House Bill 799

AN ACT TO AMEND SECTIONS 27-7-23 AND 27-7-24, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE USE OF CERTAIN ALTERNATIVE METHODS TO APPORTION, FOR INCOME TAX PURPOSES, THE INCOME OF CORPORATIONS OR ORGANIZATIONS HAVING BUSINESS INCOME FROM ACTIVITY THAT IS TAXABLE WITHIN AND WITHOUT THIS STATE; TO PROVIDE THAT IN CASES INVOLVING SUCH CORPORATIONS AND ORGANIZATIONS AND IN CASES INVOLVING FINANCIAL INSTITUTIONS, THE PARTY REQUESTING OR REQUIRING THE ALTERNATIVE METHOD SHALL BEAR THE BURDEN OF PROVING BY PREPONDERANCE OF THE EVIDENCE IN ANY ADMINISTRATIVE OR JUDICIAL PROCEEDING THAT THE STANDARD METHODS OF APPORTIONMENT DO NOT FAIRLY REPRESENT THE TAXPAYER'S ACTIVITY; TO AMEND SECTIONS 27-7-37, 27-7-51, 27-7-53, 27-7-315, 25-7-327 AND 27-7-345, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE COMMISSIONER OF REVENUE MAY NOT REQUIRE A CORPORATION THAT IS AFFILIATED WITH ONE OR MORE CORPORATIONS THAT ARE NOT TAXABLE UNDER THE INCOME TAX LAW TO FILE A COMBINED RETURN UNTIL REGULATIONS HAVE BEEN ENACTED SPECIFYING THE CRITERIA AND CIRCUMSTANCES THAT FORM THE BASIS FOR MEETING THE PREPONDERANCE OF THE EVIDENCE STANDARD REQUIRED TO SUPPORT A CONCLUSION THAT INTERCOMPANY TRANSACTIONS OF SUCH CORPORATION HAVE RESULTED IN THE IMPROPER SHIFTING OF TAXABLE INCOME FROM A TAXPAYER TO ANOTHER MEMBER OR MEMBERS OF ITS AFFILIATED GROUP NOT SUBJECT TO TAX UNDER THE INCOME TAX LAW, OR THAT THE INTERCOMPANY TRANSACTIONS OF SUCH CORPORATIONS HAVE RESULTED IN THE IMPROPER SHIFTING OF TAXABLE INCOME BETWEEN MEMBERS OF THE INCLUDED AFFILIATED GROUP; TO PROHIBIT THE COMMISSIONER OF REVENUE FROM ASSESSING CERTAIN PENALTIES ARISING FROM REQUIRING A COMBINED RETURN EXCEPT UPON PREPONDERANCE OF THE EVIDENCE THAT THE TAXPAYER'S METHOD WAS WITHOUT REASONABLE BASIS OR THE INTERCOMPANY TRANSACTIONS AT ISSUE LACKED ANY MATERIAL NON-TAX BUSINESS PURPOSE; TO PROVIDE THAT THE PERIOD OF TIME TO RESPOND TO CERTAIN NOTICES TO TAXPAYERS UNDER THE INCOME TAX LAW SHALL BEGIN FROM THE DATE OF MAILING OR HAND DELIVERING THE NOTICE; TO REDUCE CERTAIN INTEREST PENALTIES THAT MAY BE IMPOSED BY THE COMMISSIONER OF REVENUE UNDER THE INCOME TAX LAW FROM 1% TO 1/2 OF 1% PER MONTH; TO MAKE THE IMPOSITION OF SUCH PENALTIES DISCRETIONARY; TO APPLY CERTAIN PENALTIES TO THE TAX DEFICIENCY OR DELINQUENCY RATHER THAN THE AMOUNT OF THE TAX; TO PROVIDE THAT A TAXPAYER'S FAILURE TO FILE AN APPEAL FOR DENIAL OR REFUND OF OVERPAYMENT BASED ON THE FAILURE OF THE OVERPAYMENT TO BE PAID THE TAXPAYER WITHIN SIX MONTHS, DOES NOT PREJUDICE THE TAXPAYER'S RIGHT TO FILE AN APPEAL UPON A SUBSEQUENT FORMAL DENIAL; TO AMEND SECTION 27-13-23 AND 27-13-25, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE PERIOD OF TIME TO RESPOND TO CERTAIN NOTICES TO TAXPAYERS UNDER THE FRANCHISE TAX LAW SHALL BEGIN FROM THE DATE OF MAILING OR HAND DELIVERING THE NOTICE; TO REDUCE CERTAIN INTEREST PENALTIES THAT MAY BE IMPOSED BY THE COMMISSIONER OF REVENUE UNDER THE FRANCHISE TAX LAW FROM 1% TO 1/2% OF 1% PER MONTH; TO MAKE THE IMPOSITION OF SUCH PENALTIES DISCRETIONARY; TO APPLY CERTAIN PENALTIES TO THE TAX DEFICIENCY OR DELINQUENCY RATHER THAN THE AMOUNT OF THE TAX; TO AMEND SECTIONS 27-65-31, 27-65-35, 27-65-37 