Bill Text: MS HB765 | 2013 | Regular Session | Engrossed
Bill Title: Alternative Fuel Vehicles for Mississippi Act of 2013; create.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2013-03-19 - Died In Committee [HB765 Detail]
Download: Mississippi-2013-HB765-Engrossed.html
MISSISSIPPI LEGISLATURE
2013 Regular Session
To: Ways and Means
By: Representative Smith (39th)
House Bill 765
(As Passed the House)
AN ACT TO CREATE THE "ALTERNATIVE FUEL VEHICLES FOR MISSISSIPPI ACT OF 2013"; TO CREATE NEW SECTION 27-7-22.37, MISSISSIPPI CODE OF 1972, TO AUTHORIZE AN INCOME TAX CREDIT FOR ANY TAXPAYER PURCHASING, CONSTRUCTING OR INSTALLING AN ALTERNATIVE FUEL CONVERSION KIT ON A MOTOR VEHICLE, A MOTOR VEHICLE WITH AN ALTERNATIVE FUEL MOTOR FUEL SYSTEM AS ORIGINAL EQUIPMENT, A REFUELING SYSTEM INSTALLED AT A PRIVATE HOME OR RESIDENCE OR AT A BUSINESS FOR NONPUBLIC REFUELING WITH ALTERNATIVE FUEL OF PERSONAL OR BUSINESS ALTERNATIVE FUEL MOTOR VEHICLES, OR A REFUELING STATION OPERATED FOR REFUELING OF ALTERNATIVE FUEL MOTOR VEHICLES OWNED BY THE TAXPAYER, PRIVATE CUSTOMERS OF THE TAXPAYER OR THE GENERAL PUBLIC; TO AMEND SECTION 27-65-19, MISSISSIPPI CODE OF 1972, TO EXCLUDE FROM SALES TAXATION THE SALE OF NATURAL GAS FOR USE AS TAXABLE MOTOR FUEL; TO AMEND SECTIONS 27-59-3, 27-59-7, 27-59-9, 27-59-11, 27-59-12, 27-59-13, 27-59-17, 27-59-23, 27-59-25, 27-59-29, 27-59-31, 27-59-33, 27-59-35, 27-59-41, 27-59-47, 27-59-57 AND 27-59-59, MISSISSIPPI CODE OF 1972, TO PROVIDE FOR THE DELIVERY OF NATURAL GAS TO PRIVATE REFUELING SYSTEMS AND PUBLIC REFUELING STATIONS; TO PROVIDE FOR ANNUAL PRIVILEGE TAX PERMITS FOR GOVERNMENT VEHICLES AND FOR LICENSING OF REFUELING SYSTEMS, REFUELING STATIONS AND DEALER AND INSTALLERS OF COMPRESSED GAS FUEL EQUIPMENT; TO PROVIDE FOR MONTHLY REPORTS BY DEALERS AND INSTALLERS OF COMPRESSED GAS FUEL EQUIPMENT; TO AUTHORIZE THE CANCELLATION OF LICENSES OF SUCH DEALERS AND INSTALLERS UNDER CERTAIN CIRCUMSTANCES; TO PROVIDE FOR FORFEITURE BY DEALERS AND INSTALLERS OF LICENSES UNDER CERTAIN CIRCUMSTANCES; TO IMPOSE RECORD KEEPING REQUIREMENTS ON DEALERS AND INSTALLERS; TO REVISE REQUIREMENTS FOR THE ISSUANCE OF COMPRESSED GAS USER'S DECALS; TO REQUIRE THE OWNER OF A FLEET OF MOTOR VEHICLES USING COMPRESSED GAS AS A FUEL TO FILE ANNUAL REPORTS ON A FLEET BASIS AS OPPOSED TO AN INDIVIDUAL MOTOR VEHICLE BASIS; TO PROVIDE FOR THE INSPECTION OF PRIVATE REFUELING STATIONS; TO PROVIDE THE MANNER IN WHICH REFUNDS OF OVERPAYMENT OF TAXES SHALL BE MADE TO CERTAIN USERS AND DISTRIBUTORS; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. This act shall be known and may be cited as the
"Alternative Fuel Vehicles for Mississippi Act of 2013."
SECTION 2. (1) In order to reduce motor vehicle fuel costs to the citizens of this state, to assist in job creation, to enhance domestic natural gas production and reduce dependency on foreign oil, to provide opportunities for savings in state and local government budgets, to reduce exhaust emissions from motor vehicles by using cleaner burning fuel, and to enhance state revenue, it is declared that it is in the public interest and it is the policy of the state to encourage the use of alternative fuels in motor vehicles operating on the highways of the state.
(2) It is, therefore, the intent of the Legislature to encourage the development of the usage of alternative fuels in motor vehicles and, consequently, to promote public access to alternative fuels refueling stations in the state in furtherance thereof by increasing the numbers of public access alternative fuel fueling stations along the interstate highway system and U.S. highways in the state, and the provisions of this act are to be liberally construed in furtherance of this stated intent.
(3) It shall be the goal of this state to have at least one (1) public access alternative fuel fueling station located approximately every one hundred (100) miles along the entire interstate highway system in the state by the end of year 2018, with this goal to increase to at least one (1) public access alternative fuel fueling station approximately every fifty (50) miles on such interstates by the year 2023.
(4) It shall similarly be the goal of this state to have at least one (1) public access alternative fuel fueling station located approximately every one hundred (100) miles along the U.S. highways in the state by the year 2023, with this goal to increase to at least one (1) public access alternative fuel fueling station approximately every fifty (50) miles on such U.S. highways by the year 2028.
(5) The Mississippi Department of Transportation may take steps to meet the goals set forth in this section by assisting, cooperating with or entering into partnership agreements with private entities to construct the necessary alternative fuel fueling stations for use by the public, state agencies and political subdivisions of the state.
SECTION 3. The following shall be codified as Section 27-7-22.37, Mississippi Code of 1972:
27-7-22.37. (1) The intent of this section is to provide incentives to taxpayers to invest in qualified alternative fuel motor vehicle fuel property as specified in this section. Any taxpayer purchasing, constructing or installing a qualified alternative fuel motor vehicle fuel property shall be allowed a credit against state income tax liability under this chapter as provided in subsection (3) of this section.
(2) As used in this section:
(a) "Alternative fuel" means compressed natural gas and liquefied natural gas, as defined in Section 27-59-3, propane and hydrogen fuel cell fuel when used as a fuel in a motor vehicle or motor vehicles on the highways of the state.
(b) "Conversion kit" means the fuel system equipment necessary in order to retrofit a motor vehicle propelled by gasoline, diesel or other fuel so that the motor vehicle may be converted or modified into an alternative fuel motor vehicle.
(c) "Cost of qualified alternative fuel motor vehicle fuel property" means any of the following:
(i) The actual cost per vehicle paid by the owner of a motor vehicle for the purchase and installation of qualified alternative fuel motor vehicle fuel property described in paragraph (l)(i) of this subsection, provided the motor vehicle is registered in this state.
(ii) The incremental cost per vehicle paid by the owner upon the purchase of an OEM alternative fuel motor vehicle for the qualified alternative fuel motor vehicle fuel property (including installation) described in paragraph (l)(ii) of this subsection.
(iii) The cost of the qualified alternative fuel motor vehicle fuel property described in paragraph (l)(iii) and (iv) of this subsection and its installation.
(iv) The cost of the qualified alternative fuel motor vehicle fuel property described in paragraph (l)(iv) of this subsection and its construction and installation; however, only the first One Million Dollars ($1,000,000.00) in cost per refueling station of the qualified alternative fuel motor vehicle fuel property described in paragraph (l)(iv) of this subsection shall qualify as cost of qualified alternative fuel motor vehicle fuel property described in paragraph (l)(iv) of this subsection. The cost directly related to a refueling station shall not include costs associated with exploration and development activities necessary for severing natural resources from the soil or ground.
(v) Subject to subsections (3) and (6) of this section, the cost of the qualified alternative fuel motor vehicle fuel property described in paragraph (l)(v) of this subsection and its installation as follows:
1. With respect to the replacement of a refueling system being retired from service prior to the end of any applicable credit carryforward period, the remaining tax credit carryforward with respect to the system shall continue in effect for the balance of its term, with the cost of qualified alternative fuel motor vehicle fuel property for the refueling system upgrade being equal to the cost of the new fueling system, including installation of the system, less the cost of the qualified alternative fuel motor vehicle fuel property for which the tax credit was previously allowed for the refueling system being retired from service.
2. With respect to the addition of a refueling system unaccompanied by the retirement from service of another refueling system, the cost of the new refueling system, including the installation of the system.
3. With respect to the replacement of a refueling system not being retired from service but being transferred to another location, the cost of the new refueling system, including installation of the system, subject to subsection (15) of this section with respect to qualified alternative fuel motor vehicle fuel property described in paragraph (l)(v) of this subsection, with any remaining credit carryforward with respect to the transferred refueling system to continue in effect for the balance of its term. Upgrades under this subparagraph (v) of this paragraph (b) to the refueling systems included in paragraph (l)(iv) of this subsection are not subject to the dollar limitation imposed on individual refueling stations by subparagraph (iv) of this paragraph (b).
(d) "Fuel system equipment" means tanks, pumps, hoses, injectors, electronic controls and related supplies, materials, parts and components for the storage of alternative fuel as fuel for an alternative fuel motor vehicle, the delivery of alternative fuel to the engine of a natural gas motor vehicle, and the exhaust from an alternative fuel motor vehicle of gases from combustion of alternative fuel used to propel an alternative fuel motor vehicle, excluding equipment necessary for operation of a motor vehicle on gasoline, diesel or any fuel other than alternative fuel.
