House Bill 654

AN ACT TO CREATE THE INVENTORY TAX REDUCTION ACT; TO ALLOW TAXPAYERS A CREDIT AGAINST INVENTORY TAX THAT SHALL BEGIN IN A CALENDAR YEAR AFTER A CERTAIN AMOUNT OF GROWTH IN STATE GENERAL FUND REVENUE OCCURS; TO INCREASE THE CREDIT EACH CALENDAR YEAR THEREAFTER UNTIL THE AMOUNT OF THE CREDIT EQUALS 50% OF THE AD VALOREM TAX IMPOSED ON THE INVENTORY OF THE TAXPAYER; TO CREATE THE INVENTORY TAX REDUCTION FUND, INTO WHICH SHALL BE DEPOSITED AN AMOUNT APPROPRIATED ANNUALLY BY THE LEGISLATURE THAT IS NECESSARY TO PAY COUNTIES FOR THE ANNUAL REDUCTION IN INVENTORY TAX REVENUE INCURRED BY LOCAL TAXING DISTRICTS IN THE COUNTY AS A RESULT OF THE TAX CREDIT; TO PROVIDE THAT THE DEPARTMENT OF REVENUE SHALL MAKE PAYMENTS FROM THE INVENTORY TAX REDUCTION FUND TO THE COUNTY TAX COLLECTORS FOR DISTRIBUTION TO THE LOCAL TAXING DISTRICTS AS REIMBURSEMENT FOR INVENTORY TAXES THAT ARE LOST EACH FISCAL YEAR AS A RESULT OF THE INVENTORY TAX CREDIT AUTHORIZED BY THIS ACT; TO PROVIDE THAT THE AMOUNT THAT EACH LOCAL TAXING DISTRICT WILL RECEIVE UNDER THIS SECTION SHALL BE DETERMINED BY THE DEPARTMENT OF REVENUE BASED ON DOCUMENTATION PROVIDED BY THE TAX COLLECTORS UNDER GUIDELINES ESTABLISHED BY THE DEPARTMENT; FUNDS RECEIVED BY LOCAL TAXING DISTRICTS FROM SUCH PAYMENTS SHALL BE CONSIDERED TO BE, AND SHALL BE USED IN THE SAME MANNER AS, THE PROCEEDS OF INVENTORY TAXES; TO AMEND SECTION 27-7-22.5, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT TAXPAYERS UTILIZING THE INCOME TAX CREDIT AUTHORIZED BY THIS SECTION SHALL NOT BE ELIGIBLE FOR THE INVENTORY TAX CREDIT AUTHORIZED BY THIS ACT; AND FOR RELATED PURPOSES.

In the House of Representatives

• Mark Formby

  Sponsor

l9n doesn't hold this bill's text yet.

In the House of Representatives Feb 20 – Mar 28

1. Feb 20Referred to the House committee on Ways and Means
2. Mar 28Died in committee in the House