AND 27-65-39, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT FOR PURPOSES OF THE SALES TAX LAW, THERE SHALL BE A PRESUMPTION THAT A SELLER COLLECTED THE TAX FROM A CUSTOMER OR PURCHASER; TO PROVIDE THAT PENALTIES FOR FAILURE TO REMIT FUNDS COLLECTED BY A SELLER UNDER THE SALES TAX LAW SHALL NOT BE LEVIED UNLESS THE COMMISSIONER PROVES BY PREPONDERANCE OF THE EVIDENCE THAT THE TAXPAYER ACTUALLY COLLECTED THE FUNDS FROM THE PURCHASER AND KNOWINGLY AND INTENTIONALLY FAILED TO REMIT THEM; TO PROVIDE THAT THE PERIOD OF TIME TO RESPOND TO CERTAIN NOTICES TO TAXPAYERS UNDER THE SALES TAX LAW SHALL BEGIN FROM THE DATE OF MAILING OR HAND DELIVERING THE NOTICE; TO REDUCE CERTAIN INTEREST PENALTIES THAT MAY BE IMPOSED BY THE COMMISSIONER OF REVENUE UNDER THE SALES TAX LAW FROM 1% TO 1/2% OF 1% PER MONTH; TO MAKE THE IMPOSITION OF SUCH PENALTIES DISCRETIONARY; TO APPLY CERTAIN PENALTIES TO THE TAX DEFICIENCY OR DELINQUENCY RATHER THAN THE AMOUNT OF THE TAX; TO PROVIDE THAT IN REGARD TO THE PENALTY FOR DEFICIENT OR DELINQUENT SALES TAX THAT IS INTENTIONAL, A TAXPAYER'S PURPORTED DISREGARD OF INSTRUCTIONS GIVEN THROUGH AN AUDIT SHALL NOT BE A BASIS FOR THE IMPOSITION OF THE PENALTY; TO AMEND SECTIONS 27-77-1, 27-77-5 AND 27-77-7, MISSISSIPPI CODE OF 1972, TO REVISE THE MEANING OF "MAIL," "MAILED" OR "MAILING" UNDER THE LAWS GOVERNING THE BOARD OF TAX APPEALS; TO EXPAND THE ACTIONS THAT MAY BE APPEALED TO THE BOARD OF TAX APPEALS; TO PROVIDE THAT IF THE DEPARTMENT OF REVENUE'S BOARD OF REVIEW DOES NOT ISSUE AN ORDER WITHIN NINE MONTHS OF A HEARING, THE TAXPAYER MAY TREAT THE FAILURE TO ISSUE AN ORDER AS A DENIAL OF THE RELIEF REQUESTED IN THE HEARING AND APPEAL TO THE BOARD OF TAX APPEALS; TO PROVIDE THAT AT HEARINGS BEFORE THE BOARD OF TAX APPEALS, THE BOARD SHALL GIVE NO DEFERENCE TO THE DECISION OF THE DEPARTMENT OF REVENUE, BUT SHALL GIVE DEFERENCE TO THE DEPARTMENT'S INTERPRETATION AND APPLICATION OF STATUTES AS REFLECTED IN DULY ENACTED REGULATIONS AND OTHER OFFICIALLY ADOPTED PUBLICATIONS; TO PROVIDE THAT IT SHALL CONDUCT A HEARING ON ALL FACTUAL AND LEGAL ISSUES RAISED BY THE TAXPAYER WHICH ADDRESS THE SUBSTANTIVE OR PROCEDURAL PROPRIETY OF THE ACTIONS BEING APPEALED; TO PROVIDE THAT IF THE BOARD OF TAX APPEALS DOES NOT ISSUE AN ORDER WITHIN NINE MONTHS OF A HEARING, THE TAXPAYER MAY TREAT THE FAILURE TO ISSUE AN ORDER AS A DENIAL OF THE RELIEF REQUESTED IN THE HEARING AND APPEAL TO THE CHANCERY COURT; TO PROVIDE THAT ANY APPEAL OR OTHER FILING WITH THE BOARD OF REVIEW OR BOARD OF TAX APPEALS SHALL BE CONSIDERED TIMELY IF IT IS HAND DELIVERED, MAILED, POSTMARKED, SHIPPED, OR ELECTRONICALLY TRANSMITTED VIA ELECTRONIC MAIL, ELECTRONIC FILING OR FACSIMILE BY MIDNIGHT OF THE DUE DATE FOR THE FILING; TO REMOVE THE REQUIREMENT THAT A TAXPAYER MUST POST A BOND TO APPEAL DECISIONS OF THE BOARD OF TAX APPEALS; TO PROVIDE THAT IN APPEALS OF DECISIONS OF THE BOARD OF TAX APPEALS TO THE CHANCERY COURT, THE COURT WILL TRY THE CASE DE NOVO AND CONDUCT A FULL EVIDENTIARY JUDICIAL HEARING ON ALL FACTUAL AND LEGAL ISSUES RAISED WHICH ADDRESS THE SUBSTANTIVE OR PROCEDURAL PROPRIETY OF THE ACTIONS OF THE DEPARTMENT OF REVENUE BEING APPEALED; AND FOR RELATED PURPOSES.

