi or any political subdivision thereof. The exemption allowed under this paragraph (k) shall be available to the spouse or other beneficiary at the death of the primary retiree.
    12. Amounts received as retirement allowances, pensions, annuities or optional retirement allowances paid by any public or governmental retirement system not designated in paragraph (k) or any private retirement system or plan of which the recipient was a member at any time during the period of his employment. Amounts received as a distribution under a Roth Individual Retirement Account shall be treated in the same manner as provided under the Internal Revenue Code of 1986, as amended. The exemption allowed under this paragraph (l) shall be available to the spouse or other beneficiary at the death of the primary retiree.
    13. National Guard or Reserve Forces of the United States compensation not to exceed the aggregate sum of Five Thousand Dollars ($5,000.00) for any taxable year through the 2005 taxable year, and not to exceed the aggregate sum of Fifteen Thousand Dollars ($15,000.00) for any taxable year thereafter.
    14. Compensation received for active service as a member below the grade of commissioned officer and so much of the compensation as does not exceed the maximum enlisted amount received for active service as a commissioned officer in the Armed Forces of the United States for any month during any part of which such members of the Armed Forces (i) served in a combat zone as designated by Executive Order of the President of the United States or a qualified hazardous duty area as defined by federal law, or both; or (ii) was hospitalized as a result of wounds, disease or injury incurred while serving in such combat zone. For the purposes of this paragraph (n), the term “maximum enlisted amount” means and has the same definition as that term has in 26 USCS 112.
    15. The proceeds received from federal and state forestry incentive programs.
    16. The amount representing the difference between the increase of gross income derived from sales for export outside the United States as compared to the preceding tax year wherein gross income from export sales was highest, and the net increase in expenses attributable to such increased exports. In the absence of direct accounting, the ratio of net profits to total sales may be applied to the increase in export sales. This paragraph (p) shall only apply to businesses located in this state engaging in the international export of Mississippi goods and services. Such goods or services shall have at least fifty percent (50%) of value added at a location in Mississippi.
    17. Amounts paid by the federal government for the construction of soil conservation systems as required by a conservation plan adopted pursuant to 16 USCS 3801 et seq.
    18. The amount deposited in a medical savings account, and any interest accrued thereon, that is a part of a medical savings account program as specified in the Medical Savings Account Act under Sections 71-9-1 through 71-9-9; provided, however, that any amount withdrawn from such account for purposes other than paying eligible medical expense or to procure health coverage shall be included in gross income.
    19. Amounts paid by the Mississippi Soil and Water Conservation Commission from the Mississippi Soil and Water Cost-Share Program for the installation of water quality best management practices.
    20. Dividends received by a holding corporation, as defined in Section 27-13-1, from a subsidiary corporation, as defined in Section 27-13-1.
    21. Interest, dividends, gains or income of any kind on any account in the Mississippi Affordable College Savings Trust Fund, as established in Sections 37-155-101 through 37-155-125, to the extent that such amounts remain on deposit in the MACS Trust Fund or are withdrawn pursuant to a qualified withdrawal, as defined in Section 37-155-105.
    22. Interest, dividends or gains accruing on the payments made pursuant to a prepaid tuition contract, as provided for in Section 37-155-17.
    23. Income resulting from transactions with a related member where the related member subject to tax under this chapter was required to, and did in fact, add back the expense of such transactions as required by Section 27-7-17(2). Under no circumstances may the exclusion from income exceed the deduction add-back of the related member, nor shall the exclusion apply to any income otherwise excluded under this chapter.
    24. Amounts that are subject to the tax levied pursuant to Section 27-7-901, and are paid to patrons by gaming establishments licensed under the Mississippi Gaming Control Act.
    25. Amounts that are subject to the tax levied pursuant to Section 27-7-903, and are paid to patrons by gaming establishments not licensed under the Mississippi Gaming Control Act.
    26. Interest, dividends, gains or income of any kind on any account in a qualified tuition program and amounts received as distributions under a qualified tuition program shall be treated in the same manner as provided under the United States Internal Revenue Code, as amended. For the purposes of this paragraph (z), the term “qualified tuition program” means and has the same definition as that term has in 26 USCS 529.
    27. The amount deposited in a health savings account, and any interest accrued thereon, that is a part of a health savings account program as specified in the Health Savings Accounts Act created in Sections 83-62-1 through 83-62-9; however, any amount withdrawn from such account for purposes other than paying qualified medical expenses or to procure health coverage shall be included in gross income, except as otherwise provided by Sections 83-62-7 and 83-62-9.
    28. Amounts received as qualified disaster relief payments shall be treated in the same manner as provided under the United States Internal Revenue Code, as amended.
    29. Amounts received as a “qualified Hurricane Katrina distribution” as defined in the United States Internal Revenue Code, as amended.
    30. Amounts received by an individual which may be excluded from income as foreign earned income for federal income tax purposes.
    31. Amounts received by a qualified individual, directly or indirectly, from an employer or nonprofit housing organization that are qualified housing expenses associated with an employer-assisted housing program. For purposes of this paragraph (ee):

      1. Homeownership education or counseling;

      2. The development of affordable housing; or

      3. The development or administration of employer-assisted housing programs.

      1. “Qualified individual” means any individual whose household income does not exceed one hundred twenty percent (120%) of the area median gross income (as defined by the United States Department of Housing and Urban Development), adjusted for household size, for the area in which the housing is located.
      2. “Nonprofit housing organization” means an organization that is organized as a not-for-profit organization under the laws of this state or another state and has as one of its purposes:
      3. “Employer-assisted housing program” means a separate written plan of any employer (including, without limitation, tax-exempt organizations and public employers) for the exclusive benefit of the employer’s employees to pay qualified housing expenses to assist the employer’s employees in securing affordable housing.
      4. “Qualified housing expenses” means:

      1. With respect to rental assistance, an amount not to exceed Two Thousand Dollars ($2,000.00) paid for the purpose of assisting employees with security deposits and rental subsidies; and

      2. With respect to homeownership assistance, an amount not to exceed the lesser of Ten Thousand Dollars ($10,000.00) or six percent (6%) of the purchase price of the employee’s principal residence that is paid for the purpose of assisting employees with down payments, payment of closing costs, reduced interest mortgages, mortgage guarantee programs, mortgage forgiveness programs, equity contribution programs, or contributions to homebuyer education and/or homeownership counseling of eligible employees.

    32. For the 2010 taxable year and any taxable year thereafter, amounts converted in accordance with the United States Internal Revenue Code, as amended, from a traditional Individual Retirement Account to a Roth Individual Retirement Account. The exemption allowed under this paragraph (ff) shall be available to the spouse or other beneficiary at the death of the primary retiree.
    33. Amounts received for the performance of disaster or emergency-related work as defined in Section 27-113-5.
    34. The amount deposited in a catastrophe savings account established under Sections 27-7-1001 through 27-7-1007, interest income earned on the catastrophe savings account, and distributions from the catastrophe savings account; however, any amount withdrawn from a catastrophe savings account for purposes other than paying qualified catastrophe expenses shall be included in gross income, except as otherwise provided by Sections 27-7-1001 through 27-7-1007.
    35. Interest, dividends, gains or income of any kind on any account in the Mississippi Achieving a Better Life Experience (ABLE) Trust Fund, as established in Chapter 28, Title 43, to the extent that such amounts remain on deposit in the ABLE Trust Fund or are withdrawn pursuant to a qualified withdrawal, as defined in Section 43-28-11.
    36. Subject to the limitations provided under Section 27-7-1103, amounts deposited into a first-time homebuyer savings account and any interest or other income earned attributable to an account and monies or funds withdrawn or distributed from an account for the payment of eligible costs by or on behalf of a qualified beneficiary; however, any monies or funds withdrawn or distributed from a first-time homebuyer savings account for any purpose other than the payment of eligible costs by or on behalf of a qualified beneficiary shall be included in gross income. For the purpose of this paragraph (jj), the terms “first-time homebuyer savings account,” “eligible costs” and “qualified beneficiary” mean and have the same definitions as such terms have in Section 27-7-1101.
    37. Amounts paid by an agricultural disaster program as compensation to an agricultural producer, cattle farmer or cattle rancher who has suffered a loss as the result of a disaster or emergency, including, but not limited to, the following United States Department of Agriculture programs:
      1. Livestock Forage Disaster Program;
      2. Livestock Indemnity Program;
      3. Emergency Assistance for Livestock, Honey Bees and Farm-raised Fish Program;
      4. Emergency Conservation Program;
      5. Noninsured Crop Disaster Assistance Program;
      6. Pasture, Rangeland, Forage Pilot Insurance Program;
      7. Annual Forage Pilot Program;
      8. Livestock Risk Protection Insurance Program; and
      9. Livestock Gross Margin Insurance Plan.
  5. Prisoners of war, missing in action-taxable status.
    1. Members of the Armed Forces.Gross income does not include compensation received for active service as a member of the Armed Forces of the United States for any month during any part of which such member is in a missing status, as defined in paragraph (d) of this subsection, during the Vietnam Conflict as a result of such conflict.
    2. Civilian employees.Gross income does not include compensation received for active service as an employee for any month during any part of which such employee is in a missing status during the Vietnam Conflict as a result of such conflict.
    3. Period of conflict.For the purpose of this subsection, the Vietnam Conflict began February 28, 1961, and ends on the date designated by the President by Executive Order as the date of the termination of combatant activities in Vietnam. For the purpose of this subsection, an individual is in a missing status as a result of the Vietnam Conflict if immediately before such status began he was performing service in Vietnam or was performing service in Southeast Asia in direct support of military operations in Vietnam. “Southeast Asia,” as used in this paragraph, is defined to include Cambodia, Laos, Thailand and waters adjacent thereto.
    4. “Missing status” means the status of an employee or member of the Armed Forces who is in active service and is officially carried or determined to be absent in a status of (i) missing; (ii) missing in action; (iii) interned in a foreign country; (iv) captured, beleaguered or besieged by a hostile force; or (v) detained in a foreign country against his will; but does not include the status of an employee or member of the Armed Forces for a period during which he is officially determined to be absent from his post of duty without authority.
    5. “Active service” means active federal service by an employee or member of the Armed Forces of the United States in an active duty status.
    6. “Employee” means one who is a citizen or national of the United States or an alien admitted to the United States for permanent residence and is a resident of the State of Mississippi and is employed in or under a federal executive agency or department of the Armed Forces.
    7. “Compensation” means (i) basic pay; (ii) special pay; (iii) incentive pay; (iv) basic allowance for quarters; (v) basic allowance for subsistence; and (vi) station per diem allowances for not more than ninety (90) days.
    8. If refund or credit of any overpayment of tax for any taxable year resulting from the application of this subsection (5) is prevented by the operation of any law or rule of law, such refund or credit of such overpayment of tax may, nevertheless, be made or allowed if claim therefor is filed with the Department of Revenue within three (3) years after the date of the enactment of this subsection.
    9. The provisions of this subsection shall be effective for taxable years ending on or after February 28, 1961.
  6. A shareholder of an S corporation, as defined in Section 27-8-3(1)(g), shall take into account the income, loss, deduction or credit of the S corporation only to the extent provided in Section 27-8-7(2).

HISTORY: Codes, 1942, § 9220-08; Laws, 1934, ch. 120; Laws, 1936, ch. 151; Laws, 1940, ch. 123; Laws, 1942, chs. 125, 129; Laws, 1944, ch. 122; Laws, 1948, ch. 464, § 1; Laws, 1952, ch. 402, § 7; Laws, 1954, ch. 366; Laws, 1966, ch. 628, § 2; Laws, 1973, ch. 504, § 1; Laws, 1978, ch. 475, § 1; Laws, 1982, ch. 489, § 1; Laws, 1984, ch. 393, § 8; Laws, 1986, ch. 393, § 1; Laws, 1986, ch. 513, § 8; brought forward without change, Laws, 1987, ch. 345, § 8; Laws, 1987, ch. 423, § 1; Laws, 1990, ch. 523, § 5; Laws, 1993, ch. 377, § 1; Laws, 1993, ch. 456, § 13; Laws, 1993, ch. 523, § 1; Laws, 1994, ch. 468, § 6; Laws, 1997, ch. 606, § 8; Laws, 1998, ch. 448, § 1; Laws, 1999, ch. 446, § 1; Laws, 2000, ch. 473, § 16; Laws, 2001, ch. 452, § 2; Laws, 2001, ch. 586, § 2; Laws, 2002, ch. 516, § 2; Laws, 2003, ch. 319, § 2; Laws, 2004, ch. 500, § 1; Laws, 2005, ch. 443, § 1; Laws, 2005, ch. 484, § 6; Laws, 2005, 5th Ex Sess, ch. 22, § 1; Laws, 2006, ch. 497, § 1; Laws, 2007, ch. 443, § 1; Laws, 2008, ch. 489, § 1; Laws, 2009, ch. 349, § 1; Laws, 2010, ch. 430, § 1; Laws, 2015, ch. 420, § 6; Laws, 2015, ch. 457, § 5; Laws, 2017, ch. 350, § 15; Laws, 2017, ch. 376, § 3, eff from and after March 20, 2017; Laws, 2018, ch. 415, § 1, eff from and after January 1, 2018.

Joint Legislative Committee Note —

Section 2 of ch. 452, Laws of 2001, effective January 1, 2002, amended this section. Section 2 of ch. 586, Laws of 2001, effective January 1, 2001, also amended this section. As set out above, this section reflects the language of both amendments pursuant to Section 1-1-109 which gives the Joint Legislative Committee on Compilation, Revision and Publication of Legislation authority to integrate amendments so that all versions of the same code section enacted within the same legislative session may become effective. The Joint Committee on Compilation, Revision and Publication of Legislation ratified the integration of these amendments as consistent with the legislative intent at the April 26, 2001, meeting of the Committee.

Section 1 of ch. 443, Laws of 2005, effective from and after January 1, 2005 (approved March 23, 2005), amended this section. Section 6 of ch. 484, Laws of 2005, effective from and after January 1, 2005 (approved April 6, 2005), also amended this section. As set out above, this section reflects the language of Section 6 of ch. 484, Laws of 2005, pursuant to Section 1-3-79 which provides that whenever the same section of law is amended by different bills during the same legislative session, and the effective dates of the amendments are the same, the amendment with the latest approval date shall supersede all other amendments to the same section approved on an earlier date.

Section 6 of ch. 420, Laws of 2015, effective upon passage (approved March 29, 2015), amended this section. Section 5 of ch. 457, Laws of 2015, effective from and after January 1, 2015 (approved April 20, 2015), also amended this section. As set out above, this section reflects the language of both amendments pursuant to Section 1-1-109 which gives the Joint Legislative Committee on Compilation, Revision, and Publication of Legislation authority to integrate amendments so that all versions of the same code section enacted within the same legislative session may become effective. The Joint Committee on Compilation, Revision, and Publication of Legislation ratified the integration of these amendments as consistent with the legislative intent at the August 17, 2015, meeting of the Committee.

Pursuant to Section 1-1-109, the Joint Legislative Committee on Compilation, Revision and Publication of Legislation corrected a typographical error in subsection (5)(h), as amended by Laws of 2015, ch. 420, and Laws of 2015, ch. 457. The reference to “subsection (5) of this section” was changed to “this subsection (5).” The Joint Committee ratified the correction at its August 5, 2016, meeting.

Section 3 of Chapter 376, Laws of 2017, effective from and after January 1, 2017 (approved March 22, 2017), amended this section. Section 15 of Chapter 350, Laws of 2017, effective from and after passage (approved March 20, 2017), also amended this section. As set out above, this section reflects the language of both amendments pursuant to Section 1-1-109 which gives the Joint Legislative Committee on Compilation, Revision, and Publication of Legislation authority to integrate amendments so that all versions of the same code section amended within the same legislative session may become effective. The Joint Committee on Compilation, Revision, and Publication of Legislation ratified the integration of these amendments as consistent with the legislative intent at the August 15, 2017, meeting of the Committee.

Editor's Notes —

Laws of 2000, ch. 473, § 22, effective July 1, 2000, provides:

“SECTION 22. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax laws before the date on which Sections 16 through 18 of this act become effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which Sections 16 through 18 of this act become effective or are begun thereafter; and the provisions of the income tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which Sections 16 through 18 of this act become effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.”

Laws of 2001, ch. 586, §§ 8, 9, effective January 1, 2001, provide as follows:

“SECTION 8. This act shall apply to taxable years beginning on or after January 1, 2001.

“SECTION 9. No rules or regulations shall be promulgated or enforced pursuant to this act unless such rules or regulations apply equally to each taxpayer affected by this act.”

Laws of 2004, ch. 500, § 2, effective January 1, 2004, provides:

“SECTION 2. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the income tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.”

Laws of 2005, ch. 443, § 2, effective January 1, 2005, provides as follows:

“SECTION 2. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the income tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.”

Laws of 2006, ch. 497, § 2, effective January 1, 2006, provides as follows:

“SECTION 2. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the income tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.”

Laws of 2007, ch. 443, § 2, effective January 1, 2007, provides:

“SECTION 2. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the income tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.”

Laws of 2010, ch. 430, § 2 effective January 1, 2010, provides:

“SECTION 2. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the income tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.”

The Federal Farm Loan Act of July 17, 1916, referred to in this section, was repealed by 12 USCS § 2001 et seq., P.L. 92-181, 85 Stat. 583, which represented a complete rewriting of the farm credit laws and a fundamental reworking of the statutory basis for the farm credit system. In connection with such reworking of material, the existing statutory provisions covering this area were repealed and their substance revised, reenacted, and expanded. The repealed provisions constituted the bulk of former Chapter 7, 12 USCS § 636 et seq. The repealed statutes, including the Federal Farm Loan Act, are enumerated at P.L. 92-181 § 5.26(a), 85 Stat. 641.

Executive Order No. 13002 of May 13, 1996, designated June 30, 1996, as the date of termination of combatant activities in the zone comprised of Vietnam and the waters adjacent, as described in Executive Order No. 11216 of April 24, 1965.

Laws of 2017, ch. 376, § 5, effective January 1, 2017, provides:

“Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the income tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.”

Laws of 2018, ch. 415, § 2, effective January 1, 2018, provides:

“Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the income tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.”

Amendment Notes —

The 2004 amendment, in (4)(n), substituted “maximum enlisted amount” for “aggregate sum of Five Hundred Dollars ($500.00) per month” and inserted “or a qualified hazardous duty area as defined by federal law, or both” in the first sentence, and added the second sentence.

The first 2005 amendment (ch. 443), added (4)(z).

The second 2005 amendment (ch. 484) added (4)(aa).

The 2005 amendment, 5th Ex Sess, ch. 22, added (4)(bb) and (4)(cc).

The 2006 amendment inserted “through the 2005 taxable year and not to exceed the aggregate sum of Fifteen Thousand Dollars ($15,000.00) for any taxable year thereafter” in (4)(m).

The 2007 amendment added (4)(dd).

The 2008 amendment added (4)(ee).

The 2009 amendment, in (4)(m), added “National Guard or Reserve Forces of the United States” at the beginning; and deleted “received by a member of the National Guard or Reserve Forces of the United States as payment for inactive duty training, active duty training and state active duty” from the end.

The 2010 amendment added (4)(ff).

The first 2015 amendment (ch. 420), effective upon passage (approved March 29, 2015), deleted “(1)” preceding “residence to another residence” in (2)(f); in (4), deleted “July 17” following “Federal Farm Loan Act of” in (d), substituted “forestry incentive programs” for “forestry incentives programs” in (o), deleted “(1)” following “state and has one” in (ee)(ii), and added (gg); and substituted “Department of Revenue” for “State Tax Commission” in (5)(h).

The second 2015 amendment (ch. 457), effective January 1, 2015, deleted “(1)” preceding “residence to another residence” in (2)(f); deleted “July 17” following “Federal Farm Loan Act of” in (4)(d); substituted “incentive” for “incentives” in (4)(o); deleted “(1)” preceding “of its purposes” at the end of (4)(ee)(ii); added (4)(hh); and substituted “Department of Revenue” for “State Tax Commission” near the end of (5)(h).

The first 2017 amendment (ch. 350), effective March 20, 2017, added (4)(ii).

The second 2017 amendment (ch. 376), effective January 1, 2017, inserted “(1)” in (2)(f); and added (4)(jj).

The 2018 amendment, effective January 1, 2018, added (4)(kk).

Cross References —

Mississippi Public Employees’ Retirement System generally, see §25-11-101 et seq.

Taxation of annuity contracts under optional retirement program for employees of state institutions of higher learning, see §25-11-419.

Mississippi Highway Safety Patrol Retirement System generally, see §25-13-1 et seq.

Creation of public employer-assisted housing program authorized, see §25-19-1.

Alimony payments as adjustments to gross income, see §27-7-18.

Calculation of gross income of S corporation shareholders, see §27-8-7.

Treatment of stock or money distributions by S corporations to resident shareholders, see §27-8-17.

Exemption of airport income from tax, see §§61-3-77,61-5-43.

Mississippi Soil and Water Cost-Share Program generally, see §§69-27-301 through69-27-315.

Principal contributed and the interest earned on medical savings account excluded from taxable income under this section, see §71-9-5.

Mississippi Gaming Control Act, see §§75-76-1 et seq.

Federal Aspects—

Federal Civil Service Retirement Act, see 5 USCS § 8331 et seq.

Internal Revenue Code of 1986 generally, see 26 USCS § 1 et seq.

Installment Tax Correction Act of 2000, P.L. 106-573, 114 Stat. 3061, appears in a note under 26 USCS § 1.

“Qualified Hurricane Katrina distribution” defined, Katrina Emergency Tax Relief Act of 2005, P.L. 109-73, 119 Stat. 2016, see 26 USCS § 1 note.

Social Security Act, see 42 USCS § 301 et seq.

Railroad Retirement Act appears generally as 45 USCS § 231 et seq.

War Risk Insurance Act, see 46 App. USCS § 1281 et seq.

JUDICIAL DECISIONS

1. In general.

2. Particular applications.

3. What constitutes taxable income.

4. Exemptions.

1. In general.

“Gross income,” imports an actual gain and indicates an increase of wealth in hand. Mississippi State Tax Com. v. Hogg, 239 Miss. 597, 124 So. 2d 300, 1960 Miss. LEXIS 328 (Miss. 1960).

A taxing statute will be strictly construed against the taxing power and in favor of the taxpayer, and all doubts as to whether or not a tax has been imposed must be resolved in favor of the taxpayer. State v. Johnson, 238 Miss. 211, 118 So. 2d 308, 1960 Miss. LEXIS 398 (Miss. 1960).

The word “property” as used in subsection (a) of this section, applying where property is sold upon the deferred payment plan, is not limited to tangible property. State v. Johnson, 238 Miss. 211, 118 So. 2d 308, 1960 Miss. LEXIS 398 (Miss. 1960).

An administrative interpretation of income tax statute to effect that it did not impose tax on gains realized from capital transactions could not be considered in determining whether gross income within statute included profits on sales of property not regularly employed in conduct of regular trade or business, where the administrative interpretation was in conflict with statute and the commission making the interpretation had not adhered to such interpretation. Virden v. State Tax Com., 180 Miss. 467, 177 So. 784, 1938 Miss. LEXIS 7 (Miss. 1938).

The subsequent amendment of income tax statute could not be considered in determining whether under original statute gross income included profits on sales of property not regularly employed in conduct of regular trade or business, where original statute was not ambiguous. Virden v. State Tax Com., 180 Miss. 467, 177 So. 784, 1938 Miss. LEXIS 7 (Miss. 1938).

Including income from sources outside the state in determining a citizen’s taxable income while excluding it in determining the taxable income of domestic corporations does not deny to a citizen the equal protection of the laws where there is nothing to negative the possible existence of just grounds of difference and it appears that the state has adopted generally a policy of avoiding double taxation of the same economic interest in corporate income by taxing either income of the corporation or dividends of its stockholders, but not both, and in the case of corporate income and dividends attributable to business done outside the state and received by stockholders of domestic corporations, the stockholders are taxed. Lawrence v. State Tax Com., 286 U.S. 276, 52 S. Ct. 556, 76 L. Ed. 1102, 1932 U.S. LEXIS 602 (U.S. 1932).

2. Particular applications.

Where the entire business of a Mississippi corporation consisted of assembling component parts to be used by the New Jersey corporation which owned all of its outstanding stock, the statutory basis for income taxes of the Mississippi corporation was its gross income, and its gross income was the true value of the services it performed for the New Jersey corporation; The Tax Commission could not lawfully substitute for the statutory method of determining gross income an apportionment formula that included the income of the New Jersey corporation, and that portion of a tax regulation authorizing the commissioner to consolidate the income of a resident corporation with that of an affiliated foreign corporation and apply an apportionment formula for income tax purposes is void. Universal Mfg. Corp. v. Brady, 320 So. 2d 784, 1975 Miss. LEXIS 1501 (Miss. 1975).

Where an installment sale of real estate is made, installments of trust deed indebtedness assumed by the purchaser maturing subsequent to the year of sale are not to be considered in determining whether the initial payment exceeds 30 percent. State Tax Com. v. Edmondson, 196 So. 2d 873, 1967 Miss. LEXIS 1493 (Miss. 1967).

To determine whether the initial payment received in connection with an installment sale of real estate exceeds 30 percent, only the sum paid in cash plus any trust deed indebtedness assumed by the purchaser which matures in the year of the sale are to be included. State Tax Com. v. Edmondson, 196 So. 2d 873, 1967 Miss. LEXIS 1493 (Miss. 1967).

A pro rata distribution to stockholders of a corporation of stock in another corporation acquired by it in exchange for assets, does not constitute taxable income. Mississippi State Tax Com. v. Hogg, 239 Miss. 597, 124 So. 2d 300, 1960 Miss. LEXIS 328 (Miss. 1960).

Where a taxpayer, who had received 10 installment promissory notes representing part of the purchase price from him of certain shares of stock, exercised his option to pay income tax on gains received in the years in which the deferred payments were received by him, and subsequently taxpayer transferred these notes in a bona fide transaction to a merchandise corporation in which he was a principal stockholder, for purpose of enabling indorsee to use notes as collateral in its business, with the taxpayer receiving in return, and as consideration for the transfer, substantially identical notes of the corporation payable to him in installments, taxpayer retained the privilege to report his taxable gain under the new installment notes on the deferred payment basis. State v. Johnson, 238 Miss. 211, 118 So. 2d 308, 1960 Miss. LEXIS 398 (Miss. 1960).

3. What constitutes taxable income.

Miss. Code Ann. §27-7-15(4)(i), having been found to violate the dormant commerce clause under the internal consistency test, was modified by striking the phrase “under the provisions of this article” because this preserved legislative intent to include dividend income in the definition of income, while allowing an exemption to taxpayers who already had borne a tax in Mississippi or another state. Miss. Dep't of Revenue v. AT&T Corp., 202 So.3d 1207, 2016 Miss. LEXIS 448 (Miss. 2016).

Miss. Code Ann. §27-7-15(4)(i) violated the dormant commerce clause under the internal consistency test because a taxpayer’s dividend income from in-state subsidiaries was excluded from income, while such income from out-of-state subsidiaries was not, as the income had not already borne a tax under the statute, resulting in malapportionment. Miss. Dep't of Revenue v. AT&T Corp., 202 So.3d 1207, 2016 Miss. LEXIS 448 (Miss. 2016).

This income tax law will not be construed as taxing income from national bank shares where it was enacted at a time when the view prevailing in the Supreme Court of the United States was that instrumentalities of the United States could not be taxed by the state on income. Mississippi State Tax Com. v. Brown, 188 Miss. 483, 193 So. 794, 1940 Miss. LEXIS 14 (Miss. 1940).

Election by state to tax the shares of national banks according to their value as permitted under Act of Congress (12 USCS § 548) exhausted its right to tax such bank, or its shares, or the income therefrom; and, accordingly, the state legislature did not intend, under the Income Tax Act of 1934, to tax the income dividends derived from such shares. Mississippi State Tax Com. v. Brown, 188 Miss. 483, 193 So. 794, 1940 Miss. LEXIS 14 (Miss. 1940).

Money received in a business transaction which the taxpayer has no right to retain but must return is not income within the purview of this section. [Code 1942, § 9227], since his income from the business is neither increased nor diminished thereby. State v. Morgan Gin Co., 186 Miss. 66, 189 So. 817, 1939 Miss. LEXIS 223 (Miss. 1939).

Refunds or payments by a ginning company to its patrons, under an agreement that if they would pay its charges for ginning their cotton and accept payment for their cotton seed at prices offered by it therefor, it would thereafter make an equitable adjustment of such prices and charges and pay them additional money for the cotton seed purchased from them, construed by both parties to be an agreement by the ginning company to do for all its patrons what under its charter it was required to do for its patrons who owned its corporate stock, were not a part of the ginning company’s gross income and therefore included in the taxable income of the corporation. State v. Morgan Gin Co., 186 Miss. 66, 189 So. 817, 1939 Miss. LEXIS 223 (Miss. 1939).

A taxpayer’s “gross income” included profits on sales of property not regularly employed in conduct of regular trade or business where income tax statute was broad enough to include profits on sales of all property in gross income, notwithstanding statute contained provisions for determining gains realized or losses sustained from disposition of assets employed in conduct of regular trade or business but not for determining gains or losses sustained on sales of property not employed in trade or business, since provisions for determining gains or losses were not in conflict with legislative intent clearly expressed in preceding provisions that profits on sales of all property should be included in gross income. Virden v. State Tax Com., 180 Miss. 467, 177 So. 784, 1938 Miss. LEXIS 7 (Miss. 1938).

One who retained rental of land received under Agricultural Adjustment Act, after discovery that receipt thereof was illegal, was subject to state income tax with respect to such rental, against contention that he was liable to suit to recover it. Chapman v. State, 179 Miss. 507, 176 So. 391, 1937 Miss. LEXIS 57 (Miss. 1937).

The state income tax statute would not be inoperative against rentals of land received under Agricultural Adjustment Act, as taxing government instrumentality, since Agricultural Adjustment Act has been declared unconstitutional and void. Chapman v. State, 179 Miss. 507, 176 So. 391, 1937 Miss. LEXIS 57 (Miss. 1937).

Increase in value of property, accruing over period of years, may be taxed as “income” of year in which it is converted into money or other property. Fernwood Lumber Co. v. Mississippi State Tax Com., 167 Miss. 273, 149 So. 727, 1933 Miss. LEXIS 126 (Miss. 1933).

Income earned by citizen and resident of state, whether earned within or without state, is subject to tax. Lawrence v. Mississippi State Tax Com., 162 Miss. 338, 137 So. 503, 1931 Miss. LEXIS 107 (Miss. 1931), aff'd, 286 U.S. 276, 52 S. Ct. 556, 76 L. Ed. 1102, 1932 U.S. LEXIS 602 (U.S. 1932).

“Income” is gain derived from capital, from labor, or from both combined. Hattiesburg Grocery Co. v. Robertson, 126 Miss. 34, 88 So. 4, 1921 Miss. LEXIS 4 (Miss. 1921).

4. Exemptions.

Rental of land received under Agricultural Adjustment Act was not exempt from state income tax as a “gift,” since gift by government must be authorized by valid Act of Congress. Chapman v. State, 179 Miss. 507, 176 So. 391, 1937 Miss. LEXIS 57 (Miss. 1937).

Rental of land received under Agricultural Adjustment Act was a “gain” or “income” from land and not “other compensation received from United States government” so as to be exempt from state income tax within terms of former statute exempting salaries, wages and other compensation received from the United States government. Chapman v. State, 179 Miss. 507, 176 So. 391, 1937 Miss. LEXIS 57 (Miss. 1937).

The salary of a vice-president of a federal land bank is not exempt from state income tax, since federal land banks, though federal instrumentalities, were established primarily to make loans on farm lands, are operated in part for profit, and private investors may own their stock. Parker v. Mississippi State Tax Com., 178 Miss. 680, 174 So. 567, 1937 Miss. LEXIS 267 (Miss.), cert. denied, 302 U.S. 742, 58 S. Ct. 144, 82 L. Ed. 574, 1937 U.S. LEXIS 940 (U.S. 1937).

That profit or gain is evidenced by something which is property taxable as such does not render it exempt from taxation as “income.” Fernwood Lumber Co. v. Mississippi State Tax Com., 167 Miss. 273, 149 So. 727, 1933 Miss. LEXIS 126 (Miss. 1933).

OPINIONS OF THE ATTORNEY GENERAL

Interest paid by school district on loan to purchase transportation equipment will be exempt from state income tax. Conley, August 12, 1992, A.G. Op. #92-0581.

RESEARCH REFERENCES

ALR.

Income taxes: taxpayer’s reliance on doctrine of constructive receipt to defeat assertion of tax in later year. 7 A.L.R.2d 735.

Premiums paid by employer for insurance or annuity payable to employee as taxable income of latter. 7 A.L.R.2d 766.

Income tax: cancelation of debt upon payment of less than amount due, or purchase by debtor of own obligation at a discount, as creating taxable income. 7 A.L.R.2d 871.

Tips as taxable income. 10 A.L.R.2d 191.

Income of subsidiary as taxable to it or to parent corporation. 10 A.L.R.2d 576.

Income tax: market value as ascribable to agreement to pay a life annuity to another for purpose of determining capital gain or loss. 12 A.L.R.2d 589.

Income tax consequences to shareholder of dividend in kind. 56 A.L.R.2d 474.

When is corporation, community chest, fund, foundation, or club “organized and operated exclusively” for exempt purposes under Internal Revenue Code. 69 A.L.R.2d 871.

Payment of premiums by corporation on policy on life of stockholder as taxable income to the insured. 73 A.L.R.2d 708.

Exclusion of meals and lodging from gross income under “convenience of the employer” rule. 84 A.L.R.2d 1215.

State tax on trust income as affected by foreign elements. 5 A.L.R.3d 606.

Federal income tax charitable deductions: property fair-market-value determinations. 90 A.L.R. Fed. 402.

Am. Jur.

71 Am. Jur. 2d, State and Local Taxation § 390 et seq.

CJS.

85 C.J.S., Taxation §§ 1998, 1999 et seq.

§ 27-7-16. Gross income; treatment of employees’ pension trusts, tax-sheltered annuities, deferred compensation plans, self-employed retirement plans, and individual retirement accounts or retirement bonds.

Amounts contributed in the taxable year by employees and/or self-employed individuals, including partners, to an employees’ pension trust, tax-sheltered annuity plan, authorized deferred compensation plan, self-employed retirement plan, individual retirement account or retirement bond which meets the requirements of a qualified plan under the provisions of the Internal Revenue Code of 1986, as amended, shall be deductible from gross income, subject to the conditions and limitations of the Internal Revenue Code of 1986, as amended. Amounts contributed in the taxable year to a Roth individual retirement account shall be treated in the same manner as provided under the Internal Revenue Code of 1986, as amended.

HISTORY: Laws, 1977, ch. 402, §§ 1, 2; Laws, 1979, ch. 302, § 4; Laws, 1986, ch. 393, § 3; Laws, 1987, ch. 423, § 2; Laws, 1991, ch. 524, § 11; Laws, 1995, ch. 346, § 1; Laws, 1998, ch. 448, § 2, eff from and after January 1, 1998.

Editor’s Notes —

Laws of 1998, ch. 448, § 3, effective January 1, 1998, provides:

“SECTION 3. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the income tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.”

Cross References —

Taxation of annuity contracts under optional retirement program for employees of state institutions of higher learning, see §25-11-419.

Federal Aspects—

Internal Revenue Code of 1986 generally, see 26 USCS §§ 1 et seq.

RESEARCH REFERENCES

Am. Jur.

60A Am. Jur. 2d, Pensions and Retirement Funds, §§ 1-3, 136-176, 236, 1143.

71 Am. Jur. 2d, State and Local Taxation, §§ 412, 413 (annuities, pensions and similar retirement benefits).

Am Jur Legal Forms 2d, Federal Tax Guide to Legal Forms, § 133B.

CJS.

85 C.J.S., Taxation, §§ 2022-2025.

§ 27-7-17. Deductions allowed.