(e) "Incremental cost" means:
(i) The stated MSRP of the fuel system equipment and its installation for an OEM alternative fuel motor vehicle; or
(ii) If no separate MSRP is stated, the difference between the MSRP of the OEM alternative fuel motor vehicle and the MSRP of the same make and model of motor vehicle manufactured without the fuel system equipment but otherwise identically equipped.
When an OEM alternative fuel motor vehicle is sold for less (or more) than its MSRP, the amount determined in subparagraph (i) or (ii) of this paragraph (d) shall be proportionately reduced (or increased) by the same percentage as the discount (or premium) on the MSRP, as applicable.
(f) "Licensed installer" has the meaning ascribed to such term in Section 27-59-3, as licensed under Section 27-59-11(8).
(g) "OEM alternative fuel motor vehicle" means an alternative fuel motor vehicle manufactured by the original vehicle manufacturer (or its contractor) with the fuel system equipment installed as original equipment by the manufacturer (or its contractor) at the factory or at another installation site approved by the manufacturer (or its contractor).
(h) "Motor vehicle" shall have the meaning ascribed to such term in Section 27-59-3.
(i) "MSRP" means manufacturer's suggested retail price.
(j) "Alternative fuel motor vehicle" means a motor vehicle propelled by alternative fuel either as a dedicated alternative fuel vehicle, as a bi-fuel vehicle using alternative fuel as one of its fuels, or as a dual fuel vehicle using alternative fuel as one of its fuels.
(k) "Original purchase" means the purchase directly from a dealer at retail of a new OEM alternative fuel motor vehicle which has never been titled.
(l) "Qualified alternative fuel motor vehicle fuel property" means any of the following:
(i) A conversion kit which has not previously been used to retrofit any motor vehicle, is installed by a licensed installer, and results in a reduction in emissions.
(ii) The fuel system equipment on an OEM alternative fuel motor vehicle which results in a reduction in emissions.
(iii) A refueling system installed at a business by a licensed installer for the nonpublic refueling with alternative fuel of personal or business alternative fuel motor vehicles.
(iv) A refueling station located in the state and operated for refueling of alternative fuel motor vehicles owned by the taxpayer, private customers of the taxpayer or the general public.
(v) Upgrades to a refueling system included in subparagraphs (iii) and (iv) of this paragraph (l).
(vi) Portable or mobile refueling systems.
(m) "Reduction in emissions" means a reduction in atmospheric emissions from fuel consumption by an alternative fuel motor vehicle as demonstrated by certification of the fuel system equipment by the federal Environmental Protection Agency or the Mississippi Department of Environmental Quality or any other test or standard recognized by the Mississippi Department of Environmental Quality.
(n) "Refueling system" means compressors (whether used separately or in combination with cascade tanks), process piping, hoses, dispensing units at the point where alternative fuel is delivered as a fuel, meters and other parts and equipment and installation supplies and materials therefor that constitute a refueling system capable of dispensing alternative fuel into fuel tanks of alternative fuel motor vehicles for use as a fuel.
(o) "Refueling station" means property constituting a facility operated for dispensing alternative fuel into fuel tanks of alternative fuel motor vehicles, which shall include:
(i) A refueling system; and
(ii) A building or other structural components constructed or installed as part of and directly related to such refueling system.
(p) "Retrofit" means the installation of a conversion kit in a motor vehicle designed to operate on gasoline, diesel or other fuel in order to convert or modify such motor vehicle into an alternative fuel motor vehicle.
(3) The tax credit provided for in subsection (1) of this section shall be allowed only once per alternative fuel motor vehicle, refueling system or refueling station against the state income tax liability of the taxpayer for the taxable year in which the qualified alternative fuel motor vehicle fuel property is placed into service in order that the property constituting such items which have previously received a tax credit under this section shall not be entitled to multiple credits; however, this is not intended to and does not prevent upgrades thereof described in subsection (2)(l)(v) of this section from independently qualifying for the tax credit provided for in subsection (1) of this section.
(4) The tax credit provided for in subsection (1) of this section shall be equal to fifty percent (50%) of the cost of the qualified alternative fuel motor vehicle fuel property.
(5) The tax credits provided by this section shall be applied against the state income tax liability determined under this chapter after all other credits provided by this chapter to the taxpayer have been applied.
(6) No tax credit shall be allowed under this section with respect to the cost of any qualified alternative fuel motor vehicle fuel property for which any credit under this or any other section of this chapter has previously been allowed.
(7) The tax credit shall be claimed on the state income tax return filed for the taxable year for which the tax credit is allowed, which return shall contain, at a minimum, the following proof of qualification for the tax credit:
(a) Registration of the alternative fuel motor vehicle in the state and the date placed into service; or
(b) The incremental cost of the purchase of an OEM alternative fuel motor vehicle; or
(c) The purchase and installation cost of a conversion kit or a refueling system by a licensed installer, the date placed into service, and the cost thereof; or
(d) The cost of the qualified alternative fuel motor vehicle fuel property for a refueling station and the date placed into service.
(8) In cases where no previous tax credit has been claimed pursuant to this section for the cost of an OEM alternative fuel motor vehicle purchased by a taxpayer and the taxpayer is unable to, or elects not to, determine the exact incremental cost attributable to such qualified alternative fuel motor vehicle fuel property, the taxpayer may claim a credit against the income tax for the taxable year in which the OEM alternative fuel motor vehicle is placed into service equal to fifteen percent (15%) of the cost of the OEM alternative fuel motor vehicle or Five Thousand Dollars ($5,000.00), whichever is less, provided the OEM alternative fuel motor vehicle is registered in this state.
(9) If the amount of the tax credit allowable by this section exceeds the total state income tax liability of the taxpayer, or if the taxpayer otherwise has no state income tax liability, for the tax period in which the qualified alternative fuel motor vehicle fuel property is placed in service, the amount of the tax credit that exceeds the total state income tax liability and is not used to offset the state income tax liability in the taxable year in which the qualified alternative fuel motor vehicle fuel property is placed in service shall constitute an overpayment and, at the election of the taxpayer, may be
carried forward for the ten (10) succeeding taxable years.
(10) A husband and wife who file separate returns for a taxable year in which they could have filed a joint return may each claim only one-half (1/2) of the tax credit that would otherwise have been allowed for a joint return.
(11) The Commissioner of Revenue of the Department of Revenue, in consultation, as appropriate, with the Executive Director of the Department of Environmental Quality, shall promulgate rules and regulations in accordance with the Administrative Procedures Act as are necessary to implement the provisions of this section.
(12) Not-for-profit entities, including, but not limited to, nonprofit corporations organized under Section 79-11-101 et seq. shall not be eligible for the tax credit authorized by this section.
(13) Tax credits allowable to a partnership, a limited liability company taxed as a partnership or any other entity treated as a pass-through entity under this chapter shall be passed through to the partners, members or other owners on a pro rata basis or pursuant to an executed agreement among the partners, members or other owners documenting an alternative distribution method. A partnership, limited liability company taxed as a partnership or any other entity treated as a pass-through entity under this chapter shall be treated as the taxpayer for purposes of subsection (9) of this section.
(14) If a refueling station for which a taxpayer receives tax credits under this section ceases to sell alternative fuel for a period of more than twelve (12) months, any remaining tax credit carryforward period shall be forfeited beginning with the taxable year in which such twelve-month period expires but may be reinstated thereafter in any taxable year in which the refueling station subsequently begins to sell alternative fuel again within the remaining carryforward period; however, there shall be no recapture of tax credits with respect to such taxpayer's prior taxable years which ended before the taxable year in which the forfeiture of tax credits began. If a refueling system constituting a component of such refueling station is relocated to another location and again begins to be used in the sale of alternative fuel within the twelve-month period, then the remaining tax credit carryforward period allocable to the relocated refueling system shall not be forfeited.
(15) This section shall be repealed from and after July 1, 2023.
SECTION 4. Section 27-65-19, Mississippi Code of 1972, is amended as follows:
27-65-19. (1) (a) (i)
Except as otherwise provided in this subsection, upon every person selling to
consumers, electricity, current, power, potable water, steam, coal, natural
gas, liquefied petroleum gas or other fuel, there is hereby levied, assessed
and shall be collected a tax equal to seven percent (7%) of the gross income of
the business. Provided, gross income from sales to consumers of electricity,
current, power, natural gas, liquefied petroleum gas or other fuel for residential
heating, lighting or other residential noncommercial or nonagricultural use, * * * sales of potable water for residential,
noncommercial or nonagricultural use, and sales of natural gas for use as a
motor vehicle fuel subject to the liquefied compressed gas tax pursuant to
Section 27-59-1 et seq. shall be excluded from taxable gross income of the
business. Provided further, upon every such seller using electricity, current,
power, potable water, steam, coal, natural gas, liquefied petroleum gas or
other fuel for nonindustrial purposes, there is hereby levied, assessed and
shall be collected a tax equal to seven percent (7%) of the cost or value of
the product or service used.
(ii) Gross income from sales to a church that is exempt from federal income taxation under 26 USCS Section 501(c)(3) of electricity, current, power, natural gas, liquefied petroleum gas or other fuel for heating, lighting or other use, and sales of potable water to such a church shall be excluded from taxable gross income of the business if the electricity, current, power, natural gas, liquefied petroleum gas or potable water is utilized on property that is primarily used for religious or educational purposes.
