John Fletcher

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Mississippi Takes Next Step Toward Finalizing Remote Use Tax Collection Regulation

Files Questionable Economic Impact Statement with Secretary of State On Tuesday, the Mississippi Department of Revenue filed an economic impact statement with the Secretary of State addressing its proposed regulation adopting use tax economic nexus standards and remote seller collection obligations. Readers may recall the Department issued the proposed regulation in January and held a … Continue Reading

Downstream Consequences Coming Into Focus A Year After Mississippi’s AT&T Dividend Decision

In October 2016, the Mississippi Supreme Court issued its long-awaited decision in Mississippi Department of Revenue v. AT&T Corporation, concluding the state’s dividend exclusion statute violated the Commerce Clause of the United States Constitution. The statute, Miss. Code Ann. Section 27-7-15(4)(i), unconstitutionally discriminated against interstate commerce by excluding from Mississippi gross income any dividends received … Continue Reading

Louisiana and Other States Provide Tax Relief for Hurricane Victims

In response to the impact of Hurricanes Harvey and Irma, parts of the United States have been declared as major disaster areas by the federal government. As a result, numerous states have enacted delayed filing and payment periods for individuals and businesses located in these major disaster areas. Louisiana has joined this growing list with … Continue Reading

Mississippi Authorizes Contingent-Fee Tax Head Hunters

Department of Revenue Now Authorized to Hire Auditors and Expert Witnesses on Contingency Fees $1,000,000 Appropriation to Fund Contingency Contracts RFPs Quickly Issued for Transfer Pricing Audits and Underreported Cash Sales The Mississippi Legislature recently authorized the Department of Revenue to hire third party tax auditors and expert witnesses and to pay them contingency fees … Continue Reading

Mississippi’s Sales Tax Regulatory Smorgasbord Continues—Internet Sellers and Commercial Contractors on the Menu!

UPDATE:  On October 17, 2017, the Department filed a notice formally withdrawing this proposed amendment to the contractor’s tax regulation.  No explanation was given for the withdrawal, and we will monitor future filings in the event a new amendment proposal is made. The Mississippi Department of Revenue’s recent flurry of regulatory activity continues unabated with … Continue Reading

Mississippi Governor Announces Special Session for June 5

Mississippi Governor Phil Bryant announced Tuesday afternoon on Facebook that he would call a special session of the Mississippi Legislature to begin June 5. The 2017 regular session ended earlier this year without having approved 2018 fiscal year budgets for the Department of Transportation or the Attorney General’s office, and the special session is intended … Continue Reading

Mississippi Lt. Governor: Use Tax Remote Seller Collection Bill “Unconstitutional”, Expected To Die In Senate Committee

Mississippi Lt. Gov. Tate Reeves on Monday released a statement that H.B. 480 would not be acted on in the Senate, effectively killing the bill by not advancing it out of the Finance Committee by a February 28 legislative deadline. As previously reported, H.B. 480 would have required remote sellers with over $250,000 of sales … Continue Reading

UPDATE – Mississippi Use Tax Remote Seller Bill Advances; Jones Walker Attends Public Hearing on Related DOR Proposed Regulation

Remote use tax collection legislation advances. A Mississippi bill to require use tax collection by remote sellers passed the House of Representatives and was transmitted to the Senate on February 7. The bill, H.B. 480, would require out-of-state sellers lacking a physical presence in Mississippi to register and begin collecting use tax if their prior-year … Continue Reading

Mississippi Moves Toward Factor Presence Nexus for Use Tax

Companion House and Senate bills and proposed new regulation would implement $250,000 “substantial economic presence” standard. Two bills have been introduced in the Mississippi Legislature to enact factor presence nexus standards to require certain foreign sellers to collect and remit Mississippi use tax. House Bill 480 and Senate Bill 2456, clearly aimed at internet sellers, … Continue Reading

A “Quest” for Certainty—Court of Appeal Affirms Louisiana Was a “Location-of-Performance” State All Along