In computing taxable income, there shall be allowed as deductions:

  1. Business deductions.
    1. Business expenses.All the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business, including a reasonable allowance for salaries or other compensation for personal services actually rendered; nonreimbursable traveling expenses incident to current employment, including a reasonable amount expended for meals and lodging while away from home in the pursuit of a trade or business; and rentals or other payments required to be made as a condition of the continued use or possession, for purposes of the trade or business of property to which the taxpayer has not taken or is not taking title or in which he had no equity. Expense incurred in connection with earning and distributing nontaxable income is not an allowable deduction. Limitations on entertainment expenses shall conform to the provisions of the Internal Revenue Code of 1986.
    2. Interest.All interest paid or accrued during the taxable year on business indebtedness, except interest upon the indebtedness for the purchase of tax-free bonds, or any stocks, the dividends from which are nontaxable under the provisions of this article; provided, however, in the case of securities dealers, interest payments or accruals on loans, the proceeds of which are used to purchase tax-exempt securities, shall be deductible if income from otherwise tax-free securities is reported as income. Investment interest expense shall be limited to investment income. Interest expense incurred for the purchase of treasury stock, to pay dividends, or incurred as a result of an undercapitalized affiliated corporation may not be deducted unless an ordinary and necessary business purpose can be established to the satisfaction of the commissioner. For the purposes of this paragraph, the phrase “interest upon the indebtedness for the purchase of tax-free bonds” applies only to the indebtedness incurred for the purpose of directly purchasing tax-free bonds and does not apply to any other indebtedness incurred in the regular course of the taxpayer’s business. Any corporation, association, organization or other entity taxable under Section 27-7-23(c) shall allocate interest expense as provided in Section 27-7-23(c)(3)(I).
    3. Taxes.Taxes paid or accrued within the taxable year, except state and federal income taxes, excise taxes based on or measured by net income, estate and inheritance taxes, gift taxes, cigar and cigarette taxes, gasoline taxes, and sales and use taxes unless incurred as an item of expense in a trade or business or in the production of taxable income. In the case of an individual, taxes permitted as an itemized deduction under the provisions of subsection(3)(a) of this section are to be claimed thereunder.
    4. Business losses.
      1. Losses sustained during the taxable year not compensated for by insurance or otherwise, if incurred in trade or business, or nonbusiness transactions entered into for profit.
      2. Limitations on losses from passive activities and rental real estate shall conform to the provisions of the Internal Revenue Code of 1986.
    5. Bad debts. Losses from debts ascertained to be worthless and charged off during the taxable year, if sustained in the conduct of the regular trade or business of the taxpayer; provided, that such losses shall be allowed only when the taxpayer has reported as income, on the accrual basis, the amount of such debt or account.
    6. Depreciation. A reasonable allowance for exhaustion, wear and tear of property used in the trade or business, or rental property, and depreciation upon buildings based upon their reasonable value as of March 16, 1912, if acquired prior thereto, and upon cost if acquired subsequent to that date.
    7. Depletion. In the case of mines, oil and gas wells, other natural deposits and timber, a reasonable allowance for depletion and for depreciation of improvements, based upon cost, including cost of development, not otherwise deducted, or fair market value as of March 16, 1912, if acquired prior to that date, such allowance to be made upon regulations prescribed by the commissioner, with the approval of the Governor.
    8. Contributions or gifts. Except as otherwise provided in paragraph (p) of this subsection or subsection (3)(a) of this section for individuals, contributions or gifts made by corporations within the taxable year to corporations, organizations, associations or institutions, including Community Chest funds, foundations and trusts created solely and exclusively for religious, charitable, scientific or educational purposes, or for the prevention of cruelty to children or animals, no part of the net earnings of which inure to the benefit of any private stockholder or individual. This deduction shall be allowed in an amount not to exceed twenty percent (20%) of the net income. Such contributions or gifts shall be allowable as deductions only if verified under rules and regulations prescribed by the commissioner, with the approval of the Governor. Contributions made in any form other than cash shall be allowed as a deduction, subject to the limitations herein provided, in an amount equal to the actual market value of the contributions at the time the contribution is actually made and consummated.
    9. Reserve funds – insurance companies. In the case of insurance companies the net additions required by law to be made within the taxable year to reserve funds when such reserve funds are maintained for the purpose of liquidating policies at maturity.
    10. Annuity income. The sums, other than dividends, paid within the taxpayer year on policy or annuity contracts when such income has been included in gross income.
    11. Contributions to employee pension plans. Contributions made by an employer to a plan or a trust forming part of a pension plan, stock bonus plan, disability or death-benefit plan, or profit-sharing plan of such employer for the exclusive benefit of some or all of his, their, or its employees, or their beneficiaries, shall be deductible from his, their, or its income only to the extent that, and for the taxable year in which, the contribution is deductible for federal income tax purposes under the Internal Revenue Code of 1986 and any other provisions of similar purport in the Internal Revenue Laws of the United States, and the rules, regulations, rulings and determinations promulgated thereunder, provided that:
      1. The plan or trust be irrevocable.
      2. The plan or trust constitute a part of a pension plan, stock bonus plan, disability or death-benefit plan, or profit-sharing plan for the exclusive benefit of some or all of the employer’s employees and/or officers, or their beneficiaries, for the purpose of distributing the corpus and income of the plan or trust to such employees and/or officers, or their beneficiaries.
      3. No part of the corpus or income of the plan or trust can be used for purposes other than for the exclusive benefit of employees and/or officers, or their beneficiaries.

      Contributions to all plans or to all trusts of real or personal property (or real and personal property combined) or to insured plans created under a retirement plan for which provision has been made under the laws of the United States of America, making such contributions deductible from income for federal income tax purposes, shall be deductible only to the same extent under the Income Tax Laws of the State of Mississippi.

    12. Net operating loss carrybacks and carryovers. A net operating loss for any taxable year ending after December 31, 1993, and taxable years thereafter, shall be a net operating loss carryback to each of the three (3) taxable years preceding the taxable year of the loss. If the net operating loss for any taxable year is not exhausted by carrybacks to the three (3) taxable years preceding the taxable year of the loss, then there shall be a net operating loss carryover to each of the fifteen (15) taxable years following the taxable year of the loss beginning with any taxable year after December 31, 1991.

      For any taxable year ending after December 31, 1997, the period for net operating loss carrybacks and net operating loss carryovers shall be the same as those established by the Internal Revenue Code and the rules, regulations, rulings and determinations promulgated thereunder as in effect at the taxable year end or on December 31, 2000, whichever is earlier.

      A net operating loss for any taxable year ending after December 31, 2001, and taxable years thereafter, shall be a net operating loss carryback to each of the two (2) taxable years preceding the taxable year of the loss. If the net operating loss for any taxable year is not exhausted by carrybacks to the two (2) taxable years preceding the taxable year of the loss, then there shall be a net operating loss carryover to each of the twenty (20) taxable years following the taxable year of the loss beginning with any taxable year after the taxable year of the loss.

      The term “net operating loss,” for the purposes of this paragraph, shall be the excess of the deductions allowed over the gross income; provided, however, the following deductions shall not be allowed in computing same:

      1. No net operating loss deduction shall be allowed.
      2. No personal exemption deduction shall be allowed.
      3. Allowable deductions which are not attributable to taxpayer’s trade or business shall be allowed only to the extent of the amount of gross income not derived from such trade or business.

      Any taxpayer entitled to a carryback period as provided by this paragraph may elect to relinquish the entire carryback period with respect to a net operating loss for any taxable year ending after December 31, 1991. The election shall be made in the manner prescribed by the Department of Revenue and shall be made by the due date, including extensions of time, for filing the taxpayer’s return for the taxable year of the net operating loss for which the election is to be in effect. The election, once made for any taxable year, shall be irrevocable for that taxable year.

    13. Amortization of pollution or environmental control facilities. Allowance of deduction. Every taxpayer, at his election, shall be entitled to a deduction for pollution or environmental control facilities to the same extent as that allowed under the Internal Revenue Code and the rules, regulations, rulings and determinations promulgated thereunder.
    14. Dividend distributions – real estate investment trusts. “Real estate investment trust” (hereinafter referred to as REIT) shall have the meaning ascribed to such term in Section 856 of the federal Internal Revenue Code of 1986, as amended. A REIT is allowed a dividend distributed deduction if the dividend distributions meet the requirements of Section 857 or are otherwise deductible under Section 858 or 860, federal Internal Revenue Code of 1986, as amended. In addition:
      1. A dividend distributed deduction shall only be allowed for dividends paid by a publicly traded REIT. A qualified REIT subsidiary shall be allowed a dividend distributed deduction if its owner is a publicly traded REIT.
      2. Income generated from real estate contributed or sold to a REIT by a shareholder or related party shall not give rise to a dividend distributed deduction, unless the shareholder or related party would have received the dividend distributed deduction under this chapter.
      3. A holding corporation receiving a dividend from a REIT shall not be allowed the deduction in Section 27-7-15(4)(t).
      4. Any REIT not allowed the dividend distributed deduction in the federal Internal Revenue Code of 1986, as amended, shall not be allowed a dividend distributed deduction under this chapter.

      The commissioner is authorized to promulgate rules and regulations consistent with the provisions in Section 269 of the federal Internal Revenue Code of 1986, as amended, so as to prevent the evasion or avoidance of state income tax.

    15. Contributions to college savings trust fund accounts. Contributions or payments to a Mississippi Affordable College Savings Program account are deductible as provided under Section 37-155-113. Payments made under a prepaid tuition contract entered into under the Mississippi Prepaid Affordable College Tuition Program are deductible as provided under Section 37-155-17.
    16. Contributions of human pharmaceutical products. To the extent that a “major supplier” as defined in Section 27-13-13(2)(d) contributes human pharmaceutical products in excess of Two Hundred Fifty Million Dollars ($250,000,000.00) as determined under Section 170 of the Internal Revenue Code, the charitable contribution limitation associated with those donations shall follow the federal limitation but cannot result in the Mississippi net income being reduced below zero.
    17. Contributions to ABLE trust fund accounts. Contributions or payments to a Mississippi Achieving a Better Life Experience (ABLE) Program account are deductible as provided under Section 43-28-13.
  2. Restrictions on the deductibility of certain intangible expenses and interest expenses with a related member.
    1. As used in this subsection (2):

      1. Expenses, losses and costs for, related to, or in connection directly or indirectly with the direct or indirect acquisition, use, maintenance or management, ownership, sale, exchange or any other disposition of intangible property to the extent such amounts are allowed as deductions or costs in determining taxable income under this chapter;

      2. Expenses or losses related to or incurred in connection directly or indirectly with factoring transactions or discounting transactions;

      3. Royalty, patent, technical and copyright fees;

      4. Licensing fees; and

      5. Other similar expenses and costs.

      1. “Intangible expenses and costs” include:
      2. “Intangible property” means patents, patent applications, trade names, trademarks, service marks, copyrights and similar types of intangible assets.
      3. “Interest expenses and cost” means amounts directly or indirectly allowed as deductions for purposes of determining taxable income under this chapter to the extent such interest expenses and costs are directly or indirectly for, related to, or in connection with the direct or indirect acquisition, maintenance, management, ownership, sale, exchange or disposition of intangible property.
      4. “Related member” means an entity or person that, with respect to the taxpayer during all or any portion of the taxable year, is a related entity, a component member as defined in the Internal Revenue Code, or is an entity or a person to or from whom there is attribution of stock ownership in accordance with Section 1563(e) of the Internal Revenue Code.
      5. “Related entity” means:

      1. A stockholder who is an individual or a member of the stockholder’s family, as defined in regulations prescribed by the commissioner, if the stockholder and the members of the stockholder’s family own, directly, indirectly, beneficially or constructively, in the aggregate, at least fifty percent (50%) of the value of the taxpayer’s outstanding stock;

      2. A stockholder, or a stockholder’s partnership, limited liability company, estate, trust or corporation, if the stockholder and the stockholder’s partnerships, limited liability companies, estates, trusts and corporations own, directly, indirectly, beneficially or constructively, in the aggregate, at least fifty percent (50%) of the value of the taxpayer’s outstanding stock;

      3. A corporation, or a party related to the corporation in a manner that would require an attribution of stock from the corporation to the party or from the party to the corporation, if the taxpayer owns, directly, indirectly, beneficially or constructively, at least fifty percent (50%) of the value of the corporation’s outstanding stock under regulation prescribed by the commissioner;

      4. Any entity or person which would be a related member under this section if the taxpayer were considered a corporation for purposes of this section.

    2. In computing net income, a taxpayer shall add back otherwise deductible interest expenses and costs and intangible expenses and costs directly or indirectly paid, accrued to or incurred, in connection directly or indirectly with one or more direct or indirect transactions with one or more related members.
    3. The adjustments required by this subsection shall not apply to such portion of interest expenses and costs and intangible expenses and costs that the taxpayer can establish meets one (1) of the following:
      1. The related member directly or indirectly paid, accrued or incurred such portion to a person during the same income year who is not a related member; or
      2. The transaction giving rise to the interest expenses and costs or intangible expenses and costs between the taxpayer and related member was done primarily for a valid business purpose other than the avoidance of taxes, and the related member is not primarily engaged in the acquisition, use, maintenance or management, ownership, sale, exchange or any other disposition of intangible property.
    4. Nothing in this subsection shall require a taxpayer to add to its net income more than once any amount of interest expenses and costs or intangible expenses and costs that the taxpayer pays, accrues or incurs to a related member.
    5. The commissioner may prescribe such regulations as necessary or appropriate to carry out the purposes of this subsection, including, but not limited to, clarifying definitions of terms, rules of stock attribution, factoring and discount transactions.
  3. Individual nonbusiness deductions.
    1. The amount allowable for individual nonbusiness itemized deductions for federal income tax purposes where the individual is eligible to elect, for the taxable year, to itemize deductions on his federal return except the following:
      1. The deduction for state income taxes paid or other taxes allowed for federal purposes in lieu of state income taxes paid;
      2. The deduction for gaming losses from gaming establishments;
      3. The deduction for taxes collected by licensed gaming establishments pursuant to Section 27-7-901;
      4. The deduction for taxes collected by gaming establishments pursuant to Section 27-7-903.
    2. In lieu of the individual nonbusiness itemized deductions authorized in paragraph (a), for all purposes other than ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business, an optional standard deduction of:
      1. Three Thousand Four Hundred Dollars ($3,400.00) through calendar year 1997, Four Thousand Two Hundred Dollars ($4,200.00) for the calendar year 1998 and Four Thousand Six Hundred Dollars ($4,600.00) for each calendar year thereafter in the case of married individuals filing a joint or combined return;
      2. One Thousand Seven Hundred Dollars ($1,700.00) through calendar year 1997, Two Thousand One Hundred Dollars ($2,100.00) for the calendar year 1998 and Two Thousand Three Hundred Dollars ($2,300.00) for each calendar year thereafter in the case of married individuals filing separate returns;
      3. Three Thousand Four Hundred Dollars ($3,400.00) in the case of a head of family; or
      4. Two Thousand Three Hundred Dollars ($2,300.00) in the case of an individual who is not married.

      In the case of a husband and wife living together, having separate incomes, and filing combined returns, the standard deduction authorized may be divided in any manner they choose. In the case of separate returns by a husband and wife, the standard deduction shall not be allowed to either if the taxable income of one of the spouses is determined without regard to the standard deduction.

    3. A nonresident individual shall be allowed the same individual nonbusiness deductions as are authorized for resident individuals in paragraph (a) or (b) of this subsection; however, the nonresident individual is entitled only to that proportion of the individual nonbusiness deductions as his net income from sources within the State of Mississippi bears to his total or entire net income from all sources.
  4. Nothing in this section shall permit the same item to be deducted more than once, either in fact or in effect.

HISTORY: Codes, 1942, § 9220-09; Laws, 1934, ch. 120; Laws, 1936, ch. 151; Laws, 1942, ch. 134; Laws, 1946, ch. 282; Laws, 1948, ch. 437, § 1; Laws, 1952, ch. 402, § 8; Laws, 1956, ch. 427; Laws, 1966, ch. 628, § 3; Laws, 1973, ch. 504, § 2; Laws, 1978, ch. 475, § 2; Laws, 1979, ch. 302, § 2; Laws, 1985, ch. 411, § 1; Laws, 1987, ch. 356, § 1; Laws, 1987, ch. 423, § 3; Laws, 1989, ch. 485, § 2; Laws, 1991, ch. 524, § 9; Laws, 1992, ch. 419, § 1; Laws, 1996, ch. 441, § 67; Laws, 1997, ch. 304, § 1; Laws, 1998, ch. 543, § 2; Laws, 2000, ch. 473, § 17; Laws, 2000, ch. 505, § 1; Laws, 2001, ch. 452, § 3; Laws, 2001, ch. 586, § 3; Laws, 2002, ch. 477, § 1; Laws, 2002, ch. 516, § 3; Laws, 2003, ch. 319, § 3; Laws, 2005, ch. 465, § 1; Laws, 2011, ch. 537, § 2; Laws, 2017, ch. 350, § 16, eff from and after passage (approved Mar. 20, 2017.).

Joint Legislative Committee Note —

Section 17 of ch. 473, Laws of 2000, effective January 1, 2000, amended this section. Section 1 of ch. 505, Laws of 2000, effective January 1, 2000, also amended this section. As set out above, this section reflects the language of both amendments pursuant to Section 1-1-109 which gives the Joint Legislative Committee on Compilation, Revision and Publication of Legislation authority to integrate amendments so that all versions of the same code section enacted within the same legislative session may become effective. The Joint Committee on Compilation, Revision and Publication of Legislation ratified the integration of these amendments as consistent with the Legislative intent at the June 29, 2000, meeting of the Committee.

Section 3 of ch. 452, Laws of 2001, effective January 1, 2002, amended this section. Section 3 of ch. 586, Laws of 2001, effective January 1, 2001, also amended this section. As set out above, this section reflects the language of both amendments pursuant to Section 1-1-109 which gives the Joint Legislative Committee on Compilation, Revision and Publication of Legislation authority to integrate amendments so that all versions of the same code section enacted within the same legislative session may become effective. The Joint Committee on Compilation, Revision and Publication of Legislation ratified the integration of these amendments as consistent with the legislative intent at the April 26, 2001, meeting of the Committee.

Section 1 of ch. 477, Laws of 2002, effective January 1, 2002 (approved March 27, 2002), amended this section. Section 3 of ch. 516, Laws of 2002, effective January 1, 2002 (approved April 1, 2002), also amended this section. As set out above, this section reflects the language of Section 3 of ch. 516, Laws of 2002, pursuant to Section 1-3-79 which provides that whenever the same section of law is amended by different bills during the same legislative session, and the effective dates of the amendments are the same, the amendment with the latest approval date shall supersede all other amendments to the same section approved on an earlier date.

Editor’s Notes —

Laws of 2011, ch. 537, § 3, provides:

“SECTION 3. Section 1 of this act shall take effect and be in force from and after its passage [April 26, 2011] and Section 2 of this act shall take effect and be in force from and after January 1, 2011.”

Laws of 2000, ch. 473, § 22, effective July 1, 2000, provides:

“SECTION 22. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax laws before the date on which Sections 16 through 18 of this act become effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which Sections 16 through 18 of this act become effective or are begun thereafter; and the provisions of the income tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which Sections 16 through 18 of this act become effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.”

Laws of 2001, ch. 586, §§ 8, 9, effective January 1, 2001, provide as follows:

“SECTION 8. This act shall apply to taxable years beginning on or after January 1, 2001.

“SECTION 9. No rules or regulations shall be promulgated or enforced pursuant to this act unless such rules or regulations apply equally to each taxpayer affected by this act.”

Amendment Notes —

The 2005 amendment added “or other taxes allowed for federal purposes in lieu of state income taxes paid” in (3)(a)(i).

The 2011 amendment inserted “paragraph (1)(p) of this subsection or” at the beginning of (1)(h); substituted “Department of Revenue” for “State Tax Commission” in the last paragraph of (1)( l ); and added (1)(p).

The 2017 amendment, effective March 20, 2017, added (1)(q).

Cross References —

Adjusted basis for determining gain from sale if a deduction is allowed under this section, see §27-7-9.

Applicability of three-year period for examination of returns provided under §27-7-49 where reportable taxable income of taxpayer has been decreased by carryback of net operating loss deduction under this section, see §27-7-49.

Treatment, for purposes of capital gains tax, of property used in trade or business, see §27-7-99.

Creation of Commission on Environmental Quality, see §49-2-1 et seq.

Mississippi Air and Water Pollution Control Commission, see §49-17-7.

Money withdrawn from medical savings account considered gross income as provided in this section, see §71-9-9.

Provision that income of an investment trust shall be taxed as if the investment trust were a business corporation with the exception of the dividend deduction allowed by this section, see §79-15-25.

Federal Aspects—

Tax treatment of depreciation in rented real estate under the Internal Revenue Code of 1986, see 26 USCS §§ 167(k), 1250(b).

Internal Revenue Code of 1986 concerning limitations on entertainment expenses, see 26 USCS § 274.

Tax treatment of employer contributions to employee pension, stock bonus or similar plans under the Internal Revenue Code of 1986, see 26 USCS §§ 401-404.

Internal Revenue Code of 1986 concerning limitations on losses from passive activities, see 26 USCS § 469.

Sections 170, 857, 858, 860 and 1563 of the Internal Revenue Code of 1986, see 26 USCS §§ 170, 857, 858, 860 and 1563.

JUDICIAL DECISIONS

1. In general.

2. Particular deductions.

Under Former Law

1. In general.

No exact definition exists for the term “ordinary and necessary” as set forth in §27-7-17(a); each case must be determined on the basis of its own facts and circumstances. Ordinarily, the separate corporate identities of corporate subsidiaries preclude the parent corporation from deducting expenses incurred or losses sustained by its subsidiary, pursuant to the theory that payment by the parent to cover expenses or losses of the subsidiary is related to the business of the subsidiary and not to its own business. However, expenditures made by a parent corporation, which would be deductible if made by the subsidiary, are similarly deductible by the parent corporation, where they are directly related to the parent corporation’s business. Thus, expenditures made by a parent corporation to cover its subsidiaries’ deficits were deductible from the parent corporation’s income taxes as “ordinary and necessary” business expenses where the expenditures were directly related to the business of the parent corporation. Purcell Co. v. Mississippi State Tax Com., 569 So. 2d 297, 1990 Miss. LEXIS 632 (Miss. 1990).

Although it is true that the exemption provisions in tax statutes are strictly construed, nevertheless the full force and effect of such exemptions will be allowed as are provided by statute. Spearman v. Jones, 198 So. 2d 571, 1967 Miss. LEXIS 1262 (Miss. 1967).

This section and Code 1942, § 9220-10 are in pari materia. State v. L. & A. Contracting Co., 241 Miss. 783, 133 So. 2d 546, 1961 Miss. LEXIS 399 (Miss. 1961).

Deductions from income are not matters of right, but represent statutory grants; and the taxpayer has the burden of proving a right thereto. State v. L. & A. Contracting Co., 241 Miss. 783, 133 So. 2d 546, 1961 Miss. LEXIS 399 (Miss. 1961).

A deduction will not be allowed upon equitable considerations, but only where clearly provided for under the statute. State v. L. & A. Contracting Co., 241 Miss. 783, 133 So. 2d 546, 1961 Miss. LEXIS 399 (Miss. 1961).

2. Particular deductions.

When a taxpayer chose to treat bad debt losses by the bad debt reserve method it was required to base the reserve on a showing of experience as required by the regulations of the state tax commission. Gilchrist Tractor Co. v. Mississippi State Tax Comm'r, 211 So. 2d 550, 1968 Miss. LEXIS 1275 (Miss. 1968).

Property donated for charitable purposes shall be valued as a deduction for income tax purposes as of the time of such donation and not on the basis of its cost to the taxpayer. Spearman v. Jones, 198 So. 2d 571, 1967 Miss. LEXIS 1262 (Miss. 1967).

There is no difference between donations of money and donations of property under the provisions of subdivision (i) of this section, and the endeavors of the tax commission to fix the value of property donated at an amount different from its money value at the time of donation is repugnant to the clear meaning of the statute, and therefore inoperative. Spearman v. Jones, 198 So. 2d 571, 1967 Miss. LEXIS 1262 (Miss. 1967).

A debt of the predecessor partnership assumed by a successor corporation owned by the partners, under a claimed necessity of obtaining future financing, is not deductible as a business expense or loss incurred. State v. L. & A. Contracting Co., 241 Miss. 783, 133 So. 2d 546, 1961 Miss. LEXIS 399 (Miss. 1961).

In determining whether an expense was “necessary”, each case must be decided upon its peculiar facts. State v. L. & A. Contracting Co., 241 Miss. 783, 133 So. 2d 546, 1961 Miss. LEXIS 399 (Miss. 1961).

Ordinarily, an expense will be considered “necessary” if the expenditure is appropriate and helpful in developing and maintaining the taxpayer’s business, and considerable weight is given to the taxpayer’s judgment. State v. L. & A. Contracting Co., 241 Miss. 783, 133 So. 2d 546, 1961 Miss. LEXIS 399 (Miss. 1961).

In determining what is an “ordinary” expense, custom and practice in the business world usually furnish reliable guidance; It is affected by the time, place and circumstances of the particular expenditure, which does not have to be habitual and normal in terms of frequency, if it is not unusual in the group of which the taxpayer is a part. State v. L. & A. Contracting Co., 241 Miss. 783, 133 So. 2d 546, 1961 Miss. LEXIS 399 (Miss. 1961).

A tax commission regulation limiting a deduction for interest paid by a nonresident individual or corporation required to apportion income to the state to any excess over intangible income is invalid as inconsistent with this section. Monaghan v. Reliance Mfg. Co., 236 Miss. 462, 111 So. 2d 225, 1959 Miss. LEXIS 340 (Miss. 1959).

A foreign corporation which had entered the state and had employed therein men who were engaged in the repair of its machines and replacement of parts needed in connection therewith could not complain that it was not permitted to deduct from its gross income the federal taxes paid by it, since the income tax law makes no provision for such deduction by anyone. Stapling Machines Co. v. Monaghan, 232 Miss. 484, 99 So. 2d 649, 1958 Miss. LEXIS 297, 1958 Miss. LEXIS 298 (Miss. 1958).

Under Former Law

A deduction for depletion and depreciation on oil and gas properties of a dissolved foreign corporation is to be predicated upon the value of its assets as shown by the books of the corporation and not already deducted rather than on the actual fair market value on its entire properties as fixed by a petroleum engineer at the time of its dissolution. Hewgley v. Stone, 200 Miss. 486, 27 So. 2d 693, 1946 Miss. LEXIS 313 (Miss. 1946).

Upon dissolution of a corporation, a stockholder is protected against being charged with a taxable gain through the transfer to him of his share of the corporation’s assets at an appreciated value, and likewise he should be denied the privilege of computing a nontaxable loss on the same basis. Urschel v. Stone, 198 Miss. 105, 21 So. 2d 466, 1945 Miss. LEXIS 172 (Miss. 1945).

Net book value of the assets at time of dissolution based on cost to the corporation, rather than the “liquidation value” of such asset, continues to represent the cost of the assets for purposes of computing depletion and depreciation allowances on a stockholder’s interest in such assets after dissolution, in determining the stockholder’s income tax. Urschel v. Stone, 198 Miss. 105, 21 So. 2d 466, 1945 Miss. LEXIS 172 (Miss. 1945).

In determining the proper basis for allowance of depletion of oil and gas leases acquired by two domestic corporations which transferred all their assets to a new foreign corporation in exchange for stock, whereby the same stockholders and officers who controlled the old corporations controlled the new one, and the value of the leases was claimed to have increased considerably over the original cost, “cost,” within meaning of paragraph (8) hereof, was the original cost to the domestic corporations and not the claimed increased cost to the foreign corporation, since the transaction was not a merger but merely a reorganization. State Tax Com. v. Love Petroleum Co., 197 Miss. 277, 19 So. 2d 923, 1944 Miss. LEXIS 297 (Miss. 1944).

Excess profits taxes paid by corporation to federal government during tax year were “income taxes” within the purview of subsection 3 of Code 1942, § 9228, and therefore not deductible from income tax, notwithstanding that excess profits tax was not in existence when income tax act was enacted. Tri-State Transit Co. v. Stone, 196 Miss. 23, 16 So. 2d 35, 1943 Miss. LEXIS 5 (Miss. 1943).

Loss sustained by nonresident, operating Mississippi plantation, on certain contracts made in Tennessee for hedge sales of cotton on the New York cotton exchange and of cotton seed on the Memphis Merchants Exchange, which sales allegedly contemplated an actual future delivery of the products so sold, at the then prevailing market price, which later advanced, was not deductible as an ordinary and necessary expense in carrying on a farming operation. Clement v. Stone, 195 Miss. 774, 15 So. 2d 517, 1943 Miss. LEXIS 160 (Miss. 1943).

Trust fund set aside by manufacturing company for purpose of enabling trustees to make loan to company’s employees and for purpose of creating amity, good feeling, cooperation, and good will between company and employees held not deductible, in determining taxable income, as “ordinary and necessary expense” where company created trust just a few days before it was bound to account to state tax commission for income, company reserved right to terminate trust at any time, and company required good security for loans. Tupelo Garment Co. v. State Tax Com., 178 Miss. 730, 173 So. 656, 1937 Miss. LEXIS 233 (Miss. 1937).

Where manufacturing company constructed building at cost of $54,712.20, against which depreciation of $1,765.10 was charged, and sold building to partnership composed of four directors constituting majority of board of directors and two others for $23,000, in determining taxable income, manufacturing company held under a provision omitted from the present statute, entitled to deduct resulting loss, as “loss sustained from disposition of capital assets,” since manufacturing company was entirely divested of title to property. Tupelo Garment Co. v. State Tax Com., 178 Miss. 730, 173 So. 656, 1937 Miss. LEXIS 233 (Miss. 1937).

Taxpayer having fiscal year identical with calendar year held entitled to deduct losses incurred during 1928 and 1929 from taxable income for 1930 and 1931 under statute allowing deduction for three years after loss, as against contention that under 1930 revision of taxing statute, which restricted taxpayer having fiscal year different from calendar year to deduction of only such portion of net loss for entire fiscal year 1929 as part of fiscal year falling within calendar year 1930 bore to entire fiscal year, allowance of deduction to taxpayer computing income according to calendar year would be discriminatory. State Tax Com. v. Mississippi Power Co., 172 Miss. 659, 160 So. 907, 1935 Miss. LEXIS 168 (Miss. 1935).

That 1924 income tax statute, in directing computation of net income on timber acquired before effective date of 1912 statute, provided fair market value on such date should be taken in lieu of cost, held not to violate constitutional equality clauses, though 1912 statute allegedly permitted taxpayer to be sole judge of value of property, while 1924 statute required computation on actual value. Fernwood Lumber Co. v. Mississippi State Tax Com., 167 Miss. 273, 149 So. 727, 1933 Miss. LEXIS 126 (Miss. 1933).

Provision of 1924 income tax statute that, in computing net “income” on timber acquired before effective date of 1912 statute, fair market value on such date should be taken in lieu of cost, held not to violate constitutional provision respecting taxation of “property.” Fernwood Lumber Co. v. Mississippi State Tax Com., 167 Miss. 273, 149 So. 727, 1933 Miss. LEXIS 126 (Miss. 1933).

RESEARCH REFERENCES

ALR.

Dividend in kind or stock dividend as affecting corporation’s income tax. 7 A.L.R.2d 750.

Right of employer to deduct, for income tax purposes, premiums paid on insurance or annuity contracts for benefit of employees. 9 A.L.R.2d 280.

What constitute amounts received under workmen’s compensation acts within exemption provisions of Federal income tax law. 16 A.L.R.2d 1334.

Income tax: Deductibility of amount paid or expense incurred by taxpayer on account of his liability or alleged liability for tort, crime, or statutory violation. 20 A.L.R.2d 600.

Public policy as ground for denying deduction for federal income tax purposes. 27 A.L.R.2d 498.

Federal income tax: right of lessor or his successors to deduction for depreciation, obsolescence, or exhaustion. 40 A.L.R.2d 440.

When is corporation, community chest, fund, foundation, or club “organized and operated exclusively” for charitable or other exempt purposes under Internal Revenue Code. 69 A.L.R.2d 871.

Reasonableness of compensation paid to officers or employees, so as to warrant deduction thereof in computing employer’s income tax. 10 A.L.R.3d 125.

Construction and application of state corporate income tax statutes allowing net operating loss deductions. 33 A.L.R.5th 509.

State income tax treatment of intangible holding companies. 11 A.L.R.6th 543.

What kinds of legal costs incurred by taxpayer are deductible-current cases. 39 A.L.R. Fed. 221.

Who is public employee under § 7701(a)(26) of Internal Revenue Code of 1954 (26 USCS § 7701(a)(26)), providing that term “trade or business” includes performance of functions of public office. 52 A.L.R. Fed. 395.

Federal income tax charitable deductions: property fair-market-value determinations. 90 A.L.R. Fed. 402.

What constitutes tax-deductible theft loss under 26 USCS § 165. 98 A.L.R. Fed. 229.

What constitutes trade or business under Internal Revenue Code (U.S.C.S. Title 26). 161 A.L.R. Fed. 245.

Am. Jur.

71 Am. Jur. 2d, State and Local Taxation §§ 422-450 (deductions: business expenses, interest, dividends, taxes, losses, depreciation, depletion, exhaustion, charitable contributions, misc. personal deductions).

15 Am. Jur. Proof of Facts, Tax Deductions for Business, Entertainment, Travel, and Gifts, Proof No. 13 (deductibility of cost of business meal – testimony for taxpayer).

15 Am. Jur. Proof of Facts, Tax Deductions for Business, Entertainment, Travel, and Gifts, Proof No. 14 (deductibility of cost of chartering yacht for business purposes – testimony for taxpayer).

15 Am. Jur. Proof of Facts, Tax Deductions for Business, Entertainment, Travel, and Gifts, Proof No. 15 (deductibility of cost of foreign business trip – testimony for taxpayer).

15 Am. Jur. Proof of Facts, Tax Deductions for Business, Entertainment, Travel, and Gifts, Proof No. 16 (deductibility of cost of business gifts – testimony for taxpayer).

CJS.

85 C.J.S., Taxation §§ 2026-2041.

§ 27-7-18. Adjustments to gross income; alimony payments; unreimbursed moving expenses; payments for medical insurance by self-employed individuals; contributions to MACS program account; unreimbursed expenses related to donation of organ by living donor.

  1. Alimony payments. In the case of a person described in Section 27-7-15(2)(e), there shall be allowed as a deduction from gross income amounts paid as periodic payments to the extent of such amounts as are includible in the gross income of the spouse as provided in Section 27-7-15(2)(e), payment of which is made within the person’s taxable year.
  2. Unreimbursed moving expenses incurred after December 31, 1994, are deductible as an adjustment to gross income in accordance with provisions of the United States Internal Revenue Code, and rules, regulations and revenue procedures thereunder relating to moving expenses, not in direct conflict with the provisions of the Mississippi Income Tax Law.
  3. Amounts paid after December 31, 1998, by a self-employed individual for insurance which constitute medical care for the taxpayer, his spouse and dependents, are deductible as an adjustment to gross income in accordance with provisions of the United States Internal Revenue Code, and rules, regulations and revenue procedures thereunder relating to such payments, not in direct conflict with the provisions of the Mississippi Income Tax Law.
  4. Contributions or payments to a Mississippi Affordable College Savings (MACS) Program account are deductible from gross income as provided in Section 37-155-113. Payments made under a prepaid tuition contract entered into under the Mississippi Prepaid Affordable College Tuition Program are deductible as provided in Section 37-155-17.
    1. Unreimbursed travel expenses, lodging expenses and lost wages an individual incurred as a result of, and related to, the donation, while living, of one or more of his or her organs for human organ transplantation, are deductible from gross income. The deduction from gross income authorized by this subsection may be claimed for only once and may not exceed Ten Thousand Dollars ($10,000.00).
    2. As used in this subsection, “organ” means all or part of a liver, pancreas, kidney, intestine, lung or bone marrow.
  5. In the case of a self-employed individual, there shall be allowed as a deduction from gross income an amount equal to:
    1. Seventeen percent (17%) of the federal self-employment taxes imposed on such individual for taxable years ending in calendar year 2017;
    2. Thirty-four percent (34%) of the federal self-employment taxes imposed on such individual for taxable years ending in calendar year 2018; and
    3. Fifty percent (50%) of the federal self-employment taxes imposed on such individual for taxable years ending in calendar year 2019 and thereafter.
  6. Contributions or payments to a Mississippi Achieving a Better Life Experience (ABLE) Program account are deductible from gross income as provided in Section 43-28-13.

HISTORY: Laws, 1979, ch. 302, § 3; Laws, 1986, ch. 393, § 2; Laws, 1987, ch. 423, § 4; Laws, 1991, ch. 524, § 12; Laws, 1995, ch. 346, § 2; Laws, 1999, ch. 423, § 1; Laws, 2000, ch. 473, § 18; Laws, 2006, ch. 463, § 1; Laws, 2016, ch. 499, § 2; Laws, 2017, ch. 350, § 17, eff from and after passage (approved Mar. 20, 2017.).

Editor’s Notes —

Section 27-3-4 provides that the term “State Tax Commission” shall mean the Department of Revenue.