(b) There is hereby levied, assessed and shall be collected a tax equal to one and one-half percent (1-1/2%) of the gross income of the business when the electricity, current, power, steam, coal, natural gas, liquefied petroleum gas or other fuel is sold to or used by a manufacturer, custom processor, technology intensive enterprise meeting the criteria provided for in Section 27-65-17(1)(f), or public service company for industrial purposes, which shall include that used to generate electricity, to operate an electrical distribution or transmission system, to operate pipeline compressor or pumping stations or to operate railroad locomotives; however, the tax imposed on natural gas under this paragraph shall not exceed Ten and One-half Cents (10.5¢) per one thousand (1,000) cubic feet and sales of fuel used to produce electric power by a company primarily engaged in the business of producing, generating or distributing electric power for sale shall be exempt from sales tax as provided in Section 27-65-107.
(c) (i) The one and one-half percent (1-1/2%) industrial rate provided for in this subsection shall also apply when the electricity, current, power, steam, coal, natural gas, liquefied petroleum gas or other fuel is sold to a producer or processor for use directly in the production of poultry or poultry products, the production of livestock and livestock products, the production of domesticated fish and domesticated fish products, the production of marine aquaculture products, the production of plants or food by commercial horticulturists, the processing of milk and milk products, the processing of poultry and livestock feed, and the irrigation of farm crops.
(ii) The one and one-half percent (1-1/2%) rate provided for in this subsection shall also apply to the sale of naturally occurring carbon dioxide and anthropogenic carbon dioxide lawfully injected into the earth for:
1. Use in an enhanced oil recovery project, including, but not limited to, use for cycling, repressuring or lifting of oil; or
2. Permanent sequestration in a geological formation.
(d) The one and one-half percent (1-1/2%) rate provided for in this subsection shall not apply to sales of fuel for automobiles, trucks, truck-tractors, buses, farm tractors or airplanes.
(e) (i) Upon every person providing services in this state, there is hereby levied, assessed and shall be collected:
1. A tax equal to seven percent (7%) of the gross income received from all charges for intrastate telecommunications services.
2. A tax equal to seven percent (7%) of the gross income received from all charges for interstate telecommunications services.
3. A tax equal to seven percent (7%) of the gross income received from all charges for international telecommunications services.
4. A tax equal to seven percent (7%) of the gross income received from all charges for ancillary services.
5. A tax equal to seven percent (7%) of the gross income received from all charges for products delivered electronically, including, but not limited to, software, music, games, reading materials or ring tones.
(ii) A person, upon proof that he has paid a tax in another state on an event described in subparagraph (i) of this paragraph (e), shall be allowed a credit against the tax imposed in this paragraph (e) on interstate telecommunications service charges to the extent that the amount of such tax is properly due and actually paid in such other state and to the extent that the rate of sales tax imposed by and paid in such other state does not exceed the rate of sales tax imposed by this paragraph (e).
(iii) Charges by one (1) telecommunications provider to another telecommunications provider holding a permit issued under Section 27-65-27 for services that are resold by such other telecommunications provider, including, but not limited to, access charges, shall not be subject to the tax levied pursuant to this paragraph (e).
(iv) For purposes of this paragraph (e):
1. "Telecommunications service" means the electronic transmission, conveyance or routing of voice, data, audio, video or any other information or signals to a point, or between points. The term "telecommunications service" includes such transmission, conveyance or routing in which computer processing applications are used to act on the form, code or protocol of the content for purposes of transmission, conveyance or routing without regard to whether such service is referred to as voice over Internet protocol services or is classified by the Federal Communications Commission as enhanced or value added. The term "telecommunications service" shall not include:
a. Data processing and information services that allow data to be generated, acquired, stored, processed or retrieved and delivered by an electronic transmission to a purchaser where such purchaser's primary purpose for the underlying transaction is the processed data or information;
b. Installation or maintenance of wiring or equipment on a customer's premises;
c. Tangible personal property;
d. Advertising, including, but not limited to, directory advertising;
e. Billing and collection services provided to third parties;
f. Internet access service;
g. Radio and television audio and video programming services regardless of the medium, including the furnishing of transmission, conveyance and routing of such services by the programming service provider. Radio and television audio and video programming services shall include, but not be limited to, cable service as defined in 47 USCS 522(6) and audio and video programming services delivered by commercial mobile radio service providers, as defined in 47 CFR 20.3;
h. Ancillary services; or
i. Digital products delivered electronically, including, but not limited to, software, music, video, reading materials or ring tones.
2. "Ancillary services" means services that are associated with or incidental to the provision of telecommunications services, including, but not limited to, detailed telecommunications billing, directory assistance, vertical service and voice mail service.
a. "Conference bridging" means an ancillary service that links two (2) or more participants of an audio or video conference call and may include the provision of a telephone number. Conference bridging does not include the telecommunications services used to reach the conference bridge.
b. "Detailed telecommunications billing service" means an ancillary service of separately stating information pertaining to individual calls on a customer's billing statement.
c. "Directory assistance" means an ancillary service of providing telephone number information and/or address information.
d. "Vertical service" means an ancillary service that is offered in connection with one or more telecommunications services, which offers advanced calling features that allow customers to identify callers and to manage multiple calls and call connections, including conference bridging services.
e. "Voice mail service" means an ancillary service that enables the customer to store, send or receive recorded messages. Voice mail service does not include any vertical services that the customer may be required to have in order to utilize the voice mail service.
3. "Intrastate" means telecommunications service that originates in one (1) United States state or United States territory or possession, and terminates in the same United States state or United States territory or possession.
4. "Interstate" means a telecommunications service that originates in one (1) United States state or United States territory or possession, and terminates in a different United States state or United States territory or possession.
5. "International" means a telecommunications service that originates or terminates in the United States and terminates or originates outside the United States, respectively.
(v) For purposes of paragraph (e), the following sourcing rules shall apply:
1. Except for the defined telecommunications services in item 3 of this subparagraph, the sales of telecommunications services sold on a call-by-call basis shall be sourced to:
a. Each level of taxing jurisdiction where the call originates and terminates in that jurisdiction, or
b. Each level of taxing jurisdiction where the call either originates or terminates and in which the service address is also located.
2. Except for the defined telecommunications services in item 3 of this subparagraph, a sale of telecommunications services sold on a basis other than a call-by-call basis, is sourced to the customer's place of primary use.
3. The sale of the following telecommunications services shall be sourced to each level of taxing jurisdiction as follows:
a. A sale of mobile telecommunications services other than air-to-ground radiotelephone service and prepaid calling service is sourced to the customer's place of primary use as required by the Mobile Telecommunication Sourcing Act.
A. A home service provider shall be responsible for obtaining and maintaining the customer's place of primary use. The home service provider shall be entitled to rely on the applicable residential or business street address supplied by such customer, if the home service provider's reliance is in good faith; and the home service provider shall be held harmless from liability for any additional taxes based on a different determination of the place of primary use for taxes that are customarily passed on to the customer as a separate itemized charge. A home service provider shall be allowed to treat the address used for purposes of the tax levied by this chapter for any customer under a service contract in effect on August 1, 2002, as that customer's place of primary use for the remaining term of such service contract or agreement, excluding any extension or renewal of such service contract or agreement. Month-to-month services provided after the expiration of a contract shall be treated as an extension or renewal of such contract or agreement.
B. If the commissioner determines that the address used by a home service provider as a customer's place of primary use does not meet the definition of the term "place of primary use" as defined in subitem a.A. of this item 3, the commissioner shall give binding notice to the home service provider to change the place of primary use on a prospective basis from the date of notice of determination; however, the customer shall have the opportunity, prior to such notice of determination, to demonstrate that such address satisfies the definition.
C. The department has the right to collect any taxes due directly from the home service provider's customer that has failed to provide an address that meets the definition of the term "place of primary use" which resulted in a failure of tax otherwise due being remitted.
b. A sale of postpaid calling service is sourced to the origination point of the telecommunications signal as first identified by either:
A. The seller's telecommunications system; or
B. Information received by the seller from its service provider, where the system used to transport such signals is not that of the seller.
c. A sale of a prepaid calling service or prepaid wireless calling service shall be subject to the tax imposed by this paragraph if the sale takes place in this state. If the customer physically purchases a prepaid calling service or prepaid wireless calling service at the vendor's place of business, the sale is deemed to take place at the vendor's place of business. If the customer does not physically purchase the service at the vendor's place of business, the sale of a prepaid calling card or prepaid wireless calling card is deemed to take place at the first of the following locations that applies to the sale:
A. The customer's shipping address, if the sale involves a shipment;
B. The customer's billing address;
C. Any other address of the customer that is known by the vendor; or
D. The address of the vendor, or alternatively, in the case of a prepaid wireless calling service, the location associated with the mobile telephone number.
4. A sale of a private communication service is sourced as follows:
a. Service for a separate charge related to a customer channel termination point is sourced to each level of jurisdiction in which such customer channel termination point is located.
b. Service where all customer termination points are located entirely within one (1) jurisdiction or levels of jurisdiction is sourced in such jurisdiction in which the customer channel termination points are located.
c. Service for segments of a channel between two (2) customer channel termination points located in different jurisdictions and which segments of a channel are separately charged is sourced fifty percent (50%) in each level of jurisdiction in which the customer channel termination points are located.
d. Service for segments of a channel located in more than one (1) jurisdiction or levels of jurisdiction and which segments are not separately billed is sourced in each jurisdiction based on the percentage determined by dividing the number of customer channel termination points in such jurisdiction by the total number of customer channel termination points.
