Please review the Mississippi Code and Mississippi Administrative Code when analyzing your tax responsibilities and requirements.
ABC
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HB 1354 is an amendment to increase the amount of State Revenue Bonds to $95 million dollars for the construction of the new ABC Warehouse. This will include the purchasing of land, design, construction, furnishing and equipping the new warehouse. HB 691 directs law enforcement chiefs of any state agency to complete a required 20 hours of annual executive level continuing education coursed. If the chief is new, 40 hours are required for their first year. HB 776 amends code to include that municipalities that have voted in favor of coming out from under the dry law may enforce rules for fixing zones and territories to promote public health, morals, and safety as provided by ordinance. This bill also amends code to prohibit ABC from issuing any permit which would conflict with any zoning ordinance legally adopted by the governing authorities of any municipality or rule or regulation of any board of supervisors of any county as set in the code. HB 1161 is an amendment to remove the population requirement along with being a county seat that is in a county which has voted against coming out from under the dry law and removes the population requirement of 6,000 plus, to qualify a municipality to hold an election to come out from under the dry law. HB 1525 amends code to exclude community colleges, junior colleges, colleges, or universities from distance restrictions of on-premises retailer’s permits in qualified resort areas for the manufacturing, sale or storage of intoxicating liquors. It also prohibits ABC Enforcement from issuing a package retailer’s permit for the sale or consumption of alcoholic beverages in or on the campus of any community or junior college, college, or university. SB 2405 amends code to provide that a person holding a package retailer’s permit issued before July 1, 2024, may own one (1) additional package retailer’s permit if certain requirements are met. SB 2457 amends code to revise the definition of the term “qualified resort area” under the Local Option ABC Law to include in the description of a previously designated qualified resort area on land owned by a state institution of higher learning. This bill also allows for additional resort areas. SB 2567 is an amendment authorizing DOR to issue an on-premises tobacco permit to allow a permittee to sell alcoholic beverages for consumption on the licensed premises, and to impose an annual privilege license tax of $450.00 for an on-premises tobacco permit. SB 2803 amends code to revise the definition of “qualified resort area” under the Local Option ABC Law to add 20 specified locations in the state. This bill also authorizes one (1) municipality and one (1) county to provide, by ordinance or resolution, that package retailer’s permits may be issued in certain qualified resort areas and that alcoholic beverages may be received, stored, sold possessed and distributed in accordance with these permits. |
Income Tax |
HB 624 extends the credit allowed for qualified railroad reconstruction or replacement expenditures and qualified new rail infrastructure expenditures. HB 845 amends code to clarify that a charitable organization’s annual financial statement filed with the Secretary of State’s office must also include all forms required to be filed by the IRS for the organization’s most recent fiscal year end. HB 1638 provides procedures for the DOR to set off a taxpayer's debt owed to the Mississippi Department of Human Services (MDHS) against the taxpayer's income tax refund. SB 2476 is an amendment to remove the repealer for the credit against income taxes and ad valorem taxes for voluntary cash contributions to certain qualifying charitable organizations, and a separate credit against income taxes and ad valorem taxes for voluntary cash contributions to certain qualifying foster care charitable organizations. SB 3099 authorizes an income tax credit for employers who sponsor skills training for employees that is provided or approved by the local community or junior college. |
Legal |
SB 2308 extends the repeal date of the Mississippi Public Records Act to July 1, 2028. |
Local and Private Legislation
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The following local levies have had an extension of the repeal date to July 1, 2028:
HB 1744 authorizes the City of Lucedale to levy a tax not to exceed 3% on the gross sales of hotels and motels derived from room rentals. HB 4115 authorizes the City of Durant to levy a tax in the amount of 3% on the gross proceeds of sales of restaurants. SB 2001 allows for the City of Houston to extend the repeal date for tax on the gross sales of hotels and motels derived from room rentals and on the gross proceeds of sales of restaurants to December 31, 2028. SB 2248 authorizes the City of Amory to levy a tax of 3% on the gross sales of hotels and motels derived from room rentals and gross sales of restaurants. SB 3081 extends the repealer date from December 31, 2024, to December 31, 2028, for the City of Florence to impose a tax upon the gross proceeds on the gross sales of bars and restaurants. SB 3216 authorizes the Town of Walnut to levy a tax not to exceed 3% on the gross sales of hotels and motels derived from room rentals as well as to levy a tax not to exceed 3% on the gross sales of restaurants. SB 3221 authorizes the City of Ridgeland to levy, assess and collect a 1% tax on the gross sales from restaurants, and a 2% tax on the gross sales from hotels and motels derived from room rentals. |
Medical Cannabis
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SB 2340 is an amendment to extend the date of the repealer on Harper Grace’s Law to July 1, 2027. This law authorizes research and the dispensing, possession and use of cannabidiol (CBD oil) for medical purposes. SB 2857 amends code to require the Mississippi Department of Health to obtain criminal background checks on all persons applying to become a licensee, an agent, or representative of a medical cannabis establishment. The bill also sets certain application procedures and provides the requisite considerations for who may be considered an agent and officer of a medical cannabis establishment. The bill also deletes the weekly limit on the allowable amount of medical cannabis that a resident cardholder may obtain. Additionally, the bill amends the code on how the licensing agency is authorized to investigate. SB 2888 establishes the Mississippi Medical Cannabis Research Program at the National Center for Cannabis Research and Education at the University of Mississippi and a Medical Cannabis Research Advisory Board with reporting to the Public Health and Welfare Committees of the Mississippi State Senate and the House of Representatives. |
Motor Vehicle and Titles |
