Bill Text: MS HB1384 | 2016 | Regular Session | Engrossed
Bill Title: Department of Revenue; taxes due to shall not be a lien against tax payer's property longer than 10 years.
Sponsorship: Partisan Bill (Republican 1)
Status: (Failed) 2016-03-22 - Died In Committee [HB1384 Detail]
Download: Mississippi-2016-HB1384-Engrossed.html
MISSISSIPPI LEGISLATURE
2016 Regular Session
To: Ways and Means
By: Representative Smith
House Bill 1384
(As Passed the House)
AN ACT TO AMEND SECTIONS 27-7-55, 27-13-29, 27-65-57 AND 27-67-21, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT JUDGMENTS AGAINST TAXPAYERS FOR FAILURE OR REFUSAL TO PAY INCOME TAXES, FRANCHISE TAXES, SALES TAXES OR USE TAXES SHALL NOT BE A LIEN UPON THE TAXPAYER'S PROPERTY FOR MORE THAN TEN YEARS FROM THE DATE OF THE FILING OF THE NOTICE OF TAX LIEN FOR THOSE TAXES UNLESS AN ACTION IS BROUGHT ON THE LIEN BEFORE THE EXPIRATION OF SUCH TIME; TO PROVIDE THAT IF AN ACTION IS BROUGHT TO REDUCE THE LIEN TO A JUDGMENT WITHIN SUCH TIME, THE JUDGMENT SHALL RELATE BACK TO THE DATE THAT THE NOTICE OF TAX LIEN WAS FILED, AND THE JUDGMENT MAY BE RENEWED AS PROVIDED BY LAW; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-7-55, Mississippi Code of 1972, is amended as follows:
27-7-55. If any taxpayer,
liable for the payment of income taxes, penalties or interest, fails or refuses
to pay them after receiving the notice and demands as provided in Sections 27-7-49,
27-7-51 and 27-7-53, and if the taxpayer has not filed a timely appeal to the
board of review as provided by law, the commissioner may file a notice of tax
lien for the income taxes, penalties and interest with the circuit clerk of the
county in which the taxpayer resides or owns property, which shall be enrolled
on the judgment roll. Immediately upon receipt of the notice of tax lien for
income taxes, penalties and interest, the circuit clerk shall enter upon the
judgment roll, in the appropriate columns, the name of the taxpayer as judgment
debtor, the name of the commissioner or Department of Revenue as judgment
creditor, the amount of the taxes, penalties and interest, and the date and
time of enrollment. The judgment shall be valid as against mortgagees,
pledgees, entrusters, purchasers, judgment creditors, and other persons from
the time of filing with the clerk. The amount of the judgment shall be a debt
due the State of Mississippi and remain a lien upon all property and rights to
property belonging to the taxpayer, both real and personal, including choses in
action, with the same force and like effect as any enrolled judgment of a court
of record, and shall continue until satisfied * * *. However, the judgment shall not be a
lien upon the property of the taxpayer for a longer period than * * * ten (10) years from the date
of the filing of the notice of tax lien for income taxes, penalties and
interest unless an action is brought on the lien before the expiration of such
time * * *. If an action is
brought to reduce the lien to a judgment within ten (10) years from the date of
the filing of the notice of tax lien, the judgment shall relate back to the
date that the notice of tax lien was filed, and the judgment may be renewed as
provided in Section 15-1-43. The judgment shall serve as authority for the
issuance of writs of execution, writs of attachment, writs of garnishment or
other remedial writs. The commissioner may issue warrants for collection of
income taxes from such judgments in lieu of the issuance of any remedial writ
by the circuit clerk.
Upon failure to pay the taxes imposed under this article by any taxpayer who has executed any bond, the commissioner shall give notice of the failure to the sureties of the bond and demand payment of the tax, penalties and interest within ten (10) days. If the sureties of the taxpayer's bond shall fail or refuse to pay the penal sum demanded within the ten (10) days allowed, the commissioner may file a notice of tax lien with the circuit clerk of the county in which the sureties reside or own property, which shall be enrolled upon the judgment roll, and the commissioner may proceed to collect from the sureties as provided in this section for collecting from any judgment debtor.