5. A sale of ancillary services is sourced to the customer's place of primary use.
(vi) For purposes of subparagraph (v) of this paragraph (e):
1. "Air-to-ground radiotelephone service" means a radio service, as that term is defined in 47 CFR 22.99, in which common carriers are authorized to offer and provide radio telecommunications service for hire to subscribers in aircraft.
2. "Call-by-call basis" means any method of charging for telecommunications services where the price is measured by individual calls.
3. "Communications channel" means a physical or virtual path of communications over which signals are transmitted between or among customer channel termination points.
4. "Customer" means the person or entity that contracts with the seller of telecommunications services. If the end user of telecommunications services is not the contracting party, the end user of the telecommunications service is the customer of the telecommunications service. Customer does not include a reseller of telecommunications service or for mobile telecommunications service of a serving carrier under an agreement to serve the customer outside the home service provider's licensed service area.
5. "Customer channel termination point" means the location where the customer either inputs or receives the communications.
6. "End user" means the person who utilizes the telecommunications service. In the case of an entity, "end user" means the individual who utilizes the service on behalf of the entity.
7. "Home service provider" has the meaning ascribed to such term in Section 124(5) of Public Law 106-252 (Mobile Telecommunications Sourcing Act).
8. "Mobile telecommunications service" has the meaning ascribed to such term in Section 124(7) of Public Law 106-252 (Mobile Telecommunications Sourcing Act).
9. "Place of primary use" means the street address representative of where the customer's use of the telecommunications service primarily occurs, which must be the residential street address or the primary business street address of the customer. In the case of mobile telecommunications services, the place of primary use must be within the licensed service area of the home service provider.
10. "Post-paid calling service" means the telecommunications service obtained by making a payment on a call-by-call basis either through the use of a credit card or payment mechanism such as a bank card, travel card, credit card or debit card, or by charge made to a telephone number which is not associated with the origination or termination of the telecommunications service. A post-paid calling service includes a telecommunications service, except a prepaid wireless calling service that would be a prepaid calling service except it is not exclusively a telecommunications service.
11. "Prepaid calling service" means the right to access exclusively telecommunications services, which must be paid for in advance and which enables the origination of calls using an access number or authorization code, whether manually or electronically dialed, and that is sold in predetermined units or dollars of which the number declines with use in a known amount.
12. "Prepaid wireless calling service" means a telecommunications service that provides the right to utilize mobile wireless service as well as other nontelecommunications services, including the download of digital products delivered electronically, content and ancillary service, which must be paid for in advance that is sold in predetermined units or dollars of which the number declines with use in a known amount.
13. "Private communication service" means a telecommunications service that entitles the customer to exclusive or priority use of a communications channel or group of channels between or among termination points, regardless of the manner in which such channel or channels are connected, and includes switching capacity, extension lines, stations and any other associated services that are provided in connection with the use of such channel or channels.
14. "Service address" means:
a. The location of the telecommunications equipment to which a customer's call is charged and from which the call originates or terminates, regardless of where the call is billed or paid.
b. If the location in subitem a of this item 14 is not known, the origination point of the signal of the telecommunications services first identified by either the seller's telecommunications system or in information received by the seller from its service provider, where the system used to transport such signals is not that of the seller.
c. If the location in subitems a and b of this item 14 are not known, the location of the customer's place of primary use.
(vii) 1. For purposes of this subparagraph (vii), "bundled transaction" means a transaction that consists of distinct and identifiable properties or services which are sold for a single nonitemized price but which are treated differently for tax purposes.
2. In the case of a bundled transaction that includes telecommunications services, ancillary services, Internet access, or audio or video programming services taxed under this chapter in which the price of the bundled transaction is attributable to properties or services that are taxable and nontaxable, the portion of the price that is attributable to any nontaxable property or service shall be subject to the tax unless the provider can reasonably identify that portion from its books and records kept in the regular course of business.
3. In the case of a bundled transaction that includes telecommunications services, ancillary services, Internet access, audio or video programming services subject to tax under this chapter in which the price is attributable to properties or services that are subject to the tax but the tax revenue from the different properties or services are dedicated to different funds or purposes, the provider shall allocate the price among the properties or services:
a. By reasonably identifying the portion of the price attributable to each of the properties and services from its books and records kept in the regular course of business; or
b. Based on a reasonable allocation methodology approved by the department.
4. This subparagraph (vii) shall not create a right of action for a customer to require that the provider or the department, for purposes of determining the amount of tax applicable to a bundled transaction, allocate the price to the different portions of the transaction in order to minimize the amount of tax charged to the customer. A customer shall not be entitled to rely on the fact that a portion of the price is attributable to properties or services not subject to tax unless the provider elects, after receiving a written request from the customer in the form required by the provider, to provide verifiable data based upon the provider's books and records that are kept in the regular course of business that reasonably identifies the portion of the price attributable to the properties or services not subject to the tax.
(2) Persons making sales to consumers of electricity, current, power, natural gas, liquefied petroleum gas or other fuel for residential heating, lighting or other residential noncommercial or nonagricultural use or sales of potable water for residential, noncommercial or nonagricultural use shall indicate on each statement rendered to customers that such charges are exempt from sales taxes.
(3) There is hereby levied, assessed and shall be paid on transportation charges on shipments moving between points within this state when paid directly by the consumer, a tax equal to the rate applicable to the sale of the property being transported. Such tax shall be reported and paid directly to the Department of Revenue by the consumer.
SECTION 5. Section 27-59-3, Mississippi Code of 1972, is amended as follows:
27-59-3. The words, terms and phrases as used in this chapter shall have the following meanings unless the context requires otherwise:
(a) "Person" means any individual, firm, copartnership, joint venture, association, corporation, company, estate, trust, limited liability company, government (and any political subdivision, agency or instrumentality thereof) subject to Section 27-55-12 or any other entity or group or combination acting as a unit, and the plural as well as the singular number unless the intention to give a more limited meaning is disclosed by the context.
(b) "Highway" means and includes every way or place, of whatever nature, including public roads, toll roads, streets, and alleys of the state generally open to the use of the public or to be opened or reopened to the use of the public for the purpose of vehicular travel, and notwithstanding that the same may be temporarily closed for the purpose of construction, reconstruction, maintenance or repair. Provided further, that the confines of a highway shall include the entire width and length of the right-of-way.
(c) "Motor vehicle" means every vehicle licensed for highway use by which any person or property is transported or drawn upon the highways of this state and which is self-propelled.
(d) "Liquefied compressed gas" means gases derived from petroleum or natural gas which are in the gaseous state at normal atmospheric temperature and pressure, but which may be maintained in the liquid state at normal atmospheric temperature by suitable pressure. As used herein, the term shall be deemed to mean and include methane, ethane, propane, ethylene, propylene, butylene, butane, isobutane, and any and all liquid flammable materials derived from petroleum or natural gas having a vapor pressure exceeding forty (40) pounds per square inch, absolute, at one hundred (100) degrees F. Normal storage of these gases is a liquid under pressure.
(e) "Compressed natural gas" and "liquefied natural gas" mean natural gas after it has been compressed or liquefied for use as a fuel in a motor vehicle and shall not include natural gas prior to such final compression or liquefication.
(f) "Compressed gas" means "liquefied compressed gas," "liquefied natural gas," "compressed natural gas" and any other liquefied or compressed gas that is used or is usable as fuel in a motor vehicle.
(g) "Use" means, in addition to its original meaning, the receipt of compressed gas by any person into the fuel supply tank of a motor vehicle or into a receptacle from which compressed gas is supplied by any person to his own or other motor vehicles.
(h) "Terminal" means a tank farm within this state with the minimum storage capacity for the receipt of a full barge delivery or common carrier pipeline delivery of compressed gas.
(i) "Refiner" or "processor" means every person who shall produce, manufacture, refine, distill, compress or liquefy compressed gas in this state, excluding, however, any person operating a private refueling system.
(j) "Public utility" means a person engaged in the distribution of natural gas whose rates are subject to regulation by the Public Service Commission of the State of Mississippi.
(k) "Distributor" means any person who sells or delivers compressed gas for use in the operation of a motor vehicle or motor vehicles on the highways of this state and any person who shall import, receive, purchase, acquire, manufacture, refine, use, store or sell any compressed gas in this state, on which the excise taxes hereinafter levied by this chapter have not been paid or the payment of which is not covered by the bond of a qualified Mississippi distributor of compressed gas, excluding, however, any person operating a private refueling system. All "refiners" and "processors" shall qualify as distributors of compressed gas. All persons operating marine or pipeline terminals and all persons operating underground storage facilities exclusive of those storing natural gas shall qualify as distributors of compressed gas. No person may qualify as a distributor for the sole purpose of using compressed gas as a fuel to propel a motor vehicle or motor vehicles owned by him on the highways of this state.
(l) "User" means any person who uses compressed gas to propel a motor vehicle over the highways of this state.
(m) "Commission" or "department" means the Department of Revenue of the State of Mississippi, either acting directly or through its duly authorized officers, agents and employees.
(n) "United States government" means and includes all purchasing officers of the Armed Forces of the United States and the United States Property and Fiscal Officer for the State of Mississippi or any other state, appointed pursuant to Section 708, Title 32, United States Code, when purchasing compressed gas with federal funds for the account of and use by a component of the Armed Forces as defined herein.