Laws of 2000, ch. 473, § 22, effective July 1, 2000, provides:

“SECTION 22. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax laws before the date on which Sections 16 through 18 of this act become effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which Sections 16 through 18 of this act become effective or are begun thereafter; and the provisions of the income tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which Sections 16 through 18 of this act become effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.”

Laws of 2016, ch. 499, § 6, effective January 1, 2016, provides:

“SECTION 6. This act shall be known and may be cited as the ‘Taxpayer Pay Raise Act of 2016.’ ”

Laws of 2016, ch. 499, § 7, effective January 1, 2016, provides:

“SECTION 7. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax law or corporation franchise tax law before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the income tax laws and corporation franchise tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.”

Amendment Notes —

The 2006 amendment added (5).

The 2016 amendment, effective January 1, 2016, added (6).

The 2017 amendment, effective March 20, 2017, added (7).

Cross References —

Mississippi Income Tax Law provisions, see §27-7-1 et seq.

RESEARCH REFERENCES

ALR.

Construction of provisions of Internal Revenue Code relating to alimony or maintenance payments. 4 A.L.R.2d 252.

Am. Jur.

24 Am. Jur. 2d, Divorce and Separation, §§ 543, 597, 611, 612, 635.

35 Am. Jur. 2d, Federal Tax Enforcement, § 27.

42 Am. Jur. 2d, Inheritance, Estate, and Gift taxes § 202.

71 Am. Jur. 2d, State and Local Taxation, §§ 448, 449, 450 (moving expenses, medical expenses, alimony payments).

Petition for refund of personal income tax paid under protest when deduction of alimony payments to former nonresident wife erroneously disallowed, 22 Am. Jur. Pl & Pr Forms (Rev), State and Local Taxation, Form 352.

CJS.

85 C.J.S., Taxation §§ 2006-2041.

§ 27-7-19. Items not deductible.

In computing net income, no deductions shall, in any case, be allowed in respect of:

Personal, living or family expenses.

Any amount paid out for new buildings or permanent improvements or betterments made to increase the value of any property or estate, except in computing the net income from sale of such property.

Any amount expended in restoring property or making good the exhaustion thereof for which an allowance is, or has been, made.

Premiums paid on any life insurance policy of an officer or employee or to any persons financially interested in any trade or business carried on by the taxpayer when the taxpayer is directly or indirectly a beneficiary under such policy.

The shrinkage value of property by whatever name called.

Sums representing interest, rents, salaries or other sums paid under contracts or agreements between husband and wife.

Losses sustained or realized from transactions between husband and wife; parent and child; relations by blood or marriage (within the third degree computed according to the rules of the civil law); or individuals who have one common parent; or corporation and individual where the individual owns five percent (5%) or more of the stock of the corporation.

HISTORY: Codes, 1942, § 9220-10; Laws, 1934, ch. 120; Laws, 1938, ch. 116; Laws, 1942, ch. 134; Laws, 1952, ch. 402, § 9, eff from and after January 1, 1952.

JUDICIAL DECISIONS

1. In general.

This section and the preceding section are in pari materia. State v. L. & A. Contracting Co., 241 Miss. 783, 133 So. 2d 546, 1961 Miss. LEXIS 399 (Miss. 1961).

RESEARCH REFERENCES

ALR.

What constitutes trade or business under Internal Revenue Code (U.S.C.S. Title 26). 161 A.L.R. Fed. 245.

CJS.

85 C.J.S., Taxation §§ 2026-2041.

§ 27-7-20. Casualty losses of individuals.

Casualty losses of individuals shall be computed and allowed in accordance with the provisions of the Internal Revenue Code, rules, regulations and revenue procedures relating to casualty and theft losses and disaster losses not in direct conflict with the provisions of the Mississippi Income Tax Law.

The State Tax Commission shall apply a special rule with respect to any loss attributable to a disaster occurring in an area subsequently determined by the President of the United States to warrant assistance by the federal government under the Disaster Relief Act of 1974. In lieu of the net operating loss carryover provision, a “net casualty loss” deduction may result when itemized deductions, including the original casualty loss, exceed gross income. The “net casualty loss” shall be computed with the following modifications:

No other net casualty loss deduction shall be allowed.

No net operating loss deduction shall be allowed.

No deduction for personal and additional exemptions shall be allowed.

Allowable deductions which are not attributable to a taxpayer’s trade or business shall be allowed only to the extent of the amount of the gross income not derived from such trade or business.

The “net casualty loss” is allowed as a deduction from gross income and may be carried back to each of the three (3) years preceding the tax year in which the original casualty loss is claimed or as otherwise provided under the Internal Revenue Code. If the net casualty loss deduction is not exhausted within the three (3) preceding years or as otherwise provided under the Internal Revenue Code, any net casualty loss remaining shall be carried over to each of the seven (7) years following the tax year in which the original casualty loss is claimed. In determining the amount of any net casualty loss carryback or carryover to any tax year, the necessary computations involving any other tax year shall be made under the law applicable to such other tax year.

HISTORY: Laws, 1979, 1st Ex Sess. ch. 8, § 1; Laws, 1985, ch. 521, § 2; Laws, 2007, ch. 466, § 1, eff from and after Jan. 1, 2007.

Editor’s Notes —

Section 27-3-4 provides that the term “State Tax Commission” shall mean the Department of Revenue.

Amendment Notes —

The 2007 amendment inserted “or as otherwise provided under the Internal Revenue Code” in the first and second sentences of the last paragraph.

Cross References —

Applicability of three-year period for examination of returns provided under27-7-49 where reportable taxable income of taxpayer has been decreased by the carryback of a net casualty loss deduction under this section, see §27-7-49.

Federal Aspects—

Internal Revenue Code generally, see USCS, Title 26.

Disaster Relief Act of 1974, see 42 USCS § 5121 et seq.

RESEARCH REFERENCES

Am. Jur.

71 Am. Jur. 2d, State and Local Taxation § 50.

§ 27-7-21. Exemptions allowed.

Allowance of deductions. In the case of a resident individual, the exemptions provided by this section, as applicable to individuals, shall be allowed as deductions in computing taxable income.

Single individuals. In the case of a single individual, a personal exemption of Five Thousand Two Hundred Fifty Dollars ($5,250.00) for the 1979 and 1980 calendar years and Six Thousand Dollars ($6,000.00) for each calendar year thereafter.

Married individuals.In the case of married individuals living together, a joint personal exemption of Eight Thousand Dollars ($8,000.00) for the 1979 and 1980 calendar years and Nine Thousand Five Hundred Dollars ($9,500.00) for the 1981 through 1997 calendar years, Ten Thousand Dollars ($10,000.00) for the calendar year 1998, Eleven Thousand Dollars ($11,000.00) for the calendar year 1999, and Twelve Thousand Dollars ($12,000.00) for each calendar year thereafter. A husband and wife living together shall receive but one (1) personal exemption in the amounts provided for in this subsection for each calendar year against their aggregate income.

Head of family individuals.In the case of a head of family individual, a personal exemption of Eight Thousand Dollars ($8,000.00) for the 1979 and 1980 calendar years and Nine Thousand Five Hundred Dollars ($9,500.00) for each calendar year thereafter. The term “head of family” means an individual who is single, or married but not living with his spouse for the entire taxable year, who maintains a household which constitutes the principal place of abode of himself and one or more individuals who are dependents under the provisions of Section 152(a) of the Internal Revenue Code of 1954, as amended. The head of family individual shall be entitled to the additional dependent exemption as provided in subsection (e) of this section only to the extent of dependents in excess of the one (1) dependent needed to qualify as head of family.

Additional exemption for dependents.In the case of any individual having a dependent, other than husband or wife, an additional personal exemption of One Thousand Five Hundred Dollars ($1,500.00) for each such dependent, except as otherwise provided in subsection (d) of this section. The term “dependent” as used in this subsection shall mean any person or individual who qualifies as a dependent under the provisions of Section 152, Internal Revenue Code of 1954, as amended.

Additional exemption for taxpayer or spouse aged sixty-five (65) or more. In the case of any taxpayer or the spouse of the taxpayer who has attained the age of sixty-five (65) before the close of his taxable year, an additional exemption of One Thousand Five Hundred Dollars ($1,500.00).

Additional exemption for blindness of taxpayer or spouse. In the case of any taxpayer or the spouse of the taxpayer who is blind at the close of the taxable year, an additional exemption of One Thousand Five Hundred Dollars ($1,500.00). For the purpose of this subsection, an individual is blind only if his central visual acuity does not exceed 20/200 in the better eye with correcting lenses, or if his visual acuity is greater than 20/200 but is accompanied by a limitation in the fields of vision such that the widest diameter of the visual field subtends an angle no greater than twenty (20) degrees.

Husband and wife—claiming exemptions. In the case of husband and wife living together and filing combined returns, the personal and additional exemptions authorized and allowed by this section may be taken by either, or divided between them in any manner they may choose. If the husband and wife fail to choose, the commissioner shall divide the exemptions between husband and wife in an equitable manner. In the case of a husband and wife filing separate returns, the personal and additional exemptions authorized and allowed by this section shall be divided equally between the spouses.

Nonresidents. A nonresident individual shall be allowed the same personal and additional exemptions as are authorized for resident individuals in subsection (a) of this section; however, the nonresident individual is entitled only to that proportion of the personal and additional exemptions as his net income from sources within the State of Mississippi bears to his total or entire net income from all sources.

A nonresident individual who is married and whose spouse has income from independent sources must declare the joint income of himself and his spouse from sources within and without Mississippi and claim as a personal exemption that proportion of the authorized personal and additional exemptions which the total net income from Mississippi sources bears to the total net income of both spouses from all sources. If both spouses have income from sources within Mississippi and wish to file separate returns, their combined personal and additional exemptions shall be that proration of the exemption which their combined net income from Mississippi sources is of their total combined net income from all sources. The amount of the personal and additional exemptions so computed may be divided between them in any manner they choose.

In the case of married individuals where one (1) spouse is a resident and the other is a nonresident, the personal exemption of the resident individual shall be prorated on the same basis as if both were nonresidents having net income from within and without the State of Mississippi.

For the purpose of this subsection, the term “net income” means gross income less business expenses incurred in the taxpayer’s regular trade or business and computed in accordance with the provisions of the Mississippi Income Tax Law.

Part-year residents. An individual who is a resident of Mississippi for only a part of his taxable year by reason of either moving into the state or moving from the state shall be allowed the same personal and additional exemptions as authorized for resident individuals in subsection (a) of this section; the part-year resident shall prorate his exemption on the same basis as nonresidents having net income from within and without the state.

Estates. In the case of an estate, a specific exemption of Six Hundred Dollars ($600.00).

Trusts. In the case of a trust which, under its governing instrument, is required to distribute all of its income currently, a specific exemption of Three Hundred Dollars ($300.00). In the case of all other trusts, a specific exemption of One Hundred Dollars ($100.00).

Corporations, foundations, joint ventures, associations. In the case of a corporation, foundation, joint venture or association taxable herein, there shall be allowed no specific exemption, except as provided under the Growth and Prosperity Act, Sections 57-113-1 through 57-113-7, and Sections 57-113-21 through 57-113-27.

Status. The status on the last day of the taxable year, except in the case of the head of family as provided in subsection (d) of this section, shall determine the right to the exemptions provided in this section; provided, that a taxpayer shall be entitled to such exemptions, otherwise allowable, if the husband or wife or dependent has died during the taxable year.

Fiscal-year taxpayers. Individual taxpayers reporting on a fiscal year basis shall prorate their exemptions in a manner established by regulations promulgated by the commissioner.

HISTORY: Codes, 1942, § 9220-11; Laws, 1934, ch. 120; Laws, 1938, ch. 116; Laws, 1940, ch. 123; Laws, 1944, ch. 124; Laws, 1946, ch. 246, § 1; Laws, 1952, ch. 402, § 10; Laws, 1958, ch. 555; Laws, 1960, ch. 456, § 2; Laws, 1960, ch. 457, § 2; Laws, 1966, ch. 629, § 1; Laws, 1968, ch. 580, § 27; Laws, 1973, ch. 504, § 3; Laws, 1979, ch. 302, § 1; Laws, 1982, ch. 489, § 2; Laws, 1997, ch. 304, § 2; Laws, 2000, 2nd Ex Sess, ch. 1, § 48; Laws, 2010, ch. 533, § 20, eff from and after July 1, 2010; Laws, 2019, ch. 396, § 4, eff from and after July 1, 2019.

Joint Legislative Committee Note —

Pursuant to Section 1-1-109, the Joint Legislative Committee on Compilation, Revision and Publication of Legislation corrected a publishing error in paragraph (m). Added heading “Corporations, foundations, joint ventures, associations” preceding paragraph text and added a space between the words “specific” and “exemption” in the text. The Joint Committee ratified the correction at its June 26, 2007, meeting.

Editor’s Notes —

Laws of 1997, ch. 304, § 3, effective January 1, 1997, provides as follows:

“SECTION 3. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax laws of the State of Mississippi prior to the date on which this act becomes effective, whether such assessments, appeals, suits, claims or actions shall have been begun before the date on which this act becomes effective or shall thereafter be begun; and the provisions of the income tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and executing of any warrant under said laws prior to the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply therewith.”

Laws of 2000, 2nd Ex Sess, ch. 1, § 1, effective January 1, 2001, provides:

“SECTION 1. This act may be cited as the ‘Advantage Mississippi Initiative.’ ”

Laws of 2000, 2nd Ex Sess, ch. 1, § 62, approved August 30, 2000, provides:

“SECTION 62. Sections 34 through 39, 40, 41 and 48 through 51 of this act shall take effect and be in force from and after January 1, 2001. The remainder of this act shall take effect and be in force from and after its passage.”

Laws of 2010, ch. 533, § 52, provides:

“SECTION 52. Sections 12 through 23 of this act shall take effect and be in force from and after July 1, 2010, Section 37 of this act shall take effect and be in force from and after January 1, 2010, and the remainder of this act shall take effect and be in force from and after its passage [April 16, 2010].”

Amendment Notes —

The 2010 amendment substituted “except as provided under the Growth and Prosperity Act, and Sections 57-113-1 through 57-113-7” for “except as provided under the Growth and Prosperity Act and Section 57-64-33” in (m).

The 2019 amendment added “and Sections 57-113-21 through 57-113-27” at the end of (m) and made a related change.

Cross References —

Taxation of annuity contracts under optional retirement program for employees of state institutions of higher learning, see §25-11-419.

Prohibition against claiming exemption under this section when casualty loss arising from fire, storm, shipwreck, flood, theft, or other casualty is allowed, see §27-7-20.

Exemption of bonds, and income therefrom, issued for the support of the Institute for Technology Development from all state taxation, see §31-29-7.

Growth and Prosperity Act, see §57-80-1 et seq.

Federal Aspects—

Section 152(a) of the Internal Revenue Code, see 26 USCS § 152(a).

JUDICIAL DECISIONS

1. In general.

jdufl

1. In general.

jdufl

Exemption from income tax, resting upon classification which legislature has power to make, did not violate equality clause of constitution, nor deny equal protection of laws. State ex rel. Knox v. Gulf, M. & N. R. Co., 138 Miss. 70, 104 So. 689, 1925 Miss. LEXIS 106 (Miss. 1925).

RESEARCH REFERENCES

ALR.

State court’s authority, in marital or child custody proceeding, to allocate federal income tax dependency exemption for child to noncustodial parent under § 152(e) of the Internal Revenue Code (26 USCS § 152(e)). 77 A.L.R.4th 786.

Am. Jur.

71 Am. Jur. 2d, State and Local Taxation §§ 207-308 (exemptions from taxation).

CJS.

85 C.J.S., Taxation §§ 2022-2025.

§ 27-7-22. Tax credits for qualified businesses.

  1. For any qualified business, as defined in Section 57-51-5, which is located in a county, or portion thereof, designated as an enterprise zone pursuant to Title 57, Chapter 51, Mississippi Code of 1972, there shall be allowed as a credit against the tax imposed by this chapter, an amount equal to One Thousand Dollars ($1,000.00) per net full-time employee as determined by the average annual employment of the business reported to the Employment Security Commission. Such credit shall be allowed annually to each qualified business for a period not to exceed ten (10) years. If the amount allowable as a credit exceeds the tax imposed by this chapter, the amount of such excess shall not be refundable or carried forward to any other taxable year.

    For the purpose of determining the credit allowed to a qualified business which is an existing trade or business having expanded its buildings and facilities, the number of net full-time employees shall be the difference between the average annual employment of such business before and after such expansion.

    If the Mississippi Enterprise Zone Act is repealed, any qualified business which had been granted a tax credit under this subsection prior to the date of such repeal shall be entitled to such tax credit until the period for which it was granted expires.

  2. For any qualified business, as defined in Section 57-54-5 [see Editor’s Note below], there shall be allowed as a credit against the tax imposed by this chapter, an amount equal to One Thousand Dollars ($1,000.00) per net full-time employee as determined by the average annual employment of the business reported to the Employment Security Commission. Such credit shall be allowed annually to each qualified business for a period not to exceed ten (10) years. If the amount allowable as a credit exceeds the tax imposed by this chapter, the amount of such excess shall not be refundable or carried forward to any other taxable year.

    For the purpose of determining the credit allowed to a qualified business which is an existing trade or business having expanded its buildings and facilities, the number of net full-time employees shall be the difference between the average annual employment of such business before and after such expansion.

    If the Mississippi Advanced Technology Initiative Act is repealed, any qualified business which had been granted a tax credit under this subsection prior to the date of such repeal shall be entitled to such tax credit until the period for which it was granted expires.

  3. For any qualified company, certified as such by the Mississippi Board of Economic Development under Section 57-53-1 [see Editor’s Note below], there shall be allowed as a credit against the tax imposed by this chapter, an amount equal to One Thousand Dollars ($1,000.00) per net full-time employee in this state, provided there is a minimum of seventy-five (75) net full-time employees, as determined by the average annual employment of the company in this state reported to the Employment Security Commission. Such credit shall be allowed annually to each qualified company for a period not to exceed ten (10) years. If the amount allowable as a credit exceeds the tax imposed by this chapter, the amount of such excess shall not be refundable or carried forward to any other taxable year.

    For the purpose of determining the credit allowed to a qualified company which has expanded its existing buildings and facilities, the number of net full-time employees shall be the difference between the average annual employment of such company before and after such expansion.

HISTORY: Laws, 1983, ch. 475, § 9; Laws, 1983, ch. 491, § 9; Laws, 1984, ch. 381, § 6; Laws, 1986, ch. 410, § 2, eff from and after July 1, 1986.

Editor’s Notes —

Section 57-1-2 provides that wherever the term “Board of Economic Development” appears in the laws of the State of Mississippi, it shall mean the Department of Economic and Community Development.

Section 57-51-5 referred to in (1) was repealed by Laws of 1989, ch. 524, § 32, eff from and after July 1, 1989.

Section 57-53-1, referred to in subsection (3), was repealed by Laws of 1989, ch. 524, § 33, effective July 1, 1989.

Section 57-54-5, referred to in subsection (2), was repealed by Laws of 1989, ch. 524, § 34, effective July 1, 1989.

Cross References —

Tax credit, on amount provided for in this section, to approved company making financing agreement in connection with economic development project, see §57-10-409.

RESEARCH REFERENCES

ALR.

What constitutes trade or business under Internal Revenue Code (U.S.C.S. Title 26). 161 A.L.R. Fed. 245.

§ 27-7-22.1. Repealed.

Repealed by operation of law on January 1, 1999, by Laws, 1997, ch. 316, § 22.

[Laws, 1993, ch. 557, § 1; Laws, 1997, ch. 316, § 22, eff from and after passage (approved March 12, 1997) and shall stand repealed from and after January 1, 1999.]

Editor’s Notes —

This section was entitled “Income tax credit for employers who hire persons receiving Temporary Assistance for Needy Families.”

§ 27-7-22.3. Credit for employees who pay job assessment fee; credit against state income taxes for authorized companies [Repealed effective October 1, 2022].

[In cases involving an economic development project for which the Mississippi Business Finance Corporation has issued bonds for the purpose of financing the approved costs of such project prior to July 1, 1994, this section shall read as follows:]

  1. For taxpayers who are required to pay a job assessment fee as provided in Section 57-10-413, there shall be allowed as a credit against the taxes imposed by this chapter, an amount equal to the amount of the job assessment fee imposed upon such taxpayer pursuant to Section 57-10-413. If the amount allowable as a credit exceeds the tax imposed by this article and Section 27-7-22.3, the amount of such excess shall not be refundable or carried forward to any other taxable year.
  2. For any approved company as defined in Section 57-10-401, there shall be allowed against the taxes imposed by this chapter on the income of the approved company generated by or arising out of the economic development project (as defined in Section 57-10-401), a credit in an amount not to exceed the total debt service paid under a financing agreement entered into under Section 57-10-409. The tax credit allowed in this subsection shall not exceed the amount of taxes due the State of Mississippi.

HISTORY: Laws, 1993, ch. 565, § 24; Laws, 1994, ch. 525, § 1; Laws, 1997, ch. 576, § 24; reenacted without change, Laws, 2000, ch. 425, § 24; reenacted without change, Laws, 2001, ch. 337, § 24; reenacted without change, Laws, 2005, ch. 399, § 24; reenacted without change, Laws, 2007, ch. 389, § 24; reenacted without change, Laws, 2011, ch. 519, § 24; reenacted without change, Laws, 2015, ch. 398, § 25; reenacted without change, Laws, 2017, ch. 325, § 25, eff from and after July 1, 2017.

Editor’s Notes —

For repeal date of this section, see §57-10-449.

Amendment Notes —

The 2005 amendment reenacted the section without change.

The 2007 amendment reenacted the section without change.

The 2011 amendment reenacted the section without change.

The 2015 amendment reenacted the section without change.

The 2017 amendment reenacted the section without change.

Cross References —

State Tax Commission as meaning Department of Revenue, §27-7-3.

Tax credit, as provided for in this section, for job development assessment fee, see §57-10-413.

Effect of amendments to §§57-10-401 through57-10-445 enacted after July 1, 1993, on this section, see §57-10-435.

OPINIONS OF THE ATTORNEY GENERAL

“Mineral processing” does not include use of Mississippi minerals not mined or extracted by the manufacturer as raw materials in a manufacturing process, and, therefore, the use of carbon dioxide as a raw material does not constitute mineral processing. Pumphrey, May 21, 1999, A.G. Op. #99-0225.

§ 27-7-22.3. Credit for employees who pay job assessment fee; credit against state income taxes for authorized companies [Repealed effective October 1, 2022].

[In cases involving an economic development project for which the Mississippi Business Finance Corporation has not issued bonds for the purpose of financing the approved costs of such project prior to July 1, 1994, but has issued bonds for such project prior to July 1, 1997, or in cases involving an economic development project which has been induced by a resolution of the Board of Directors of the Mississippi Business Finance Corporation that has been filed with the State Tax Commission prior to July 1, 1997, this section shall read as follows:]

  1. For taxpayers who are required to pay a job assessment fee as provided in Section 57-10-413, there shall be allowed as a credit against the taxes imposed by this chapter, an amount equal to the amount of the job assessment fee imposed upon such taxpayer pursuant to Section 57-10-413. If the amount allowable as a credit exceeds the tax imposed by this article and Section 27-7-22.3, the amount of such excess shall not be refundable or carried forward to any other taxable year.
  2. For any approved company as defined in Section 57-10-401, there shall be allowed against the taxes imposed by this chapter on the income of the approved company generated by or arising out of the economic development project (as defined in Section 57-10-401), a credit in an amount not to exceed the total debt service paid under a financing agreement entered into under Section 57-10-409. The tax credit allowed in this subsection shall not exceed the amount of taxes due the State of Mississippi. The amount of income of the approved company generated by or arising out of the economic development project shall be determined by a formula adopted by the Mississippi Business Finance Corporation.

HISTORY: Laws, 1993, ch. 565, § 24; Laws, 1994, ch. 525, § 1; Laws, 1997, ch. 576, § 24; reenacted without change, Laws, 2000, ch. 425, § 24; reenacted without change, Laws, 2001, ch. 337, § 24; reenacted without change, Laws, 2005, ch. 399, § 24; reenacted without change, Laws, 2007, ch. 389, § 24; reenacted without change, Laws, 2011, ch. 519, § 24; reenacted without change, Laws, 2015, ch. 398, § 25; reenacted without change, Laws, 2017, ch. 325, § 25, eff from and after July 1, 2017.

§ 27-7-22.3. Credit for employees who pay job assessment fee; credit against state income taxes for authorized companies [Repealed effective October 1, 2022].

[In cases involving an economic development project for which the Mississippi Business Finance Corporation has not issued bonds for the purpose of financing the approved costs of such project prior to July 1, 1997, or in cases involving an economic development project which has not been induced by a resolution of the Board of Directors of the Mississippi Business Finance Corporation that has been filed with the State Tax Commission prior to July 1, 1997, this section shall read as follows:]

For any approved company as defined in Section 57-10-401, there shall be allowed against the taxes imposed by this chapter on the income of the approved company generated by or arising out of the economic development project (as defined in Section 57-10-401), a credit in an amount not to exceed the total debt service paid under a financing agreement entered into under Section 57-10-409; provided, however, that the tax credit allowed in this subsection shall not exceed eighty percent (80%) of the amount of taxes due the State of Mississippi prior to the application of the credit. To the extent that financing agreement annual payments exceed the amount of the credit authorized pursuant to this section in any taxable year, such excess payment may be recouped from excess credits in succeeding years not to exceed three (3) years following the date upon which the credit was earned. The amount of income of the approved company generated by or arising out of the economic development project shall be determined by a formula adopted by the Mississippi Business Finance Corporation.

HISTORY: Laws, 1993, ch. 565, § 24; Laws, 1994, ch. 525, § 1; Laws, 1997, ch. 576, § 24; reenacted without change, Laws, 2000, ch. 425, § 24; reenacted without change, Laws, 2001, ch. 337, § 24; reenacted without change, Laws, 2005, ch. 399, § 24; reenacted without change, Laws, 2007, ch. 389, § 24; reenacted without change, Laws, 2011, ch. 519, § 24; reenacted without change, Laws, 2015, ch. 398, § 25; reenacted without change, Laws, 2017, ch. 325, § 25, eff from and after July 1, 2017.

§ 27-7-22.5. Income tax credit for manufacturers, distributors and wholesale or retail merchants for ad valorem taxes paid on commodities, raw materials, works-in-process, goods, wares and merchandise held for resale; income tax credit for individual, firm or corporation for ad valorem taxes on rental equipment.

    1. For any manufacturer, distributor, wholesale or retail merchant who pays to a county, municipality, school district, levee district or any other taxing authority of the state or a political subdivision thereof, ad valorem taxes imposed on commodities, raw materials, works-in-process, products, goods, wares and merchandise held for resale, a credit against the income taxes imposed under this chapter shall be allowed for the portion of the ad valorem taxes so paid in the amounts prescribed in subsection (2).
      1. For any person, firm or corporation who pays to a county, municipality, school district, levee district or any other taxing authority of the state or a political subdivision thereof, ad valorem taxes imposed on rental equipment, a credit against the income taxes imposed under this chapter shall be allowed for the portion of the ad valorem taxes so paid in the amounts prescribed in subsection (2).
      2. As used in this paragraph, “rental equipment” means any rental equipment or other rental items which are held for short-term rental to the public:

      1. Under rental agreements with no specific term;

      2. Under at-will or open-ended agreements; or

      3. Under rental agreements with terms ordinarily of less than three hundred sixty-five (365) days; and

      4. Is not subject to privilege taxes imposed in Chapter 19, Title 27, Mississippi Code of 1972.

  1. The tax credit allowed by this section shall not exceed the amounts set forth in paragraphs (a) through (g) of this subsection; and may be claimed for each location where such commodities, raw material, works-in-process, products, goods, wares, merchandise and/or rental equipment are found and upon which the ad valorem taxes have been paid. Any tax credit claimed under this section but not used in any taxable year may be carried forward for five (5) consecutive years from the close of the tax year in which the credit was earned.
    1. For the 1994 taxable year, the tax credit for each location of the taxpayer shall not exceed the lesser of Two Thousand Dollars ($2,000.00) or the amount of income taxes due the State of Mississippi that are attributable to such location.
    2. For the 1995 taxable year, the tax credit for each location of the taxpayer shall not exceed the lesser of Three Thousand Dollars ($3,000.00) or the amount of income taxes due the State of Mississippi that are attributable to such location.
    3. For the 1996 taxable year, the tax credit for each location of the taxpayer shall not exceed the lesser of Four Thousand Dollars ($4,000.00) or the amount of income taxes due the State of Mississippi that are attributable to such location.
    4. For the 1997 taxable year and each taxable year thereafter through taxable year 2013, the tax credit for each location of the taxpayer shall not exceed the lesser of Five Thousand Dollars ($5,000.00) or the amount of income taxes due the State of Mississippi that are attributable to such location.
    5. For the 2014 taxable year, the tax credit for each location of the taxpayer shall not exceed the lesser of Ten Thousand Dollars ($10,000.00) or the amount of income taxes due the State of Mississippi that are attributable to such location.
    6. For the 2015 taxable year, the tax credit for each location of the taxpayer shall not exceed the lesser of Fifteen Thousand Dollars ($15,000.00) or the amount of income taxes due the State of Mississippi that are attributable to such location.
    7. For the 2016 taxable year and each taxable year thereafter, the tax credit of the taxpayer shall be the lesser of the amount of the ad valorem taxes described in subsection (1) paid or the amount of income taxes due the State of Mississippi that are attributable to such location.
  2. Any amount of ad valorem taxes paid by a taxpayer that is applied toward the tax credit allowed in this section may not be used as a deduction by the taxpayer for state income tax purposes. In the case of a taxpayer that is a partnership, limited liability company or S corporation, the credit may be applied only to the tax attributable to partnership, limited liability company or S corporation income derived from the taxpayer.

HISTORY: Laws, 1994, ch. 304, § 1; Laws, 1997, ch 372, § 1; Laws, 2012, ch. 523, § 1; Laws, 2014, ch. 530, § 46, eff from and after Jan. 1, 2014.

Editor’s Notes —

Laws of 2014, § 530, § 47, provides:

“SECTION 47. Section 46 of this act shall take effect and be in force from and after January 1, 2014, Section 39 of this act shall take effect and be in force from and after its passage [April 24, 2014], and the remainder of this act shall take effect and be in force from and after July 1, 2014.”

Amendment Notes —

The 2012 amendment inserted “raw materials, works-in-process” preceding “commodities” in (1) and (2); in (2), in the introductory language, substituted “(g)” for “(d)” following “paragraphs (a) and” in the first sentence, and added the last sentence, added “through taxable year 2013” preceding “the tax credit” in (2)(d), and added (2)(e) through (g); and inserted “limited liability company” preceding “or S corporation” twice in the last sentence of (3).

The 2014 amendment added (1)(b)(i) and (1)(b)(ii); deleted “and” following ”products, goods, wares”, and inserted “and/or rental equipment” following ”merchandise” in the first sentence in (2).

RESEARCH REFERENCES

Am. Jur.

71 Am. Jur. 2d, State and Local Taxation § 451 et seq. (credits against tax liability).

§ 27-7-22.7. Income tax credit for charges for using certain public port facilities [Repealed effective December 31, 2022].

  1. As used in this section, the term “port” means a state, county or municipal port or harbor established pursuant to Sections 59-5-1 through 59-5-69, Sections 59-7-1 through 59-7-519, Sections 59-9-1 through 59-9-85 or Sections 59-11-1 through 59-11-7.
  2. For any income taxpayer utilizing the port facilities at any port for the export of cargo that is loaded on a carrier calling at any such port, a credit against the taxes imposed pursuant to this chapter shall be allowed in the amounts provided in this section.
  3. Except as otherwise provided by subsection (5) of this section, the amount of the credit allowed pursuant to this section shall be the total of the following charges on export cargo paid by the corporation:
    1. Receiving into the port;
    2. Handling to a vessel; and
    3. Wharfage.
  4. The credit provided for in this section shall not exceed fifty percent (50%) of the amount of tax imposed upon the taxpayer for the taxable year reduced by the sum of all other credits allowable to such taxpayer under this chapter, except credit for tax payments made by or on behalf of the taxpayer. Any unused portion of the credit may be carried forward for the succeeding five (5) years. The maximum cumulative credit that may be claimed by a taxpayer pursuant to this section and for the period of time beginning on January 1, 1994, and ending on December 31, 2005, is limited to One Million Two Hundred Thousand Dollars ($1,200,000.00).
  5. To obtain the credit provided for in this section, a taxpayer must provide to the Department of Revenue a statement from the governing authority of the port certifying the amount of charges paid by the taxpayer for which a credit is claimed and any other information required by the Department of Revenue.
  6. The purpose of the tax credit provided for in this section is to promote the increased use of ports and related facilities in this state, particularly by those taxpayers which would not otherwise use such ports and related facilities without the benefit of such tax credit, and increase the number of port related jobs and other economic development benefits associated with the increased use of such ports and related facilities. It is the intent of the Legislature that in determining whether or not such tax credit will be continued in future years, the attainment of the purposes set forth in this subsection must be demonstrated by the material contained in the reports prepared by the Mississippi Development Authority under Section 27-7-22.9.

HISTORY: Laws, 1994, ch. 492, § 1; reenacted and amended, Laws, 1998, ch. 548, § 1; reenacted and amended, Laws, 2002, ch. 537, § 1; reenacted without change, Laws, 2005, ch. 457, § 1; reenacted without change, Laws, 2009, ch. 322, § 1; reenacted without change, Laws 2012, ch. 377, § 1; reenacted and amended, Laws, 2016, ch. 335, § 1, eff from and after July 1, 2016; reenacted without change, Laws, 2019, ch. 321, § 1, eff from and after July 1, 2019.

Joint Legislative Committee Note —

Pursuant to Section 1-1-109, the Joint Legislative Committee on Compilation, Revision and Publication of Legislation corrected a statutory reference in (1). The reference to “ Sections 59-11-1 through 59-11-11” was changed to “ Sections 59-11-1 through 59-11-7.” The Joint Committee ratified this correction at its August 5, 2008, meeting.

Pursuant to Section 1-1-109, the Joint Legislative Committee on Compilation, Revision and Publication of Legislation corrected a statutory reference in (1) by inserting the word “Sections” preceding “59-9-1 through 59-9-85.” The Joint Committee ratified the correction at its August 15, 2017, meeting.

Editor’s Notes —

Laws of 1994, ch. 492, § 4, as amended by Laws of 1998, ch. 548, § 3, as amended by Laws of 2002, ch. 537, § 3, as amended by Laws of 2005, ch. 457, § 3, as amended by Laws of 2009, ch. 322, § 3, as amended by Laws of 2012, ch. 377, § 3, and as amended by Laws of 2016, ch. 335, § 3, provides:

“SECTION 4. This act shall take effect and be in force from and after January 1, 1994, and shall stand repealed from and after December 31, 2019.”

Laws of 1998, ch. 548, § 4, provides:

“SECTION 4. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the income tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.”

This section was reenacted without change by Laws of 2019, ch. 321, § 1, effective from and after July 1, 2019. Since the language of the section as it appears in the main volume is unaffected by the reenactment, it is not reprinted in this supplement.

Laws of 1994, ch. 492, § 4, as amended by Laws of 1998, ch. 548, § 3, as amended by Laws of 2002, ch. 537, § 3, as amended by Laws of 2005, ch. 457, § 3, as amended by Laws of 2009, ch. 322, § 3, as amended by Laws of 2012, ch. 377, § 3, as amended by Laws of 2016, ch. 335, § 3, and as amended by Laws of 2019, ch. 321, § 3, provides:

“SECTION 4. This act shall take effect and be in force from and after January 1, 1994, and shall stand repealed from and after December 31, 2022.”

Amendment Notes —

The 2005 amendment reenacted the section without change.

The 2009 amendment reenacted the section without change.

The 2012 amendment reenacted the section without change.

The 2016 amendment reenacted and amended the section by substituting “Department of Revenue” for “State Tax Commission” both times it appears in (5).

The 2019 amendment reenacted the section without change.

§ 27-7-22.9. Income tax credit for charges for using certain public port facilities; annual report regarding impact of § 27-7-22.7 [Repealed effective December 31, 2022].