The commissioner is * * * authorized to pay the clerk's fee for
enrolling certificates of indebtedness and any court costs that may be adjudged
against the department or commissioner out of funds appropriated by the
Legislature to defray expenses of the Department of Revenue.
SECTION 2. Section 27-13-29, Mississippi Code of 1972, is amended as follows:
27-13-29. If any taxpayer, liable for the payment of franchise taxes, penalties or interest, fails or refuses to pay them after receiving the notice and demands as provided in Section 27-13-23 or 27-13-25, and if such taxpayer has not filed a timely appeal to the board of review as provided by law, the commissioner may file a notice of tax lien for the franchise taxes, penalties, and interest with the circuit clerk of the county in which the taxpayer resides or owns property, which, shall be enrolled on the judgment roll. Immediately upon receipt of the notice of tax lien for franchise taxes, penalties and interest, the circuit clerk shall enter upon the judgment roll, in the appropriate columns, the name of the taxpayer as judgment debtor, the name of the commissioner or Department of Revenue as judgment creditor, the amount of the taxes, penalties and interest, and the date and time of enrollment. The judgment shall be valid as against mortgagees, pledgees, entrusters, purchasers, judgment creditors, and other persons from the time of filing with the clerk. The amount of the judgment shall be a debt due the State of Mississippi and remain a lien upon all property and rights to property belonging to the taxpayer, both real and personal, including choses in action, with the same force and like effect as any enrolled judgment of a court of record, and shall continue until satisfied. However, the judgment shall not be a lien upon the property of the taxpayer for a longer period than ten (10) years from the date of the filing of the notice of tax lien for franchise taxes, penalties and interest unless an action is brought on the lien before the expiration of such time. If an action is brought to reduce the lien to a judgment within ten (10) years from the date of the filing of the notice of tax lien, the judgment shall relate back to the date that the notice of tax lien was filed, and the judgment may be renewed as provided in Section 15-1-43. Such judgment shall serve as authority for the issuance of writs of execution, writs of attachments, writs of garnishment or other remedial writs. The commissioner may issue warrants for collection of franchise taxes from such judgments in lieu of the issuance of any remedial writ by the circuit clerk.
Upon failure to pay the taxes imposed under this chapter by any taxpayer who has executed any bond, the commissioner shall give notice of the failure to the sureties of such bond and demand payment of the tax, penalties and interest within ten (10) days. If the sureties of the taxpayer's bond shall fail or refuse to pay the penal sum demanded within the ten (10) days allowed, the commissioner may file a notice of tax lien with the circuit clerk of the county in which the sureties reside or own property, which shall be enrolled upon the judgment roll, and the commissioner may proceed to collect from the sureties as provided in this section for collecting from any judgment debtor.
The commissioner is * * * authorized to pay the clerk's fee for
enrolling certificates of indebtedness and any court costs that may be adjudged
against the department or commissioner out of funds appropriated by the
Legislature to defray expenses of the Department of Revenue.
SECTION 3. Section 27-65-57, Mississippi Code of 1972, is amended as follows:
27-65-57. If any person liable for the payment of sales taxes, damages or interest fails or refuses to pay them after receiving the notice and demand as provided in Sections 27-65-35 and 27-65-37, and if such person has not filed a timely appeal to the board of review as provided by law, the commissioner may file a notice of a tax lien for the sales taxes, damages and interest with the circuit clerk of the county in which the taxpayer resides or owns property which shall be enrolled as a judgment on the judgment roll.
Immediately upon receipt of
the notice of the tax lien for sales taxes, damages and interest, the circuit
clerk shall enter the notice of a tax lien as a judgment upon the judgment roll
and show in the appropriate columns the name of the taxpayer as judgment
debtor, the name of the commissioner or * * * Department of Revenue
as judgment creditor, the amount of the taxes, damages and interest, and the
date and time of enrollment. The judgment shall be valid as against
mortgagees, pledgees, entrusters, purchasers, judgment creditors, and other
persons from the time of filing with the clerk. The amount of the judgment
shall be a debt due the State of Mississippi and remain a lien upon all
property and rights to property belonging to the taxpayer, both real and
personal, including choses in action, with the same force and like effect as
any enrolled judgment of a court of record, and shall continue until
satisfied. The judgment shall be the equivalent of any enrolled judgment of a
court of record and shall serve as authority for the issuance of writs of
execution, writs of attachment, writs of garnishment or other remedial writs.