(o) "Armed Forces" means and includes all components of the Armed Forces of the United States, including the Army National Guard, the Army National Guard of the United States, the Air National Guard and the Air National Guard of the United States, as those terms are defined in Section 101, Title 10, United States Code, and any other reserve component of the Armed Forces of the United States enumerated in Section 261, Title 10, United States Code.
(p) "Fleet" means twenty (20) or more business or commercial motor vehicles owned by a single user operating on the highways of this state and using or capable of using compressed natural gas or liquefied natural gas, which may be composed of Class I, Class II or Class III motor vehicles, as defined in Section 25-59-29, or any combination thereof.
(q) "Private refueling system" means compressed gas refueling equipment necessary in order for natural gas to be delivered directly through the transportation system of a utility to a private residence or place of business of a user for compression into compressed for use in the operation of the user's own motor vehicle or motor vehicles on the highways of the state.
(r) "Dealer" means a person engaged in the business of selling compressed gas fuel equipment for installation into motor vehicles or compressed gas refueling equipment, or both, or a person engaged in the business of selling motor vehicles with the compressed gas fuel equipment as manufacturer's original factory installed equipment.
(s) "Installer" means a person engaged in the business of installing compressed gas fuel equipment into motor vehicles or compressed gas refueling equipment, or both.
(t) "Nonpermitted use" means an owner or operator of motor vehicles operating on the highways of the state and using or capable of using compressed gas which are classified as such by the department pursuant to Section 27-59-11(6).
(u) "Class I motor vehicles" means motor vehicles using or capable of using compressed gas as a motor fuel and having a gross license tag weight classification of ten thousand (10,000) pounds or less.
(v) "Class II motor vehicles" means motor vehicles using or capable of using compressed gas as a motor fuel and having a gross license tag weight classification of greater than ten thousand (10,000) pounds but not exceeding twenty thousand (20,000) pounds.
(w) "Class III motor vehicles" means motor vehicles using or capable of using compressed gas as a motor fuel and having a gross license tag weight classification greater than twenty thousand (20,000) pounds.
(x) "Class IV motor vehicles" means motor vehicles using or capable of using compressed gas as a motor fuel and which are owned or operated by nonpermitted users.
(y) "Compressed gas fuel equipment" means tanks, pumps, hoses, injectors, electronic controls, and related supplies, materials, parts and components for the storage of compressed natural gas in a motor vehicle as fuel for the motor vehicle, the delivery of natural gas to the engine of a motor vehicle, and the exhaust from a motor vehicle of gases from combustion of natural gas used to propel a motor vehicle.
(z) "Compressed gas refueling equipment" means compressors (whether used separately or in combination with cascade tanks), process piping, hoses, dispensing units at the point where compressed natural gas is delivered into motor vehicles as fuel, meters and other parts and equipment that constitute a refueling system capable of dispensing compressed natural gas into fuel tanks of motor vehicles for use as a fuel.
(aa) "Public refueling station" means compressed gas refueling equipment and other property necessary in order for natural gas to be delivered directly through the transportation system of a utility to a distributor for compression into compressed natural gas for sale to a third-party user or users for use in the operation of such third-party user's or users' motor vehicle or motor vehicles on the highways of the state, including, but not limited to, sales to the general public, as well as for use in the motor vehicle or motor vehicles owned by the distributor on the highways of this state.
(bb) "Private utility" means a person engaged in the distribution and sale of natural gas whose rates are not subject to regulation by the Public Service Commission of the State of Mississippi, including, but not limited to, municipal natural gas utilities, cooperative natural gas associations, and producers, gatherers and distributors of natural gas.
(cc) "Utility" means a public utility and a private utility. A utility is not a refiner, processor or distributor based solely upon its sale of natural gas to a refiner, processor or distributor of compressed gas.
SECTION 6. Section 27-59-7, Mississippi Code of 1972, is amended as follows:
27-59-7. (1) Before
any person shall engage in business as a distributor of compressed gas, he
shall first make application to the * * * department, upon forms
prescribed by the * * * department,
for a permit to engage in * * *said business as a distributor of compressed gas for each
physical location at which he intends to engage in the business, which
application shall also specify the particular type or types of compressed gas
to be sold or delivered at each location.
(2) (a) If * * * the application is approved, the * * *
department may
require * * * the
applicant to enter into a good and sufficient surety bond, written by a company
qualified to write * * *
bonds in the State of Mississippi * * *. * * * The
bond shall be made payable to the State of Mississippi, in a sum equal to
the compressed gas taxes estimated to become due by the distributor for any
three-month period and not less than One Thousand Dollars ($1,000.00) * * *; or in lieu * * * of a bond, the department may
require the applicant to deposit with the * * * department a cash bond in the * * * above amount. A personal bond
in the * * *
above amounts shall also be acceptable if * * * it is secured by the bonds of
the State of Mississippi or the United States Government. * * * The bond or bonds shall be in an
amount not to exceed * * * the greater of
the compressed gas taxes estimated to become due by the * * * distributor for any * * *
three-month
period or One Thousand Dollars ($1,000.00). The bond * * * shall be increased within the
limits * * *
set forth from time to time if deemed insufficient by the * * *
department,
giving to the distributor fifteen (15) days' notice, in writing, to increase * * *
the bond, * * *
the notice * * *
shall state the amount of
increase demanded.
(b) * * *
The bond shall be conditioned that the distributor will fully comply
with all laws pertaining to distributors of compressed gas as regulated by this
chapter and to pay the compressed gas taxes and penalties provided. * * * However, * * * any person who has already furnished bond
under a prior petroleum tax law or shall furnish a bond to meet the
requirements of any petroleum tax law administered by the * * *
department shall
not be required to furnish an additional bond, but * * * the person shall be subject to all
other conditions, requirements and liabilities imposed herein upon a
distributor of compressed gas.
(3) Before any * * *
utility sells or delivers
natural gas
to the private refueling
system of a user or the public refueling station of a distributor for use
as a fuel in a motor vehicle or motor vehicles in this state * * *, the * * * utility shall notify, in writing, the * * *
department of its
intention to engage in such activity.
(4) A * * *
utility who sells or
delivers natural gas to * * * a user, as defined herein,the owner of a nonresidential
private refueling system to be compressed by a user or of a public
refueling station to be compressed and sold by a distributor for use as a fuel
in a motor vehicle or motor vehicles on the highways of the state shall install
or cause to be installed a separate meter for the natural gas to be used by the
nonresidential private refueling system or the public refueling station. Prior
to the installation of the meter by or on behalf of the utility, the user or
distributor, as applicable, shall provide a copy of its private refueling
system or public refueling station permit, issued pursuant to Section 27-59-11(7),
to the utility. No utility shall install or cause to be installed any such
separate meter for or sell or deliver natural gas to a nonresidential private
refueling system or to a public refueling station without first receiving a
copy of such private refueling system or public refueling station permit from
the user or distributor, as applicable, and no utility shall install or cause
to be installed such meter for or sell or deliver natural gas to a
nonresidential private refueling system or to a public refueling station except
in accordance with such permit. A utility which sells or delivers natural gas
to a user or distributor by any means shall also be subject to the
same requirements and penalties as distributors of compressed gas except that
the * * * utility
shall not be required to comply with Section 75-57-49.
SECTION 7. Section 27-59-9, Mississippi Code of 1972, is amended as follows:
27-59-9. If the * * *
department
approves the application and bond, it shall issue a permit authorizing * * *
the applicant to engage
in business as a distributor and * * * the permit shall not be assignable
or otherwise transferable * * *, provided,; however, * * * no such permit shall be issued unless the
applicant has complied with the provisions of Section 75-57-49, * * *
excluding
a permit to engage in business as a distributor of compressed natural gas. * * * The permit may be revoked
for a single business location or any such locations by the * * *
department at any
time upon ten (10) days' written notice, if * * * the distributor shall fail to pay
the compressed gas taxes and penalties due within the time provided by law, or
shall fail in any way to comply with all the provisions of this chapter, but * * *
the cancellation shall
not relieve the distributor or his sureties from liability on the distributor's
bond. No permit shall be issued any applicant who is in arrears, or default to
the state or any subdivision thereof for any taxes.
Any person engaging in the
business of a distributor without a permit having first been obtained as
provided * * * in
this section, or after any permit granted a distributor has been revoked,
shall forfeit all right to do business as a distributor in the State of
Mississippi for a period of not less than one (1) year, nor more than five (5)
years. It shall be the duty of the * * * department, when it shall have
knowledge, that any person is engaging in business as a distributor without a
valid permit, to proceed by injunction or otherwise to prevent the continuance
of * * * the
business of distributor of compressed gas, and any judge or chancellor, now authorized
to grant injunctions, shall grant an injunction enjoining the continuance of * * *
the business for not
less than one (1) year nor more than five (5) years.
SECTION 8. Section 27-59-11, Mississippi Code of 1972, is amended as follows:
27-59-11. (1) A tax at the rate of One-fourth Cent (1/4¢) per gallon is hereby levied upon any person engaged in business as a distributor of compressed gas, excepting natural gas, for the privilege of engaging in such business or acting as such distributor. The tax shall be based on all compressed gas, excepting natural gas, stored, used, distributed, manufactured, refined, distilled, blended or compounded in this state or received in this state for sale, storage, distribution or for any other purpose.