The Mississippi Development Authority shall report annually to the Legislature regarding the impact of the credit granted in Section 27-7-22.7 on shipping and economic growth. Each report shall show the overall annual increase on shipping at each port for the most recent year for which data is available and for each of the previous five (5) years. Each report shall estimate the number of jobs created or retained at each port and in businesses related to port activity at each port since January 1, 1994, as compared to the number of similar jobs created during the ten (10) years preceding January 1, 1994. Each report shall state the net economic impact on the state as a result of the tax credit provided for in Section 27-7-22.7. The Mississippi Development Authority shall file a copy of the report with the Governor, the Secretary of the Senate, the Clerk of the House of Representatives and the Chairmen of the House Ways and Means Committee and the Senate Finance Committee of the Legislature on May 1 of each year. The Department of Revenue and all state, county and municipal ports shall cooperate with the Mississippi Development Authority in providing the information required in the annual reports.

HISTORY: Laws, 1994, ch. 492, § 2; reenacted without change, Laws, 1998, ch. 548, § 2; reenacted and amended, Laws, 2002, ch. 537, § 2; reenacted without change, Laws, 2005, ch. 457, § 2; reenacted without change, Laws, 2009, ch. 322; reenacted without change, Laws, 2012, ch. 377, § 2; reenacted and amended, Laws, 2016, ch. 335, § 2, eff from and after July 1, 2016; reenacted without change, Laws, 2019, ch. 321, § 2, eff from and after July 1, 2019.

Editor’s Notes —

Laws of 1994, ch. 492, § 4, as amended by Laws of 1998, ch. 548, § 3, as amended by Laws of 2002, ch. 537, § 3, as amended by Laws of 2005, ch. 457, § 3, as amended by Laws of 2009, ch. 322, § 3, as amended by Laws of 2012, ch. 377, § 3, and as amended by Laws of 2016, ch. 335, § 3 provides as follows:

“SECTION 4. This act shall take effect and be in force from and after January 1, 1994, and shall stand repealed from and after December 31, 2019.”

Laws of 1998, ch. 548, § 4, provides:

“SECTION 4. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the income tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.”

This section was reenacted without change by Laws of 2019, ch. 321, § 2, effective from and after July 1, 2019. Since the language of the section as it appears in the main volume is unaffected by the reenactment, it is not reprinted in this supplement.

Laws of 1994, ch. 492, § 4, as amended by Laws of 1998, ch. 548, § 3, as amended by Laws of 2002, ch. 537, § 3, as amended by Laws of 2005, ch. 457, § 3, as amended by Laws of 2009, ch. 322, § 3, as amended by Laws of 2012, ch. 377, § 3, as amended by Laws of 2016, ch. 335, § 3, and as amended by Laws of 2019, ch. 321, § 3, provides:

“SECTION 4. This act shall take effect and be in force from and after January 1, 1994, and shall stand repealed from and after December 31, 2022.”

Amendment Notes —

The 2005 amendment reenacted the section without change.

The 2009 amendment reenacted the section without change.

The 2012 amendment reenacted the section without change.

The 2016 amendment substituted “Department of Revenue” for “State Tax Commission” in the last sentence.

The 2019 amendment reenacted the section without change.

§ 27-7-22.11. Tax credit under Venture Capital Act of 1994.

  1. Subject to subsection (2) of this section, the amount of the credit that a taxpayer may receive under the Venture Capital Act of 1994 for a particular taxable year is equal to the lesser of:
    1. The taxpayer’s state tax liability for the taxable year; or
    2. The amount determined in Step Three of the following steps:

      Step One: Add the consideration paid for all qualified investments of the taxpayer during the taxable year of the taxpayer.

      Step Two: Multiply the amount determined in Step One by three-tenths (3/10).

      Step Three: Add the product determined in Step Two to the credit carry-over, if any, to which the taxpayer is entitled for the taxable year under subsection (2) of this section.

  2. If the amount of the credit determined under subsection (1)(b) of this section exceeds the credit allowed under subsection (1)(a) of this section for that taxable year, then the taxpayer may carry the excess over to the immediately succeeding taxable years; however, the credit carry-over may not be used for any taxable year that begins on or after ten (10) years from the date of the qualified investment. The amount of the credit carry-over from a taxable year must be reduced to the extent that the carry-over is used by the taxpayer to obtain a credit under the Venture Capital Act of 1994 for any subsequent taxable year.
  3. If a qualified investment which is the basis for a credit under the Venture Capital Act of 1994 is either redeemed by the Magnolia Venture Capital Fund Limited Partnership or Magnolia Venture Capital Corporation or transferred by the holder thereof (other than a redemption or transfer caused by the death of such holder) within five (5) years after the date it is purchased, such credit for the qualified investment shall be disallowed; and any credit previously claimed on the taxpayer’s return and allowed as a credit against state tax liability with respect to the qualified investment so redeemed or transferred shall be recaptured in full as additional tax liability on the appropriate state tax return of the taxpayer covering the period in which the redemption or transfer occurs. Neither a distribution by the fund nor dividends or other distributions by Magnolia Venture Capital Corporation are considered to be redemption of a qualified investment unless the proportionate interest of the taxpayer receiving the distribution or dividend in either the assets or income and loss of Magnolia Venture Capital Fund Limited Partnership decreases as the result of the distribution or dividend.
  4. For purposes of this section the terms “state tax liability,” “taxpayer” and “qualified investment” shall have the meaning ascribed to them in Section 57-77-3.

HISTORY: Laws, 1994, ch. 650, § 5, eff from and after January 1, 1994.

Cross References —

Venture Capital Act of 1994, see §57-77-1 et seq.

§ 27-7-22.13. Financial institution; credit; net gain.

  1. For the purposes of this section, the term “financial institution” shall have the meaning set forth in Section 27-7-24.1(h)(i), (ii), (iii), (iv), or (viii).
  2. There shall be allowed to a Mississippi employer which is a financial institution a credit against the income taxes imposed under this chapter based upon the net gain, if any, in the number of employees of the financial institution in connection with one of the following transactions:
    1. The merger or consolidation of a Mississippi financial institution with an out-of-state financial institution;
    2. The purchase by a Mississippi domiciled financial institution of all or substantially all of the assets (including all or substantially all of the branches) of an out-of-state financial institution;
    3. The purchase by an out-of-state financial institution of all or substantially all of the assets (including all or substantially all of the branches) of a Mississippi domiciled financial institution;
    4. The purchase by a Mississippi domiciled financial institution of all or substantially all of the assets (including all or substantially all of the branches) of an out-of-state financial institution in a state other than the State of Mississippi even though:
      1. Two (2) or more financial institutions are not merged or consolidated; or
      2. All or substantially all of the assets of the financial institution are not purchased; or
    5. The purchase by an out-of-state financial institution of all or substantially all of the assets (including all or substantially all of the branches) in the State of Mississippi of a financial institution even though:
      1. Two (2) or more financial institutions are not merged or consolidated; or
      2. All or substantially all of the assets of the financial institution are not purchased.
  3. The net gain, if any, in the number of employees shall be determined by a comparison of:
    1. The number of employees listed on the Employer’s Quarterly Contribution Report filed with the Mississippi Employment Security Commission by the financial institution for the month the transaction was completed; and
    2. The number of employees listed on the Employer’s Quarterly Contribution Report filed with the Mississippi Employment Security Commission by the financial institution for the same month one (1) year following completion of the transaction, exclusive of the number of employees gained in connection with intervening transactions.
  4. The base amount of the credit provided in this section shall be equal to the net gain in the number of employees multiplied by One Thousand Five Hundred Dollars ($1,500.00). The financial institution may claim as a credit against income tax an amount equal to one hundred percent (100%) of the base amount in the tax year the determination is made, eighty percent (80%) in the next year, sixty percent (60%) in the third year, forty percent (40%) in the fourth year and twenty percent (20%) in the fifth year. The credit allowed by this section shall not exceed the amount of the taxes due to the State of Mississippi by the financial institution. Any amount allowable as a credit pursuant to this section that exceeds the financial institution’s tax liability shall not be refunded or carried forward to any other taxable year.
  5. The credit authorized by this section shall apply only to transactions described in this section which are completed after March 29, 1996.
  6. The commission may promulgate regulations to implement this section.

HISTORY: Laws, 1996, ch. 441, § 68, eff from and after passage (approved March 29, 1996).

§ 27-7-22.15. Income tax credit for approved reforestation practices.

  1. As used in this section, the following words and phrases shall have the meanings ascribed to herein unless the context clearly indicates otherwise:
    1. “Approved reforestation practices” means the following practices for establishing a crop of trees suitable for manufacturing into forest products:
      1. “Pine and hardwood tree planting practices” including the cost of seedlings, planting by hand or machine, and site preparation.
      2. “Mixed-stand regeneration practices” to establish a mixed-crop of pine and hardwood trees by planting or direct seeding, or both, including the cost of seedlings, seed/acorns, planting, seeding and site preparation.
      3. “Direct seeding practices” to establish a crop of pine or oak trees by directly applying seed/acorns to the site including the cost of seed/acorns, seeding and site preparation.
      4. “Post-planting site preparation practices” to reduce or control undesirable competition within the first growing season of an established crop of trees.

      Approved reforestation practices shall not include the establishment of orchards, Christmas trees or ornamental trees.

    2. “Eligible tree species” means pine and hardwood commercial tree species suitable for manufacturing into forest products.
    3. “Cost-share assistance” means partial financial payment for approved reforestation practices from the state government as authorized under Sections 49-19-201 through 49-19-227, or the federal government.
    4. “Eligible owner” means a private individual, group or association, but the term shall not mean private corporations which manufacture products or provide public utility services of any type or any subsidiary of such corporations.
    5. “Eligible lands” means nonindustrial private lands owned by a private individual, group or association, but shall not mean lands owned by private corporations which manufacture products or provide public utility services of any type or any subsidiary of such corporations.
    6. “Reforestation prescription or plan” means a written description of the approved reforestation practices that the eligible owner plans to use and includes a legal description and map of the area to be reforested, a list of the tree seedling or seed species to be used in the reforestation and the site preparation practices that will be utilized.
  2. Subject to the limitations provided in subsection (3) of this section, upon submission to the State Tax Commission of the written verification provided for in subsection (5) of this section and such other documentation as the State Tax Commission may require, any eligible owner who incurs costs for approved reforestation practices for eligible tree species on eligible lands shall be allowed a credit, in an amount equal to the lesser of fifty percent (50%) of the actual costs of the approved reforestation practices or fifty percent (50%) of the average cost of approved practices as established by the Mississippi Forestry Commission under Section 49-19-219, against the taxes imposed pursuant to this chapter for the tax year in which the costs are incurred.
  3. The maximum amount of the credit provided for in subsection (2) of this section that may be utilized in any one (1) taxable year shall not exceed the lesser of Ten Thousand Dollars ($10,000.00) or the amount of income tax imposed upon the eligible owner for the taxable year reduced by the sum of all other credits allowable to the eligible owner under this chapter, except credit for tax payments made by or on behalf of the eligible owner. Any unused portion of the credit may be carried forward for succeeding tax years. The maximum dollar amount of the credit provided for in subsection (2) of this section that an eligible owner may utilize during his lifetime shall be Seventy-five Thousand Dollars ($75,000.00) in the aggregate.
  4. If an eligible owner receives any state or federal cost share assistance funds to defray the cost of an approved reforestation practice, the cost of that practice on the same acre or acres within the same tax year is not eligible for the credit provided in this section unless the eligible owner’s adjusted gross income is less than the federal earned income credit level.
  5. To be eligible for the tax credit, an eligible owner must have a reforestation prescription or plan prepared for the eligible lands by a graduate forester of a college, school or university accredited by the Society of American Foresters or by a registered forester under the Foresters Registration Law of 1977. The forester must verify in writing that the reforestation practices were completed and that the reforestation prescription or plan was followed.

HISTORY: Laws, 1999, ch. 483, § 1; Laws, 2007, ch. 461, § 1, eff from and after Jan. 1, 2007.

Editor’s Notes —

Laws of 1999, ch. 483, § 3, effective January 1, 1999, provides:

“SECTION 3. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the income tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.”

Amendment Notes —

The 2007 amendment, in the first sentence of (3), inserted “maximum amount of the,” “subsection (2) of” and “that may be utilized in any one (1) taxable year”; and in the last sentence of (3), inserted “subsection (2) of,” and substituted “Seventy-five Thousand Dollars ($75,000)” for “Ten Thousand Dollars ($10,000.00).”

Cross References —

State Tax Commission as meaning Department of Revenue, see § 27-7-3.

§ 27-7-22.16. Income tax credit for remediation costs incurred at brownfield agreement site.

    1. Except as otherwise provided under this subsection, the words and phrases used in this section shall have the meanings ascribed to them in Section 49-35-5, Mississippi Code of 1972.
    2. “Remediation costs” means reasonable costs paid for the assessment, investigation, remediation, monitoring and related activities at a brownfield agreement site which are consistent with the remedy selected for the site, and costs paid to the Department of Environmental Quality for the processing of the brownfield agreement application and administration of a brownfield agreement. Remediation costs shall not include (i) costs incurred before June 24, 1999; (ii) costs incurred after the issuance of a No Further Action letter under Section 49-35-15, Mississippi Code of 1972; (iii) costs incurred before the acceptance of a brownfield agreement site into the Mississippi Brownfields Voluntary Cleanup and Redevelopment program; (iv) costs incurred for any legal services or litigation costs; and (v) any funds provided by any federal, state or local governmental agency or political subdivision.
  1. Subject to the limitations provided in subsection (4) of this section, upon submission to the State Tax Commission of information provided for in subsection (5) of this section and any other documentation as the State Tax Commission may require, any brownfield party who (a) has conducted remediation at a brownfield agreement site in accordance with Sections 49-35-1 through 49-35-25 and (b) has incurred remediation costs for activities under Sections 49-35-1 through 49-35-25, as approved by the Commission on Environmental Quality, shall be allowed a credit in an amount equal to twenty-five percent (25%) of the remediation costs at the brownfield agreement site as approved by the commission, against the taxes imposed under this chapter for the tax year in which the costs are incurred.
    1. Before applying for the tax credit authorized in this section, a brownfield party shall submit an application to the Department of Environmental Quality for certification that the brownfield party has conducted remediation at a brownfield agreement site in accordance with Sections 49-35-1 through 49-35-25 during the tax year(s) for which the credit is sought. The application shall be on forms prescribed by the Commission on Environmental Quality and provided by the Department. The application shall include the following:
      1. A section identifying the brownfield party, the brownfield agreement site, the date the brownfield agreement was executed and the tax year for which the credit is sought;
      2. A certification that the costs to be submitted to the State Tax Commission are remediation costs incurred by the brownfield party during the tax year(s) for which the credit is sought. The certification shall include a listing of all remediation conducted and the associated costs; and
      3. Any other information which the Commission on Environmental Quality or the State Tax Commission deems appropriate.
    2. Within sixty (60) days after receipt by the Department of a completed application, the department shall approve or disapprove the application. The Department shall notify the brownfield party in writing of its decision. If the department approves the application, the department shall provide the brownfield party with certification that the brownfield party has conducted remediation at a brownfield agreement site in accordance with Sections 49-35-1 through 49-35-25 during the tax year(s) for which the credit is sought. If the Department disapproves the application, the Department shall notify the brownfield party in writing and state the reasons for the disapproval.
    3. Within thirty (30) days after receipt of the Department’s decision, the brownfield party may request a hearing before the Commission regarding the Department’s decision to disapprove the application. An appeal of the Commission’s decision may be taken as provided under Section 49-17-41.
    4. The Department’s review of the application under this section shall be considered a part of the administration of the brownfield agreement.
    5. The department’s review of the application for review of remediation costs under this section shall be considered a part of the administration of the brownfield agreement.
    1. The annual credit provided for in this section shall not exceed the lesser of Forty Thousand Dollars ($40,000.00) or the amount of the income tax imposed upon the brownfield party at the brownfield agreement site for the taxable year as reduced by the sum of all other credits allowable to the brownfield party under this chapter, except for credit for tax payments made by or on behalf of the brownfield party. Any unused portion of the credit may be carried forward for succeeding tax years.
    2. The maximum total credit under this section for a brownfield agreement site is One Hundred Fifty Thousand Dollars ($150,000.00).
  2. To be eligible for the tax credit, the brownfield party must submit a copy of the letter from the commission stating the amount of remediation costs approved by the commission for the given tax year.

HISTORY: Laws, 2005, ch. 497, § 3, eff from and after Jan. 1, 2005.

Editor’s Notes —

Laws of 2005, ch. 497, § 8, effective January 1, 2005, provides as follows:

“SECTION 8. Nothing in Laws of 2005, Chapter 497, shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax laws before January 1, 2005 or are begun thereafter. The provisions of the income tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before January 1, 2005, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.”

Cross References —

State Tax Commission as meaning Department of Revenue, see § 27-7-3.

Mississippi brownfields voluntary cleanup and redevelopment, see Chapter 35 of Title 49, §49-35-1 et seq.

§ 27-7-22.17. Job tax credit for permanent business enterprises operating certain projects that create at least 3,000 new full-time jobs.

  1. Permanent business enterprises engaged in operating a project and companies that are members of an affiliated group that includes such permanent business enterprises are allowed a job tax credit for taxes imposed by Section 27-7-5 equal to Five Thousand Dollars ($5,000.00) annually for each net new full-time employee job for a period of twenty (20) years from the date the credit commences; however, if the permanent business enterprise is located in an area that has been declared by the Governor to be a disaster area and as a direct result of the disaster the business enterprise is unable to maintain the required number of employees, the commissioner may extend this time period for not more than two (2) years. The credit shall commence on the date selected by the permanent business enterprise; however, the commencement date shall not be more than five (5) years from the date the business enterprise commences commercial production. For the year in which the commencement date occurs, the number of new full-time jobs shall be determined by using the monthly average number of full-time employees subject to the Mississippi income tax withholding. Thereafter, the number of new full-time jobs shall be determined by comparing the monthly average number of full-time employees subject to the Mississippi income tax withholding for the taxable year with the corresponding period of the prior taxable year. Once a permanent business enterprise creates or increases employment three thousand (3,000) or more, such enterprise and the members of the affiliated group that include such enterprise, shall be eligible for the credit. The credit is not allowed for any year of the twenty-year period in which the overall monthly average number of full-time employees subject to the Mississippi income tax withholding falls below three thousand (3,000); however, if the permanent business enterprise is located in an area that has been declared by the Governor to be a disaster area and as a direct result of the disaster the business enterprise is unable to maintain the required number of employees, the commissioner may waive the employment requirement for a period of time not to exceed two (2) years. The State Tax Commission shall adjust the credit allowed each year for the net new employment fluctuations above three thousand (3,000).
  2. Any tax credit claimed under this section but not used in any taxable year may be carried forward for five (5) consecutive years from the close of the tax year in which the credits were earned; however, if the permanent business enterprise is located in an area that has been declared by the Governor to be a disaster area and as a direct result of the disaster the business enterprise is unable to use the existing carryforward, the commissioner may extend the period that the credit may be carried forward for a period of time not to exceed two (2) years. The credit that may be utilized each year shall be limited to an amount not greater than the total state income tax liability of the permanent business enterprise and the state income tax liability of any member of the affiliated group that includes such enterprise that is generated by, or arises out of, the project.
  3. The tax credits provided for in this section shall be in lieu of the tax credits provided for in Section 57-73-21 and any permanent business enterprise or any member of the affiliated group that includes such enterprise utilizing the tax credit authorized in this section shall not utilize the tax credit authorized in Section 57-73-21.
  4. As used in this section:
    1. “Project” means a project as defined in Section 57-75-5(f) (iv).
    2. “Affiliated group” means one or more corporations connected through stock ownership with a common parent corporation where at least eighty percent (80%) of the voting power of all classes of stock and at least eighty percent (80%) of each class of the nonvoting stock of each of the member corporations, except the common parent corporation, is directly owned by one or more of the other member corporations; and the common parent corporation directly owns stock possessing at least eighty percent (80%) of the voting power of all classes of stock and at least eighty percent (80%) of each class of the nonvoting stock of at least one (1) of the other member corporations. As used in this subsection, the term “stock” does not include nonvoting stock that is limited and preferred as to dividends.

HISTORY: Laws, 2000, 3rd Ex Sess, ch. 1, § 1; Laws, 2007, ch. 454, § 1, eff from and after July 1, 2007.

Amendment Notes —

The 2007 amendment, in (1), inserted “however, if the permanent business . . . the commissioner may extend this time period for not more than two (2) years” and “however, if the permanent business . . . the commissioner may waive the employment requirement for a period of time not to exceed two (2) years”; inserted “however, if the permanent business . . . unable to use the existing carryforward, the commissioner may extend the period that the credit may be carried forward for a period of time not to exceed two (2) years” in (2); and made minor stylistic changes.

Cross References —

Job tax credit for corporations, see §57-73-21.

RESEARCH REFERENCES

ALR.

Protection of out-of-state sellers from state income tax by Public Law 86-272 (15 U.S.C.S. §§ 381 to 384). 182 A.L.R. Fed. 291.

§ 27-7-22.18. Job tax credit for business enterprises owning or operating certain projects that create at least 450 new full-time jobs.

  1. Any enterprise owning or operating a project as defined in Section 57-75-5(f) (xviii) is allowed a job tax credit for taxes imposed by Section 27-7-5 equal to Five Thousand Dollars ($5,000.00) annually for each net new full-time employee job for a period of ten (10) years from the date the credit commences. The credit shall commence on the date selected by the enterprise; provided, however, that the commencement date shall not be more than two (2) years from the date the project becomes fully operational. For the year in which the commencement date occurs, the enterprise must select a date on which it has at least four hundred fifty (450) full-time employees subject to the Mississippi income tax withholding. From that date to the end of the year, the credit will be determined based on the remaining monthly average of full-time employees subject to the Mississippi income tax withholding. For each year thereafter, the number of new full-time jobs created shall be determined by calculating the monthly average number of full-time employees subject to the Mississippi income tax withholding for the year. For every year subsequent to the year the commencement date occurs, the credit is not allowed for any year in which the overall monthly average number of full-time employees subject to the Mississippi income tax withholding falls below the minimum jobs requirement provided in Section 57-75-5(f) (xviii). The State Tax Commission shall adjust the credit allowed each year for the net new employment fluctuations.
  2. For the first five (5) years in which a tax credit is claimed under this section, any tax credit claimed but not used in any taxable year may be carried forward for five (5) consecutive years from the close of the tax year in which the credits were earned. For the remainder of the ten-year period, any tax credit claimed under this section but not used in any taxable year may be carried forward for three (3) consecutive years from the close of the tax year in which the credits were earned. The credit that may be utilized each year shall be limited to an amount not greater than the total state income tax liability of the enterprise that is generated by, or arises out of, the project.
  3. The tax credits provided for in this section shall be in lieu of the tax credits provided for in Section 57-73-21 and any enterprise utilizing the tax credit authorized in this section shall not utilize the tax credit authorized in Section 57-73-21.

HISTORY: Laws, 2005, ch. 315, § 6, eff from and after Jan. 1, 2005.

Cross References —

State Tax Commission as meaning Department of Revenue, see § 27-7-3.

§ 27-7-22.19. Job tax credit for integrated suppliers located on the site of certain projects.

  1. Integrated suppliers are allowed a job tax credit for taxes imposed by Section 27-7-5 equal to One Thousand Dollars ($1,000.00) annually for each net new full-time employee for five (5) years from the date the credit commences; however, if the integrated supplier is located in an area that has been declared by the Governor to be a disaster area and as a direct result of the disaster the integrated supplier is unable to maintain the required number of employees, the commissioner may extend this time period for not more than two (2) years. The credit shall commence on the date selected by the integrated supplier; provided, however, that the commencement date shall not be more than five (5) years from the date the integrated supplier commences commercial production. For the year in which the commencement date occurs, the number of new full-time jobs shall be determined by using the monthly average number of full-time employees subject to Mississippi income tax withholding. Thereafter, the number of new full-time jobs shall be determined by comparing the monthly average number of full-time employees subject to Mississippi income tax withholding for the taxable year with the corresponding period of the prior taxable year. Only those integrated suppliers that increase employment by twenty (20) or more are eligible for the credit. The credit is not allowed during any of the five (5) years if the net employment increase falls below twenty (20); however, if the integrated supplier is located in an area that has been declared by the Governor to be a disaster area and as a direct result of the disaster the integrated supplier is unable to maintain the required number of employees, the commissioner may waive the employment requirement for a period of time not to exceed two (2) years. The State Tax Commission shall adjust the credit allowed each year for the net new employment fluctuations above the minimum level of twenty (20).
  2. Any tax credit claimed under this section but not used in any taxable year may be carried forward for five (5) consecutive years from the close of the tax year in which the credits were earned; however, if the integrated supplier is located in an area that has been declared by the Governor to be a disaster area and as a direct result of the disaster the integrated supplier is unable to use the existing carryforward, the commissioner may extend the period that the credit may be carried forward for a period of time not to exceed two (2) years. The credit that may be utilized each year shall be limited to an amount not greater than fifty percent (50%) of the taxpayer’s state income tax liability which is attributable to income derived from operation in the state for that year.
  3. The tax credits provided for in this section shall be in lieu of the tax credits provided for in Section 57-73-21, and any integrated supplier utilizing the tax credit authorized in this section shall not utilize the tax credit authorized in Section 57-73-21.
  4. As used in this section the term “integrated supplier” means a supplier located on the project site which provides goods or services on the project site solely for a project as defined in Section 57-75-5(f)(iv)1.

HISTORY: Laws, 2000, 3rd Ex Sess, ch. 1, § 2; Laws, 2002, ch. 555, § 1; Laws, 2007, ch. 445, § 1, eff from and after July 1, 2007.

Amendment Notes —

The 2007 amendment, in (1), added “however, if the integrated . . . not more than two (2) years” at the end of the first sentence, and added “however, if the integrated . . . not to exceed two (2) years” at the end of the next-to-last sentence; added “however, if the integrated . . . not to exceed two (2) years” at the end of the first sentence of (2); and made minor stylistic changes.

Cross References —

State Tax Commission as meaning Department of Revenue, see § 27-7-3.

Job tax credit for corporations, see §57-73-21.

§ 27-7-22.20. Investment tax credit for business enterprises owning or operating certain projects with an initial capital investment of at least $600,000,000.

  1. An enterprise owning or operating a project as defined in Section 57-75-5(f) (xviii) is allowed an annual investment tax credit for taxes imposed by Section 27-7-5 equal to seven and one-half percent (7-1/2%) of the eligible investments made by the enterprise. The credit shall commence on the date selected by the enterprise; provided, however, that the commencement date shall not be more than two (2) years from the date the project becomes fully operational. For the purposes of this section, the term “eligible investment” means the amount of investment in a project as defined in Section 57-75-5(f) (xviii) that is greater than Four Hundred Million Dollars ($400,000,000.00) and used in the initial establishment of the project.
  2. Any tax credit claimed under this section but not used in any taxable year may be carried forward for ten (10) consecutive years from the close of the tax year in which the credits were earned. The credit that may be utilized in any one tax year shall be limited to an amount not greater than the total state income tax liability of the enterprise for that year that is generated by, or arises out of, the project.
  3. The credit received under this section is subject to recapture if the property for which the tax credit was received is disposed of, or converted to, other than business use. The amount of the credit subject to recapture is one hundred percent (100%) of the credit in the first year and fifty percent (50%) of the credit in the second year. This subsection shall not apply in cases in which an entire facility is sold.

HISTORY: Laws, 2005, ch. 315, § 7, eff from and after Jan. 1, 2005.

§ 27-7-22.21. Income tax credit for donations of land or interest in land considered priority site for conservation under Mississippi Natural Heritage Program or adjacent to and along a stream fully nominated to Mississippi Scenic Streams Stewardship Program.

  1. As used in this section, the following words and phrases shall have the following meanings, unless the context clearly indicates otherwise:
    1. “Eligible land” means nonindustrial private lands in the state that are adjacent to and along a stream which is fully nominated to the Mississippi Scenic Streams Stewardship Program, or nonindustrial private lands in the state which are considered to be priority sites for conservation under the Mississippi Natural Heritage Program.
    2. “Eligible owner” means a private individual, group or association other than a private corporation, or any subsidiary thereof, which manufactures products or provides public utility services of any type.
    3. “Interest in land” means any right in real property, including access thereto or improvements thereon, or water, including, but not limited to, a fee simple easement, a conservation easement, provided such interest complies with the requirements of the United States Internal Revenue Code Section 170(h), partial interest, mineral right, remainder or future interest, or other interest or right in real property.
    4. “Land” or “lands” means real property, with or without improvements thereon, rights-of-way, water and riparian rights, easements, privileges and all other rights or interests of any land or description in, relating to, or connected with real property.
    5. “Allowable transaction costs” mean the costs of the appraisal of the lands or interests in lands, including conservation easements, that are being donated, of the baseline survey of the natural features, animals and plants present on the site, of engineering and surveying fees, of maintenance fees, of monitoring fees and of legal fees, including the costs of document preparation, title review and title insurance.
    6. “Specified conservation purposes” mean the preservation of stream bank habitats and the stability of stream banks, or the protection of land necessary because of high biodiversity significance or high protection urgency due to the presence of exemplary natural communities or species of special concern, including threatened or endangered species.
  2. For the taxable years beginning on or after January 1, 2003, for any income taxpayer who is an eligible owner, a credit against the taxes imposed by this chapter shall be allowed in the amounts provided in this section upon the donation of land or an interest in land for specified conservation purposes.
  3. The credit provided for in this section shall be fifty percent (50%) of the allowable transaction costs involved in the donation for the tax year in which the allowable transaction costs occur. The aggregate amount of the credit provided in this section for allowable transaction costs shall not exceed the lesser of Ten Thousand Dollars ($10,000.00) or the amount of tax imposed upon the taxpayer for the taxable year reduced by the sum of all other credits allowable to such taxpayer under this chapter, except credit for tax payments made by or on behalf of the taxpayer. Any unused portion of the credit may be carried forward for ten (10) succeeding tax years. The maximum dollar amount of the credit provided for in this section that an eligible owner may utilize during his lifetime shall be Ten Thousand Dollars ($10,000.00) in the aggregate.
  4. To be eligible for the credit provided for in this section, an eligible owner must demonstrate that the donation qualifies as a conservation contribution under Section 170(h) of the United States Internal Revenue Code of 1986, by means of being a donation in perpetuity, for conservation purposes and made to a qualified holder or donee. A letter from the donee indicating acceptance and a completed copy of the appropriate United States Internal Revenue Service form shall constitute proof of acceptance. The eligible owner also must submit any other documentation that the State Tax Commission may require.

HISTORY: Laws, 2003, ch. 453, § 1, eff from and after Jan. 1, 2003.

Cross References —

State Tax Commission as meaning Department of Revenue, see § 27-7-3.

Federal Aspects—

Section 170(h) of the Internal Revenue Code, see 26 USCS § 170(h).

§ 27-7-22.22. Income tax credit for use of taxpayer’s land as natural area preserve, wildlife refuge, etc. or for public outdoor recreational opportunities.

  1. A credit is allowed against the taxes imposed by this chapter to a taxpayer for allowing land owned by the taxpayer to be used as a natural area preserve, a wildlife refuge or habitat area, a wildlife management area, or for the purpose of providing public outdoor recreational opportunities, as authorized under Section 49-1-29, 49-5-71 or 49-5-155, subject to the following conditions and limitations:
    1. The land may not be under lease to the Mississippi Commission on Wildlife, Fisheries and Parks, and the commission must approve the land as being suitable for the uses described in this section.
    2. The amount of the tax credit allowed by this section shall be Five Dollars and Fifty Cents ($5.50) per acre of land in each taxable year.
    3. In no event shall the amount of the tax credits allowed by this section for a taxable year exceed the taxpayer’s liability for those taxes.Any unused credit amount shall be allowed to be carried forward for five (5) years from the close of the taxable year in which the land was approved for such a use.No such credit shall be allowed the taxpayer against prior years’ tax liability.
  2. To claim a credit allowed by this section, the taxpayer shall provide any information required by the Mississippi Commission on Wildlife, Fisheries and Parks or the Mississippi Commissioner of Revenue.Every taxpayer claiming a credit under this section shall maintain and make available for inspection by the Mississippi Commission on Wildlife, Fisheries and Parks or the Mississippi Commissioner of Revenue any records that either entity considers necessary to determine and verify the amount of the credit to which the taxpayer is entitled.The burden of proving eligibility for a credit and the amount of the credit rests upon the taxpayer, and no credit may be allowed to a taxpayer that fails to maintain adequate records or to make them available for inspection.
  3. Upon approval of the Commission on Wildlife, Fisheries and Parks under subsection (1)(a), a taxpayer seeking to claim any tax credit provided for under this section must submit an application to the Mississippi Commissioner of Revenue for approval of the tax credit.The Mississippi Commissioner of Revenue shall promulgate the rules and forms on which the application is to be submitted.The Mississippi Commissioner of Revenue shall review the application and may approve such application upon determining that it meets the requirements of this section within sixty (60) days after receiving the application.

HISTORY: Laws, 2010, ch. 503, § 1, eff from and after Jan. 1, 2010.

Joint Legislative Committee Note —

Pursuant to Section 1-1-109, the Joint Legislative Committee on Compilation, Revision and Publication of Legislation corrected an error in a statutory reference in (1) by substituting “49-5-71” for “49-1-71.” The Joint Committee ratified the correction at its August 15, 2017, meeting.

Editor’s Notes —

Laws of 2010, ch. 503, § 5, effective January 1, 2010, provides:

“SECTION 5. Section 1 of this act shall be codified as a separate code section in Chapter 7, Title 27, Mississippi Code of 1972.”

Laws of 2010, ch. 503, § 6, effective January 1, 2010, provides:

“SECTION 6. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the income tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.”

§ 27-7-22.23. Income tax credit for utilization of port facilities at state, county and municipal ports for import of cargo.

  1. As used in this section, the term “port” means a state, county or municipal port or harbor established pursuant to Sections 59-5-1 through 59-5-69, Sections 59-7-1 through 59-7-519, Sections 59-9-1 through 59-9-85 or Sections 59-11-1 through 59-11-7.
  2. Subject to the provisions of this section, for any income taxpayer utilizing the port facilities at any port for the import of cargo that is unloaded from a carrier calling at any such port, a credit against the taxes imposed pursuant to this chapter shall be allowed in the amounts provided in this section. In order to be eligible for the credit authorized under this section, a taxpayer must locate its United States headquarters in Mississippi on or after July 1, 2004, employ at least five (5) permanent full-time employees who actually work at such headquarters and have a minimum capital investment of Two Million Dollars ($2,000,000.00) in Mississippi. For the purposes of this section, “full-time employee” shall mean an employee who works at least thirty-five (35) hours per week.
    1. Except as otherwise provided by subsection (4) of this section, the amount of the credit allowed pursuant to this section shall be the total of the following charges on import of cargo paid by the corporation:
      1. Receiving into the port;
      2. Handling from a vessel; and
      3. Wharfage.
    2. The credit allowed pursuant to this section shall not include charges paid by a corporation on the import of forest products.
  3. The credit provided for in this section shall not exceed fifty percent (50%) of the amount of tax imposed upon the taxpayer for the taxable year reduced by the sum of all other credits allowable to such taxpayer under this chapter, except credit for tax payments made by or on behalf of the taxpayer. Any unused portion of the credit may be carried forward for the succeeding five (5) years. The maximum cumulative credit that may be claimed by a taxpayer under this section is limited to One Million Dollars ($1,000,000.00) if the taxpayer employs at least five (5), but not more than twenty-five (25) permanent full-time employees at its headquarters in Mississippi; Two Million Dollars ($2,000,000.00) if the taxpayer employs more than twenty-five (25), but not more than one hundred (100) permanent full-time employees at its headquarters in Mississippi; Three Million Dollars ($3,000,000.00) if the taxpayer employs more than one hundred (100), but not more than two hundred (200) permanent full-time employees at its headquarters in Mississippi; and Four Million Dollars ($4,000,000.00) if the taxpayer employs more than two hundred (200) permanent full-time employees at its headquarters in Mississippi.
  4. To obtain the credit provided for in this section, a taxpayer must provide to the Department of Revenue a statement from the governing authority of the port certifying the amount of charges paid by the taxpayer for which a credit is claimed and any other information required by the Department of Revenue.

HISTORY: Laws, 2004, ch. 530, § 1; Laws, 2006, ch. 562, § 1; Laws, 2010, ch. 391, § 1; Laws, 2011, ch. 427, § 1, eff from and after July 1, 2011.

Editor’s Notes —

Laws of 2004, ch. 530, § 3, effective January 1, 2004, provides:

“SECTION 3. This act shall stand repealed from and after July 1, 2006.”

Laws of 2004, ch. 530, § 3 was repealed by Laws of 2006, ch. 562, § 3, effective July 1, 2006.

Laws of 2004, ch. 530, § 5, effective January 1, 2004, provides:

“SECTION 5. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the income tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.”