HB 310 allows 30 full working days for vehicle owners or operators to obtain a license tag exclusive of the date of delivery. HB 1286 allows for a corporation or other legal entity to register its rental fleet on an annual basis so that the registration of all vehicles in the fleet expires in the anniversary month established by the Revenue Commissioner. HB 1589 states that any lienholder with an EIN must electronically transmit the satisfaction, release and discharge of a lien on a motor vehicle to the DOR no later than 14 days after the date of satisfaction of the lien. Also, if a lien on a motor vehicle is older than eight (8) years old, the lien shall be recorded by the department in the automated statewide motor vehicle registration system as having been satisfied and released and discharged, unless annually recertified by the lienholder by utilizing the format and transmitting the data required by the department. In addition, it includes that a used motor vehicle parts dealer or scrap metal processor must utilize the department’s e-lien system for the purposes of complying with the requirements of Section 63-21-39(1)(a). SB 2530 authorizes vehicle owners and drivers to use a business platform for the sharing of vehicles for financial consideration in addition to an amendment to exempt individuals engaging in the program from being able to get temporary car tags. SB 2644 is an amendment to extend the weight category for harvest permit license tag holders from 84,000 pounds to 88,000 pounds. SB 2764 requires DOR to issue a certificate of title pursuant to a filed affidavit of ownership substantially like the affidavit provided in Miss. Code Ann. Section 63-21-30(22), for a manufactured home or a mobile home that was built before July 1, 1999. The bill also authorizes DOR to issue a distinctive certificate of title of the vehicle if DOR is not satisfied that there is no undisclosed security interest created before July 1, 1999, in a previously registered manufactured home or mobile home. Lastly, this bill allows the owner of a manufactured home or mobile home to file an affidavit of ownership attached to an affidavit of affixation to retire the certificate of title to the manufactured home or mobile home. It also provides a statutory form for the affidavit of ownership to be filed with the DOR. SB 2801 authorizes the issuance of distinctive motor vehicle license tags to supporters of various specific organizations as listed in the bill and authorizes the issuance of a distinctive motor vehicle license tag with the words “In God We Trust” used in the design of the license tag. SB 2926 authorizes additional appropriations to the DOR License Tag Acquisition Fund in the amount of $2,700,000.00 to defray expenses for the period of July 1, 2023, through June 30, 2024 |
Property |
HB 1003 is an amendment to delete the provision that allowed for homestead exemption within 30 calendar days of the closing date of the purchase for a homeowner that meets certain criteria. HB 1378 amends code to state that beginning January 1, 2025, a qualified homeowner who is an American Veteran who has been honorably discharged and reached the age of 90 years old, shall be allowed an exemption from all ad valorem taxes on the assessed value of the homestead property. HB 1984 authorizes an ad valorem tax credit for an entity operating a refinery for the refining of oil, gas, or petroleum products and owning oil, gas, or petroleum products, whether produced within or without the state, which meets specific requirements. This bill also amends code which provides an ad valorem tax exemption for oil, gas and petroleum products owned by an entity operating a refinery in the state, which are in transit to or situated at such refinery for refining thereat, are in the process of being refined at such refinery, or have been refined at such refinery and are still owned by or in the hands of the refiner, to clarify that the exemption does not extend to finished petroleum products in temporary storage outside the refinery property. SB 2697 provides that for purposes of the ad valorem tax exemption for property belonging to a university, college, community college or junior college foundations, property belonging to an entity that is wholly owned by and controlled by such a foundation will be treated as belonging to the foundation, provided the property is not leased or otherwise used to generate revenue that is not used exclusively to benefit an institution described above. |
Sales/Use Tax |
HB 1764 amends code to provide those sales of equipment and materials used and that income from services performed in connection with geophysical surveying, exploring, developing, drilling, redrilling, completing, working over, producing, distributing, or testing of oil, gas and other mineral resources, including overhead services will be taxed at the rate of 4.5%. Lastly, this bill amends the code to remove from the contractor's tax contracts exceeding $10,000.00 for the redrilling, or working over, or of drilling or completing an oil well or a gas well. DOR has created a new permit for these businesses. The permit is not required to make purchases at the reduced rate, but it will make it easier for vendors and purchasers. The new sales tax code is 30, and the new use tax rate code is 31. HB 1855 is an amendment to exempt from sales taxation sales, leases, or other retail transfers of fixed-wing aircraft to, or to be used by, certified common carriers in the transport of persons or property in interstate, intrastate or foreign commerce, and engines, accessories, and spare parts for such fixed-wing aircraft. SB 2470 is an amendment to move the dates of the Back-to-School Sales Tax Holiday from the last Friday in July to the second Friday in July, and to extend it by one day. SB 2492 revises the types of municipality or county expenditures that may be considered for road and bridge improvements, and water and sewer infrastructure improvements, during the previous fiscal year for the purpose of allocating use tax revenue as well as allows expenditures from use tax revenue for personal property or equipment to be used for the repair, maintenance and/or other improvements of roads, streets and bridges and to water and sewer infrastructure, including storm water and drainage improvements. SB 2830 known as the Mississippi Flexible Tax Incentive Act, this bill revises the definition of the term “qualified business or industry” to “qualified economic development project;” states that a qualified business or industry will file its annual report with the Mississippi Development Authority no later than the last business day of the month following the quarter during which the annual anniversary of its project certification date occurred; and corrects a reference to the DOR to the Department of Employment Security. SB 3105 defines the term “heated tobacco product” as a product containing tobacco that produces an inhalable aerosol by primarily heating rather than burning the tobacco. This bill also provides an excise tax of 1.25¢ on each disposable heated tobacco unit or stick sold. |
Prior Years