The tax levied herein shall become due and payable when:
(a) Compressed gas is withdrawn from storage at a refinery, marine or pipeline terminal, or underground caverns or cavities except when withdrawal is by pipeline or barge;
(b) Compressed gas imported by a common carrier is unloaded by that carrier unless the compressed gas is unloaded directly into an underground cavern or cavity for storage or directly into the storage tanks of a refinery, marine or pipeline terminal; or
(c) Compressed gas imported by any person, other than a common carrier, enters the State of Mississippi, unless the compressed gas is unloaded directly into an underground cavern or cavity for storage or directly into the storage tanks of a refinery, marine or pipeline terminal.
(2) A tax at the rate of
Seventeen Cents (17¢) per gallon until the date specified in Section 65-39-35,
and Thirteen and Four-tenths Cents (13.4¢) per gallon thereafter, is levied
upon any distributor of compressed gas for the privilege of engaging in the
business of selling or delivering compressed gas, excepting compressed natural
gas and liquefied natural gas, for use in a motor vehicle or motor vehicles on
the highways of this state. A tax at the rate of Eighteen Cents (18¢) per one
hundred (100) cubic feet until the date specified in Section 65-39-35, and
Fourteen and Four-tenths Cents (14.4¢) per one hundred (100) cubic feet
thereafter, is levied upon any distributor of compressed gas for the privilege
of engaging in the business of selling or delivering compressed natural gas and
liquefied natural gas for use in a motor vehicle or motor vehicles on the
highways of this state. A tax at the rate of Eighteen Cents (18¢) per one
hundred (100) cubic feet until the date specified in Section 65-39-35, and
Fourteen and Four-tenths Cents (14.4¢) per one hundred (100) cubic feet
thereafter, is levied upon any * * * utility for the privilege of engaging in
the business of selling or delivering natural gas to a user for the purpose of
being used as a fuel in a motor vehicle or motor vehicles on the highways of
this state, and the taxes shall be collected from the user whenever practical.
The taxes levied in this subsection shall not apply when sales or deliveries
are made to persons who are holders of permitted compressed gas user's decals.
(3) Upon every person
operating on the highways of this state a motor vehicle or motor vehicles * * *, there is hereby levied an annual privilege tax of
One Hundred Ninety-five Dollars ($195.00) until the date specified in Section
65-39-35, and One Hundred Sixty-five Dollars ($165.00) thereafter. However,
upon every person subject to Section 27-55-12 operating on the highways of this
state a Class I motor vehicle or motor vehicles having a "government"
or "G" tax-exempt motor vehicle license tag, there is hereby levied
an annual privilege tax of One Hundred Sixty-five Dollars ($165.00) until the
date specified in Section 65-39-35, and One Hundred Forty Dollars ($140.00)
thereafter.
(4) Upon every person
operating on the highways of this state a motor vehicle or motor vehicles using
or capable of using compressed gas and having a gross license tag weight
classification greater than ten thousand (10,000) pounds, there is hereby
levied a privilege tax of Seventeen Cents (17¢) per gallon until the date
specified in Section 65-39-35, and Thirteen and Four-tenths Cents (13.4¢) per
gallon thereafter, on all compressed gas, excepting compressed natural gas and
liquefied natural gas, used on the highways of this state. Upon every
person operating on the highways of this state a Class II or Class III motor
vehicle or motor vehicles, there is hereby levied a privilege tax of
Eighteen Cents (18¢) per one hundred (100) cubic feet until the date specified
in Section 65-39-35, and Fourteen and Four-tenths Cents (14.4¢) per one hundred
(100) cubic feet thereafter, on all compressed natural gas and liquefied
natural gas used on the highways of this state. The taxes levied in this * * *
subsection shall
not apply to owners or operators classified by the commission as nonpermitted
users.
(5) All owners and
operators of Class II motor vehicles * * * shall prepay Three Hundred Dollars ($300.00) of such tax
annually; however, all owners and operators of Class II motor vehicles
subject to Section 27-55-12 having a "government" or "G"
tax-exempt motor vehicle license tag shall prepay One Hundred Eighty-five
Dollars ($185.00) of such tax annually, and all owners and operators of Class
III motor vehicles subject to Section 27-55-12 having a "government"
or "G" tax-exempt motor vehicle license tag shall prepay Two Hundred
Fifty Dollars ($250.00) of such tax annually. On Class II and Class III
motor vehicles that * * * are
exclusively used by a farmer for transporting farm products produced on his own
farm and also farm supplies, materials and equipment used in the growing or
production of his agricultural products and have a "farm" or
"F" motor vehicle license tag, the prepaid portion of said privilege
tax shall be One Hundred Fifty Dollars ($150.00). A private refueling
system located at a private residence or home shall be used only for Class I
motor vehicles and shall not be used to refuel any Class II, Class III, Class
IV or Class I fleet motor vehicles unless records are maintained by the user of
compressed natural gas used for all such classes of motor vehicles.
(6) The * * *
department, in
its discretion, may authorize or require the owner or operator of five (5) or
more motor vehicles that use or are capable of using compressed gas on the
highway to pay the excise tax on all compressed gas purchased for any purpose
and the excise tax shall be collected by the distributor of compressed gas at
the time of sale or delivery. The owners or operators authorized or required
to do so shall be classified as nonpermitted users.
(7) Every person desiring to operate a private refueling system or public refueling station shall first file an application with the department for a permit for such private refueling system or public refueling station and pay a one-time, nonrefundable application fee to the department of Twenty-five Dollars ($25.00) at the time of filing the application. Upon the issuance of a private refueling system or public refueling station permit by the department to the user or distributor, the user or distributor, as applicable, shall then be entitled to purchase from a dealer licensed pursuant to subsection (8) of this section, and have installed by an installer, licensed pursuant to subsection (8) of this section, a private refueling system or public refueling station in accordance with the permit and shall provide a copy of the permit to the dealer and installer prior to the sale and installation. No licensed dealer shall sell, and no licensed installer shall install, any private refueling system or public refueling station equipment without first receiving a copy of the private refueling system or public refueling station permit from the user or distributor, as applicable, and no licensed installer shall install a private refueling system or public refueling station equipment except in accordance with the permit.
(8) Every person desiring to engage in business as a dealer or installer, or both, shall first file an application with the department for a license to engage in that business or businesses and pay a one-time, nonrefundable application fee to the department of Twenty-five Dollars ($25.00) at the time of filing the application. Upon the issuance of a license by the department to the person, the licensee shall be authorized to engage in the business or businesses for which it is licensed. No person not licensed by the department shall engage in business as a dealer or installer.
SECTION 9. Section 27-59-12, Mississippi Code of 1972, is amended as follows:
27-59-12. There shall not be included in the measure of the tax levied in this chapter any compressed gas:
(a) Sold or delivered by a permitted distributor of compressed gas to a second permitted distributor of compressed gas, who shall become liable for the tax unless said compressed gas is sold by the second permitted distributor to a third permitted distributor. The third permitted distributor of compressed gas shall be liable for the tax.
(b) Which as an unfinished product, is used by a refinery in the manufacturing or refining of petroleum products.
(c) Sold to the United States government for use of the armed forces only, and delivered in quantities of not less than four thousand (4,000) gallons per individual delivery.
(d) Delivered to a bonded warehouse for storage within this state for the United States Department of Interior.
(e) Exported to a destination beyond the boundaries of this state by a permitted distributor of compressed gas, when the tax on such compressed gas has been paid or on which the tax liability imposed by this chapter has accrued against said permitted distributor.
(f) Exported by any person to a destination beyond the borders of this state in quantities of not less than three thousand (3,000) gallons by ship, vessel, barge, railroad tank car, or pipeline, or by tank truck if such tank truck is operated by a common or contract carrier.
(g) Sold or delivered to any person within this state to be used in a commercial process where it becomes a component part of any manufactured product or where used as a processing agent in the treatment of raw material in any manufacturing process.
(h) Sold or delivered to be used for test purposes at any regularly established testing laboratory in this state.
(i) Sold or delivered to be used for the purpose of generating electricity.
(j) To the extent that it is subject to exemption or partial exemption pursuant to Section 27-55-12.
When compressed gas is
excluded from the tax levied in this chapter by one or more of the exemptions
provided, the deduction for the exemption may be taken, without the prior
approval of the * * * department,
on the monthly tax report of the distributor of compressed gas importing,
selling, delivering or exporting such compressed gas. The * * *
department may
require * * * proof
as is reasonably necessary for the administration of this chapter.
Any person who has delivered
or sold compressed gas on which the tax has been paid by him to the vendor may,
if the compressed gas is subject to exemption under this chapter, assign his
claim for exemption to any permitted distributor of compressed gas in this
state. * * *
The distributor may deduct the amount of the tax exemption from his next
compressed gas tax report, provided the distributor furnishes evidence
satisfactory to the * * * department
that the claim for exemption is valid.
In order to claim exemptions
provided for under this chapter, the distributor of compressed gas must file
claims * * * for
the exemptions within three (3) years from the date of sale or delivery * * *, otherwise, claims for such exemptions
shall be disallowed.
SECTION 10. Section 27-59-13, Mississippi Code of 1972, is amended as follows:
27-59-13. (1) The
excise taxes levied in this chapter shall become due and payable on or before
the twentieth day of the month succeeding the month in which the tax accrues.
Each distributor shall file with the * * * department a monthly report
setting forth the quantity of compressed gas received within this state, less
any authorized exemptions; the quantity of compressed gas sold for use on the
highways of this state; and any other information as may be reasonably
necessary for the administration of this chapter. The distributor shall remit
to the * * * department,
with the monthly report, the full amount of the excise tax shown * * *
on the report to be
due.