Amendment Notes —

The 2006 amendment substituted “Two Million Dollars ($2,000,000.00)” for “Five Million Dollars ($5,000,000.00)” in (2); substituted “2010” for “2006” in (6); and added (7).

The 2010 amendment, in (6) and (7), substituted “July 1, 2011” for “July 1, 2010.”

The 2011 amendment substituted “Department of Revenue” for “State Tax Commission” in (5); deleted former (6) and (7) which read: “Any taxpayer who is eligible, before July 1, 2011, for the credit provided for in this section, shall remain eligible for such credit after July 1, 2011, notwithstanding the repeal of this section” and “This section shall stand repealed on July 1, 2011” respectively.

Cross References —

State Ports and Harbors, see §59-5-1 et seq.

County and Municipal Harbors, see §59-7-1 et seq.

County Port Authority or Development Commission, see §59-9-1 et seq.

County Port and Harbor Commission, see §59-11-1 et seq.

§ 27-7-22.24. Mississippi Development Authority to report annually on the impact of the income tax credit granted in § 27-7-22.23.

The Mississippi Development Authority shall report annually to the Legislature regarding the impact of the credit granted in Section 27-7-22.23 on shipping and economic growth. Each report shall show the overall annual increase in shipping at each port for the most recent year for which data is available and for each of the previous five (5) years. Each report shall estimate the number of jobs created or retained at each port and in businesses related to port activity at each port since January 1, 2005, as compared to the number of similar jobs created during the ten (10) years preceding January 1, 2005. Each report shall state the net economic impact on the state as a result of the tax credit provided for in Section 27-7-22.23. The Mississippi Development Authority shall file a copy of the report with the Governor, the Secretary of the Senate, the Clerk of the House of Representatives and the Chairmen of the House Ways and Means Committee and the Senate Finance Committee of the Legislature on May 1 of each year. The Department of Revenue and all state, county and municipal ports shall cooperate with the Mississippi Development Authority in providing the information required in the annual reports.

HISTORY: Laws, 2004, ch. 530, § 2; Laws, 2006, ch. 562, § 2; Laws, 2010, ch. 391, § 2; Laws, 2011, ch. 427, § 2, eff from and after July 1, 2011.

Editor’s Notes —

Laws of 2004, ch. 530, § 3, effective January 1, 2004, provided:

“SECTION 3. This act shall stand repealed from and after July 1, 2006.”

Laws of 2004, ch. 530, § 3 was repealed by Laws of 2006, ch. 562, § 3, effective July 1, 2006.

Laws, 2004, ch. 530, § 5, effective January 1, 2004, provides:

“SECTION 5. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the income tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.”

Amendment Notes —

The 2006 amendment added (2), which included a repealer for the section, effective July 1, 2010.

The 2010 amendment substituted “July 1, 2011” for “July 1, 2010” in (2).

The 2011 amendment deleted the subsection (1) designation at the beginning and substituted “Department of Revenue” for “State Tax Commission” in the last sentence; deleted former (2) which read: “This section shall stand repealed on July 1, 2011.”

§ 27-7-22.25. Income tax credit for utilization of airport facilities at public airports for export or import of cargo [Repealed effective July 1, 2022].

  1. As used in this section, the term “airport” means an airport established pursuant to Chapters 3 and 5, Title 61, Mississippi Code of 1972.
  2. Subject to the provisions of this section, for any income taxpayer utilizing the facilities at any airport for the export or import of cargo that is unloaded from a carrier at any such airport, a credit against the taxes imposed pursuant to this chapter shall be allowed in the amounts provided in this section. In order to be eligible for the credit authorized under this section, a taxpayer must locate its United States headquarters in Mississippi on or after July 1, 2005, employ at least five (5) new permanent full-time employees who actually work at such headquarters and, after July 1, 2005, invest a minimum of Two Million Dollars ($2,000,000.00), in the aggregate, in real property and/or personal property in Mississippi. For the purposes of this section, “full-time employee” shall mean an employee who works at least thirty-five (35) hours per week.
  3. Except as otherwise provided by subsection (4) of this section, the amount of the credit allowed pursuant to this section shall be the total of the following charges on import or export of cargo paid by the corporation:
    1. Receiving into the airport;
    2. Aircraft marshalling or handling fees; and
    3. Aircraft landing fees.
  4. The credit provided for in this section shall not exceed fifty percent (50%) of the amount of tax imposed upon the taxpayer for the taxable year reduced by the sum of all other credits allowable to such taxpayer under this chapter, except credit for tax payments made by or on behalf of the taxpayer. Any unused portion of the credit may be carried forward for the succeeding five (5) years. The maximum cumulative credit that may be claimed by a taxpayer under this section is limited to One Million Dollars ($1,000,000.00) if the taxpayer employs at least five (5), but not more than twenty-five (25) permanent full-time employees at its headquarters in Mississippi; Two Million Dollars ($2,000,000.00) if the taxpayer employs more than twenty-five (25), but not more than one hundred (100) permanent full-time employees at its headquarters in Mississippi; Three Million Dollars ($3,000,000.00) if the taxpayer employs more than one hundred (100), but not more than two hundred (200) permanent full-time employees at its headquarters in Mississippi; and Four Million Dollars ($4,000,000.00) if the taxpayer employs more than two hundred (200) permanent full-time employees at its headquarters in Mississippi.
  5. To obtain the credit provided for in this section, a taxpayer must provide to the Department of Revenue a statement from the governing authority of the airport certifying the amount of charges paid by the taxpayer for which a credit is claimed and any other information required by the Department of Revenue.
  6. Any taxpayer who is eligible, before July 1, 2022, for the credit provided for in this section, shall remain eligible for such credit after July 1, 2022, notwithstanding the repeal of this section.

HISTORY: Laws, 2005, ch. 442, § 1; Laws, 2006, ch. 465, § 1; reenacted and amended, Laws, 2007, ch. 519, § 1; reenacted and amended, Laws, 2009, ch. 323, § 1; reenacted and amended, Laws, 2012, ch. 377, § 4; reenacted and amended, Laws, 2016, ch. 335, § 4, eff from and after July 1, 2016; reenacted and amended, Laws, 2019, ch. 321, § 4, eff from and after July 1, 2019.

Editor’s Notes —

Laws of 2005, ch. 442, § 3 as amended by Laws of 2007, ch. 519, § 3, as amended by Laws of 2009, ch. 323, § 3, as amended by Laws of 2012, ch. 377, § 6, as amended by Laws of 2016, ch. 335, § 6, and as amended by Laws of 2019, ch. 321, § 6, provides as follows:

“SECTION 3. Sections 1 [codified as Section 27-7-22.25] and 2 [codified as Section 27-7-22.26] shall stand repealed from and after July 1, 2022.”

Amendment Notes —

The 2006 amendment substituted “Two Million Dollars ($2,000,000.00)” for “Five Million Dollars ($5,000,000.00)” following “after July 1, 2005, invest a minimum of” in the second sentence of (2).

The 2007 amendment reenacted and amended the section by substituting “July 1, 2120” for “July 1, 2007” both times it appears in (6).

The 2009 amendment substituted “July 1, 2012” for “July 1, 2010” both times it appears in (6).

The 2012 amendment reenacted and amended the section by substituting “Department of Revenue” for “State Tax Commission” twice in (5); and substituted “July 1, 2016” for “July 1, 2012” twice in (6).

The 2016 amendment substituted “July 1, 2019” for “July 1, 2016” both times it appears in (6).

The 2019 amendment reenacted and amended the section by substituting “July 1, 2022” for “July 1, 2019” twice in (6).

§ 27-7-22.26. Mississippi Development Authority to report annually on the impact of the income tax credit granted in § 27-7-22.25 [Repealed effective July 1, 2022]

The Mississippi Development Authority shall report annually to the Legislature regarding the impact of the credit granted in Section 27-7-22.25 on shipping and economic growth. Each report shall show the overall annual increase in shipping at each airport for the most recent year for which data is available and for each of the previous five (5) years. Each report shall estimate the number of jobs created or retained at each airport and in businesses related to airport activity at each airport since January 1, 2006, as compared to the number of similar jobs created during the ten (10) years preceding January 1, 2006. Each report shall state the net economic impact on the state as a result of the tax credit provided for in Section 27-7-22.25. The Mississippi Development Authority shall file a copy of the report with the Governor, the Secretary of the Senate, the Clerk of the House of Representatives and the Chairmen of the House Ways and Means Committee and the Senate Finance Committee of the Legislature on May 1 of each year. The Department of Revenue and all state, regional, county and municipal airports shall cooperate with the Mississippi Development Authority in providing the information required in the annual reports.

HISTORY: Laws, 2005, ch. 442, § 2; reenacted without change, Laws, 2007, ch. 519, § 2; reenacted without change, Laws, 2009, ch. 323, § 2; reenacted without change, Laws, 2012, ch. 377, § 5; reenacted and amended, Laws, 2016, ch. 335, § 5, eff from and after July 1, 2016; reenacted without change, Laws, 2019, ch. 321, § 5, eff from and after July 1, 2019.

Editor’s Notes —

Laws of 2005, ch. 442, § 3, as amended by Laws of 2007, ch. 519, § 3, as amended by Laws of 2009, ch. 323, § 3, as amended by Laws of 2012, ch. 377, § 6, and as amended by Laws of 2016, ch. 335, § 6, and as amended by Laws of 2019, ch. 321, § 6, provides as follows:

“SECTION 3. Sections 1 [codified as Section 27-7-22.25] and 2 [codified as Section 27-7-22.26] shall stand repealed from and after July 1, 2022.”

Laws of 2005, ch. 442, §§ 4 and 5, effective January 1, 2005, provide as follows:

“SECTION 4. The provisions of this act shall be codified in Chapter 7, Title 27, Mississippi Code of 1972.

“SECTION 5. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the income tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.”

This section was reenacted without change by Laws of 2019, ch. 321, § 5, effective from and after July 1, 2019. Since the language of the section as it appears in the main volume is unaffected by the reenactment of the section, it is not reprinted in this supplement.

Amendment Notes —

The 2007 amendment reenacted the section without change.

The 2009 amendment reenacted the section without change.

The 2012 amendment reenacted the section without change.

The 2016 amendment substituted “Department of Revenue” for “State Tax Commission” in the last sentence.

The 2019 amendment reenacted the section without change.

Cross References —

State Tax Commission as meaning Department of Revenue, see § 27-7-3.

§ 27-7-22.27. Income tax job credit for certain business enterprises in areas within municipalities certified as economically distressed communities; definitions; designation as economically distressed community; certification of status; amount of tax credit; eligibility.

  1. As used in this section:
    1. “Business enterprises” means entities primarily engaged in:
      1. Manufacturing, processing, warehousing, distribution, wholesaling and research and development, or
      2. Permanent business enterprises designated by rule and regulation of the Mississippi Development Authority as air transportation and maintenance facilities, final destination or resort hotels having a minimum of one hundred fifty (150) guest rooms, recreational facilities that impact tourism, movie industry studios, telecommunications enterprises, data or information processing enterprises or computer software development enterprises or any technology intensive facility or enterprise.
    2. “Economically distressed community” means an area within a municipality that contains groupings of census tracts that include and are contiguous to the central business district, where within such census tract groupings at least thirty percent (30%) of the residents have incomes that are less than the national poverty level as published by the United States Bureau of the Census in the most recent decennial census for which data is available; in which the unemployment rate is at least one and one-half (1-1/2) times greater than the national average, as determined by the most recent data from the United States Bureau of Labor Statistics, including estimates of unemployment developed using the calculation method of the United States Bureau of Labor Statistics Census Share; and
      1. The municipal population of which is at least four thousand (4,000) if any portion of the municipality is located within a metropolitan area with a population of fifty thousand (50,000), or more; or
      2. The municipal population of which is at least one thousand (1,000) if no portion of the municipality is located within a metropolitan area with a population of fifty thousand (50,000), or more.
    3. “Telecommunications enterprises” means entities engaged in the creation, display, management, storage, processing, transmission or distribution for compensation of images, text, voice, video or data by wire or by wireless means, or entities engaged in the construction, design, development, manufacture, maintenance or distribution for compensation of devices, products, software or structures used in the above activities. Companies organized to do business as commercial broadcast radio stations, television stations or news organizations primarily serving in-state markets shall not be included within the definition of the term “telecommunications enterprises.”
  2. The governing authorities of a municipality may designate an area within such municipality as an economically distressed community.
  3. Upon designation of an area within a municipality as an economically distressed community, the governing authorities of a municipality shall apply to the State Tax Commission for certification of the area as an economically distressed community. Such application shall provide the information necessary to establish certification as an economically distressed community. The State Tax Commission shall certify an area within a municipality as an economically distressed community if it finds that the designation meets the criteria provided for in subsection (1)(b) of this section.
  4. Permanent business enterprises in areas within municipalities certified by the State Tax Commission as economically distressed communities are allowed a job tax credit for taxes imposed by Section 27-7-5 equal to ten percent (10%) of the payroll of the enterprise for net new full-time employee jobs for five (5) years beginning with years two (2) through six (6) after the creation of the minimum number of jobs required by this subsection. The number of new full-time jobs must be determined by comparing the monthly average number of full-time employees subject to the Mississippi income tax withholding for the taxable year with the corresponding period of the prior taxable year. Only those permanent business enterprises that increase employment by ten (10) or more in an economically distressed community are eligible for the credit. Credit is not allowed during any of the five (5) years if the net employment increase falls below ten (10). The State Tax Commission shall adjust the credit allowed each year for the net new employment fluctuations above the minimum level of ten (10).
  5. Tax credits for five (5) years for the taxes imposed by Section 27-7-5 shall be awarded for additional net new full-time jobs created by business enterprises qualified under this section. The State Tax Commission shall adjust the credit allowed in the event of payroll fluctuations during the additional five (5) years of credit.
  6. The sale, merger, acquisition, reorganization, bankruptcy or relocation from one (1) county to another county within the state of any business enterprise may not create new eligibility in any succeeding business entity, but any unused job tax credit may be transferred and continued by any transferee of the business enterprise. The State Tax Commission shall determine whether or not qualifying net increases or decreases have occurred or proper transfers of credit have been made and may require reports, promulgate regulations, and hold hearings as needed for substantiation and qualification.
  7. Any tax credit claimed under this section but not used in any taxable year may be carried forward for five (5) years from the close of the tax year in which the qualified jobs were established but the credit established by this section taken in any one (1) tax year must be limited to an amount not greater than fifty percent (50%) of the taxpayer’s state income tax liability which is attributable to income derived from operations in the state for that year.
  8. No business enterprise for the transportation, handling, storage, processing or disposal of hazardous waste is eligible to receive the tax credits provided in this section.
  9. The credits allowed under this section shall not be used by any business enterprise or corporation other than the business enterprise actually qualifying for the credits.
  10. A business enterprise that receives a tax credit under this section shall not be eligible for the tax credit authorized in Section 57-73-21(2), (3) and (4).

HISTORY: Laws, 2005, ch. 520, § 1, eff from and after Jan. 1, 2005.

Cross References —

State Tax Commission as meaning Department of Revenue, see § 27-7-3.

§ 27-7-22.28. Job tax credit for certain producers of alternative energy definitions.

As used in Sections 27-7-22.28 and 27-7-22.29, the following terms and phrases shall have the meanings ascribed in this section unless the context clearly indicates otherwise:

“Alternative energy project” means a business enterprise engaged in manufacturing or producing alternative energy in this state with not less than fifty percent (50%) of the finished product being derived from resources or products from this state.

“Authority” means the Mississippi Development Authority.

“Producer” means a manufacturer or producer of alternative energy through an alternative fuels project.

“State” means the State of Mississippi.

HISTORY: Laws, 2005, 3rd Ex Sess, ch. 1, § 56, eff from and after July 1, 2005.

Cross References —

Mississippi Development Authority, generally, see §57-1-1 et seq.

Business or other entity convicted of intentionally hiring illegal immigrants is ineligible to receive any form of assistance made available under Sections 1 through 57 of Chapter 1, Laws of 2005, 3rd Ex. Sess., see §57-1-371.

§ 27-7-22.29. Job tax credit for certain producers of alternative energy — general provisions.

  1. Producers are allowed a job tax credit for taxes imposed by Section 27-7-5 equal to One Thousand Dollars ($1,000.00) annually for each net new full-time employee job for a period of twenty (20) years from the date the credit begins; however, if the producer is located in an area that has been declared by the Governor to be a disaster area and as a direct result of the disaster the producer is unable to maintain the required number of employees, the commissioner may extend this time period for not more two (2) years. The credit shall begin on the date selected by the producer; however, the beginning date shall not be more than five (5) years from the date the producer begins manufacturing or producing alternative energy. For the year in which the beginning date occurs, the number of new full-time jobs shall be determined by using the monthly average number of full-time employees subject to the Mississippi income tax withholding. Thereafter, the number of new full-time jobs shall be determined by comparing the monthly average number of full-time employees subject to the Mississippi income tax withholding for the taxable year with the corresponding period of the prior taxable year. Once a producer creates twenty-five (25) or more new full-time employee jobs, the producer shall be eligible for the credit; however, if the producer is located in an area that has been declared by the Governor to be a disaster area and as a direct result of the disaster the producer is unable to maintain the required number of employees, the commissioner may waive the employment requirement for a period of time not to exceed two (2) years. The credit is not allowed for any year of the twenty-year period in which the overall monthly average number of full-time employees subject to the Mississippi income tax withholding falls below twenty-five (25). The State Tax Commission shall adjust the credit allowed each year for the net new employment fluctuations above twenty-five (25).
  2. Any tax credit claimed under this section but not used in any taxable year may be carried forward for five (5) consecutive years from the close of the tax year in which the credits were earned; however, if the producer is located in an area that has been declared by the Governor to be a disaster area and as a direct result of the disaster the producer is unable to use the existing carryforward, the commissioner may extend the period that the credit may be carried forward for a period of time not to exceed two (2) years. The credit that may be utilized each year shall be limited to an amount not greater than the total state income tax liability of the producer that is generated by, or arises out of, the alternative energy project.
  3. The tax credits provided for in this section shall be in lieu of the tax credits provided for in Section 57-73-21 and any producer utilizing the tax credit authorized in this section shall not utilize the tax credit authorized in Section 57-73-21.

HISTORY: Laws, 2005, 3rd Ex Sess, ch. 1, § 57; Laws, 2007, ch. 446, § 1, eff from and after July 1, 2007.

Amendment Notes —

The 2007 amendment, in (1), added “however, if the producer . . . not more than two (2) years” at the end of the first sentence and “however, if the producer . . . not to exceed two (2) years” at the end of the fifth sentence; added “however, if the producer . . . not to exceed two (2) years” at the end of the first sentence of (2); and made minor stylistic changes.

Cross References —

State Tax Commission as meaning Department of Revenue, see § 27-7-3.

Business or other entity convicted of intentionally hiring illegal immigrants is ineligible to receive any form of assistance made available under Sections 1 through 57 of Chapter 1, Laws of 2005, 3rd Ex. Sess., see §57-1-371.

§ 27-7-22.30. Manufacturing investment tax credit for manufacturing enterprises that have operated in Mississippi for not less than two years.

  1. As used in this section:
    1. “Manufacturing enterprise” means an enterprise that:
      1. Falls within the definition of the term “manufacturer” in Section 27-65-11; and
      2. Has operated in this state for not less than two (2) years prior to application for the credit authorized by this section; and
    2. “Eligible investment” means an investment of at least One Million Dollars ($1,000,000.00) in buildings and/or equipment for the manufacturing enterprise.
  2. A manufacturing enterprise is allowed a manufacturing investment tax credit for taxes imposed by Section 27-7-5 equal to five percent (5%) of the eligible investments made by the manufacturing enterprise.
  3. Any tax credit claimed under this section but not used in any taxable year may be carried forward for five (5) years from the close of the tax year in which the eligible investment was made, but the credit established by this section taken in any one tax year shall not exceed fifty percent (50%) of the taxpayer’s state income tax liability which is attributable to income derived from operations in the state for that year reduced by the sum of all other income tax credits allowable to the taxpayer, except credit for tax payments made by or on behalf of the taxpayer.
  4. The maximum credit that may be claimed by a taxpayer on any project shall be limited to One Million Dollars ($1,000,000.00).
  5. The credit received under this section is subject to recapture if the property for which the tax credit was received is disposed of, or converted to, other than business use. The amount of the credit subject to recapture is one hundred percent (100%) of the credit in the first year and fifty percent (50%) of the credit in the second year. This subsection shall not apply in cases in which an entire facility is sold.
  6. The sale, merger, acquisition, reorganization, bankruptcy or relocation from one (1) county to another county within the state of any manufacturing enterprise may not create new eligibility in any succeeding business entity, but any unused manufacturing investment tax credit may be transferred and continued by any transferee of the enterprise. The State Tax Commission shall determine whether or not qualifying net increases or decreases have occurred or proper transfers of credit have been made and may require reports, promulgate regulations, and hold hearings as needed for substantiation and qualification.
  7. No manufacturing enterprise for the transportation, handling, storage, processing or disposal of hazardous waste is eligible to receive the tax credits provided in this section.
  8. The credits allowed under this section shall not be used by any business enterprise or corporation other than the manufacturing enterprise actually qualifying for the credits.

HISTORY: Laws, 2005, 3rd Ex Sess, ch. 1, § 61, eff from and after July 1, 2005.

Cross References —

State Tax Commission as meaning Department of Revenue, see § 27-7-3.

§ 27-7-22.31. Income tax credit for certain costs and expenses in rehabilitating eligible property certified as a historic structure or structure in a certified historic district; recapture of credit; applicability of section.

  1. As used in this section:
    1. “Certified historic structure” means a property located in Mississippi that has been:
      1. Listed individually on the National Register of Historic Places; or
      2. Determined eligible for the National Register of Historic Places by the Secretary of the United States Department of the Interior and will be listed within thirty (30) months of claiming the credit authorized by this section; or
      3. Property designated a Mississippi Landmark by the Department of Archives and History pursuant to Section 39-7-3 et seq.
    2. “Eligible property” means property located in Mississippi and offered or used for residential or business purposes; however, the term “eligible property” shall not include a single-family dwelling unless:
      1. A certificate evidencing the eligible credit has been issued to the taxpayer by the department prior to July 1, 2016, that applies to such dwelling; or
      2. The dwelling is designated as a National Historic Landmark under the National Historic Landmarks Program.
    3. “Structure in a certified historic district” means a structure (and its structural components) located in Mississippi which:
      1. Is listed in the National Register of Historic Places; or
      2. Has been determined eligible for the National Register of Historic Places by the Secretary of the United States Department of the Interior and will be listed within thirty (30) months of claiming the credit authorized by this section; or
      3. Is located in a registered historic district listed on the National Register of Historic Places or located in a potential district that has been determined eligible for the National Register of Historic Places by the Secretary of the United States Department of the Interior and will be listed within thirty (30) months of claiming the credit authorized by this section, and is certified by the Secretary of the United States Department of the Interior as being of historic significance to the district; or
      4. Is certified by the Mississippi Department of Archives and History as contributing to the historic significance of:

      1. A certified historic district listed on the National Register of Historic Places; or

      2. A potential district that has been determined eligible for the National Register of Historic Places by the Secretary of the United States Department of the Interior and will be listed within thirty (30) months of claiming the credit authorized by this section; or

      3. A local district that has been certified by the United States Department of the Interior.

    4. “Department” means the Department of Archives and History.
  2. Any taxpayer incurring costs and expenses for the rehabilitation of eligible property, which is a certified historic structure or a structure in a certified historic district, shall be entitled to a credit against the taxes imposed pursuant to this chapter in an amount equal to twenty-five percent (25%) of the total costs and expenses of rehabilitation incurred after January 1, 2006, which shall include, but not be limited to, qualified rehabilitation expenditures as defined under Section 47(c)(2)(A) of the Internal Revenue Code of 1986, as amended, and the related regulations thereunder:
    1. If the costs and expenses associated with rehabilitation exceed:
      1. Five Thousand Dollars ($5,000.00) in the case of an owner-occupied dwelling; or
      2. Fifty percent (50%) of the total basis in the property in the case of all other properties; and
    2. The rehabilitation is consistent with the standards of the Secretary of the United States Department of the Interior as determined by the department.
  3. Any taxpayer eligible for the credit authorized by this section may claim the credit in phases if:
    1. There is a written set of architectural plans and specifications for all phases of the rehabilitation (written plans outlining and describing all phases of the rehabilitation shall be accepted as written plans and specifications);
    2. The written set of architectural plans and specifications are completed before the physical work on the rehabilitation begins; and
    3. It can reasonably be expected that all phases of the rehabilitation will be completed.
    1. (i) If the amount of the tax credit established by this section exceeds the total state income tax liability for the year in which the rehabilitated property is placed in service, the amount that exceeds the total state income tax liability may be carried forward for the ten (10) succeeding tax years.
      1. If the amount of the tax credit established by this section exceeds Two Hundred Fifty Thousand Dollars ($250,000.00), the taxpayer may elect to claim a refund in the amount of seventy-five percent (75%) of the excess credit in lieu of the ten-year carryforward. The election must be made in the year in which the rehabilitated property is placed in service. Refunds will be paid in equal installments over a two-year period and shall be made from current collections.
      2. Refund requests shall be submitted to the Department of Revenue on forms prescribed by the department. Refunds shall be made from current tax collections.
    2. Not-for-profit entities, including, but not limited to, nonprofit corporations organized under Section 79-11-101 et seq. shall be ineligible for the credit authorized by this section. Credits granted to a partnership, a limited liability company taxed as a partnership or multiple owners of property shall be passed through to the partners, members or owners on a pro rata basis or pursuant to an executed agreement among the partners, members or owners documenting an alternative distribution method. Partners, members or other owners of a pass-through entity are not eligible to elect a refund of excess credit in lieu of a carryforward of the credit. However, a partnership or limited liability company taxed as a partnership may elect to claim a refund of excess credit at the entity level on a form prescribed by the Department of Revenue. Additionally, excess tax credits that are attributable to rehabilitated property that was placed in service by a pass-through entity prior to January 1, 2011, and that have previously been allocated to and are held by another pass-through entity prior to January 1, 2011, may be refunded to such other pass-through entity.
    1. To claim the credit authorized pursuant to this section, the taxpayer shall apply to the department which shall determine the amount of eligible rehabilitation costs and expenses and whether the rehabilitation is consistent with the standards of the Secretary of the United States Department of the Interior. The department shall issue a certificate evidencing the eligible credit if the taxpayer is found to be eligible for the tax credit. The taxpayer shall attach the certificate to all income tax returns on which the credit is claimed. The department shall not issue certificates evidencing the eligible credit which, when combined with certificates of eligible credits issued prior to July 1, 2016, will result in credits being awarded in excess of Twelve Million Dollars ($12,000,000.00) in any one (1) state fiscal year.
    2. The aggregate amount of tax credits that may be awarded under this section shall not exceed One Hundred Twenty Million Dollars ($120,000,000.00) and not more than Twelve Million Dollars ($12,000,000.00) may be awarded in any one (1) state fiscal year. A taxpayer who was issued a certificate evidencing the eligible credit by the department prior to July 1, 2016, but who was unable to be awarded the credit due to the limit on the aggregate amount of credits authorized under this section prior to July 1, 2016:
      1. May be awarded the credit so long as the award does not cause the aggregate amount of tax credits awarded to exceed the amounts authorized in this paragraph; and
      2. Shall be given priority for tax credits awarded after July 1, 2016.
    1. The credit received by a taxpayer pursuant to this section is subject to recapture if:
      1. The property is one that has been determined eligible for the National Register of Historic Places but is not listed on the National Register of Historic Places within thirty (30) months of claiming the credit authorized by this section;
      2. The potential district in which the property is located is not listed on the National Register of Historic Places within thirty (30) months of claiming the credit authorized by this section; or
      3. The rehabilitation of the property for which the credit was granted is abandoned.
    2. The taxpayer shall notify the department and the Department of Revenue if any of the situations that subject the credit to recapture occur.
    1. The board of trustees of the department shall establish fees to be charged for the services performed by the department under this section and shall publish the fee schedule. The fees contained in the schedule shall be in amounts reasonably calculated to recover the costs incurred by the department for the administration of this section. Any taxpayer desiring to participate in the tax credits authorized by this section shall pay the appropriate fee as contained in the fee schedule to the department, which shall be used by the department, without appropriation, to offset the administrative costs of the department associated with its duties under this section.
    2. There is hereby created within the State Treasury a special fund into which shall be deposited all the fees collected by the department pursuant to this section. Money deposited into the fund shall not lapse at the end of any fiscal year and investment earnings on the proceeds in such special fund shall be deposited into such fund. Money from the fund shall be disbursed upon warrants issued by the State Fiscal Officer upon requisitions signed by the executive director of the department to assist the department in carrying out its duties under this section.
  4. This section shall only apply to taxpayers:
    1. Who have been issued a certificate evidencing the eligible credit before December 31, 2020; or
    2. Who, before December 31, 2020, have received a determination in writing from the Mississippi Department of Archives and History, in accordance with the department’s Historic Preservation Certificate Application, Part 2, that the rehabilitation is consistent with the historic character of the property and that the property meets the United States Secretary of the Interior’s Standards for Rehabilitation, or will meet the standards if certain specified conditions are met, and, who are issued a certificate evidencing the eligible credit on or after December 31, 2020.

HISTORY: Laws, 2006, ch. 420, § 1; Laws, 2011, ch. 302, § 1; Laws, 2011, ch. 477, § 1; Laws, 2013, ch. 504, § 1; Laws, 2014, ch. 530, § 38; Laws, 2016, ch. 483, § 1, eff from and after July 1, 2016.

Joint Legislative Committee Note —

Section 1 of ch. 302, Laws of 2011, effective from and after passage (approved on February 1, 2011), amended this section. Section 1 of ch. 477, Laws of 2011, effective from and after January 1, 2011 (approved March 30, 2011) also amended this section. As set out above, this section reflects the language of Section 1 of ch. 477, Laws of 2011, as consistent with the intent of the Legislature that the substantive amendments to the section contained in ch. 477 control over the amendment by ch. 302, which was passed to extend the automatic repeal date for the section.

Editor’s Notes —

Laws of 2014, § 530, § 47, provides:

“SECTION 47. Section 46 of this act shall take effect and be in force from and after January 1, 2014, Section 39 of this act shall take effect and be in force from and after its passage [April 24, 2014], and the remainder of this act shall take effect and be in force from and after July 1, 2014.”

Amendment Notes —

The first 2011 amendment (ch. 302), substituted “December 31, 2013” for “December 31, 2011” at the end of (6).

The second 2011 amendment (ch. 477), added (3)(a)(ii) and (iii); added the last three sentences in (3)(b); added (4)(b); deleted former (6), which was a repealer for the section, effective December 31, 2011; and added (6).

The 2013 amendment in (1), divided the former (a) into (a)(i) and (iii) and added (ii), substituted “that has been” for “and” at the end of (a), added (c)(ii), and redesignated former (c)(ii) and (iii) as (c)(iii) and (iv), in (c)(iii), inserted “or located in a potential...credit authorized by this section,” and divided the former (c)(iii) into (c)(iv)1 and 3 and added (c)(iv)2; added (3), redesignated former (3) and (4) as (4) and (5), added (6) and redesignated former (5) and (6) as (7) and (8); and made minor stylistic changes.

The 2014 amendment substituted “2017” for “2014” in (8)(a) and twice in (8)(b).

The 2016 amendment, in (1)(b), added “however…dwelling unless” at the end of the introductory paragraph, and added (i) and (ii); in (5), added the last sentence in (a), rewrote (b), which read: “The aggregate amount of tax credits that may be awarded under this section shall not exceed Sixty Million Dollars ($60,000,000.00),” and added (b)(i) and (ii); and substituted “December 31, 2020” for “December 31, 2017” throughout (8).

Federal Aspects—

Section 47(c)(2)(A) of the Internal Revenue Code of 1986, referred to in (2), is codified at 26 U.S.C.S. § 47(c)(2)(A).

§ 27-7-22.32. Income tax credit for certain qualified adoption expenses.

[Through December 31, 2020, this section shall read as follows:]

    1. There shall be allowed as a credit against the tax imposed by this chapter the amount of the qualified adoption expenses paid or incurred, not to exceed Two Thousand Five Hundred Dollars ($2,500.00), for each dependent child legally adopted by a taxpayer under the laws of this state during calendar year 2006 or during any calendar year thereafter through calendar year 2017, and not to exceed Five Thousand Dollars ($5,000.00) for each dependent child legally adopted by a taxpayer under the laws of this state during any calendar year thereafter. A taxpayer claiming a credit under this paragraph (a) may not claim a credit under paragraph (b) of this subsection for the adoption of the same child.
    2. There shall be allowed as a credit against the tax imposed by this chapter the amount of Five Thousand Dollars ($5,000.00) for each dependent child legally adopted by a taxpayer under the laws of this state through the Mississippi Department of Child Protection Services during calendar year 2018 or during any calendar year thereafter. A taxpayer claiming a credit under this paragraph (b) may not claim a credit under paragraph (a) of this subsection for the adoption of the same child.
  1. The tax credit under this section may be claimed for the taxable year in which the adoption becomes final under the laws of this state. Any tax credit claimed under this section but not used in any taxable year may be carried forward for the five (5) succeeding tax years. A tax credit is allowed under this section for any child for which an exemption is claimed during the same taxable year under Section 27-7-21(e). For the purposes of this section, the term “qualified adoption expenses” means and has the same definition as that term has in 26 USCS 36C.

HISTORY: Laws, 2006, ch. 518, § 1; Laws, 2013, ch. 449, § 1, eff from and after Jan. 1, 2013; Laws, 2018, ch. 437, § 2, eff from and after January 1, 2018, eff from and after January 1, 2018; Laws, 2019, ch. 484, § 4, eff from and after January 1, 2019.

Joint Legislative Committee Note —

Pursuant to Section 1-1-109, the Joint Legislative Committee on Compilation, Revision and Publication of Legislation corrected a typographical error in a statutory reference in the last sentence of the section. The reference to “ 26 USCS 23” was changed to “ 26 USCS Section 36C.” The Joint Committee ratified the correction at its August 16, 2012, meeting.

Editor's Notes —

Laws of 2006, ch. 518, § 2, effective January 1, 2006, provides as follows:

“SECTION 2. Section 1 of this act shall be codified in Chapter 7 of Title 27, Mississippi Code of 1972.”

Laws of 2018, ch. 437, §§ 3 and 4, effective January 1, 2018, provide:

“SECTION 4. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the income tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.”

Laws of 2019, ch. 484, § 1, effective January 1, 2019, provides as follows:

“SECTION 1. This act shall be known and may be cited as the Children's Promise Act.”

Laws of 2019, ch. 484, § 6, effective January 1, 2019, provides as follows:

“SECTION 6. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax laws or insurance premium tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the income tax laws and insurance premium tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.”

Amendment Notes —

The 2013 amendment deleted “not” preceding “allowed under this section for any child” in the next-to-last sentence.

The 2018 amendment, effective January 1, 2018, in the first version, substituted “December 31, 2019” for “December 31, 2018” in the bracketed effective date language, divided the formerly undesignated section into (1) and (2) by designating the former first sentence of the section as the first sentence of (1)(a) and designating the remaining sentences in the former section as (2), in (1)(a), added “through calendar year 2017…this state during any calendar year thereafter” to the end of the first sentence, and added the last sentence, added (1)(b), and substituted “five (5) succeeding tax years” for “three (3) succeeding tax years” in (2); and in the second version, substituted “January 1, 2020” for “January 1, 2019” in the bracketed effective date language.

The 2019 amendment, effective January 1, 2019, substituted “December 31, 2020” for “December 31, 2019” in the bracketed language preceding the first version; and substituted “January 1, 2021” for “January 1, 2020” in the bracketed language preceding the second version.

§ 27-7-22.32. Income tax credit for certain qualified adoption expenses.

[Effective from and after January 1, 2021, this section shall read as follows:]

There shall be allowed as a credit against the tax imposed by this chapter the amount of the qualified adoption expenses paid or incurred, not to exceed Two Thousand Five Hundred Dollars ($2,500.00), for each dependent child legally adopted by a taxpayer under the laws of this state during calendar year 2006 or during any calendar year thereafter. The tax credit under this section may be claimed for the taxable year in which the adoption becomes final under the laws of this state. Any tax credit claimed under this section but not used in any taxable year may be carried forward for the three (3) succeeding tax years. A tax credit is allowed under this section for any child for which an exemption is claimed during the same taxable year under Section 27-7-21(e). For the purposes of this section, the term “qualified adoption expenses” means and has the same definition as that term has in 26 USCS 36C.