The commissioner may issue warrants for collection of sales taxes from such
judgments, in lieu of the issuance of any remedial writ by the circuit clerk,
as provided in Sections 27-65-59 and 27-65-61 hereof * * *. However, such judgment shall not be
a lien upon the property of the taxpayer for a longer period than * * * ten (10) years from the date
of the filing of the notice of tax lien for sales taxes, damages and interest
unless action * * *
is brought * * *
on the lien before the expiration of such time * * *. If an
action is brought to reduce the lien to a judgment within ten (10) years from
the date of the filing of the notice of tax lien, the judgment shall relate
back to the date that the notice of tax lien was filed, and the judgment may be
renewed as provided in Section 15-1-43.
Upon failure to pay the taxes imposed under this chapter by any taxpayer who has executed any bond under provisions of this chapter, the commissioner shall give notice of the failure to the sureties of the bond and demand payment of the tax, damages and interest within ten (10) days. If the sureties on the taxpayer's bond shall fail or refuse to pay the penal sum demanded within the ten (10) days allowed, the commissioner shall file a notice of tax lien with the circuit clerk of the county in which the sureties reside or own property which shall be enrolled upon the judgment roll, and the commissioner may proceed to collect from the sureties as hereinafter provided for collecting from any judgment debtor.
The commissioner is * * * authorized to pay the clerk's fee for
enrolling the notice of tax lien out of funds appropriated by the Legislature
to defray expenses of the * * *State Tax Commission Department of Revenue.
SECTION 4. Section 27-67-21, Mississippi Code of 1972, is amended as follows:
27-67-21. The tax imposed by this article or damages assessed or interest applied by authority of this article shall constitute a debt due the State of Mississippi and shall be a lien upon the property or rights to property of any person subject to the provisions of this article from the date of assessment until paid.
However, the debt due shall not be a lien upon the property of the taxpayer for a longer period than ten (10) years from the date of the filing of the notice of tax lien for use taxes, penalties and interest unless an action is brought on the lien before the expiration of such time. If an action is brought to reduce the lien to a judgment within ten (10) years from the date of the filing of the notice of tax lien, the judgment shall relate back to the date that the notice of tax lien was filed, and the judgment may be renewed as provided in Section 15-1-43.
SECTION 5. Section 85-11-7, Mississippi Code of 1972, is amended as follows:
85-11-7. (1) If any person refuses to pay any finally determined tax liabilities, the commissioner may enroll in the tax lien registry a notice of tax lien for the finally determined tax liabilities due.
(2) The notice of tax lien file shall include:
(a) The name and last known address of the debtor, and the debtor's date of birth and/or social security number or some part thereof;
(b) The name and address of the department;
(c) The tax lien number assigned to the lien by the department; and
(d) The basis for the tax lien, including, but not limited to, the amount owed as of the date of enrollment in the tax lien registry.
SECTION 6. Section 85-11-13, Mississippi Code of 1972, is amended as follows:
85-11-13. (1) A notice of tax lien shall be a lien upon the debtor's property located anywhere in the state for a period of seven (7) years from the date of enrollment unless:
(a) It is sooner released by the department; or
(b) The department reenrolls the notice of tax lien before the expiration of the seven (7) years. There shall be no limit upon the number of times that the department may reenroll notices of tax liens.
(2) In the event that a notice of tax lien lapses on the expiration of seven (7) years, the notice of tax lien may, at any time thereafter and in the sole discretion of the department, be reenrolled. A notice of tax lien that is reenrolled pursuant to this subsection shall be fully enforceable as of the date of reenrollment; however, any notice of tax lien that is reenrolled after the lapse of the seven-year period shall lose the priority it had prior to its expiration. There shall be no limit upon the number of times that the department may reenroll notices of tax liens in this manner.
SECTION 7. This act shall take effect and be in force from and after July 1, 2016.