In the House of Representatives

• Jeffrey C. Smith

  Sponsor

• Senate committee amendmentAdopted

  Adopted Mar 6

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

In the House of Representatives Jan 20 – Feb 7

1. Jan 20Referred to the House committee on Ways and Means
2. Jan 30Reported from committee in the House: title sufficient, do pass as a committee substitute
3. Feb 7Committee substitute adopted in the House
4. Passed the House

In the Senate Feb 11 – Mar 6

1. Feb 11Sent to the Senate
2. Feb 17Referred to the Senate committee on Finance
3. Mar 4Reported from committee in the Senate: title sufficient, do pass as amended
4. Mar 6Amended in the Senate
5. Passed the Senate as amended

Back in the House of Representatives Mar 7 – Apr 8

1. Mar 7Returned to the House to concur in the Senate's amendments
2. Mar 10Declined in the House to concur, and invited a conference
3. Mar 31Conferees named in the House: Smith (39th), Rogers (61st) and Reynolds
4. Conferees named in the Senate: Fillingane, Kirby and Doty
5. Conference report filed in the Senate
6. Conference report filed in the House
7. Apr 1Conference report adopted in the House
8. Conference report adopted in the Senate
9. Apr 8Enrolled bill signed in the House

To the Governor Apr 8 – Apr 10

1. Apr 8Enrolled bill signed in the Senate
2. Apr 10Approved by the Governor