HISTORY: Laws, 2006, ch. 518, § 1; Laws, 2013, ch. 449, § 1, eff from and after Jan. 1, 2013; Laws, 2018, ch. 437, § 2, eff from and after January 1, 2018, eff from and after January 1, 2018; Laws, 2019, ch. 484, § 4, eff from and after January 1, 2019; Laws, 2018, ch. 437, § 2, eff from and after January 1, 2020.

§ 27-7-22.33. Income tax credit for certain long-term care insurance policy premiums; limitations.

  1. A taxpayer shall be allowed a credit against the income taxes imposed under this chapter in an amount equal to twenty-five percent (25%) of the premium costs paid during the taxable year for a qualified long-term care insurance policy as defined in Section 7702B of the Internal Revenue Code that offers coverage to either the individual, the individual’s spouse, the individual’s parent or parent-in-law, or the individual’s dependent as defined in Section 152 of the Internal Revenue Code.
  2. No taxpayer shall be entitled to the credit with respect to the same expended amounts for qualified long-term care insurance which are claimed by another taxpayer.
  3. The credit allowed by this section shall not exceed Five Hundred Dollars ($500.00) or the taxpayer’s income tax liability, whichever is less, for each qualified long-term care insurance policy. Any unused tax credit shall not be allowed to be carried forward to apply to the taxpayer’s succeeding year’s tax liability.
  4. No credit shall be allowed under this section with respect to any premium for qualified long-term care insurance either deducted or subtracted by the taxpayer in arriving at his net taxable income under this section or with respect to any premiums for qualified long-term care insurance which were excluded from his net taxable income.

HISTORY: Laws, 2007, ch. 357, § 1, eff from and after Jan. 1, 2007.

Editor’s Notes —

Laws of 2007, ch. 357, § 2, effective January 1, 2007, provides:

“SECTION 2. Section 1 of this act shall be codified in Chapter 7, Title 27, Mississippi Code of 1972.”

Federal Aspects—

Sections 7702B and 152 of the Internal Revenue Code, see 26 USCS §§ 7702B and 152, respectively.

§ 27-7-22.34. Qualified business or industry allowed job tax credit for certain new full-time employee jobs; duration of credits; requirements; carrying forward credit.

  1. As used in this section, “qualified business or industry” means any company that has been certified by the Mississippi Major Economic Impact Authority as a project as defined in Section 57-75-5(f)(xxii).
  2. A qualified business or industry shall be allowed a job tax credit for taxes imposed by Section 27-7-5 equal to Five Thousand Dollars ($5,000.00) annually for each net new full-time employee job for a period of twenty (20) years from the date the credit commences; however, if the qualified business or industry is located in an area that has been declared by the Governor to be a disaster area and as a direct result of the disaster the business or industry is unable to maintain the required number of employees, the commissioner may extend this time period for not more than two (2) years. The credit shall commence on the date selected by the business or industry; however, the commencement date shall not be more than six (6) years from the date the business or industry commences commercial production. For the year in which the commencement date occurs, the number of new full-time jobs shall be determined by using the monthly average number of full-time employees subject to the Mississippi income tax withholding. Thereafter, the number of new full-time jobs shall be determined by comparing the monthly average number of full-time employees subject to the Mississippi income tax withholding for the taxable year with the corresponding period of the prior taxable year. Once a qualified business or industry creates or increases employment by five hundred (500) or more, such business or industry shall be eligible for the credit. The credit is not allowed for any year of the twenty-year period in which the overall monthly average number of full-time employees subject to the Mississippi income tax withholding falls below five hundred (500); however, if the qualified business or industry is located in an area that has been declared by the Governor to be a disaster area and as a direct result of the disaster the business or industry is unable to maintain the required number of employees, the commissioner may waive the employment requirement for a period of time not to exceed two (2) years. The State Tax Commission shall adjust the credit allowed each year for the net new employment fluctuations above five hundred (500).
  3. Any tax credit claimed under this section but not used in any taxable year may be carried forward for five (5) consecutive years from the close of the tax year in which the credits were earned; however, if the qualified business or industry is located in an area that has been declared by the Governor to be a disaster area and as a direct result of the disaster the business or industry is unable to use the existing carryforward, the commissioner may extend the period that the credit may be carried forward for a period of time not to exceed two (2) years. The credit that may be utilized each year shall be limited to an amount not greater than the total state income tax liability of the qualified business or industry that is generated by, or arises out of, the project.
  4. The tax credits provided for in this section shall be in lieu of the tax credits provided for in Section 57-73-21 and any qualified business or industry utilizing the tax credit authorized in this section shall not utilize the tax credit authorized in Section 57-73-21.

HISTORY: Laws, 2007, 1st Ex Sess, ch. 1, § 10, eff from and after passage (approved May 11, 2007.).

Editor’s Notes —

Laws of 2007, 1st Ex Sess, ch. 1, § 11, effective May 11, 2007, provides as follows:

“SECTION 11. Section 12 of this act shall be codified in Chapter 7, Title 27, Mississippi Code of 1972.”

§ 27-7-22.35. Investment tax credit for enterprises owning or operating certain electric and thermal energy producing facilities.

  1. As used in this section:
    1. “Eligible facility” means and includes a new facility that creates at least twenty (20) full-time jobs with a minimum capital investment from private sources of Fifty Million Dollars ($50,000,000.00), that:
      1. Consists of all components necessary for the production of electric energy from the direct firing or co-firing of biomass or waste heat recovery, and if applicable, other energy sources;
      2. Produces both electric energy and useful thermal energy, such as heat or steam, through the sequential use of energy (cogeneration); and
      3. Consists of all components necessary for the production of synfuel.

      An eligible facility includes all burners and boilers, any handling and delivery equipment that supplies fuel directly to and is integrated with such burners and boilers, steam headers, turbines, generators, property used for the collection, processing or storage of biomass or synfuel, transformers, pipelines and all other property used in the transmission of electricity or synfuel and related depreciable property.

    2. “Biomass” means and includes any of the following:
      1. Forest-related mill residues, pulping by-product and other by-products of wood processing, thinnings, slash, limbs, bark, brush and other cellulosic plant material or nonmerchantable forest-related products;
      2. Solid wood waste materials, including dunnage, manufacturing and construction wood wastes, demolition and storm debris and landscape or right-of-way trimmings;
      3. Agriculture wastes, including orchard tree crops, vineyard, grain, legumes, sugar and other crop by-products or residues and livestock waste nutrients;
      4. All plant and grass material that is grown exclusively as a fuel for the production of electricity;
      5. Refuse derived fuels consisting of organic components and fibers of waste water treatment solids; or
      6. Whole trees.
    3. “Synfuel” means any liquid or gaseous fuel obtained from biomass.
    4. “Waste heat recovery” means systems that produce electricity from currently unused waste heat resulting from combustion or other processes and which do not use an additional combustion process. The term does not include any system whose primary purpose is the generation of electricity.
  2. An enterprise owning or operating an eligible facility is allowed an annual investment tax credit for taxes imposed by Section 27-7-5 equal to five percent (5%) of investments made by the enterprise in the initial establishment of an eligible facility. The credit shall commence on the date selected by the enterprise; provided, however, that the commencement date shall not be more than two (2) years from the date the eligible facility becomes fully operational.
  3. Any tax credit claimed under this section but not used in any taxable year may be carried forward for five (5) consecutive years from the close of the tax year in which the credits were earned. The credit that may be utilized in any one (1) tax year shall be limited to an amount not greater than fifty percent (50%) of the total state income tax liability of the enterprise for that year that is generated by, or arises out of, the eligible facility.

HISTORY: Laws, 2009, ch. 512, § 1, eff from and after passage (approved Apr. 7, 2009.).

§ 27-7-22.36. Job tax credit for enterprises owning or operating an upholstered household furniture manufacturing facility for each full-time employee employed in new cut and sew job [Repealed effective January 1, 2022].

  1. As used in this section:
    1. “Full-time employee” means an employee that works at least thirty-five (35) hours per week.
    2. “New cut and sew job” means a job in which the employee cuts and sews upholstery for upholstered household furniture and which job did not exist in this state before January 1, 2010.
  2. Any enterprise owning or operating an upholstered household furniture manufacturing facility is allowed a job tax credit for taxes imposed by this chapter equal to Two Thousand Dollars ($2,000.00) annually for each full-time employee employed in a new cut and sew job for a period of five (5) years from the date the credit commences. The credit shall commence on the date selected by the enterprise. For the year in which the commencement date occurs, the credit will be determined based on the monthly average number of full-time employees employed in new cut and sew jobs subject to the Mississippi income tax withholding that are employed by the enterprise. For each year thereafter, the number of new cut and sew jobs shall be determined by comparing the monthly average number of full-time employees employed in new cut and sew jobs subject to the Mississippi income tax withholding for the taxable year with the corresponding period of the prior taxable year. The Department of Revenue shall verify that the jobs claimed by enterprises to obtain the credit meet the definition of the term “new cut and sew job.” The Department of Revenue shall adjust the credit allowed each year for employment fluctuations.
  3. The credit that may be used each year shall be limited to an amount not greater than the total state income tax liability of the enterprise. Any tax credit claimed under this section but not used in any taxable year may be carried forward for five (5) consecutive years from the close of the tax year in which the credits were earned.
  4. The tax credits provided for in this section shall be in lieu of the tax credits provided for in Section 57-73-21 and any enterprise using the tax credit authorized in this section shall not use the tax credit authorized in Section 57-73-21.
  5. Any taxpayer who is eligible for the credit authorized in this section prior to January 1, 2022, shall be eligible for the credit authorized in this section, notwithstanding the repeal of this section, and shall be allowed to carry forward the credit after January 1, 2022, as provided for in subsection (3) of this section.
  6. This section shall be repealed from and after January 1, 2022.

HISTORY: Laws, 2010, ch. 432, § 1; Laws, 2012, ch. 378, § 1; Laws, 2016, ch. 378, § 1, eff from and after Jan. 1, 2016; Laws, 2019, ch. 334, § 1, eff from and after January 1, 2019.

Joint Legislative Committee Note —

Pursuant to Section 1-1-109, the Joint Legislative Committee on Compilation, Revision and Publication of Legislation corrected an error in the last sentence of subsection (2) by substituting “Department of Revenue” for “State Tax Commission.” The Joint Committee ratified the correction at its August 1, 2013, meeting.

Editor’s Notes —

Laws of 2010, ch. 432, § 2, effective January 1, 2010, provides:

“SECTION 2. Section 1 of this act shall be codified in Chapter 7, Title 27, Mississippi Code of 1972.”

Amendment Notes —

The 2012 amendment substituted “Department of Revenue” for “State Tax Commission” in the next-to-last sentence in (2); and extended the date of the repealer provision in (6) from “July 1, 2013” to “July 1, 2016” in (6).

The 2016 amendment, effective January 1, 2016, substituted “January 1, 2019” for “January 1, 2016” twice in (5) and once in (6).

The 2019 amendment, effective January 1, 2019, substituted “January 1, 2022” for “January 1, 2019” both times it appears in (5); and extended the date of the repealer for the section by substituting “January 1, 2022” for “January 1, 2019” in (6).

§ 27-7-22.37. Income tax credit for qualified prekindergarten program support contributions.

  1. There shall be allowed as a credit against the tax imposed by Section 27-7-5 the amount of the qualified prekindergarten program support contributions paid to approved providers, lead partners or collaboratives, not to exceed One Million Dollars ($1,000,000.00), by any individual, corporation or other entity having taxable income under the laws of this state during calendar year 2013 or during any calendar year thereafter. In order to qualify for a tax credit, such contributions may support the local match requirement of approved providers, lead partners or collaboratives as is necessary to match state-appropriated funds, and any such providers, lead partners or collaboratives shall be approved by the State Department of Education.
  2. Any unused portion of the credit may be carried forward for three (3) tax years.
  3. Any prekindergarten program support contribution shall be verified by submission to the Mississippi Department of Revenue of a copy of the receipt provided to the donor taxpayer by the prekindergarten program recipient or such other written verification as may be required by the Department of Revenue.
  4. The maximum amount of donations accepted by the Department of Revenue in calendar year 2014 shall not exceed Eight Million Dollars ($8,000,000.00), in calendar year 2015 shall not exceed Fifteen Million Dollars ($15,000,000.00), and in calendar year 2016 and calendar years thereafter shall not exceed Thirty-two Million Dollars ($32,000,000.00), or what is appropriated by the Legislature to fund Chapter 493, Laws of 2013, each year.
  5. The Mississippi Department of Revenue shall promulgate rules necessary to effectuate the purposes of Chapter 493, Laws of 2013. Such rules shall include a means of informing the public of the existence of the prekindergarten support program and the application process for provider, lead partner and collaborative candidates.

HISTORY: Laws, 2013, ch. 493, § 6, eff from and after July 1, 2013.

Editor’s Notes —

Chapter 493, Laws of 2013, referred to in subsections (4) and (5), also amended Sections 37-7-301, 37-21-3, 37-21-5, 37-21-51 and 37-21-53 and repealed Section 37-21-55.

§ 27-7-22.38. Repealed.

Repealed by its own terms, effective January 1, 2018.Laws, 2015, ch. 449, § 1, eff from and after Jan. 1, 2016.

§27-7-22.38. []

Editor's Notes —

Former §27-7-22.38 provided an income tax credit for taxpayers employing certain honorably discharged veterans.

§ 27-7-22.39. Income tax credit for voluntary cash contributions to qualifying charitable organizations; separate income tax credit for voluntary cash contributions to qualifying foster care charitable organizations [Repealed effective January 1, 2021].

  1. As used in this section:
    1. “Low-income residents” means persons whose household income is less than one hundred fifty percent (150%) of the federal poverty level.
    2. “Qualifying charitable organization” means a charitable organization that is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code or is a designated community action agency that receives community services block grant program monies pursuant to 42 USC 9901. The organization must spend at least fifty percent (50%) of its budget on services to residents of this state who receive temporary assistance for needy families benefits or low-income residents of this state and their households or to children who have a chronic illness or physical, intellectual, developmental or emotional disability who are residents of this state. A charitable organization that is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code and that meets all other requirements of this paragraph except that it does not spend at least fifty percent (50%) of its overall budget in Mississippi may be a qualifying charitable organization if it spends at least fifty percent (50%) of its Mississippi budget on services to qualified individuals in Mississippi and it certifies to the department that one hundred percent (100%) of the voluntary cash contributions from the taxpayer will be spent on services to qualified individuals in Mississippi. Taxpayers choosing to make donations through an umbrella charitable organization that collects donations on behalf of member charities shall designate that the donation be directed to a member charitable organization that would qualify under this section on a stand-alone basis. Qualifying charitable organization does not include any entity that provides, pays for or provides coverage of abortions or that financially supports any other entity that provides, pays for or provides coverage of abortions.
    3. “Qualifying foster care charitable organization” means a qualifying charitable organization that each operating year provides services to at least one hundred (100) qualified individuals in this state and spends at least fifty percent (50%) of its budget on services to qualified individuals in this state. A charitable organization that is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code and that meets all other requirements of this paragraph except that it does not spend at least fifty percent (50%) of its overall budget in Mississippi may be a qualifying foster care charitable organization if it spends at least fifty percent (50%) of its Mississippi budget on services to qualified individuals in Mississippi and it certifies to the department that one hundred percent (100%) of the voluntary cash contributions from the taxpayer will be spent on services to qualified individuals in Mississippi. For the purposes of this paragraph, “qualified individual” means a child in a foster care placement program established by the Department of Child Protection Services, a child placed under the Safe Families for Children model, or a child at significant risk of entering a foster care placement program established by the Department of Child Protection Services.
    4. “Services” means:
      1. Cash assistance, medical care, child care, food, clothing, shelter, and job-placement services or any other assistance that is reasonably necessary to meet immediate basic needs and that is provided and used in this state;
      2. Job-training or education services or funding for parents, foster parents or guardians; or
      3. Job-training or education services or funding provided as part of a foster care independent living program.
  2. Except as provided in subsections (3) and (4) of this section, a credit is allowed against the taxes imposed by this chapter for voluntary cash contributions by the taxpayer during the taxable year to a qualifying charitable organization, other than a qualifying foster care charitable organization, not to exceed:
    1. The lesser of Four Hundred Dollars ($400.00) or the amount of the contribution in any taxable year for a single individual or a head of household.
    2. The lesser of Eight Hundred Dollars ($800.00) or the amount of the contribution in any taxable year for a married couple filing a joint return.
  3. A separate credit is allowed against the taxes imposed by this chapter for voluntary cash contributions during the taxable year to a qualifying foster care charitable organization. A contribution to a qualifying foster care charitable organization does not qualify for, and shall not be included in, any credit amount under subsection (2) of this section. If the voluntary cash contribution by the taxpayer is to a qualifying foster care charitable organization, the credit shall not exceed:
    1. The lesser of Five Hundred Dollars ($500.00) or the amount of the contribution in any taxable year for a single individual or a head of household.
    2. The lesser of One Thousand Dollars ($1,000.00) or the amount of the contribution in any taxable year for a married couple filing a joint return.
  4. Subsections (2) and (3) of this section provide separate credits against taxes imposed by this chapter depending on the recipients of the contributions. A taxpayer, including a married couple filing a joint return, in the same taxable year, may either or both:
    1. Contribute to a qualifying charitable organization, other than a qualifying foster care charitable organization, and claim a credit under subsection (2) of this section.
    2. Contribute to a qualifying foster care charitable organization and claim a credit under subsection (3) of this section.
  5. A husband and wife who file separate returns for a taxable year in which they could have filed a joint return may each claim only one-half (1/2) of the tax credit that would have been allowed for a joint return.
  6. If the allowable tax credit exceeds the taxes otherwise due under this chapter on the claimant’s income, or if there are no taxes due under this chapter, the taxpayer may carry forward the amount of the claim not used to offset the taxes under this chapter for not more than five (5) consecutive taxable years’ income tax liability.
  7. The credit allowed by this section is in lieu of a deduction pursuant to Section 170 of the Internal Revenue Code and taken for state tax purposes.
  8. Taxpayers taking a credit authorized by this section shall provide the name of the qualifying charitable organization and the amount of the contribution to the department on forms provided by the department.
  9. A qualifying charitable organization shall provide the department with a written certification that it meets all criteria to be considered a qualifying charitable organization. The organization shall also notify the department of any changes that may affect the qualifications under this section.
  10. The charitable organization’s written certification must be signed by an officer of the organization under penalty of perjury. The written certification shall include the following:
    1. Verification of the organization’s status under Section 501(c)(3) of the Internal Revenue Code or verification that the organization is a designated community action agency that receives community services block grant program monies pursuant to 42 USC 9901.
    2. Financial data indicating the organization’s budget for the organization’s prior operating year and the amount of that budget spent on services to residents of this state who either:
      1. Receive temporary assistance for needy families benefits;
      2. Are low-income residents of this state;
      3. Are children who have a chronic illness or physical, intellectual, developmental or emotional disability; or
      4. Are children in a foster care placement program established by the Department of Child Protection Services, children placed under the Safe Families for Children model or children at significant risk of entering a foster care placement program established by the Department of Child Protection Services.
    3. A statement that the organization plans to continue spending at least fifty percent (50%) of its budget on services to residents of this state who receive temporary assistance for needy families benefits, who are low-income residents of this state, who are children who have a chronic illness or physical, intellectual, developmental or emotional disability or who are children in a foster care placement program established by the Department of Child Protection Services, children placed under the Safe Families for Children model or children at significant risk of entering a foster care placement program established by the Department of Child Protection Services. A charitable organization that is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code and that meets all other requirements for a qualifying charitable organization or qualifying foster care charitable organization except that it does not spend at least fifty percent (50%) of its overall budget in Mississippi shall submit a statement that it spends at least fifty percent (50%) of its Mississippi budget on services to qualified individuals in Mississippi and that one hundred percent (100%) of the voluntary cash contributions it receives from Mississippi taxpayers will be spent on services to qualified individuals in Mississippi.
    4. In the case of a foster care charitable organization, a statement that each operating year it provides services to at least one hundred (100) qualified individuals in this state.
    5. A statement that the organization does not provide, pay for or provide coverage of abortions and does not financially support any other entity that provides, pays for or provides coverage of abortions.
    6. Any other information that the department requires to administer this section.
  11. The department shall review each written certification and determine whether the organization meets all the criteria to be considered a qualifying charitable organization and notify the organization of its determination. The department may also periodically request recertification from the organization. The department shall compile and make available to the public a list of the qualifying charitable organizations.
  12. The aggregate amount of tax credits that may be awarded under this section in any calendar year shall not exceed Three Million Dollars ($3,000,000.00).
  13. A taxpayer shall apply for credits with the department on forms prescribed by the department. In the application the taxpayer shall certify to the department the dollar amount of the contributions made or to be made during the calendar year. Within thirty (30) days after the receipt of an application, the department shall allocate credits based on the dollar amount of contributions as certified in the application. However, if the department cannot allocate the full amount of credits certified in the application due to the limit on the aggregate amount of credits that may be awarded under this section in a calendar year, the department shall so notify the applicant within thirty (30) days with the amount of credits, if any, that may be allocated to the applicant in the calendar year. Once the department has allocated credits to a taxpayer, if the contribution for which a credit is allocated has not been made as of the date of the allocation, then the contribution must be made not later than sixty (60) days from the date of the allocation. If the contribution is not made within such time period, the allocation shall be cancelled and returned to the department for reallocation. Upon final documentation of the contributions, if the actual dollar amount of the contributions is lower than the amount estimated, the department shall adjust the tax credit allowed under this section.
  14. This section shall be repealed from and after January 1, 2021.

HISTORY: Laws, 2018, ch. 437, § 1, eff from and after January 1, 2018, eff from and after January 1, 2018; Laws, 2019, ch. 484, § 3, eff from and after January 1, 2019, eff from and after January 1, 2019.

Editor's Notes —

Laws of 2018, ch. 437, §§ 3 and 4, effective January 1, 2018, provides:

“SECTION 3. Section 1 of this act shall be codified as a new section in Chapter 7, Title 27, Mississippi Code of 1972.

“SECTION 4. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the income tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.”

Laws of 2019, ch. 484, § 1, effective January 1, 2019, provides as follows:

“SECTION 1. This act shall be known and may be cited as the Children's Promise Act.”

Laws of 2019, ch. 484, § 6, effective January 1, 2019, provides as follows:

“SECTION 6. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax laws or insurance premium tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the income tax laws and insurance premium tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.”

Former §27-7-22.38 provided an income tax credit for taxpayers employing certain honorably discharged veterans.

This section is set out above to correct an error in the section's history as it appeared in the 2019 Volume 8 Cumulative Supplement.

Amendment Notes —

The 2019 amendment, effective January 1, 2019, substituted “qualified individuals in Mississippi” for “Mississippi residents” in the third sentence of (1)(b), the second sentence of (1)(c), and the last sentence of (10)(c); in (1)(d), deleted “and job-training” following “job-placement” and made related changes in (i) and added (ii) and (iii); in (10), inserted “children placed under the Safe Families for Children model or children at significant risk of entering a foster care placement program established by the Department of Child Protection Services” in (b)(iv) and (c); substituted “Three Million Dollars ($3,000,000.00)” for “One Million Dollars ($1,000,000.00)” in (12); added (13); redesignated former (13) as (14), and therein, extended the date of the repealer for the section by substituting “January 1, 2021” for “January 1, 2020.”

§ 27-7-22.40. Job tax credit for certain full-time jobs created in Mississippi by water transportation enterprises [Repealed effective January 1, 2023].

[ Repealed effective January 1, 2023]

  1. The following words and phrases shall have the meanings ascribed in this section unless the context clearly indicates:
    1. “Water transportation enterprise” means an enterprise or establishment primarily engaged in providing inland water transportation of cargo on lakes, rivers and/or intracoastal waterways, except on the Great Lakes System.
    2. “Mississippi full-time job” means a job created in the State of Mississippi on or after January 1, 2019, and filled by a Mississippi resident who works at least thirty-five (35) hours per week.
  2. Subject to the provisions of this section, any water transportation enterprise is allowed a job tax credit for taxes imposed by this chapter equal to Two Thousand Dollars ($2,000.00) annually for each Mississippi full-time job created for a period of five (5) years from the date the credit commences. A water transportation enterprise may not claim a tax credit for the reemployment of a person whose employment with the enterprise is terminated by the enterprise if the reemployment by the enterprise occurs within twelve (12) months from the date of the termination. The credit shall commence on the date selected by the enterprise. For the year in which the commencement date occurs, the credit will be determined based on the monthly average number of full-time employees employed by the water transportation enterprise in Mississippi full-time jobs subject to the Mississippi income tax withholding. For each year thereafter, the number of Mississippi full-time jobs shall be determined by comparing the monthly average number of full-time employees employed at the water transportation enterprise in Mississippi full-time jobs subject to the Mississippi income tax withholding for the taxable year with the corresponding period of the prior taxable year. The Department of Revenue shall adjust the credit allowed each year for employment fluctuations.
  3. The credit that may be used each year shall be limited to an amount not greater than the total state income tax liability of the water transportation enterprise. Any tax credit claimed under this section but not used in any taxable year may be carried forward for five (5) consecutive years from the close of the tax year in which the credits were earned.
    1. The sale, merger, acquisition, reorganization, bankruptcy or relocation from one (1) county to another county within the state of any water transportation enterprise may not create new eligibility in any succeeding business entity, but any unused job tax credit may be transferred and continued by any transferee of the water transportation enterprise. The Department of Revenue shall determine whether or not qualifying net increases or decreases have occurred or proper transfers of credit have been made and may require reports, promulgate regulations, and hold hearings as needed for substantiation and qualification.
  4. The credits allowed under this section shall not be used by any business enterprise or corporation other than the water transportation enterprise actually qualifying for the credits.
  5. The maximum aggregate amount of tax credits that may be claimed by all taxpayers claiming a credit under this section in a taxable year shall not exceed Two Million Dollars ($2,000,000.00).
  6. Any water transportation enterprise that is eligible for the credit authorized in this section before January 1, 2023, shall be eligible for the credit authorized in this section, notwithstanding the repeal of this section, and shall be allowed to carry forward the credit after January 1, 2023, as provided for in subsection (3) of this section.
  7. This section shall be repealed from and after January 1, 2023.

HISTORY: Laws, 2019, ch. 419, § 1, eff from and after January 1, 2019.

Editor Notes -–

Laws of 2019, ch. 419, § 2, effective January 1, 2019, provides:

“SECTION 2. Section 1 of this act shall be codified as a new section in Chapter 7, Title 27, Mississippi Code of 1972.”

§ 27-7-22.41. Tax credit for certain business enterprises making voluntary cash contributions to eligible charitable organizations.

  1. For the purposes of this section, the following words and phrases shall have the meanings ascribed in this section unless the context clearly indicates otherwise:
    1. “Department” means the Department of Revenue.
    2. “Eligible charitable organization” means an organization that is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code and is:

      1. The prevention and diversion of children from custody with the Department of Child Protection Services,

      2. The safety, care and well-being of children in custody with the Department of Child Protection Services, or

      3. The express purpose of creating permanency for children through adoption; or

      1. Licensed by or under contract or agreement with the Department of Child Protection Services and provides services for:
      2. Certified by the department as a job training, workforce development or educational services charitable organization and provides services to:

      1. Children in a foster care placement program established by the Department of Child Protection Services, children placed under the Safe Families for Children model, or children at significant risk of entering a foster care placement program established by the Department of Child Protection Services,

      2. Children who have a chronic illness or physical, intellectual, developmental or emotional disability, or

      3. Children eligible for free or reduced price meals programs under Section 37-11-7.

    1. The tax credit authorized in this section shall be available only to a taxpayer who is a business enterprise engaged in commercial, industrial or professional activities and operating as a corporation, limited liability company, partnership or sole proprietorship. Except as otherwise provided in this section, a credit is allowed against the taxes imposed by Sections 27-7-5, 27-15-103, 27-15-109 and 27-15-123, for voluntary cash contributions made by a taxpayer during the taxable year to an eligible charitable organization. The amount of credit that may be utilized by a taxpayer in a taxable year shall be limited to an amount not to exceed fifty percent (50%) of the total tax liability of the taxpayer for the taxes imposed by such sections of law. Any tax credit claimed under this section but not used in any taxable year may be carried forward for five (5) consecutive years from the close of the tax year in which the credits were earned.
    2. A contribution to an eligible charitable organization for which a credit is claimed under this section does not qualify for and shall not be included in any credit that may be claimed under Section 27-7-22.39.
    3. A contribution for which a credit is claimed under this section may not be used as a deduction by the taxpayer for state income tax purposes.
  2. Taxpayers taking a credit authorized by this section shall provide the name of the eligible charitable organization and the amount of the contribution to the department on forms provided by the department.
  3. An eligible charitable organization shall provide the department with a written certification that it meets all criteria to be considered an eligible charitable organization. The organization shall also notify the department of any changes that may affect eligibility under this section.
  4. The eligible charitable organization’s written certification must be signed by an officer of the organization under penalty of perjury. The written certification shall include the following:
    1. Verification of the organization’s status under Section 501(c)(3) of the Internal Revenue Code;
    2. A statement that the organization does not provide, pay for or provide coverage of abortions and does not financially support any other entity that provides, pays for or provides coverage of abortions;
    3. Any other information that the department requires to administer this section.
  5. The department shall review each written certification and determine whether the organization meets all the criteria to be considered an eligible charitable organization and notify the organization of its determination. The department may also periodically request recertification from the organization. The department shall compile and make available to the public a list of eligible charitable organizations.
  6. Tax credits authorized by this section that are earned by a partnership, limited liability company, S corporation or other similar pass-through entity, shall be allocated among all partners, members or shareholders, respectively, either in proportion to their ownership interest in such entity or as the partners, members or shareholders mutually agree as provided in an executed document.
  7. A taxpayer shall apply for credits with the department on forms prescribed by the department. In the application the taxpayer shall certify to the department the dollar amount of the contributions made or to be made during the calendar year. Within thirty (30) days after the receipt of an application, the department shall allocate credits based on the dollar amount of contributions as certified in the application. However, if the department cannot allocate the full amount of credits certified in the application due to the limit on the aggregate amount of credits that may be awarded under this section in a calendar year, the department shall so notify the applicant within thirty (30) days with the amount of credits, if any, that may be allocated to the applicant in the calendar year. Once the department has allocated credits to a taxpayer, if the contribution for which a credit is allocated has not been made as of the date of the allocation, then the contribution must be made not later than sixty (60) days from the date of the allocation. If the contribution is not made within such time period, the allocation shall be cancelled and returned to the department for reallocation. Upon final documentation of the contributions, if the actual dollar amount of the contributions is lower than the amount estimated, the department shall adjust the tax credit allowed under this section.
  8. The aggregate amount of tax credits that may be allocated by the department under this section during a calendar year shall not exceed Five Million Dollars ($5,000,000.00), and not more than fifty percent (50%) of tax credits allocated during a calendar year may be allocated for contributions to eligible charitable organizations described in subsection (1)(b)(ii) of this section.
  9. The department shall not allocate any credits under this section after January 1, 2025.

HISTORY: Laws, 2019, ch. 484, § 2, eff from and after January 1, 2019.

Editor Notes --

Laws of 2019, ch. 484, §§ 1, 5 and 6, effective January 1, 2019, provide:

“SECTION 1. This act shall be known and may be cited as the Children's Promise Act.

“SECTION 5. Section 2 of this act shall be codified as a new section in Chapter 7, Title 27, Mississippi Code of 1972.

“SECTION 6. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax laws or insurance premium tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the income tax laws and insurance premium tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.”

§ 27-7-23. Net income of nonresident and foreign taxpayers.

Definitions.

  1. “Doing business” means the operation of any business enterprise or activity in Mississippi for financial profit or economic gain, including, but not limited to, the following:
  2. “Business income” means income of any type or class, and from any activity that meets the relationship described in the transactional test or the functional test described in this paragraph (2). The classification of income by occasionally used labels, including, but not limited to, manufacturing income, compensation for services, sales income interest, dividends, rents, royalties, gains, operating income, and nonoperating income shall not be considered when determining whether income is business or nonbusiness income. All income of the taxpayer is business income unless clearly classifiable as nonbusiness income. A taxpayer seeking to overcome a classification of income as business income must establish by a preponderance of the evidence that the income has been incorrectly classified.
  3. “Nonbusiness income” means all income that does not meet the definition of business income.
  4. “Commercial domicile” means the principal place from which the trade or business of the taxpayer is directed or managed.
  5. “State” means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, and any foreign country or political subdivision thereof.

The regular maintenance of an office or other place of business in Mississippi; or

The regular maintenance in Mississippi of an inventory of merchandise or material for sale, distribution or manufacture, regardless of whether kept on the premises of the taxpayer or otherwise; or

The selling or distributing of merchandise to customers in Mississippi directly from a company-owned or operated vehicle when title to the merchandise is transferred from the seller or distributor to the customer at the time of the sale or distribution (transient selling); or

The regular rendering of service to clients or customers in Mississippi in person or by agents or employees; or

The owning, renting or operating of business or income-producing property, real or personal, in Mississippi; or

The performing of contracts, prime or sublet work, for the construction, repair or renovation of real or personal property.

Transactional test. Business income includes income arising from transactions and activity in the regular course of the taxpayer’s trade or business.

If the transaction or activity is in the regular course of the taxpayer’s trade or business, part of which trade or business is conducted within Mississippi, the resulting income of the transaction or activity is business income for Mississippi. Income may be business income even though the actual transaction or activity that gives rise to the income does not occur in Mississippi.

For a transaction or activity to be in the regular course of the taxpayer’s trade or business, the transactions or activity need not be one that frequently occurs in the trade or business, although most frequently occurring transactions or activities shall be considered to be in the regular course of a trade or business. It is sufficient to classify a transaction or activity as being in the regular course of a trade or business if it is reasonable to conclude transactions of that type are customary in the kind of trade or business being conducted or are within the scope of what the trade or business does.

Functional test. Business income includes income from tangible and intangible property if the acquisition, management and/or disposition of the property constitute integral parts of the taxpayer’s regular trade or business operation.

Under the functional test, business income need not be derived from transactions or activities that are in the regular course of the taxpayer’s own particular trade or business. It shall be sufficient if the property from which the income is derived is or was an integral, functional, necessary or operative component of the taxpayer’s trade or business operations, part of which trade or business is or was conducted within this state.

Income that is derived from isolated sales, leases, assignments, licenses and other infrequently occurring dispositions, transfers or transactions involving property, including transactions made in liquidation or the winding up of business is business income if the property is or was used in the taxpayer’s trade or business operation. Income from the licensing of intangible assets, such as patents, copyrights, trademarks, service marks, goodwill, know-how, trade secrets and similar assets, that were developed or acquired for use by the taxpayer in his trade or business operations, constitute business income whether the licensing itself constituted the operation of a trade or business and whether the taxpayer remains in the same trade or business from or for which the intangible asset was developed or acquired.

Under the functional test, income from intangible property is business income when the intangible property serves an operating function, as opposed to solely an investment function. The relevant inquiry shall focus on whether the property is or was held in furtherance of the taxpayer’s trade or business, that is, on the objective characteristics of the intangible property’s use or acquisition and its relation to the taxpayer and the taxpayer’s activities. The functional test is not satisfied where the holding of the property is limited solely to an investment function as in the case where the holding of the property is limited to mere financial betterment of the taxpayer in general.

If the property is or was held in furtherance of the taxpayer’s trade or business beyond mere financial betterment, then income from the property may be business income even though the actual transaction or activity involving the property that gives rise to the income does not occur in Mississippi.

If, with respect to an item of property, a taxpayer takes a deduction from business income that is apportioned to Mississippi, or includes that item of property in the property factor, it is presumed that the item of property is or was integral to the taxpayer’s trade or business operations. No presumption arises from the absence of any of this action.

Application of the functional test is generally unaffected by the form of the property. Income arising from intangible property is business income when the intangible property itself or the underlying value of the intangible property is or was an integral, functional, necessary or operative component to the taxpayer’s trade or business operation. Therefore, while treatment of income derived from transactions involving intangible property as business income may be supported by a finding that the issuer of the intangible property and the taxpayer are engaged in the same trade or business, establishment of such a relationship is not the exclusive basis for concluding that the income constitutes business income. It is sufficient to support a finding of business income if the holding of the intangible property served an operational rather than an investment function.

Nonresident individuals, partnerships, trusts and estates.

The tax imposed by this article shall apply to the entire net income of a taxable nonresident derived from employment, trade, business, professional, personal service or other activity for financial gain or profit, performed or carried on within Mississippi, including the rental of real or personal property located within this state or for use herein and including the sale or exchange or other disposition of tangible or intangible property having a situs in Mississippi.

Income derived from trade, business or other commercial activity shall be taxed to the extent that it is derived from such activity within this state. Mississippi net income shall be determined in the manner prescribed by the commissioner for the allocation and/or apportionment of income of foreign corporations having income from sources both within and without the state.