(2) Each licensed dealer and installer shall file with the department a monthly report setting forth the names and addresses of the purchasers of compressed gas fuel equipment and compressed gas refueling equipment sold and installed, the permit numbers of their private refueling system and/or public refueling station permits related thereto, and a description of the type of equipment sold or installed, as applicable, and any other information as may be reasonably necessary for the administration of this chapter. In addition, the monthly report of a dealer or installer shall include the applications for compressed gas user's decals and the remittance of the compressed gas user's annual privilege taxes required by Section 27-59-29 to be obtained and collected and remitted, respectively, by dealers and installers.
(3) Reports and
payments sent to the * * * department
by mail must be postmarked by the due date in order to be considered timely
filed, except when the due date falls on a weekend or holiday, in which case
such reports and payments must be postmarked by the first working day following
the due date in order to be considered timely filed.
(4) An amount equal to One-fourth Cent (1/4¢) per gallon on all compressed gas shown to be taxable for highway use may be deducted; provided, that the One-fourth Cent (1/4¢) per gallon tax on such compressed gas has been paid or is covered by the bond of a distributor of compressed gas.
(5) The monthly
report of the distributor shall be prepared and filed with the * * *
department on
forms prescribed by the * * * commissiondepartment or the distributor may, with the
approval of the * * * department,
furnish the required information on machine-prepared schedules. * * * The monthly reports shall
be signed by the distributor or his duly authorized agent and contain a
declaration that the statements contained therein are true and are made under
the penalty of perjury.
(6) All persons
storing compressed gases, excepting natural gas, in underground caverns or
cavities in this state shall make monthly reports of withdrawals of such
compressed gases from storage, on forms prescribed by the * * *
department at the
same time, in the same manner, and subject to the same terms, conditions and
penalties as is otherwise provided for distributors of compressed gas. Sales
and deliveries of compressed gases to nonpermitted distributors shall be listed
and reported on * * * the
reports separately from sales and deliveries to permitted distributors.
SECTION 11. Section 27-59-17, Mississippi Code of 1972, is amended as follows:
27-59-17. If a permittee or
licensee shall at any time file a false report of any date or information
required by this chapter, or shall fail, refuse or neglect to file any report
as required by this chapter, or to pay the full amount of any tax required by
this chapter, or fail to maintain accurately any required records, the * * *
department may
cancel his permit or license. * * * Before canceling
any such permit or license, the * * * department shall notify the
permittee or licensee to show cause within ten (10) days of the date of
the notice why * * * the
permit or license should not be canceled; * * * however, at any
time prior to and pending * * * the hearing the * * *
department may,
in the exercise of reasonable discretion, suspend * * * the permit.
SECTION 12. Section 27-59-23, Mississippi Code of 1972, is amended as follows:
27-59-23. When any
distributor, dealer, installer or other person shall fail to submit his
or its monthly report as * * * hereinabove providedrequired by this chapter, or when
any distributor, dealer, installer or other person shall fail to keep * * *
records as required * * *
by this chapter,
or fail to allow inspection of * * * required records as provided in this
chapter, * * * the
distributor, dealer, installer or other person shall forfeit his
right to do business as a distributor, dealer or installer in this state
for a period of not less than three (3) months, and an injunction shall be
issued by any judge or chancellor, authorized to issue injunctions, enjoining
said distributor, dealer, installer or other persons from continuing * * *
the business of
distributor, dealer or installer for not less than three (3) months.
SECTION 13. Section 27-59-25, Mississippi Code of 1972, is amended as follows:
27-59-25. (1) Each
distributor of compressed gas shall maintain and keep for a period of three (3)
years a record of all compressed gas received, acquired, manufactured, refined,
purchased, sold or delivered within this state, together with invoices, bills
of lading and other pertinent records and papers as the * * *
department may
deem reasonably necessary for the administration of this chapter.
(2) Each dealer and installer shall maintain and keep for a period of three (3) years a record of all compressed gas fuel equipment and compressed gas refueling equipment received, purchased, acquired, sold, delivered or installed, as applicable, within the state, together with invoices, bills of lading and other pertinent records and papers as the department may deem reasonably necessary for the administration of this chapter.
(3) Any person
owning or operating a Class II or Class III motor vehicle or motor
vehicles, or a Class I motor vehicle or motor vehicles which are part of a
fleet, * * * that
use or are capable of using compressed gas as a motor fuel shall maintain and
keep for a period of three (3) years records from which an accurate
determination of the number of miles traveled in this state and the quantity of
compressed gas purchased and consumed in this state can be made.
(4) If a distributor
of compressed gas or the owner or operator fails to maintain adequate records,
or if an audit of the records of the distributor or owner or operator, or any
report filed by him, or any other information discloses that taxes are due and
unpaid, the * * * department
shall make assessments of taxes, damages and interest from any information
available, which assessments shall be prima facie correct.
(5) If, in the
normal conduct of a distributor's, * * * owner's, * * * operator's, dealer's or installer's
business, the records of the distributor, owner, * * *
operator, dealer or installer
are maintained and kept at an office outside the State of Mississippi, it shall
be a sufficient compliance with this section if the records shall be made
available for audit and examination by the * * * department at * * *
the office location
outside Mississippi. If a distributor, owner, * * * operator, dealer or installer fails or
refuses to permit the * * * department
or any of its employees to check and audit his records during the usual
business hours of the day, the * * * department shall have
authority to subpoena the records and have them brought to the office of the * * *
department within
ten (10) days after the subpoena is served on the distributor, owner, * * *
operator, dealer or installer.
(6) All actions by
the state for the recovery of additional amounts claimed as tax due under this
chapter must be commenced within a period of three (3) years from the date of
the filing of the required report with the * * * department, provided that in
the case of fraudulent or false report with intent to evade tax or of a failure
to file a report, action may be commenced at any time. However, when an
examination of a taxpayer's records to verify returns made under this chapter
has been initiated and the taxpayer notified thereof either by certified mail
or personal delivery of a notice by an agent of the * * * department, within the
thirty-six-month examination period * * *, the determination of the
correct tax liability may be made by the * * * department after the
expiration of * * * the
thirty-six-month examination period, provided that the determination shall be
made with reasonable promptness and diligence.
SECTION 14. Section 27-59-29, Mississippi Code of 1972, is amended as follows:
27-59-29. (1) Any
person operating a motor vehicle or motor vehicles of any type on the highways
of the State of Mississippi that use or are capable of using compressed gas as
a motor fuel shall, before operating * * * the motor vehicle or motor vehicles,
obtain from the * * * department
a compressed gas user's decal.
(2) The owner or
operator of such motor vehicle or motor vehicles shall no later than fifteen
(15) days after the installation of the compressed gas * * * fuel equipment or the
acquisition of such motor vehicle or motor vehicles equipped with compressed
gas fuel equipment, file with the * * * department an application for
a compressed gas user's decal for each vehicle. * * * The application shall be made on
forms prescribed by the * * * commissiondepartment and shall contain such information
as the * * * department
may deem reasonably necessary for administration of this chapter.
(3) No motor vehicle
privilege license tag and decal shall be issued by the county tax collector to
the operator of a motor vehicle that uses or is capable of using compressed gas
on the highways of this state unless an application for a compressed gas user's
decal has been filed or the motor vehicle bears a current compressed gas user's
decal. The county tax collector shall require an application and the annual
privilege tax required by this chapter from each applicant for a motor vehicle
privilege license tag and decals, whether the tag and decals are to be issued
by the tax collector or by the * * * department, unless proof is
provided that the application for a compressed gas user's decal has already
been filed and the annual privilege tax required by this chapter has already
been collected by the dealer or installer. If * * * the applicant has obtained the
approval of the * * * department
to operate as a "nonpermitted user," then the prepayment of taxes is
not required; however, an application for a decal must be made. The county tax
collector shall forward the application and fee to the * * * department within fifteen (15)
days from the date received by him, and the county tax collector shall be
entitled to retain One Dollar ($1.00) for each application and fee received by
him and forwarded to the * * * commissiondepartment. * * * The fee shall be forfeited by the
county tax collector if he fails to forward any application and remittance
within fifteen (15) days of receipt by him.
(4) Unless proof of
prior filing is provided, every person engaged in business as a dealer * * *
or
in * * * business * * *
as an installer shall, at the time
of sale or installation, require an application by the owner or
operator of the motor vehicle or motor vehicles for a compressed gas user's
decal and collect the compressed gas user's annual privilege tax. If the
operator of * * * the
motor vehicle has obtained the approval of the * * * department to operate as a
nonpermitted user, then the prepayment of taxes is not required; however, an
application for a decal must be made. The dealer or installer shall forward any
application and remittance to the * * * department within fifteen (15)
days of receipt by him. The dealer and installer shall be subject to the same
requirements and penalties as a distributor of compressed gas.
(5) No automobile or
truck dealer shall operate any motor vehicle, for demonstration purposes
bearing a Mississippi motor vehicle dealer tag, that uses or is capable of
using compressed gas on the highways of this state, unless * * *
the dealer has paid the
annual privilege tax applicable to each vehicle and secured from the * * *
department a
certificate of authority to operate the motor vehicle or motor vehicles on the
highways of this state for demonstration purposes only. No dealer may receive
or use a certificate of authority for the operation of any motor vehicle that
does not bear a Mississippi dealer tag.
