Governor Tate Reeves this week signed into law H.B. 549 to enact a new sales tax exemption for items manufactured in the state and exported for first use in another state, regardless of the party or means by which those goods are delivered. While Mississippi already offered a broad 48-hour vehicle export exemption and also … Continue Reading
The Mississippi House of Representatives yesterday amended S.B. 2449 to adopt comprehensive provisions regarding the sales and use taxation of remote software and related services. This amendment codifies the Department of Revenue’s existing regulation that “computer software maintained on a server located outside the state and accessible for use only via the Internet is not … Continue Reading
The Mississippi Legislature has taken up two bills this session [HB 1668 / SB 3102] intended to correct several technical issues contained in last-year’s pass-through entity (“PTE”) election legislation. See our prior coverage of the original PTE legislation here and here, as well as concerns about estimate payment penalties here. As of this date, both … Continue Reading
At the Supreme Court early with my great friend Pat Reynolds of COST. Following National Pork Producers case, will it be a sleeper SALT case? Will Pike balancing test be toast? Is the dormant Commerce Clause really a “dead letter”? Looking forward to watching my first oral arguments.… Continue Reading
Addendum – Estimated Tax Payments: Just after our article went to press, we received some informal guidance from the DOR regarding estimated tax payments that presents a bit of a conundrum for those considering the PTE election. As explained below, it may be necessary to make duplicate estimated payments at both the entity and partner/member … Continue Reading
This year, a number of state legislatures considered and passed legislation that creates a pass-through entity (PTE) tax as a workaround to the $10,000 cap on the state and local tax (SALT) itemized deduction. Nearly 30 states have enacted a PTE tax. Mississippi is one of the more recent states to join the ranks. Beginning … Continue Reading
I was honored as the President of the Delta State University Alumni Association to address the new graduates at Delta State’s 95th Commencement Ceremony last Friday. Pictured with me are DSU President William LaForge and the keynote speaker, alumnus Walt Bettinger II, CEO of The Charles Schwab Corporation. Not pictured but also on stage was … Continue Reading
Mississippi recently passed a SALT cap workaround in the form of a flow-through entity election. Consistent with the roughly 26 other states having adopted similar schemes, the Mississippi bill presents several grey areas and questions that will need to be addressed through Department of Revenue guidance or possible technical corrections. H.B. 1691, signed into law … Continue Reading
Today the Mississippi Senate released a summary of its proposal for income tax reform. Readers may recall the House passed its proposal, HB 531, and passed it on January 13 (see our prior coverage). That bill has been transmitted to the Senate and referred to the Finance Committee. While the Senate has not yet introduced … Continue Reading
Today the Mississippi House of Representatives filed and passed out of the Ways and Means Committee H.B. 531 which appears to represent the House leadership’s income tax elimination proposal for the 2022 session. The bill, which is 294 pages long, appears to have the following primary features: Quantifies the amounts by which actual fiscal year … Continue Reading
In anticipation of the upcoming public hearing on Mississippi’s proposed amendments to its sales tax regulation on Computer Equipment, Software and Services, Jones Walker recently submitted a letter to the Mississippi Department of Revenue summarizing a wide range of questions and issues raised by the proposal. These questions were compiled as a result of discussions … Continue Reading
UPDATE: In response to widespread interest in these changes, the Mississippi Department of Revenue this afternoon scheduled a public hearing on the proposed amendments. The hearing is set for Wednesday, November 3 at 1:30. Interested parties are encouraged to identify specific questions and issues to present to the Department at the hearing. Jones Walker is … Continue Reading
On September 24, the Mississippi Department of Revenue filed a proposed amendment to its sales tax regulation on Computer Equipment, Software and Services. This amendment appears to reverse longstanding sales and use tax policy with respect to remote internet-based computer services, and could result in a significant non-legislative tax increase on Mississippi businesses. The notice … Continue Reading
Mississippi’s proposal to repeal the state’s individual income tax portends to surreptitiously renege on many of the state’s existing tax incentives agreements. One of Mississippi’s more valuable economic development tools is the Advantage Jobs Program providing a cash rebate to certain businesses that create high-paying new jobs in the state. The rebate is based on … Continue Reading
Within a 24 hour period, the Mississippi House of Representatives introduced and passed a bill to repeal the individual income tax, but at a cost of massive increases in sales taxes imposed on business inputs. H.B. 1439 would phase out the individual income tax by gradually increasing the personal exemption over an undefined period of … Continue Reading
The Mississippi House of Representatives passed HB 1142 to extend the state’s 3.5% contractor’s tax to residential construction and to require builders to obtain a material purchase certificate (“MPC”) in order to pull a local building permit. Under current law, the contractor’s tax only applies to commercial construction, and the ordinary 7% sales tax applies … Continue Reading
For several years Mississippi has attempted to pass legislation to authorize offers in compromise allowing taxpayers to pay less than the full amount of finally determined taxes due by them. The Mississippi Constitution prohibits any release or extinguishment of any obligation or liability to the state, except for the compromise of certain doubtful claims. On … Continue Reading
Years ago the Mississippi Legislature “borrowed” certain sales, use and payroll tax collections from a subsequent fiscal year to close a then-current year budget gap. Because Mississippi has a June 30 fiscal year end, the legislation required certain taxpayers having a monthly tax liability of $50,000 or more to accelerate 75% of their June tax … Continue Reading
When Congress recently passed Consolidated Appropriations Act of 2021, it explicitly reversed the IRS’s earlier position that expenses paid with non-taxable forgiven PPP loan proceeds could not be deducted. As a result of this legislation, the IRS recently issued Revenue Ruling 2021-2 confirming that the act reversed its prior guidance in Notice 2020-32 and Rev. … Continue Reading
In a Monday press conference on Facebook Live, Mississippi Governor Tate Reeves laid out an ambitious plan to eliminate the state’s individual income tax in the upcoming legislative session starting in January. The tax, levied at a maximum rate of 5%, was trimmed in 2016 when the Legislature eliminated the 3% tax bracket levied on … Continue Reading
This morning the Mississippi Department of Revenue issued a notice reversing course and setting Mississippi’s income tax filing deadlines for July 15 to coincide with the federal due dates. This applies to individual, corporate and fiduciary returns, and covers return extensions as well as estimated payments for both Q1 and Q2. We now have an … Continue Reading
Mississippi Department of Revenue reminds taxpayers that income tax returns are due May 15 and the state does not follow federal dates. For additional information, please contact John Fletcher and Bob Box from our team in Mississippi. … Continue Reading
Reposted from Mississippi Lt. Gov. Delbert Hosemann’s Facebook page: COVID-19 Update: By agreement of Lieutenant Governor Delbert Hosemann and Speaker of the House Philip Gunn, the Mississippi Legislature will reconvene the 2020 legislative session on Monday, May 18. The Legislature recessed its 125-day session temporarily on March 18, following the governor’s issuance of a state … Continue Reading
The Mississippi Secretary of State’s office has now issued its new Remote Notarization Order Guidance following Mississippi Governor Tate Reeves’ Executive Order 1467, which modified the in-person requirement for notarization temporarily. According to the new Remote Notarization Order Guidance, effective immediately, and continuing throughout the period of the State of Emergency Proclamation as declared by … Continue Reading