A taxable nonresident shall be allowed to deduct expenses, interest, taxes, losses, bad debts, depreciation and similar business expenses only to the extent that they are allowable under this article and are attributable to the production of income allocable to and taxable by the State of Mississippi. As to allowable deductions essentially personal in nature, such as contributions to charitable organizations, medical expenses, taxes, interest and the optional standard deduction, such taxable nonresident shall be allowed deductions therefor in the ratio that the net income from sources within Mississippi bears to the total net income from all sources of such taxable nonresident, computed as if such taxable nonresident was a resident of Mississippi.

Foreign corporations, associations, organizations and other entities.

Corporations and organizations required to file. All foreign corporations and other organizations which have obtained a certificate of authority from the Secretary of State to do business in Mississippi, or corporations or organizations which are in fact doing business in Mississippi, are subject to the income tax levy and are required to file annual income tax returns unless the corporation or organization is specifically exempt from tax by this article.

Allocation and apportionment of income.

Except as provided in Sections 27-7-24, 27-7-24.1, 27-7-24.3, 27-7-24.5, 27-7-24.7, 27-7-24.8 and 27-7-24.9, Mississippi Code of 1972, any corporation or organization having business income from business activity which is taxable both within and without this state shall allocate and apportion its net business income as prescribed by regulations enacted by the commissioner. If the business income of the corporation is derived solely from property owned or business done in this state and the corporation is not taxable in another state, the entire business income shall be allocated to this state. A corporation is taxable in another state if, in that state the corporation is subject to a net income tax, or a franchise tax measured by net income, or if that state has jurisdiction to subject the corporation to a net income tax regardless of whether the state does or does not subject the corporation to a net income tax.

If the allocation and apportionment provisions of this section or regulations enacted by the commissioner do not fairly represent the extent of the taxpayer’s business activity in this state, the taxpayer may petition for, or the commissioner may require, in respect to all or any part of the taxpayer’s business activity, if reasonable:

Separate accounting;

The exclusion of any one or more of the factors;

The inclusion of one or more additional factors which will fairly represent the taxpayer’s business activity in this state; or

The employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer’s income.

In any instance in which a taxpayer requests or the commissioner requires the use of any of the alternative apportionment methods in subparagraph (B) of this paragraph, the party requesting or requiring the method shall bear the burden of proving by preponderance of the evidence in any administrative or judicial proceeding that the methods set forth in this section or the commissioner’s regulations do not fairly represent the extent of the taxpayer’s business activity in this state and that the proposed method more fairly represents that activity than any other reasonable method available. The alternative apportionment authority specified in this subparagraph (D) is intended to be invoked only in limited and unique, nonrecurring circumstances where the standard apportionment provisions contained in the statutes and regulations produce unanticipated results that do not fairly represent the extent of the taxpayer’s business activity in this state.

The commissioner shall be prohibited from assessing any penalties related to a deficiency arising from requiring the use of an alternative apportionment method under subparagraph (B) of this paragraph unless the commissioner shall establish by preponderance of the evidence that the taxpayer’s method was without reasonable basis or was not in accordance with existing statutes or regulations.

Nonbusiness income. Rents and royalties from real or tangible personal property, capital gains, interest, dividends, or patent or copyright royalties, to the extent that they constitute nonbusiness income, shall be allocated as follows:

Net rents and royalties from real property are allocable to the state in which the property is located.

Net rents and royalties from tangible personal property are allocable to the state in which the property is used, or to this state in their entirety if the corporation’s commercial domicile is in this state and the corporation is not organized under the laws of or taxable in the state in which the property is utilized.

Capital gains and losses from sales of real property are allocable to the state in which the property is located.

Capital gains and losses from sales of tangible personal property are allocable to the state in which the property is located, or to this state if the corporation’s commercial domicile is in this state and the corporation is not taxable in the state in which the property had a situs.

Capital gains and losses from sales of intangible personal property are allocable to the state of the corporation’s commercial domicile.

Interest and dividends are allocable to the state of the corporation’s commercial domicile.

Patent and copyright royalties are allocable to the state in which the patent or copyright is utilized by the payer, or to this state if and to the extent that the patent or copyright is utilized by the payer in a state in which the corporation is not taxable and the corporation’s commercial domicile is in this state.

Any other nonbusiness income shall be allocated as prescribed by the commissioner.

All expenses connected with earning nonbusiness income, such as interest, taxes, general and administrative expenses and such other expenses relating to the production of nonbusiness income, shall be deducted from gross nonbusiness income. Nonbusiness interest expense shall be computed by using the ratio of nonbusiness assets to total assets applied to total interest expense.

Foreign lenders.

In the case of any foreign lender, (corporation, association, organization, individual, partnership, trusts or estates), other than: (A) a foreign insurance company subject to certification by the Commissioner of Insurance, as provided by Section 83-21-1 et seq.; or (B) a foreign lender qualified under the general laws of this state to do business herein; or (C) a foreign lender which maintains an office or place of business within this state; or (D) lenders that sold properties in this state and financed such sale and reported on the installment method, interest income received or accrued on or after January 1, 1977, from loans secured by real estate or from lending on the security of real estate located within this state shall be excluded from Mississippi gross income and exempt from the Mississippi income tax levy and the reporting requirements.

In the case of any foreign lender exempted in paragraph (1) of this subsection, interest income received on any loan finalized or consummated after January 1, 1977, shall be excluded from Mississippi gross income and the net profits derived therefrom shall be exempt from the Mississippi income tax levy for the life of such loan.

Insurance companies.Insurance companies, other than life insurance companies, deriving premium income from within and without the state, may determine their Mississippi net income from underwriting by apportioning to this state a part of their total net underwriting income by such processes or formulas of general apportionment as are prescribed by the commissioner; provided that a company adopting this method of reporting for any year must adhere to said method of reporting for subsequent years, unless permission is granted by the commissioner to change to a different method of reporting; and provided that all affiliated companies of the same group shall use the same method of reporting.

Bond requirements.Any individual or corporation subject to the tax imposed by this article, engaged in the business of performing contracts which may require the payment of net income taxes, may be required by the commissioner, before entering into the performance of any contract or contracts the consideration of which is more than Ten Thousand Dollars ($10,000.00), to execute and file a good and valid bond with a surety company authorized to do business in this state, or with sufficient sureties to be approved by the commissioner, conditioned that all taxes which may accrue to the State of Mississippi will be paid when due. Provided, however, that such bond shall not exceed five percent (5%) of the total contracts entered into during the taxable period, and, provided further, that any taxpayer, in lieu of furnishing such bond, may pay the maximum sum required herein as advance payment of taxes due on the net income realized from any contract or contracts performed or completed in this state.

HISTORY: Codes, 1942, § 9220-12; Laws, 1934, ch. 120; Laws, 1936, ch. 151; Laws, 1952, ch. 402, § 11; Laws, 1958, ch. 554, § 3; Laws, 1977, ch. 500, § 1; Laws, 1978, ch. 475, § 3; Laws, 1981, ch. 435, § 1; Laws, 1989, ch. 485, § 30; Laws, 1996, ch. 441, § 69; Laws, 2001, ch. 586, § 4; Laws, 2014, ch. 469, § 2; Laws, 2014, ch. 476, § 1, eff from and after Jan. 1, 2015; Laws, 2019, ch. 344, § 2, eff from and after January 1, 2019.

Joint Legislative Committee Note —

Section 2 of ch. 469, Laws of 2014, effective from and after January 1, 2014 (approved March 31, 2014), amended this section. Section 1 of ch. 476, Laws of 2014, effective from and after January 1, 2015 (approved April 10, 2014), also amended this section. As set out above, this section reflects the language of Section 2 of ch. 469, Laws of 2014, effective until January 1, 2015, and effective from and after January 1, 2015, the section reflects the language of Section 1 of ch. 476, Laws of 2014, which contains language that specifically provides that it supersedes §27-7-23 as amended by Chapter 469, Laws of 2014.

Editor’s Notes —

Laws of 2001, ch. 586, §§ 8, 9, effective January 1, 2001, provide as follows:

“SECTION 8. This act shall apply to taxable years beginning on or after January 1, 2001.

“SECTION 9. No rules or regulations shall be promulgated or enforced pursuant to this act unless such rules or regulations apply equally to each taxpayer affected by this act.”

Laws of 2014, ch. 476, § 18, effective January 1, 2015, provides:

“SECTION 18. Except for the reductions in the rate of interest as set out in Sections 4, 5, 6, 7, 8, 9, 10 and 14 which also contain the effective date of such rate of interest changes, nothing in Sections 1 through 14 of this act shall affect or defeat any refund claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the laws of this state before the date on which this act becomes effective, whether such refund claims, assessments, appeals, suits or actions have been begun or filed before the date on which this act becomes effective or are begun or filed thereafter; and the statutes contained in these sections as in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of any refund claim, assessment, appeal, suit, right or cause of action for taxes paid, due or accrued under the laws of this state before the date on which this act goes into effect, for the collection and enrollment of liens for any taxes due or accrued before the date on which this act goes into effect and for the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws prior to the date on which this act becomes effective.”

Sections 1 through 14 of Chapter 476, Laws of 2014, amended the following sections: Sections 27-7-23, 27-7-24, 27-7-37, 27-7-51, 27-7-53, 27-7-315, 27-7-327, 27-7-345, 27-13-23, 27-13-25, 27-65-31, 27-65-35, 27-65-37 and 27-65-39. For a complete listing of Code sections affected by Chapter 476, Laws of 2014, see Table B, Allocation of Acts, in the Statutory Tables Volume.

Amendment Notes —

The first 2014 amendment (ch. 469), effective January 1, 2014, in (b)(3), substituted “was a resident of Mississippi ” for “were a resident of Mississippi”; and in (c)(2)(A), substituted a comma for “and” following “27-7-24.5” and inserted “and 27-7-24.8.”

The second 2014 amendment (ch. 476), effective January 1, 2015, added (c)(2)(B) through (c)(2)(D); substituted “was a resident of Mississippi” for “were a resident of Mississippi” in (b)(3); inserted the (c)(2)(A) designator and, in the first sentence thereof, inserted “and 27-7-24.8” preceding “Mississippi Code of 1972” near the beginning, and “regulations enacted by” near the end.

The 2019 amendment, effective January 1, 2019, in (c)(2)(A), inserted “and 27-7-24.9,” and made a related change.

Cross References —

Combined tax returns of multistate corporations, see §27-7-37.

Definition of “income attributable to the state” for purposes of income tax on S corporations, see §27-8-3.

Regulation of foreign insurance companies, see §83-21-1 et seq.

JUDICIAL DECISIONS

1. Validity.

2. Construction and application.

jdufl

3. In general.

4. Particular items of income.

1. Validity.

This section is not an unconstitutional delegation of legislative authority to an administrative agency. Columbia Gulf Transmission Co. v. Barr, 194 So. 2d 890, 1967 Miss. LEXIS 1424 (Miss. 1967).

A legislative delegation to the tax commission of the duty to determine the portion of taxable income of a given person or corporation which should be allocated to sources within the state is a delegation of a fact-finding duty, and where the legislature provided the standard to be followed in evaluating the taxpayer’s earned income in Mississippi, as distinguished from its earned income from other sources, such delegation is not unconstitutional. Columbia Gulf Transmission Co. v. Barr, 194 So. 2d 890, 1967 Miss. LEXIS 1424 (Miss. 1967).

2. Construction and application.

Franchise tax imposed by the Mississippi State Tax Commission was proper where, pursuant to Miss. Code Ann. §27-7-23(c)(3)(A)(ii), Mississippi could tax sales as it did not violate the commerce clause; the tax had a sufficient nexus with the state, was fairly apportioned, did not discriminate against interstate commerce, and was fairly related to services provided by Mississippi. Miss. State Tax Comm'n v. Murphy Oil USA, Inc., 933 So. 2d 285, 2006 Miss. LEXIS 320 (Miss. 2006).

A foreign corporation qualified to conduct insurance business in Mississippi was subject to state income tax upon the interest from its mortgage loan investments secured by real property within Mississippi where the recorded deeds of trust securing the investments were evidence of ownership and where the history of §27-7-23 evidenced a legislative intent to require only “evidence of ownership” rather than a “business situs” as a condition for the taxation of intangibles. Brady v. John Hancock Mut. Life Ins. Co., 342 So. 2d 295, 1977 Miss. LEXIS 2304 (Miss. 1977).

The losses which actually resulted from a foreign gas transmission corporation’s activities in exploring for and producing natural gas outside of Mississippi could not be used as deductions in computing its unitary income for Mississippi tax purposes. Tenneco, Inc. v. Barr, 224 So. 2d 208, 1969 Miss. LEXIS 1291 (Miss. 1969).

The ownership and operation by a foreign corporation of a gas transmission pipeline located partly within and partly without the State of Mississippi is a unitary activity falling within paragraph (1)(c) of this section. Tenneco, Inc. v. Barr, 224 So. 2d 208, 1969 Miss. LEXIS 1291 (Miss. 1969).

The production, through ownership of other companies, of agricultural, chemical, and paper products, and engaging in other phases of the oil and gas industry, by a foreign gas pipeline corporation were non-unitary activities for the purposes of this section. Tenneco, Inc. v. Barr, 224 So. 2d 208, 1969 Miss. LEXIS 1291 (Miss. 1969).

Where borrowed funds were used in both unitary and non-unitary activities of a foreign corporation and could not be accurately or directly allocated in any certain amount to either in a specific or realistic sense, it became necessary to utilize a formula to make an equitable apportionment of the interest expense between the two for the purpose of determining the corporation’s income tax due the State of Mississippi. Tenneco, Inc. v. Barr, 224 So. 2d 208, 1969 Miss. LEXIS 1291 (Miss. 1969).

The interest cost of borrowed funds definitely shown to have been used exclusively in one or more of a foreign corporation’s non-unitary businesses would not be deductible from unitary gross income for Mississippi income tax purposes. Tenneco, Inc. v. Barr, 224 So. 2d 208, 1969 Miss. LEXIS 1291 (Miss. 1969).

The burden of proof is upon the taxpayer to show that a formula and its application are unfair, and that an excessive portion of its net income is thereby allocated to a given state. Columbia Gulf Transmission Co. v. Barr, 194 So. 2d 890, 1967 Miss. LEXIS 1424 (Miss. 1967).

In the formula prescribed by the tax commissioner pursuant to this section, for ascertaining the proportion of the income of a manufacturing corporation having plants in Mississippi and in other states which is taxable in Mississippi, a factor which is the ratio between manufacturing assets in Mississippi as defined in the regulation to total manufacturing assets, does not permit the use of total capital assets in computing the tax liability, but only the use of the value of tangible property actually used in manufacturing. This does not result in taxation of assets outside Mississippi. Reliance Mfg. Co. v. Barr, 245 Miss. 86, 146 So. 2d 569, 1962 Miss. LEXIS 535 (Miss. 1962).

A foreign corporation which had entered the state and employed men who repaired and replaced parts of its machines, failed to show that the formula of apportionment of income used by the tax commission resulted in extra-territorial values being taxed. Stapling Machines Co. v. Monaghan, 232 Miss. 484, 99 So. 2d 649, 1958 Miss. LEXIS 297, 1958 Miss. LEXIS 298 (Miss. 1958).

jdufl

3. In general.

Neither Code 1942, § 9231 nor Code 1942, § 9222 imposing a tax on the net income of a foreign corporation attributable to its activities and ownership of property in Mississippi, although such property was used exclusively in the furtherance of the corporation’s interstate business, violated the commerce clause of the federal constitution. State Tax Com. v. Memphis Natural Gas Co., 197 Miss. 583, 19 So. 2d 477, 1944 Miss. LEXIS 325 (Miss. 1944).

Code 1942, § 9231 and Code 1942, § 9222 imposed a tax on the net income of a foreign corporation attributable to its activities and ownership of property in Mississippi, although such property was used exclusively in the furtherance of the corporation’s interstate business. State Tax Com. v. Memphis Natural Gas Co., 197 Miss. 583, 19 So. 2d 477, 1944 Miss. LEXIS 325 (Miss. 1944).

There is no inconsistency in exacting a license tax for the privilege of doing business in this state and restricting an income tax to business actually done in the state. Lincoln Nat'l Life Ins. Co. v. State Tax Com., 196 Miss. 82, 16 So. 2d 369, 1944 Miss. LEXIS 170 (Miss. 1944), cert. denied, 326 U.S. 763, 66 S. Ct. 145, 90 L. Ed. 460, 1945 U.S. LEXIS 1567 (U.S. 1945).

It would not be permissible to tax that part of a foreign corporation’s income which was earned outside of the state. Mississippi Cottonseed Products Co. v. Stone, 184 Miss. 409, 184 So. 428, 1938 Miss. LEXIS 310 (Miss. 1938), cert. denied, 306 U.S. 656, 59 S. Ct. 774, 83 L. Ed. 1054, 1939 U.S. LEXIS 702 (U.S. 1939).

The purpose of the Act was to tax income earned within the state by both domestic and foreign corporations, and to exempt income earned without the state, where a plant or place of business was maintained in the foreign state, and the income derived therefrom would not be subject to taxation, or was exempt therefrom. Mississippi Cottonseed Products Co. v. Stone, 184 Miss. 409, 184 So. 428, 1938 Miss. LEXIS 310 (Miss. 1938), cert. denied, 306 U.S. 656, 59 S. Ct. 774, 83 L. Ed. 1054, 1939 U.S. LEXIS 702 (U.S. 1939).

Foreign railroad company, engaged in both interstate and intrastate commerce within state, was not liable for income tax before passage of laws 1924 ch. 132. Miller v. Illinois C. R. Co., 146 Miss. 422, 111 So. 558, 1927 Miss. LEXIS 191 (Miss. 1927).

4. Particular items of income.

Neither Code 1942, § 9231 nor Code 1942, § 9222 imposing a tax on the net income derived from the sale by foreign corporation of natural gas at wholesale to a nonresident corporation doing business in Mississippi, delivered at various points in Mississippi along such foreign corporation’s main pipeline extending from gas field in Louisiana, through Arkansas and Mississippi, and terminating at Memphis, Tennessee, contravenes the commerce clause of the federal constitution. State Tax Com. v. Memphis Natural Gas Co., 197 Miss. 583, 19 So. 2d 477, 1944 Miss. LEXIS 325 (Miss. 1944).

The state has no jurisdiction to exact income tax on premiums received from contracts of reinsurance issued by nonresident reinsurer, licensed to do business in this state, to foreign licensed insurance companies, completed wholly without the state, notwithstanding that original insurance contracts were written in Mississippi, since reinsurer was not doing business in this state in issuing such reinsurance contracts. Lincoln Nat'l Life Ins. Co. v. State Tax Com., 196 Miss. 82, 16 So. 2d 369, 1944 Miss. LEXIS 170 (Miss. 1944), cert. denied, 326 U.S. 763, 66 S. Ct. 145, 90 L. Ed. 460, 1945 U.S. LEXIS 1567 (U.S. 1945).

The state has jurisdiction to exact income tax upon premiums received under reinsurance contracts issued to domestic companies by nonresident insurance company, licensed and authorized to do business in this state. Lincoln Nat'l Life Ins. Co. v. State Tax Com., 196 Miss. 82, 16 So. 2d 369, 1944 Miss. LEXIS 170 (Miss. 1944), cert. denied, 326 U.S. 763, 66 S. Ct. 145, 90 L. Ed. 460, 1945 U.S. LEXIS 1567 (U.S. 1945).

As regards liability of nonresident insurance company, licensed to do business in state, for tax on premiums received from reinsurance contracts issued to foreign licensed companies, the test is whether reinsurer was thereby doing business in Mississippi and not whether it was procuring business from one which had done such business. Lincoln Nat'l Life Ins. Co. v. State Tax Com., 196 Miss. 82, 16 So. 2d 369, 1944 Miss. LEXIS 170 (Miss. 1944), cert. denied, 326 U.S. 763, 66 S. Ct. 145, 90 L. Ed. 460, 1945 U.S. LEXIS 1567 (U.S. 1945).

Interest on loans by a foreign corporation doing business in Mississippi was not exempt under Code 1942, § 9231, it being manifest that it was the purpose of the legislature to place domestic and foreign corporations upon the same basis and that the word “by” in clause with respect to “income from any loan by non-residents or foreign corporations” should be omitted and the word “to” substituted in arriving at the real intention of the legislature. Mississippi Cottonseed Products Co. v. Stone, 184 Miss. 409, 184 So. 428, 1938 Miss. LEXIS 310 (Miss. 1938), cert. denied, 306 U.S. 656, 59 S. Ct. 774, 83 L. Ed. 1054, 1939 U.S. LEXIS 702 (U.S. 1939).

RESEARCH REFERENCES

ALR.

Comment Note.–Validity, under Federal Constitution, of state tax on, or measured by, income of foreign corporation. 67 A.L.R.2d 1322.

Am. Jur.

71 Am. Jur. 2d, State and Local Taxation §§ 476-483 (income of nonresidents and foreign corporations).

CJS.

85 C.J.S., Taxation §§ 1979-1988, 1998-2004, 2042-2050.

§ 27-7-24. Allocation and apportionment of income of financial institution with taxable activities within and without state.

  1. Except as otherwise specifically provided, a financial institution whose business activity is taxable both within and without this state shall allocate and apportion its net income as provided in Sections 27-7-24, 27-7-24.1, 27-7-24.3, 27-7-24.5 and 27-7-24.7, Mississippi Code of 1972. All items of nonbusiness income (income which is not includable in the apportionable income tax base) shall be allocated pursuant to the provisions of Section 27-7-23, Mississippi Code of 1972. A financial institution organized under the laws of a foreign country, the Commonwealth of Puerto Rico, or a territory or possession of the United States whose effectively connected income, as defined under the federal Internal Revenue Code, as in effect January 1, 1996, is taxable both within this state and within another state, other than the state in which it is organized, shall allocate and apportion its net income as provided in Sections 27-7-24, 27-7-24.1, 27-7-24.3, 27-7-24.5 and 27-7-24.7, Mississippi Code of 1972.
  2. All business income (income which is includable in the apportionable income tax base) shall be apportioned to this state by multiplying such income by the apportionment percentage. The apportionment percentage is determined by adding the taxpayer’s receipts factor (as described in Section 27-7-24.3), property factor (as described in Section 27-7-24.5), and payroll factor (as described in Section 27-7-24.7) together and dividing the sum by three (3). If one (1) of the factors is missing, the two (2) remaining factors are added and the sum is divided by two (2). If two (2) of the factors are missing, the remaining factor is the apportionment percentage. A factor is missing if both its numerator and denominator are zero (0), but is not missing merely because its numerator is zero (0).
  3. Each factor shall be computed according to the method of accounting (cash or accrual basis) used by the taxpayer for the taxable year.
  4. If the allocation and apportionment provisions of Sections 27-7-24, 27-7-24.1, 27-7-24.3, 27-7-24.5 and 27-7-24.7 do not fairly represent the extent of the taxpayer’s business activity in this state, the taxpayer may petition for or the commissioner may require, in respect to all or any part of the taxpayer’s business activity, if reasonable:
    1. Separate accounting;
    2. The exclusion of any one or more of the factors;
    3. The inclusion of one or more additional factors which will fairly represent the taxpayer’s business activity in this state; or
    4. The employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer’s income.

      In any instance in which a taxpayer requests or the commissioner requires the use of any of the alternative apportionment methods in this subsection, the party requesting or requiring the method shall bear the burden of proving by preponderance of the evidence in any administrative or judicial proceeding that the methods set forth in Sections 27-7-24, 27-7-24.1, 27-7-24.3, 27-7-24.5 and 27-7-24.7 do not fairly represent the extent of the taxpayer’s business activity in this state and that the proposed method more fairly represents that activity than any other reasonable method available. The alternative apportionment authority specified in this subsection is intended to be invoked only in limited and unique, nonrecurring circumstances where the standard apportionment provisions contained in the statutes and regulations produce unanticipated results that do not fairly represent the extent of the taxpayer’s business activity in this state.

  5. The commissioner shall be prohibited from assessing any penalties related to a deficiency arising from requiring the use of an alternative apportionment method under subsection (4) of this section unless the commissioner shall establish by preponderance of the evidence that the taxpayer’s method was without reasonable basis or was not in accordance with existing statutes or regulations.

HISTORY: Laws, 1996, ch. 441, § 62; Laws, 2014, ch. 476, § 2, eff from and after January 1, 2015.

Editor’s Notes —

Laws of 2014, ch. 476, § 18, effective January 1, 2015, provides:

“SECTION 18. Except for the reductions in the rate of interest as set out in Sections 4, 5, 6, 7, 8, 9, 10 and 14 which also contain the effective date of such rate of interest changes, nothing in Sections 1 through 14 of this act shall affect or defeat any refund claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the laws of this state before the date on which this act becomes effective, whether such refund claims, assessments, appeals, suits or actions have been begun or filed before the date on which this act becomes effective or are begun or filed thereafter; and the statutes contained in these sections as in effect prior to the effective date of this act are expressly continued in full force, effect and operation for the purpose of any refund claim, assessment, appeal, suit, right or cause of action for taxes paid, due or accrued under the laws of this state before the date on which this act goes into effect, for the collection and enrollment of liens for any taxes due or accrued before the date on which this act goes into effect and for the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws prior to the date on which this act becomes effective.”

Sections 1 through 14 of Chapter 476, Laws of 2014, amended the following sections: Sections 27-7-23, 27-7-24, 27-7-37, 27-7-51, 27-7-53, 27-7-315, 27-7-327, 27-7-345, 27-13-23, 27-13-25, 27-65-31, 27-65-35, 27-65-37 and 27-65-39. For a complete listing of Code sections affected by Chapter 476, Laws of 2014, see Table B, Allocation of Acts, in the Statutory Tables Volume.

Amendment Notes —

The 2014 amendment (ch. 476), effective January 1, 2015, added (5) and an undesignated paragraph in (4)(d).

Federal Aspects—

Federal Internal Revenue Code, see 26 USCS § 1 et seq.

RESEARCH REFERENCES

Am. Jur.

74 Am. Jur. 2d, Taxpayers Actions §§ 1-86.

CJS.

9 C.J.S., Banks §§ 197, 607.

§ 27-7-24.1. Allocation and apportionment of income of financial institution with taxable activities within and without state; definitions.

As used in Sections 27-7-24, 27-7-24.1, 27-7-24.3, 27-7-24.5 and 27-7-24.7, unless the context otherwise requires:

“Billing address” means the location indicated in the books and records of the taxpayer on the first day of the taxable year (or on such later date in the taxable year when the customer relationship began) as the address where any notice, statement and/or bill relating to a customer’s account is mailed.

“Borrower or credit card holder located in this state” means:

A borrower, other than a credit card holder, that is engaged in a trade or business which maintains its commercial domicile in this state, or

A borrower that is not engaged in a trade or business or a credit card holder whose billing address is in this state.

“Commercial domicile” means:

The headquarters of the trade or business, that is, the place from which the trade or business is principally managed and directed; or

If a taxpayer is organized under the laws of a foreign country, or of the Commonwealth of Puerto Rico, or any territory or possession of the United States, such taxpayer’s commercial domicile shall be deemed for the purposes of Sections 27-7-24, 27-7-24.1, 27-7-24.3, 27-7-24.5 and 27-7-24.7 to be the state of the United States or the District of Columbia from which such taxpayer’s trade or business in the United States is principally managed and directed. It shall be presumed, subject to rebuttal, that the location from which the taxpayer’s trade or business is principally managed and directed is the state of the United States or the District of Columbia to which the greatest number of employees are regularly connected or out of which they are working, irrespective of where the services of such employees are performed, as of the last day of the taxable year.

“Compensation” means wages, salaries, commissions and any other form of remuneration paid to employees for personal services that are included in such employee’s gross income under the federal Internal Revenue Code, as in effect January 1, 1996. In the case of employees not subject to the federal Internal Revenue Code, as in effect January 1, 1996, e.g., those employed in foreign countries, the determination of whether such payments would constitute gross income to such employees under the federal Internal Revenue Code, as in effect January 1, 1996, shall be made as though such employees were subject to the federal Internal Revenue Code, as in effect January 1, 1996.

“Credit card” means credit, travel or entertainment card.

“Credit card issuer’s reimbursement fee” means the fee a taxpayer receives from a merchant’s bank because one of the persons to whom the taxpayer has issued a credit card has charged merchandise or services to the credit card.

“Employee” means, with respect to a particular taxpayer, any individual who, under the usual common-law rules applicable in determining the employer-employee relationship, has the status of an employee of that taxpayer.

“Financial institution” means:

Any corporation or other business entity registered under state law as a bank holding company or registered under the Federal Bank Holding Company Act of 1956, as amended and in effect January 1, 1996, or registered as a savings and loan holding company under the Federal National Housing Act, as amended and in effect January 1, 1996;

A national bank organized and existing as a national bank association pursuant to the provisions of the National Bank Act, 12 USCS Section 21 et seq., as in effect January 1, 1996;

A savings association or federal savings bank as defined in the Federal Deposit Insurance Act, 12 USCS Section 1813(b)(1), as in effect January 1, 1996;

Any bank or thrift institution incorporated or organized under the laws of any state;

Any corporation organized under the provisions of 12 USCS Sections 611 to 631, as in effect January 1, 1996;

Any agency or branch of a foreign depository as defined in 12 USCS Section 3101, as in effect January 1, 1996;

A production credit association organized under the Federal Farm Credit Act of 1933, as in effect January 1, 1996, all of whose stock held by the Federal Production Credit Corporation has been retired;

Any corporation whose voting stock is more than fifty percent (50%) owned, directly or indirectly, by any person or business entity described in subparagraphs (i) through (vii) above other than an insurance company taxable under Section 27-15-81 et seq.

A corporation or other business entity that derives more than fifty percent (50%) of its total gross income for financial accounting purposes from finance leases. For purposes of this subparagraph (ix), a “finance lease” shall mean any lease transaction which is the functional equivalent of an extension of credit and that transfers substantially all of the benefits and risks incident to the ownership of property. The phrase shall include any “direct financing lease” or “leverage lease” that meets the criteria of Financial Accounting Standards Board Statement No. 13, “Accounting for Leases”, as in effect January 1, 1996, or any other lease that is accounted for as a financing by a lessor under generally accepted accounting principles.

For the classification provided in this subparagraph (ix) to apply,

A. The average of the gross income in the current tax year and immediately preceding two tax years must satisfy the more than fifty percent (50%) requirement; and

B. Gross income from incidental or occasional transactions shall be disregarded; or,

Any other person or business entity which derives more than fifty percent (50%) of its gross income from activities that a person described in subparagraphs (ii) through (vii) and (ix) above is authorized to transact. For the purpose of this subparagraph (x), the computation of gross income shall not include income from nonrecurring, extraordinary items.

The commissioner is authorized to exclude any person from the application of subparagraph (x) upon such person proving, by clear and convincing evidence, that the income-producing activity of such person is not in substantial competition with those persons described in subparagraphs (ii) through (vii) and (ix) above.

“Gross rents” means the actual sum of money or other consideration payable for the use or possession of property. “Gross rents” shall include, but not be limited to:

Any amount payable for the use or possession of real property or tangible property whether designated as a fixed sum of money or as a percentage of receipts, profits or otherwise,

Any amount payable as additional rent or in lieu of rent, such as interest, taxes, insurance, repairs or any other amount required to be paid by the terms of a lease or other arrangement, and

A proportionate part of the cost of any improvement to real property made by or on behalf of the taxpayer which reverts to the owner or lessor upon termination of a lease or other arrangement. The amount to be included in gross rents is the amount of amortization or depreciation allowed in computing the taxable income base for the taxable year. However, where a building is erected on leased land by or on behalf of the taxpayer, the value of the land is determined by multiplying the gross rent by eight (8) and the value of the building is determined in the same manner as if owned by the taxpayer.

The following are not included in the term “gross rents”:

A. Reasonable amounts payable as separate charges for water and electric service furnished by the lessor;

B. Reasonable amounts payable as service charges for janitorial services furnished by the lessor;

C. Reasonable amounts payable for storage, provided such amounts are payable for space not designated and not under the control of the taxpayer; and

D. That portion of any rental payment which is applicable to the space subleased from the taxpayer and not used by it.

“Loan” means any extension of credit resulting from direct negotiations between the taxpayer and its customer, and/or the purchase, in whole or in part, of such extension of credit from another. Loans include participations, syndications, and leases treated as loans for federal income tax purposes, under the federal Internal Revenue Code, as in effect January 1, 1996. Loans shall not include: properties treated as loans under Section 595 of the federal Internal Revenue Code, as in effect January 1, 1996; futures or forward contracts; options; notional principal contracts such as swaps; credit card receivables, including purchased credit card relationships; non-interest bearing balances due from depository institutions; cash items in the process of collection; federal funds sold; securities purchased under agreements to resell; assets held in a trading account; securities; interests in a REMIC, as defined by the federal Internal Revenue Code, as in effect January 1, 1996, or other mortgage-backed or asset-backed security; and other similar items.

“Loan secured by real property” means that fifty percent (50%) or more of the aggregate value of the collateral used to secure a loan or other obligation, when valued at fair market value as of the time the original loan or obligation was incurred, was real property.

“Merchant discount” means the fee (or negotiated discount) charged to a merchant by the taxpayer for the privilege of participating in a program whereby a credit card is accepted in payment for merchandise or services sold to the card holder.

“Participation” means an extension of credit in which an undivided ownership interest is held on a pro rata basis in a single loan or pool of loans and related collateral. In a loan participation, the credit originator initially makes the loan and then subsequently resells all or a portion of it to other lenders. The participation may or may not be known to the borrower.

“Person” means an individual, estate, trust, partnership, limited liability company, corporation and any other business entity.

“Principal base of operations” with respect to transportation property means the place of more or less permanent nature from which said property is regularly directed or controlled. With respect to an employee, the principal base of operations means the place of more or less permanent nature from which the employee regularly (i) starts his or her work and to which he or she customarily returns in order to receive instructions from his or her employer, or (ii) communicates with his or her customers or other persons, or (iii) performs any other functions necessary to the exercise of his or her trade or profession at some other point or points.

“Real property owned” and “tangible personal property owned” mean real and tangible personal property, respectively, (i) on which the taxpayer may claim depreciation for federal income tax purposes, pursuant to the Internal Revenue Code, as in effect January 1, 1996, or (ii) property to which the taxpayer holds legal title and on which no other person may claim depreciation for federal income tax purposes, pursuant to the Internal Revenue Code, as in effect January 1, 1996, (or could claim depreciation if subject to federal income tax, pursuant to the Internal Revenue Code, as in effect January 1, 1996). Real and tangible personal property do not include coin, currency, or property acquired in lieu of or pursuant to a foreclosure.

“Regular place of business” means an office at which the taxpayer carries on its business in a regular and systematic manner and which is continuously maintained, occupied and used by employees of the taxpayer.

“State” means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States or any foreign country.

“Syndication” means an extension of credit in which two (2) or more persons fund and each person is at risk only up to a specified percentage of the total extension of credit or up to a specified dollar amount.

“Taxable” means either:

That a taxpayer is subject in another state to a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business, a corporate stock tax (including a bank shares tax), a single business tax, or an earned surplus tax, or any tax which is imposed upon or measured by net income; or

That another state has jurisdiction to subject the taxpayer to any of such taxes regardless of whether, in fact, the state does or does not.

“Transportation property” means vehicles and vessels capable of moving under their own power, such as aircraft, trains, water vessels and motor vehicles, as well as any equipment or containers attached to such property, such as rolling stock, barges, trailers or the like.

HISTORY: Laws, 1996, ch. 441, § 63, eff from and after January 1, 1997.

Joint Legislative Committee Note —

Pursuant to Section 1-1-109, the Joint Legislative Committee on Compilation, Revision and Publication of Legislation corrected a statutory reference in (h)(viii). The reference to “ Section 25-15-81 et seq.” was changed to “ Section 27-15-81 et seq.” The Joint Committee ratified this correction at its August 5, 2008, meeting.

Pursuant to Section 1-1-109, the Joint Legislative Committee on Compilation, Revision and Publication of Legislation corrected statutory references in (h) by substituting “ 12 USCS Section 21 et seq.” for “ 12 U.S.C.S. Sections 21 et seq.” in (ii), “ 12 USCS Section 1813(b)(1)” for “ 12 U.S.C.S. Sections 1813(b)(1)” in (iii), and “ 12 USCS Section 3101” for “ 12 U.S.C. Sections 3101” in (vi). The Joint Committee ratified the corrections at its August 15, 2017, meeting.