In Quest Diagnostics Clinical Laboratories, Inc. v. T.A. “Tim” Barfield, Jr., Secretary, Department of Revenue, State of Louisiana; and the State of Louisiana, Louisiana Court of Appeal, First Circuit, Docket No. 2015-CA-0926 (September 9, 2016), the Louisiana Court of Appeal, First Circuit recently confirmed that Louisiana was a “location-of-performance” state when sourcing service-based receipts for corporate income … Continue Reading

Mississippi Legislature Passes Corporate Franchise Tax Phase-Out, Income Tax Reductions

Late Monday evening, on April 18, 2016, the Mississippi House and Senate approved a conference committee report on Senate Bill 2858, known as the “Taxpayer Pay Raise Act of 2016”, to implement a ten-year phase out of the corporate franchise tax, and also to phase-in an individual and corporate income tax exemption on the first … Continue Reading

Herb Frierson Appointed Commissioner of the Department of Revenue for Mississippi

Mississippi Governor Phil Bryant has announced the appointment of Herb Frierson as the Commissioner of the Department of Revenue for Mississippi effective July 1, 2016. Prior to being appointed Commissioner, Mr. Frierson served as a Republican member of the Mississippi House of Representatives, representing District 106. In his future role as Commissioner, Mr. Frierson will oversee the Mississippi … Continue Reading

Mississippi Supreme Court Sends Half-Baked Assessment Back to the Kitchen

Mississippi Department of Revenue v. Hotel and Restaurant Supply Cause No. 2014-CA-01685-SCT (March 10, 2016) In Mississippi Department of Revenue v. Hotel and Restaurant Supply, the Mississippi Supreme Court on Thursday, March 10, 2016, upheld the reversal of a sales tax assessment levied against a vendor who failed to collect sales taxes on construction-related materials … Continue Reading

Don’t Let the Louisiana Tax Amnesty Program Scare the Boo Out of You!

Trick or Treat!  Louisiana’s 2015 Tax Amnesty program begins at 12:00 AM on November 16, 2015 and closes on December 15, 2015.  The 2015 iteration of the amnesty program offers a 33% waiver of penalties and 17% waiver of interest for taxpayers that apply and pay 100% of delinquent taxes. Here’s a scary thought:  This … Continue Reading

Mississippi Supreme Court Scuttles Use Tax Assessment on Yacht Purchase: Clarifies Different Rules of Construction and Burdens of Proof for Tax Exclusions versus Tax Exemptions

The Mississippi Supreme Court last week in Vincent J. Castigliola, Jr. v. Mississippi Department of Revenue, No. 2013-SA-001574-SCT (April 30, 2015), reversed a lower court judgment which had upheld the Department of Revenue’s imposition of use tax upon the out-of-state purchase of a yacht by a Mississippi resident. In doing so the Court provided taxpayers with very … Continue Reading

Mississippi Court Finds State Income Tax Dividend Exclusion Statute Unconstitutional

The Hinds County Chancery Court on March 20th invalidated the nexus-based restrictions contained within Mississippi’s dividend exclusion statute, finding the provisions violated the Commerce Clause. A copy of the Court’s Order can be found here. The Mississippi Department of Revenue and the taxpayer, AT&T, had stipulated that the statute, Miss. Code Section 27-7-15(4)(i), exempts from a … Continue Reading

It Slices, It Dices: the Equifax Blade Cuts Both Ways.

The Hinds County Chancery Court recently ruled that the Mississippi Supreme Court’s widely-discussed decision in Equifax, Inc. v. Mississippi Department of Revenue is a double-edged blade and, much to the Department of Revenue’s chagrin, cuts sharply in both directions.  Miss. Dept. of Rev. v. Hotel and Restaurant Supply, Civil Action No. G2013-820 S/2, Hinds County Chancery … Continue Reading

Mississippi Supreme Court Invalidates Restrictive Regulation on Pollution Control Equipment Sales Tax Exemption

Mississippi taxpayers are seeing green! On August 7, 2014, the Mississippi Supreme Court invalidated a sales and use tax regulation in Mississippi Department of Revenue v. Mississippi Power Company, No. 2013-CA-01234-SCT (Miss. Aug. 7, 2014). In that case, the Mississippi Department of Revenue (the “MDOR”) attempted to impose more restrictive requirements in the regulation,  Miss. Reg. 35.IV.7.03(302), than the terms … Continue Reading
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