* * *
(6) The * * *
department shall
provide for the issuance of decals for * * * Class I, Class II,
Class III and Class IV user's classifications and * * * the decals shall be in such form and
size as the * * * department
may prescribe. * * *
The decals shall be displayed on the motor vehicle at all times and in a
manner prescribed by the * * * commissiondepartment.
(7) The decals shall
expire at the same time as the motor vehicle privilege license tag expires and
shall be valid for one (1) year; * * * however, * * * when a motor vehicle is converted to
compressed gas in a month other than when the license tag is purchased or
renewed, then the pro rata portion of the annual privilege tax shall be due on
the number of months until the motor vehicle privilege license tag expires. * * *
When a
motor vehicle equipped with a compressed gas * * * fuel system is acquired or a
motor vehicle is converted to compressed gas, the compressed gas decal year
shall begin with the month following the month in which the motor vehicle is
acquired or converted.
SECTION 15. Section 27-59-31, Mississippi Code of 1972, is amended as follows:
27-59-31. (1) No
person shall operate or cause to be operated, upon the highways of this state,
a motor vehicle or motor vehicles that use or are capable of using compressed
gas as a motor fuel, when * * * the person has not paid the taxes
levied in this chapter and the motor vehicle does not display a compressed gas
user's decal.
(2) Any person who
does not file an application to obtain a compressed gas user's decal within
fifteen (15) days from the date of the installation of the compressed gas * * *
fuel equipment
or the acquisition of a motor vehicle or motor vehicles * * *
equipped with
compressed gas fuel equipment * * * or who fails to file a renewal
application within fifteen (15) days after the expiration of the compressed gas
user's decal, shall be liable for the full amount of the annual
privilege tax or prepaid portion thereof and a penalty of twenty-five percent
(25%) of the taxes levied * * * by this chapter may be added as
damages.
(3) If any county
tax collector * * * enforces the collection of any delinquent annual
privilege tax or annual permit fee, together with the penalty thereon required
by law, then such county tax collector shall be entitled to one-half (1/2) of
the penalty. The fee shall be forfeited by the county tax collector if he * * *
fails to forward
any application and remittance within fifteen (15) days of receipt by him.
SECTION 16. Section 27-59-33, Mississippi Code of 1972, is amended as follows:
27-59-33. (1) Each
person to whom a Class II or Class III compressed gas user's decal is issued
shall file an annual report with the * * * department. * * *
The report shall be filed
at a time designated by the * * * department, shall be on forms
prescribed by the * * * department
and shall contain such information as the * * * department deems reasonably
necessary for the administration of this chapter.
(2) The * * *
department is
authorized and empowered to promulgate rules and regulations setting forth the
method for determining the quantity of compressed gas used on the highways of
this state.
(3) The portion of
the privilege taxes prepaid at the time the application for the permit was made
shall be deducted from the amount of tax shown to be due on the quantity of
compressed gas used on the highways. Any balance due shall be paid to the * * *
department at the
same time the annual report is filed. If the amount prepaid exceeds the amount
of tax shown to be due, a claim for refund * * * may be made. All * * *
claims shall be supported by
sufficient proof as to the extent of the claimant's tax liability on each motor
vehicle. * * *
(4) The operator of any motor vehicle or motor vehicles which are equipped so that more than one (1) type of fuel can be used shall be liable for the tax upon the total quantity of compressed gas consumed within the state, with no credit allowed for the purchase of any fuel other than compressed gas.
(5) Each person owning or operating a fleet shall file such annual report on a fleet basis as opposed to an individual motor vehicle basis. For Class I motor vehicles which are part of a fleet, the privilege taxes paid at the time the application for the user's permit was made shall, solely for purposes of subsection (3) of this section, be treated as a prepayment. The aggregate amount of tax due or net amount of refund due shall first be calculated on a separate class-by-class basis for all motor vehicles in each class in the fleet. The aggregate tax due or net refund due for all Class I motor vehicles in the fleet, the aggregate tax due or net refund due for all Class II motor vehicles in the fleet, and the aggregate tax due or refund due for all Class III motor vehicles in the fleet shall be separately calculated, with the class-by-class aggregate taxes due and refunds due then finally being combined into a single amount of aggregate tax due or refund due for the entire fleet. This subsection shall not apply to owners or operators classified by the department as nonpermitted users.
(6) If the department decides that the taxpayer is entitled to the refund claimed, it shall refund the amount claimed to the taxpayer, with all of the refunds to be made from current compressed gas privilege tax collections.
SECTION 17. Section 27-59-35, Mississippi Code of 1972, is amended as follows:
27-59-35. (1) If a
motor vehicle on which the annual privilege tax or portion thereof has been
paid is damaged to the extent it cannot be used or the compressed gas * * *
fuel equipment
has been removed from * * * the
motor vehicle, the owner or operator may obtain a refund of the unexpired
portion of the tax. * * *
The refund shall be prorated from the first day of the month succeeding
the month in which the motor vehicle was damaged to the extent it cannot be
used or the compressed gas equipment was removed. In order to obtain * * *
the refund the claimant
shall prove to the satisfaction of the * * * department that the motor
vehicle was damaged to the extent it cannot be used or the compressed gas * * *
fuel equipment
was removed.
(2) When a motor
vehicle that uses or is capable of using compressed gas is sold or traded, the
decal may be transferred to the new owner or the former owner may remove it,
return it to the * * * department
and file a claim for a refund on the unexpired portion.
(3) If a claim for
refund is approved, the amount thereof shall be refunded as provided in Section * * *
27-59-33(6).
SECTION 18. Section 27-59-41, Mississippi Code of 1972, is amended as follows:
27-59-41. (1) The * * *
department shall
have full access, ingress, and egress at all reasonable hours to and from any
place or building where compressed gas may be received, stored, transported,
sold, offered or exposed for sale, manufactured, refined, distilled, compounded
or blended, including private refueling system locations. The * * *
department shall
have the right to open and inspect any case, package, or other container, and
any tank, pump, tank car or storage tank in which compressed gas is kept and
enter upon any barge, vessel, or other vehicle transporting compressed gas and,
with instruments conforming to the weights and measures adopted by the United
States Bureau of Standards, check any measuring device or volume of weight of
the contents of any such container.
(2) The * * *
department shall
have the right, at any time, to stop any motor vehicle traveling on the
highways of this state, and make any examination necessary to ascertain that
the provisions of this chapter are complied with fully. The * * *
department is
also authorized to impound any motor vehicle operating in violation of this
chapter and hold it until such time as all taxes and fines have been paid and
until the owner or operator has obtained necessary permit decal or permit
decals.
SECTION 19. Section 27-59-47, Mississippi Code of 1972, is amended as follows:
27-59-47. (1) In
the event that any taxes, permit fees or penalties imposed by this chapter have
been erroneously or illegally collected from a distributor or other person filing
a monthly report and making monthly payments of privilege tax, the * * *
department may * * * permit * * *
the distributor or
other person to take credit against a subsequent monthly tax report for
the amount of the erroneous overpayment, or may issue payment for that amount. * * *
(2) No
refunds shall be made under the provisions of this section unless a written
claim is filed setting forth the circumstances by reason of which * * *
the refund should be
allowed. * * *
The claim shall be in such form as the * * * department shall prescribe,
and shall be filed with the * * * department within three (3)
years from the date of payment of the taxes or permit fees erroneously or
illegally collected.
(3) Nothing in this chapter shall be construed to prohibit a refund or credit for tax paid on liquefied compressed gas not subject to tax or which is exempt from tax, provided there has not been a willful disregard of the provisions of this chapter, and provided this claim is filed within three (3) years.
(4) Except as otherwise provided in Sections 27-59-33(6) and 27-59-35 for persons filing annual reports and making annual payments of privilege tax, if the department decides that the distributor or other person is entitled to the allowance claimed, the taxpayer shall be allowed to deduct from the payments made in his next monthly report. In cases where the amount of such credit cannot be absorbed on the estimated tax liability of the taxpayer making such payments during the next six (6) months, the amount shall instead be refunded by the department to the taxpayer, with the refunds to be made from current compressed gas privilege tax collections.
SECTION 20. Section 27-59-57, Mississippi Code of 1972, is amended as follows:
27-59-57. The * * *
department is
hereby given power and authority to make all rules and regulations, not
inconsistent with the provisions of this chapter, with reference to all
petroleum excise tax provisions and exemptions governing the making of reports
and contents of same and doing any and all other duties pertaining to the
making of reports and payment of taxes, and such other matters as will, in the
judgment of the * * * department,
contribute to a more efficient administration of all the petroleum excise tax
provisions of this chapter. Such rules and regulations, when made, shall have
the same binding force and effect as if incorporated in this chapter.
SECTION 21. Section 27-59-59, Mississippi Code of 1972, is amended as follows:
27-59-59. This chapter
shall not release or relinquish any liability or penalty incurred or right
accrued under the provisions of Chapter 264, Laws of 1946, as amended, or
Chapter 267, Laws of 1946, as amended, as they existed before November 1, 1969,
and such provisions shall be considered as remaining in force for the purpose
of instituting or sustaining any proper action or prosecution for the
enforcement of any such liability, penalty or right. Such provisions shall
govern the reporting and payment of taxes on liquefied compressed gas sold, delivered
or used by bonded distributors or other persons for highway use before November
1, 1969. Any and all matters, orders, hearings, and proceedings pending before
the * * * department
or before any court under provisions of such prior law shall continue with the
same effect as though such prior provisions were not amended or repealed.
SECTION 22. This act shall take effect and be in force from and after July 1, 2013.