Federal Aspects—

The Federal Farm Credit Act of 1933, referred to in this section, formerly appeared generally as 12 USCS § 1131 et seq. prior to its repeal by § 5.26(a) of the Farm Credit Act of 1971, Act Dec. 10, 1971, P.L. 92-181, 85 Stat. 624.

Federal National Housing Act, see 12 USCS § 1701 et seq.

Federal Bank Holding Company Act of 1956, see 12 USCS § 1841 et seq.

International Banking Act of 1978, see 12 USCS § 3101 et seq.

Federal Internal Revenue Code, see 26 USCS § 1 et seq.

Section 595 of Internal Revenue Code, see 26 USCS § 595.

Section 1286 of the Internal Revenue Code, see 26 USCS § 1286.

§ 27-7-24.3. Allocation and apportionment of income of financial institution with taxable activities within and without state; receipts factor.

  1. The receipts factor is a fraction, the numerator of which is the receipts of the taxpayer in this state during the taxable year and the denominator of which is the receipts of the taxpayer within and without this state during the taxable year. The method of calculating receipts for purposes of the denominator is the same as the method used in determining receipts for purposes of the numerator. The receipts factor shall include only those receipts described herein which constitute business income and are included in the computation of the apportionable income base for the taxable year.
  2. The numerator of the receipts factor includes receipts from the lease or rental of real property owned by the taxpayer if the property is located within this state on receipts from the sublease of real property if the property is located within this state.
    1. Except as described in paragraph (b) of this subsection, the numerator of the receipts factor includes receipts from the lease or rental of tangible personal property owned by the taxpayer if the property is located within this state when it is first placed in service by the lessee.
    2. Receipts from the lease or rental of transportation property owned by the taxpayer are included in the numerator of the receipts factor to the extent that the property is used in this state. The extent an aircraft will be deemed to be used in this state and the amount of the receipts that is to be included in the numerator of this state’s receipts factor is determined by multiplying all the receipts from the lease or rental of the aircraft by a fraction, the numerator of which is the number of landings of the aircraft in this state and the denominator of which is the total number of landings of the aircraft. If the extent of the use of any transportation property within the state cannot be determined, then the property will be deemed to be used wholly in the state in which the property has its principal base of operations. A motor vehicle will be deemed to be used wholly in the state in which it is registered.
    1. The numerator of the receipts factor includes interest and fees or penalties in the nature of interest from loans secured by real property if the property is located within this state. If the property is located both within this state and one or more other states, the receipts described in this subsection are included in the numerator of the receipts factor if more than fifty percent (50%) of the fair market value of the real property is located within this state. If more than fifty percent (50%) of the fair market value of the real property is not located within any one state, then the receipts described in this subsection shall be included in the numerator of the receipts factor if the borrower is located in this state.
    2. The determination of whether the real property securing a loan is located within this state shall be made as of the time the original agreement was made and any and all subsequent substitutions of collateral shall be disregarded.
  3. The numerator of the receipts factor includes interest and fees or penalties in the nature of interest from loans not secured by real property if the borrower is located in this state.
  4. The numerator of the receipts factor includes net gains from the sale of loans. Net gains from the sale of loans includes income recorded under coupon stripping rules of Section 1286 of the Internal Revenue Code, as in effect January 1, 1996.
    1. The amount of net gains (but not less than zero) from the sale of loans secured by real property included in the numerator is determined by multiplying such net gains by a fraction the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (4) of this section and the denominator of which is the total amount of interest and fees or penalties in the nature of interest from loans secured by real property.
    2. The amount of net gains (but not less than zero) from the sale of loans not secured by real property included in the numerator is determined by multiplying such net gains by a fraction the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (5) of this section and the denominator of which is the total amount of interest and fees or penalties in the nature of interest from loans not secured by real property.
  5. The numerator of the receipts factor includes interest and fees or penalties in the nature of interest from credit card receivables and receipts from fees charged to card holders, such as annual fees, if the billing address of the card holder is in this state.
  6. The numerator of the receipts factor includes net gains (but not less than zero) from the sale of credit card receivables multiplied by a fraction, the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (7) of this section and the denominator of which is the taxpayer’s total amount of interest and fees or penalties in the nature of interest from credit card receivables and fees charged to card holders.
  7. The numerator of the receipts factor includes all credit card issuer’s reimbursement fees multiplied by a fraction, the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (7) of this section and the denominator of which is the taxpayer’s total amount of interest and fees or penalties in the nature of interest from credit card receivables and fees charged to card holders.
  8. The numerator of the receipts factor includes receipts from merchant discount if the commercial domicile of the merchant is in this state. Such receipts shall be computed net of any cardholder charge backs, but shall not be reduced by any interchange transaction fees or by any issuer’s reimbursement fees paid to another for charges made by its card holders.
    1. (i) The numerator of the receipts factor includes loan servicing fees derived from loans secured by real property multiplied by a fraction the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (4) of this section and the denominator of which is the total amount of interest and fees or penalties in the nature of interest from loans secured by real property.
      1. The numerator of the receipts factor includes loan servicing fees derived from loans not secured by real property multiplied by a fraction the numerator of which is the amount included in the numerator of the receipts factor pursuant to subsection (5) of this section and the denominator of which is the total amount of interest and fees or penalties in the nature of interest and fees or penalties in the nature of interest from loans not secured by real property.
    2. In circumstances in which the taxpayer receives loan servicing fees for servicing either the secured or the unsecured loans of another, the numerator of the receipts factor shall include such fees if the borrower is located in this state.
  9. The numerator of the receipts factor includes receipts from services not otherwise apportioned under this section if the service is performed in this state. If the service is performed both within and without this state, the numerator of the receipts factor includes receipts from services not otherwise apportioned under this section, if a greater proportion of the income producing activity is performed in this state based on cost of performance.
    1. Interest, dividends, net gains (but not less than zero) and other income from investment assets and activities and from trading assets and activities shall be included in the receipts factor. Investment assets and activities and trading assets and activities include but are not limited to: investment securities; trading account assets; federal funds; securities purchased and sold under agreements to resell or repurchase; options; future contracts; forward contracts; notional principal contracts such as swaps; equities; and foreign currency transactions. With respect to the investment and trading assets and activities described in subparagraphs (i) and (ii) of this paragraph (a), the receipts factor shall include the amounts described in such subparagraphs.
      1. The receipts factor shall include the amount by which interest from federal funds sold and securities purchased under resale agreements exceeds interest expenses on federal funds purchased and securities sold under repurchase agreements.
      2. The receipts factor shall include the amount by which interest, dividends, gains and other income from trading assets and activities, including but not limited to assets and activities in the matched book, in the arbitrage book, and foreign currency transactions, exceed amounts paid in lieu of interest, amounts paid in lieu of dividends, and losses from such assets and activities.
    2. The numerator of the receipts factor includes interest, dividends, net gains (but not less than zero) and other income from investment assets and activities and from trading assets and activities described in paragraph (a) of this subsection that are attributable to this state.
      1. The amount of interest, dividends, net gains (but not less than zero) and other income from investment assets and activities in the investment account to be attributed to this state and included in the numerator is determined by multiplying all such income from such assets and activities by a fraction, the numerator of which is average value of such assets which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the average value of all such assets.
      2. The amount of interest from federal funds sold and purchased and from securities purchased under resale agreements and securities sold under repurchase agreements attributable to this state and included in the numerator is determined by multiplying the amount described in subparagraph (i) of paragraph (a) of this subsection (13) from such funds and such securities by a fraction, the numerator of which is the average value of federal funds sold and securities purchased under agreements to resell which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the average value of all such funds and such securities.
      3. The amount of interest, dividends, gains and other income from trading assets and activities, including but not limited to assets and activities in the matched book, in the arbitrage book and foreign currency transactions, (but excluding amounts described in subparagraph (i) or (ii) of this paragraph), attributable to this state and included in the numerator is determined by multiplying the amount described in subparagraph (ii) of paragraph (a) of this subsection (13) by a fraction, the numerator of which is the average value of such trading assets which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the average value of all such assets.
      4. For purposes of this paragraph, average value shall be determined using the rules for determining the average value of tangible personal property set forth in subsections (3) and (4) of Section 27-7-24.5.
    3. In lieu of using the method set forth in paragraph (b) of this subsection (13), the taxpayer may elect, or the commissioner may require in order to fairly represent the business activity of the taxpayer in this state, the use of the method set forth in this paragraph (c).
      1. The amount of interest, dividends, net gains (but not less than zero) and other income from investment assets and activities in the investment account to be attributed to this state and included in the numerator is determined by multiplying all such income from such assets and activities by a fraction, the numerator of which is the gross income from such assets and activities which are properly assigned to a regular place of business of the taxpayer within the state and the denominator of which is the gross income from all such assets and activities.
      2. The amount of interest from federal funds sold and purchased and from securities purchased under resale agreements and securities sold under repurchase agreements attributable to this state and included in the numerator is determined by multiplying the amount described in subparagraph (i) of paragraph (a) of this subsection (13) from such funds and such securities by a fraction, the numerator of which is the gross income from such funds and such securities which are properly assigned to a regular place of business and the taxpayer within this state and the denominator of which is the gross income from all such funds and such securities.
      3. The amount of interest, dividends, gains and other income from trading assets and activities, including but not limited to assets and activities in the matched book, in the arbitrage book and foreign currency transactions, but not excluding amounts described in subparagraphs (i) or (ii) of this paragraph (c), attributable to this state and included in the numerator is determined by multiplying the amount described in subparagraph (ii) of paragraph (a) of this subsection (13) by a fraction, the numerator of which is the gross income from such trading assets and activities which are properly assigned to a regular place of business of the taxpayer within this state and the denominator of which is the gross income from all such assets and activities.
    4. If the taxpayer elects or is required by the commissioner to use the method set forth in paragraph (c) of this subsection (13), it shall use this method on all subsequent returns unless the taxpayer receives prior permission from the commissioner to use, or the commissioner requires a different method.
    5. The taxpayer shall have the burden of proving that an investment asset or activity or trading asset or activity was properly assigned to a regular place of business outside of this state by demonstrating that the day-to-day decisions regarding the assets or activity occurred at a regular place of business outside this state. Where the day-to-day decisions regarding an investment asset or activity or trading asset or activity occur at more than one (1) regular place of business and one (1) such regular place of business is in this state and one (1) such regular place of business outside this state, such asset or activity shall be considered to be located at the regular place of business of the taxpayer where the investment or trading policies or guidelines with respect to the asset or activity are established. Unless the taxpayer demonstrates to the contrary, such policies and guidelines shall be presumed to be established at the commercial domicile of the taxpayer.
  10. The numerator of the receipts factor includes all other receipts pursuant to the rules adopted by the commission.
  11. All receipts which would be assigned under this section to a state in which the taxpayer is not taxable shall be included in the numerator of the receipts factor, if the taxpayer’s commercial domicile is in this state.

HISTORY: Laws, 1996, ch. 441, § 64; Laws, 2001, ch. 586, § 5, eff from and after Jan. 1, 2001.

Editor’s Notes —

Laws of 2001, ch. 586, §§ 8, 9, effective January 1, 2001, provide as follows:

“SECTION 8. This act shall apply to taxable years beginning on or after January 1, 2001.

“SECTION 9. No rules or regulations shall be promulgated or enforced pursuant to this act unless such rules or regulations apply equally to each taxpayer affected by this act.”

Federal Aspects—

Federal Internal Revenue Code, see 26 USCS § 1 et seq.

Section 1286 of Internal Revenue Code, see 26 USCS § 1286.

RESEARCH REFERENCES

ALR.

State corporate income taxation of foreign dividends. 17 A.L.R.6th 623.

§ 27-7-24.5. Allocation and apportionment of income of financial institution with taxable activities within and without state; property factor.

  1. The property factor is a fraction, the numerator of which is the average value of real property and tangible personal property rented to the taxpayer that is located or used within this state during the taxable year, the average value of the taxpayer’s real and tangible personal property owned that is located or used within this state during the taxable year, and the average value of the taxpayer’s loans and credit card receivables that are located within this state during the taxable year, and the denominator of which is the average value of all such property located or used within and without this state during the taxable year.
  2. The property factor shall include only property the income or expenses of which are included (or would have been included if not fully depreciated or expensed, or depreciated or expensed to a nominal amount) in the computation of the apportionable income base for the taxable year.
    1. The value of real property and tangible personal property owned by the taxpayer is the original cost or other basis of such property for federal income tax purposes without regard to depletion, depreciation or amortization.
    2. Loans are valued at their outstanding principal balance without regard to any reserve for bad debts. If a loan is charged-off in whole or in part for federal income tax purposes, the portion of the loan charged off is not outstanding. A specifically allocated reserve established pursuant to regulatory or financial accounting guidelines which is treated as charged-off for federal income tax purposes shall be treated as charged-off for purposes of this section.
    3. Credit card receivables are valued at their outstanding principal balance, without regard to any reserve for bad debts. If a credit card receivable is charge-off in whole or in part for federal income tax purposes, the portion of the receivable charged-off is not outstanding.
  3. The average value of property owned by the taxpayer is computed on an annual basis by adding the value of the property on the first day of the taxable year and the value on the last day of the taxable year and dividing the sum by two (2). If averaging on this basis does not properly reflect average value, the commissioner may require averaging on a more frequent basis. The taxpayer may elect to average on a more frequent basis. When averaging on a more frequent basis is required by the commissioner or is elected by the taxpayer, the same method of valuation must be used consistently by the taxpayer with respect to property within and without this state and on all subsequent returns unless the taxpayer receives prior permission from the commissioner or the commissioner requires a different method of determining average value.
    1. The average value of real property and tangible personal property that the taxpayer has rented from another and which is not treated as property owned by the taxpayer for federal income tax purposes, shall be determined annually by multiplying the gross rents payable during the taxable year by eight (8).
    2. Where the use of the general method described in this subsection (5) results in inaccurate valuations of rented property, any other method which properly reflects the value may be adopted by the commissioner or by the taxpayer when approved in writing by the commissioner. Once approved, such other method of valuation must be used on all subsequent returns unless the taxpayer receives prior approval from the commissioner or the commissioner requires a different method of valuation.
    1. Except as described in paragraph (b) of this subsection (6), real property and tangible personal property owned by or rented to the taxpayer is considered to be located within this state if it is physically located, situated or used within this state.
    2. Transportation property is included in the numerator of the property factor to the extent that the property is used in this state. The extent an aircraft will be deemed to be used in this state and the amount of value that is to be included in the numerator of this state’s property factor is determined by multiplying the average value of the aircraft by a fraction, the numerator of which is the number of landings of the aircraft in this state and the denominator of which is the total number of landings of the aircraft everywhere. If the extent of the use of any transportation property within this state cannot be determined then the property will be deemed to be used wholly in the state in which the property has its principal base of operations. A motor vehicle will be deemed to be used wholly in the state in which it is registered.
    1. (i) A loan is considered to be located within this state if it is properly assigned to a regular place of business of the taxpayer within this state.

      A. The taxpayer has assigned, in the regular course of its business, such loan on its records to a regular place of business consistent with federal or state regulatory requirements;

      B. Such assignment on its records is based upon substantive contacts of the loan to such regular place of business; and

      C. The taxpayer uses said records reflecting assignment of loans for the filing of all state and local tax returns for which an assignment of loans to a regular place of business is required.

      1. A loan is properly assigned to the regular place of business with which it has preponderance of substantive contacts. A loan assigned by the taxpayer to a regular place of business without the state shall be presumed to have been properly assigned if:
      2. The presumption of proper assignment of a loan provided in subparagraph (ii) of paragraph (a) of this subsection (7) may be rebutted upon a showing by the commissioner, supported by a preponderance of the evidence, that the preponderance of substantive contacts regarding such loan did not occur at the regular place of business to which it was assigned on the taxpayer’s records. When such presumption has been rebutted, the loan shall then be located within this state if the taxpayer had a regular place of business within this state at the time the loan was made and the taxpayer fails to show, by a preponderance of the evidence, that the preponderance of substantive contacts regarding such loan did not occur within this state.
    2. In case of a loan which is assigned by the taxpayer to a place without this state which is not a regular place of business, it shall be presumed, subject to rebuttal by the taxpayer on a showing supported by the preponderance of evidence, that the preponderance of substantive contacts regarding the loan occurred within this state if, at the time the loan was made the taxpayer’s commercial domicile, as defined by subsection (c) of Section 27-7-24.1, was within this state.
    3. To determine the state in which the preponderance of substantive contacts relating to a loan have occurred, the facts and circumstances regarding the loan at issue shall be reviewed on a case-by-case basis and consideration shall be given to such activities as the solicitation, investigation, negotiation, approval and administration of the loan. The terms “solicitation”, “investigation”, “negotiation”, “approval” and “administration” are defined as follows:
      1. “Solicitation” is either active or passive. Active solicitation occurs when an employee of the taxpayer initiates the contact with the customer. Such activity is located at the regular place of business which the taxpayer’s employee is regularly connected with or working out of, regardless of where the services of such employee were actually performed. Passive solicitation occurs when the customer initiates the contact with the taxpayer. If the customer’s initial contact was not at a regular place of business of the taxpayer, the regular place of business, if any, where the passive solicitation occurred is determined by the facts in each case.
      2. “Investigation” is the procedure whereby employees of the taxpayer determine the credit-worthiness of the customer as well as the degree of risk involved in making a particular agreement. Such activity is located at the regular place of business which the taxpayer’s employees are regularly connected with or working out of, regardless of where the services of such employees were actually performed.
      3. “Negotiation” is the procedure whereby employees of the taxpayer and its customer determine the terms of the agreement, such as the amount, duration, interest rate, frequency of repayment, currency denomination and security required. Such activity is located at a regular place of business which the taxpayer’s employees are regularly connected with or working out of, regardless of where the services of such employees were actually performed.
      4. “Approval” is the procedure whereby employees or the board of directors of the taxpayer make the final determination whether to enter into the agreement. Such activity is located at the regular place of business which the taxpayer’s employees are regularly connected with or working out of, regardless of where the services of such employees were actually performed. If the board of directors makes the final determination, such activity is located at the commercial domicile of the taxpayer.
      5. “Administration” is the process of managing the account. This process includes bookkeeping, collecting the payments, corresponding with the customer, reporting to management regarding the status of the agreement and proceeding against the borrower or the security interest if the borrower is in default. Such activity is located at the regular place of business which oversees this activity.
  4. For purposes of determining the location of credit card receivables, credit card receivables shall be treated as loans and shall be subject to the provisions of subsection (7) of this section.
  5. A loan that has been properly assigned to a state shall, absent any change of material fact, remain assigned to said state for the length of the original term of the loan. Thereafter, said loan may be properly assigned to another state if said loan has a preponderance of substantive contact to regular place of business there.

HISTORY: Laws, 1996, ch. 441, § 65, eff from and after January 1, 1997.

§ 27-7-24.7. Allocation and apportionment of income of financial institution with taxable activities within and without state; payroll factor; compensation; employee services.

  1. The payroll factor is a fraction, the numerator of which is the total amount paid in this state during the taxable year by the taxpayer for compensation and the denominator of which is the total compensation paid both within and without this state during the taxable year. The payroll factor shall include only that compensation which is included in the computation of the apportionable income tax base for the taxable year.
  2. The compensation of any employee for services or activities which are connected with the production of nonbusiness income (income which is not includable in apportionable income base) and payments made to any independent contractor or any other person not properly classifiable as an employee shall be excluded from both the numerator and denominator of the factor.
  3. Compensation is paid in this state if any one of the following tests, applied consecutively, is met:
    1. The employee’s services are performed entirely within this state.
    2. The employee’s services are performed both within and without the state, but the service performed without the state is incidental to the employee’s service within the state. As used in this paragraph, the term “incidental” refers to any service which is temporary or transitory in nature, or which is rendered in connection with any isolated transaction.
    3. If the employee’s services are performed both within and without this state, the employee’s compensation will be attributed to this state:
      1. If the employee’s principal base of operations is within this state; or
      2. If there is no principal base of operations in any state in which some part of the services are performed, but the place from which the services are directed or controlled is in this state; or
      3. If the principal base of operations and the place from which the services are directed or controlled are not in any state in which some part of the service is performed but the employee’s resident is in this state.

HISTORY: Laws, 1996, ch. 441, § 66, eff from and after January 1, 1997.

§ 27-7-24.8. Allocation and apportionment of income of major medical or pharmaceutical supplier of Mississippi distribution facility with taxable activities within and without state.

  1. For purposes of the income tax imposed by this chapter, a major medical or pharmaceutical supplier of a Mississippi distribution facility whose business activity is taxable both within and without this state shall apportion its business income (income which is includable in the apportionable tax base) to this state by multiplying such income by an apportionment percentage determined in accordance with this section.
  2. The apportionment percentage of a major medical or pharmaceutical supplier of a Mississippi distribution facility shall be determined by:
    1. Adding together:
      1. A payroll factor, which shall be counted twice,
      2. A property factor, which shall be counted twice, and
      3. A sales factor, which shall be counted once; and
    2. Then dividing the sum of such factors by five (5).
  3. The payroll factor, property factor, and sales factor of a major medical or pharmaceutical supplier of a Mississippi distribution facility shall be calculated as follows:
    1. The payroll factor is a fraction, the numerator of which is the total amount paid to employees for services performed in this state for the taxable year and the denominator of which is the total amount paid both within and without this state during the taxable year;
    2. The property factor is a fraction, the numerator of which is the value of real property and tangible personal property rented to the taxpayer that is located or used within this state during the taxable year (valued at eight (8) times the annual rental rate) and the average value of the taxpayer’s real and tangible personal property owned that is located or used within this state during the taxable year and the denominator of which is the value of real property and tangible personal property rented to the taxpayer (valued at eight (8) times the annual rental rate) and the average value of the taxpayer’s real and tangible personal property owned that is located or used within and without this state during the taxable year; and
    3. The sales factor is a fraction, the numerator of which is the receipts of the taxpayer in this state during the taxable year and the denominator of which is the receipts of the taxpayer within and without this state during the taxable year.
  4. For purposes of this section:
    1. “Major medical” or “pharmaceutical supplier” means a company or group of affiliated companies (as defined in Section 27-7-37) who ship medical or pharmaceutical products to a Mississippi distribution facility.
    2. “Mississippi distribution facility” means and has the same definition as such term has in Section 27-13-13(2)(d).

HISTORY: Laws, 2014, ch. 469, § 1, eff from and after Jan. 1, 2014.

§ 27-7-24.9. Allocation and apportionment of income of major medical laboratory service business with taxable activities within and without state.

  1. For purposes of the income tax imposed by this chapter, a major medical laboratory service business whose business activity is taxable both within and without this state shall apportion its business income (income which is includable in the apportionable tax base) to this state by multiplying such income by an apportionment percentage determined in accordance with this section.
  2. The net business income which has not been allocated, directly assigned or excluded shall be apportioned to Mississippi by multiplying such business income by a single sales factor. The sales factor is a fraction, the numerator of which is the receipts from medical laboratory services and other receipts of the taxpayer in this state during the taxable year, and the denominator of which is the total receipts of the taxpayer within and without this state during the taxable year.
    1. Receipts attributable to medical laboratory services are determined to be within Mississippi if the medical laboratory services are provided on behalf of an individual or patient whose service address is located in this state at the time the service is performed.
    2. Receipts attributable to medical laboratory services performed in this state shall be thrown back and sourced to this state if, pursuant to the patient service address rule in paragraph (a) of this subsection (3):
      1. The receipts are sourced to a state or local jurisdiction in which the taxpayer is not subject to an income or gross receipts tax (other than a general sales tax) during a given taxable year, or
      2. The company is subject to an income or gross receipts tax in another state or local jurisdiction but the laws of that jurisdiction do not source such receipts to that jurisdiction.

      For purposes of this paragraph (b), a company shall be considered taxable in another state or local jurisdiction if it files a separate company income or gross receipts tax return in that state or local jurisdiction, it is included in a unitary or combined group income or gross receipts tax return in that state or local jurisdiction, or if the state or local jurisdiction has authority to levy an income or gross receipts tax upon the company regardless of whether that jurisdiction actually levies such a tax.

    3. Any other receipts of the taxpayer not attributable to medical laboratory services shall be sourced to this state pursuant to regulations of the department.
  3. For purposes of this section:
    1. “Major Medical Laboratory Service Business” means a company that performs laboratory testing and analysis for the medical industry and that invests a minimum of Twenty-five Million Dollars ($25,000,000.00) in land, building, and/or equipment located in Mississippi and creates two hundred eighty (280) new full-time, direct jobs within three (3) years of start of operations, as certified by the Mississippi Development Authority.
    2. “Medical Laboratory Services” means laboratory testing and analysis performed for the medical industry.
    3. “Service address” means the physical location of the doctor’s office, clinic, or other medical facility requesting the testing or analysis.

HISTORY: Laws, 2019, ch. 344, § 1, eff from and after January 1, 2019.

§ 27-7-25. Partnerships.

Individuals carrying on businesses in partnerships shall be liable for income tax only in their individual capacity, unless for federal purposes the partnership is taxable as a corporation. If so, then the partnership is also taxable as a corporation for state purposes and is subject to all of the corporate tax laws and regulations. The gross income of an individual partner shall be the gross income the partnership distributed on the same basis as net income or earnings may be distributed. If the preceding exception applies, then the partner will be treated as a shareholder in a corporation.

There shall be included in computing the net income of each partner his distributive share, whether distributed or not, of the net income of the partnership for the taxable year.

The net income of the partnership shall be computed in the same manner and on the same basis as provided for individuals, provided no personal exemption shall be granted and, provided further, that husband and wife partnerships shall not be recognized for the purpose of this article, unless it can be proven that husband and wife have each contributed capital out of their separate estates, and not by gift, from one to the other.

In the case of partnerships, each partner that would otherwise be required to include more than twelve (12) months of income in a single taxable year may elect to include such excess in income in one (1) year or ratably over a period of four (4) taxable years.

In the event the individual partners fail to report and pay the taxes imposed according to this section, then the partnership and the general partners shall be jointly and severally liable for said tax liability and shall be assessed accordingly. However, the partnership and/or general partner shall not be liable if the partnership withholds five percent (5%) of the net gain or profit of the partnership for the tax year and remits the same to the commissioner. Such amounts paid to the commissioner shall be deemed to be payments of estimated tax of the partners and shall be allocated pro rata to the partners’ taxpayer accounts. The commissioner may allow, or require, block or composite filing by a partnership, or withholding on a nonresident partner.

Magnetic media reporting may be required in a manner to be determined by the commissioner.

Partnership returns shall be filed in such manner and at such time as prescribed by law.

HISTORY: Codes, 1942, § 9220-13; Laws, 1934, ch. 120; Laws, 1952, ch. 402, § 12; Laws, 1958, ch. 554, § 4; Laws, 1985, ch. 521, § 3; Laws, 1987, ch. 438, § 1; Laws, 1988, ch. 391, § 2; Laws, 1989, ch. 485, § 4, eff from and after January 1, 1990.

RESEARCH REFERENCES

CJS.

85 C.J.S., Taxation §§ 1971-1973, 1981, 1982, 1984, 1989-1992, 2002, 2005, 2045, 2047, 2049, 2050.

§ 27-7-27. Estates and trusts.

  1. The tax imposed under the income tax laws of the State of Mississippi shall apply to the income of estates of any kind or property held in trust except:
    1. That a trust forming part of a pension plan, stock bonus plan, disability or death benefit plan or profit-sharing plan of an employer for the exclusive benefit of some or all of his or its employees, or their beneficiaries, to which contributions are made by such employer, or employees, or both, for the purpose of distributing to such employees, or their beneficiaries, the earnings and principal of the fund accumulated by the trust in accordance with such plan, shall not be taxable under the income tax laws of the State of Mississippi provided that the trust is irrevocable and no part of the trust corpus or income can be used for purposes other than for the exclusive benefit of employees, or their beneficiaries; but any amount actually distributed or made available to any distributee shall be taxable to him in the year in which so distributed or made available to the extent that it exceeds amounts paid in by him.
    2. That all trusts of real or personal property, or real and personal property combined, created under a retirement plan for which provision has been made under the laws of the United States of America exempting such trust from federal income tax, shall be exempt from income taxation by the State of Mississippi.
  2. Notwithstanding the provisions of subsection (1) of this section, a taxpayer shall include any Mississippi unrelated business taxable income in computing its taxable income under this chapter. As used in this subsection “Mississippi unrelated business taxable income” includes:
    1. “Unrelated business taxable income” as defined under the provisions of the Internal Revenue Code, as amended, and not otherwise inconsistent with other provisions of this chapter, and
    2. Any income attributable to an ownership interest in an S corporation.
  3. A trust required to include the activity of a disregarded entity for federal income tax purposes shall do likewise for the purpose of computing income for this state.
  4. Except as otherwise provided in this section, the gross and net income shall be determined in the same manner as is provided by law for any other taxpayer.

HISTORY: Codes, 1942, § 9220-14; Laws, 1934, ch. 120; Laws, 1952, ch. 402, § 13; Laws, 1956, ch. 209; Laws, 2002, ch. 478, § 1; Laws, 2008, ch. 433, § 1, eff from and after July 1, 2008.

Amendment Notes —

The 2008 amendment added (3), and redesignated former (3) as present (4).

OPINIONS OF THE ATTORNEY GENERAL

A constable may only receive a total of $35.00 in a single criminal case, regardless of the service made in that case. Aldridge, Mar. 31, 2005, A.G. Op. 05-0046.

RESEARCH REFERENCES

ALR.

Conflict of laws as to taxation of partnership property. 29 A.L.R.2d 312.

State tax on trust income as affected by foreign elements. 5 A.L.R.3d 606.

Am. Jur.

71 Am. Jur. 2d, State and Local Taxation § 446 (deductions - charitable contributions - trusts).

CJS.

85 C.J.S., Taxation §§ 1993-1997.

§ 27-7-29. Organizations exempt from taxation; taxation of business income unrelated to tax exempt purposes of certain organizations.

Except as otherwise provided in subsection (b) of this section, all income received by the following organizations shall be exempt from taxation under this article:

  1. Fraternal beneficiary societies, orders or associations.
  2. Mutual savings banks, domestic or foreign when organized and operated on a nonprofit basis and for public purposes; and farm loan associations when organized and operated on a nonprofit basis and for public purposes.
  3. Cemetery corporations; religious, charitable, educational or scientific associations or institutions, including any community chest, funds or foundations, organized and operated exclusively for religious, charitable, scientific or educational purposes, or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private stockholder or individual.
  4. Business leagues, labor organizations, agricultural or horticultural associations, chambers of commerce, or boards of trade not organized for profit, and no part of the net earnings of which inures to the benefit of any private stockholder or individual.
  5. Civic leagues and social clubs or organizations not organized for profit, but operated exclusively for the promotion of social welfare.
  6. Clubs organized and operated exclusively for pleasure, recreation and other nonprofitable purposes, no part of the net earnings of which inures to the benefit of any private stockholder or member.
  7. Farmers and fruit growers cooperatives or other like organizations organized and operated as sales agents for the purpose of marketing the products of members and turning back to them the proceeds of sales, less the necessary selling expenses and on the basis of the quantity of produce furnished by them, and other nonprofit agricultural associations organized and operated under the provisions of the cooperative marketing laws of this state. Corporations that are treated as cooperatives for federal income tax purposes will be exempt from income taxation under this chapter to the same extent as provided for federal income tax purposes.
  8. Nonprofit cooperative electric power associations or corporations, or like associations, when organized and operated for public purposes and when no part of the income inures to the benefit of any private stockholder or individual.
  9. Any nonprofit corporation that is required to be organized and formed for the purpose of operating and managing the state’s prison industries.

Any Mississippi unrelated business taxable income shall be included in taxable income for any organization described in this section. As used in this subsection “Mississippi unrelated business taxable income” includes:

“Unrelated business taxable income” as defined under the provisions of the Internal Revenue Code, as amended, and not otherwise inconsistent with other provisions of this chapter, and

Any income attributable to an ownership interest in an S corporation.

HISTORY: Codes, 1942, § 9220-15; Laws, 1934, ch. 120; Laws, 1952, ch. 402, § 14; Laws, 1973, ch. 504, § 4; Laws, 1978, ch. 410, § 1; Laws, 1986, ch. 393, § 4; Laws, 1987, ch. 438, § 2; Laws, 1988, ch. 391, § 3; Laws, 1990, ch. 534, § 26; Laws, 1993, ch. 515, § 1; Laws, 1993, ch. 456, § 14; Laws, 1994, ch. 442, § 1; Laws, 2002, ch. 478, § 2, eff from and after Jan. 1, 2002.

Editor’s Notes —

Laws of 1988, ch. 391, § 10, effective July 1, 1988, provides as follows:

“SECTION 10. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax or corporation franchise tax laws prior to the date on which this act becomes effective, whether such assessments, appeals, suits, claims or actions shall have been begun before the date on which this act becomes effective or shall thereafter be begun; and the provisions of the income tax and corporation franchise tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and execution of any warrant under such laws prior to the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply therewith.”

Cross References —

Provisions governing nonprofit prison industries corporations, see §§47-5-531 through47-5-575.

Federal Aspects—

Subchapter S of the Internal Revenue Code, see 26 USCS § 1361 et seq.

JUDICIAL DECISIONS

1. In general.

Under this section, which requires that the taxpayer seeking exemption have been organized and operated exclusively for educational or other purposes, a corporation organized to operate a highly profitable commercial television station on an interim basis was not exempt from taxation, notwithstanding the fact that it was required by an FCC order to disperse about one-half of its net profit to educational television and to disperse the rest “impliedly” to an educational institution which would develop a training program in journalism for minorities. Communications Improv., Inc. v. Mississippi State Tax Com., 349 So. 2d 535, 1977 Miss. LEXIS 2160 (Miss. 1977).

RESEARCH REFERENCES

Am. Jur.

71 Am. Jur. 2d, State and Local Taxation §§ 234-308 (persons, property and organizations exempt from taxation).

CJS.

85 C.J.S., Taxation §§ 1989-1992.

Law Reviews.

1979 Mississippi Supreme Court Review: Miscellaneous. 50 Miss. L. J. 833, December 1979.

§ 27-7-30. Qualified business or industry exempt from taxation on income arising from certain projects developed under Mississippi Major Impact Act; requirements; reduction of amount of exemption.

    1. As used in this subsection, “qualified business or industry” means any company and its affiliates, that has been certified by the Major Economic Impact Authority as a project as defined in Section 57-75-5(f)(xxi).
    2. A qualified business or industry shall be exempt from the tax imposed by this chapter on income arising from a project as defined in Section 57-75-5(f)(xxi) only, and all other income shall be subject to the tax imposed by this chapter. The exemption does not apply to activities subject to Mississippi income tax prior to certification of the project.
    3. The income tax exemption authorized by this subsection shall not exceed twenty (20) years. A qualified business or industry must create at least one thousand five hundred (1,500) jobs prior to receiving the exemption authorized by this subsection and may elect the date upon which the twenty-year period will begin; however, the date may not be later than sixty (60) months after the date the qualified business or industry begins commercial production.
    4. In the event that the monthly average number of full-time jobs maintained by the qualified business or industry falls below one thousand five hundred (1,500) jobs, the tax exemption authorized by this subsection shall be reduced as follows:
      1. If the monthly average number of full-time jobs for a taxable year is more than one thousand four hundred (1,400) but less than one thousand five hundred (1,500), the amount of the exemption shall be reduced by one percent (1%) for the taxable year.
      2. If the monthly average number of full-time jobs for a taxable year is more than one thousand one hundred (1,100) but less than one thousand four hundred one (1,401), then the amount of the exemption shall be reduced by twenty percent (20%) for the taxable year.
      3. If the monthly average number of full-time jobs for the taxable year is more than eight hundred (800) but less than one thousand one hundred one (1,101), then the amount of the exemption shall be reduced by forty percent (40%) for the taxable year.
      4. If the monthly average number of full-time jobs for the taxable year is more than five hundred (500) but less than eight hundred one (801), then the amount of the exemption shall be reduced by sixty percent (60%) for the taxable year.
      5. If the monthly average number of full-time jobs for the taxable year is more than two hundred (200) but less than five hundred one (501), then the amount of the exemption shall be reduced by eighty percent (80%) for the taxable year.
      6. If the monthly average number of full-time jobs for the taxable year is two hundred (200) or less, the qualified business or industry shall not be eligible for the exemption for the taxable year.
    1. As used in this subsection, “qualified business or industry” means any company and its affiliates that has been certified by the Major Economic Impact Authority as a project as defined in Section 57-75-5(f)(xxviii).
    2. A qualified business or industry shall be exempt from the tax imposed by this chapter on income arising from a project as defined in Section 57-75-5(f)(xxviii) only, and all other income shall be subject to the tax imposed by this chapter. The exemption does not a