Senate Bill 2487

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 CLEAR AND CONVINCING 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 CLEAR AND CONVINCING EVIDENCE STANDARD REQUIRED TO SUPPORT A CONCLUSION THAT INTERCOMPANY TRANSACTIONS OF SUCH CORPORATION HAVE RESULTED IN THE SHIFTING OF TAXABLE INCOME FROM A TAXPAYER TO ANOTHER MEMBER OR MEMBERS OF ITS AFFILIATED GROUP NOT SUBJECT TO TAX UNDER THIS ARTICLE, OR THAT THE INTERCOMPANY TRANSACTIONS OF SUCH CORPORATIONS HAVE RESULTED IN THE 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 CLEAR AND CONVINCING EVIDENCE THAT THE TAXPAYER'S METHOD WAS WITHOUT REASONABLE BASIS, OR THAT IT IS BEYOND A REASONABLE DOUBT THE TAXPAYER FILED A FALSE OR FRAUDULENT RETURN WITH INTENT TO EVADE THE INCOME TAX; TO PROVIDE THAT ONE OF THE OPTIONS FOR DELIVERING CERTAIN NOTICES TO THE TAXPAYER UNDER THE INCOME TAX LAW SHALL BE CERTIFIED MAIL, RETURN RECEIPT REQUESTED, RATHER THAN REGULAR MAIL, AND TO PROVIDE THAT THE PERIOD OF TIME TO RESPOND TO SUCH NOTICES 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% 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 TAXPAYERS FAILURE TO FILE AN APPEAL FOR DENIAL OR REFUND OF OVERPAYMENT BASED ON THE FAILURE OF THE OVERPAYMENT TO BE PAID THE TAXPAYER WITHIN 6 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 ONE OF THE OPTIONS FOR DELIVERING CERTAIN NOTICES TO THE TAXPAYER UNDER THE FRANCHISE TAX LAW SHALL BE CERTIFIED MAIL, RETURN RECEIPT REQUESTED, RATHER THAN REGULAR MAIL, AND TO PROVIDE THAT THE PERIOD OF TIME TO RESPOND TO SUCH NOTICES 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 27-65-3, 27-65-31, 27-65-35, 27-65-37 AND 27-65-39, MISSISSIPPI CODE OF 1972, TO INCLUDE WITHIN THE DEFINITION OF THE TERM "TAXPAYER" UNDER THE SALES TAX LAW, IN THE CASE OF A CLAIM FOR A REFUND OF OVERPAID TAXES, ANY PERSON WHO PAID A TAX TO A SELLER OR OTHER PARTY AND BORE THE ECONOMIC BURDEN OF THE TAX; 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 CLEAR AND CONVINCING EVIDENCE THAT THE TAXPAYER ACTUALLY COLLECTED THE FUNDS FROM THE PURCHASER AND KNOWINGLY AND INTENTIONALLY FAILED TO REMIT THEM; TO PROVIDE THAT ONE OF THE OPTIONS FOR DELIVERING CERTAIN NOTICES TO THE TAXPAYER UNDER THE SALES TAX LAW SHALL BE CERTIFIED MAIL, RETURN RECEIPT REQUESTED, RATHER THAN REGULAR MAIL, AND TO PROVIDE THAT THE PERIOD OF TIME TO RESPOND TO SUCH NOTICES 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, AND A TAXPAYER'S GOOD-FAITH CHALLENGE TO THE CONSTITUTIONALITY OR LEGALITY OF A LAW OR REGULATION SHALL PRECLUDE THE IMPOSITION OF THE PENALTY; TO AMEND SECTIONS 27-77-1, 27-77-5 AND 27-77-7, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT "MAIL," "MAILED" OR "MAILING" UNDER THE LAWS GOVERNING THE BOARD OF TAX APPEALS SHALL MEAN CERTIFIED MAIL, RETURN RECEIPT REQUESTED, RATHER THAN FIRST-CLASS MAIL; 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 6 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 OR BOARD OF REVIEW OR ITS INTERPRETATION OF ANY LAW THAT IS NOT CONTAINED WITHIN OFFICIAL REGULATIONS OF THE DEPARTMENT OF REVENUE, BUT IT SHALL TRY THE CASE DE NOVO; TO PROVIDE THAT IF THE BOARD OF TAX APPEALS DOES NOT ISSUE AN ORDER WITHIN 9 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; AND FOR RELATED PURPOSES.

In the Senate

• Joey Fillingane

  Sponsor

• House of Representatives committee amendmentAdopted

  Adopted Mar 6

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

In the Senate Jan 20 – Feb 10

1. Jan 20Referred to the Senate committee on Finance
2. Jan 30Reported from committee in the Senate: title sufficient, do pass as a committee substitute
3. Feb 10Committee substitute adopted in the Senate
4. Passed the Senate

In the House of Representatives Feb 11 – Mar 6

1. Feb 11Sent to the House
2. Feb 14Referred to the House committee on Ways and Means
3. Mar 3Reported from committee in the House: title sufficient, do pass as amended
4. Mar 6Amended in the House
5. Passed the House as amended

Back in the Senate Mar 6 – Mar 31

1. Mar 6Motion in the House to reconsider entered (Frierson, Smith (39th) and Rogers (61st))
2. Mar 11Motion in the House to reconsider tabled
3. Returned to the Senate to concur in the House's amendments
4. Mar 19Declined in the Senate to concur, and invited a conference
5. Mar 21Conferees named in the Senate: Fillingane, Kirby and Doty
6. Mar 31Died on the calendar in the Senate