Senate Bill 2449

AN ACT TO AMEND SECTION 27-65-3, MISSISSIPPI CODE OF 1972, TO REVISE THE DEFINITION OF THE TERM "TANGIBLE PERSONAL PROPERTY" UNDER THE STATE SALES TAX LAW; TO AMEND SECTION 27-65-7, MISSISSIPPI CODE OF 1972, TO REVISE THE DEFINITION OF THE TERM "RETAIL SALE" UNDER THE STATE SALES TAX LAW; TO AMEND SECTION 27-65-19, MISSISSIPPI CODE OF 1972, TO REVISE THE DEFINITION OF THE TERM "TELECOMMUNICATIONS SERVICE" FOR PURPOSES OF THE SALES TAX IMPOSED ON TELECOMMUNICATIONS SERVICES; TO PROVIDE THAT SALES OF COMPUTER SOFTWARE, COMPUTER SOFTWARE SERVICES, SPECIFIED DIGITAL PRODUCTS, OR OTHER PRODUCTS DELIVERED ELECTRONICALLY, SHALL BE TAXED AS PROVIDED IN OTHER SECTIONS OF THE STATE SALES TAX LAW; TO AMEND SECTION 27-65-23, MISSISSIPPI CODE OF 1972, TO EXCLUDE COMPUTER SOFTWARE SALES FROM THE SALES TAX IMPOSED ON VARIOUS SERVICES; TO PROVIDE THAT THE SALES TAX IMPOSED ON COMPUTER SOFTWARE SERVICES APPLIES TO SUCH SERVICES THAT ARE ACTUALLY PERFORMED WITHIN THIS STATE; TO PROVIDE THAT WHEN A TAXPAYER PERFORMS SERVICES COVERED BY THIS SECTION, WHICH ARE PERFORMED BOTH IN INTRASTATE AND INTERSTATE COMMERCE, THE TAXPAYER MAY UTILIZE ANY REASONABLE FORMULAE OF APPORTIONMENT WHICH WILL APPORTION TO THIS STATE, FOR TAXATION, THAT PORTION OF THE SERVICES WHICH ARE PERFORMED WITHIN THIS STATE; TO AMEND SECTION 27-65-93, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE COMMISSIONER OF REVENUE SHALL ADOPT RULES AND REGULATIONS PROVIDING FOR THE ISSUANCE OF A PERMIT TO PURCHASERS AND USERS OF COMPUTER SOFTWARE OR COMPUTER SOFTWARE SERVICES TO PURCHASE SUCH ITEMS AND SERVICES WITHOUT THE PAYMENT TO THE VENDOR OF SALES TAX AND USE TAX; TO DEFINE THE TERMS "COMPUTER SOFTWARE", "COMPUTER SOFTWARE SERVICE" AND "INFORMATION AND DATA PROCESSING SERVICES" UNDER THE STATE SALES TAX LAW; TO PROVIDE FOR THE ALLOCATION OF TAXABLE AND NONTAXABLE PORTIONS OF COMPUTER SOFTWARE AND COMPUTER SOFTWARE SERVICE IN BUNDLED TRANSACTIONS; TO PROVIDE FOR THE APPORTIONMENT OF THE USE OF TAXABLE COMPUTER SOFTWARE AND COMPUTER SOFTWARE SERVICES BOTH WITHIN AND WITHOUT THIS STATE; TO PROVIDE THAT FOR PURPOSES OF SALES TAX AND USE TAX, COMPUTER SOFTWARE OR COMPUTER SOFTWARE SERVICES PROVIDED BY ONE LEGAL ENTITY TO ANOTHER COMMONLY OWNED, RELATED, OR AFFILIATED ENTITY SHALL BE TREATED AS NONTAXABLE TRANSFERS BETWEEN DIFFERENT SEGMENTS OF ONE LEGAL ENTITY, WITH PROPER CREDIT ALLOWED FOR MISSISSIPPI SALES OR USE TAX PAID AND CREDIT FOR SALES OR USE TAX PAID TO ANOTHER STATE AS PROVIDED IN THE STATE SALES TAX LAW OR STATE USE TAX LAW, REGARDLESS OF WHICH AFFILIATED ENTITY PAID THE SALES OR USE TAX FOR WHICH CREDIT IS TAKEN; TO PROVIDE THAT A TAXPAYER THAT HAS PAID A SALES TAX OR USE TAX TO ANOTHER STATE OR LOCAL TAXING JURISDICTION ON COMPUTER SOFTWARE OR COMPUTER SOFTWARE SERVICE THAT IS TAXABLE IN THIS STATE SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED IN THIS STATE ON SUCH COMPUTER SOFTWARE OR COMPUTER SOFTWARE SERVICE TO THE EXTENT THAT THE AMOUNT OF THE OTHER TAX IS PROPERLY DUE AND ACTUALLY PAID IN THE OTHER STATE OR LOCAL TAXING JURISDICTION AND TO THE EXTENT THAT THE RATE OF SALES TAX IMPOSED BY AND PAID IN THE OTHER STATE OR LOCAL TAXING JURISDICTION DOES NOT EXCEED THE RATE OF SALES TAX OR USE TAX IMPOSED IN THIS STATE; TO AMEND SECTION 27-67-3, MISSISSIPPI CODE OF 1972, TO REVISE THE DEFINITION OF THE TERM TANGIBLE PERSONAL PROPERTY UNDER THE STATE USE TAX LAW; TO DEFINE THE TERM "COMPUTER SOFTWARE" UNDER THE STATE USE TAX LAW; TO AMEND SECTION 27-67-5, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT COMPUTER SOFTWARE MAINTAINED ON A SERVER LOCATED OUTSIDE THE STATE AND ACCESSIBLE FOR USE ONLY VIA THE INTERNET IS NOT A TAXABLE USE, STORAGE OR CONSUMPTION UNDER THE STATE USE TAX LAW; AND FOR RELATED PURPOSES.

In the Senate

• Josh Harkins

  Sponsor

• Senate floor amendmentAdopted

  Adopted Feb 7

• House of Representatives committee amendmentPending

• House of Representatives floor amendmentAdopted

  Adopted Mar 8

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

In the Senate Jan 16 – Feb 7

1. Jan 16Referred to the Senate committee on Finance
2. Jan 31Reported from committee in the Senate: title sufficient, do pass
3. Feb 7Amended in the Senate
4. Passed the Senate as amended

In the House of Representatives Feb 10 – Mar 8

1. Feb 10Sent to the House
2. Feb 13Referred to the House committee on Ways and Means
3. Feb 28Reported from committee in the House: title sufficient, do pass as amended
4. Mar 7Read the third time in the House
5. Mar 8Amended in the House
6. Passed the House as amended

Back in the Senate Mar 9 – Mar 23

1. Mar 9Returned to the Senate to concur in the House's amendments
2. Mar 16Concurred in the Senate in the House's amendments
3. Mar 23Enrolled bill signed in the Senate

To the Governor Mar 23 – Mar 28

1. Mar 23Enrolled bill signed in the House
2. Mar 28Approved by the Governor