Bill Text: MS HB1604 | 2015 | Regular Session | Introduced
Bill Title: Income tax, insurance premium tax and oil and gas severance tax; authorize credit for contributions to school tuition organizations.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2015-02-25 - Died In Committee [HB1604 Detail]
Download: Mississippi-2015-HB1604-Introduced.html
MISSISSIPPI LEGISLATURE
2015 Regular Session
To: Ways and Means
By: Representative Dixon
House Bill 1604
AN ACT TO PROVIDE A CREDIT FOR TAXPAYERS WHO MAKE CASH CONTRIBUTIONS TO SCHOOL TUITION ORGANIZATIONS AGAINST STATE INCOME TAXES, INSURANCE PREMIUM TAXES, AND OIL AND GAS SEVERANCE TAXES; TO DEFINE THE TERM "SCHOOL TUITION ORGANIZATION" FOR PURPOSES OF THIS ACT; TO PROVIDE FOR THE AMOUNT OF THE TAX CREDIT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) Except as otherwise provided in subsection (4) of this section, for any taxpayer who makes a voluntary cash contribution to a school tuition organization, a credit against the income taxes imposed by Section 27-7-1 et seq., Mississippi Code of 1972, shall be allowed in the amount provided in subsection (3) of this section.
(2) For purposes of this section, the term "school tuition organization" means a charitable organization in this state which is exempt from federal taxation under Section 501(c)(3) of the Internal Revenue Code and which allocates at least ninety percent (90%) of its annual revenue for educational scholarships or tuition grants to children in order to allow them to attend a nonpublic school in this state of their parent's or guardian's choice. The term "nonpublic school" has the meaning ascribed under the Mississippi Compulsory School Attendance Law (Section 37-13-91) and is limited to nonpublic schools receiving contributions from a school tuition organization which do not discriminate on the basis of race, color, sex, handicap or national origin and which maintain educational standards equivalent to the standards established by the State Department of Education for the state schools as outlined in the Approval Requirements of the State Board of Education for Nonpublic Schools.
(3) The income tax credit provided in subsection (1) of this section for a voluntary cash contribution to a school tuition organization shall be equal to the amount of the contribution to such organization during the taxable year, not to exceed the lesser of Five Hundred Dollars ($500.00) or the amount of income tax imposed upon the taxpayer for the taxable year reduced by the sum of all other credits allowable to such taxpayer under the state income tax laws, except credit for tax payments made by or on behalf of the taxpayer. In the case of married individuals filing separate returns, each person may claim an amount not to exceed one-half (1/2) of the tax credit which would have been allowed for a joint return. Any unused portion of the credit may be carried forward for the next five (5) succeeding tax years.
(4) Any amount of a cash contribution made by a taxpayer that is applied toward the credit provided in this section may not be used as a deduction by the taxpayer for state income tax purposes.
(5) The tax credit provided for in this section shall not be allowed if the taxpayer designates the taxpayer's cash contribution to the school tuition organization for the direct benefit of any dependent of the taxpayer.
SECTION 2. (1) For any taxpayer who makes a voluntary cash contribution to a school tuition organization, a credit against the insurance premium taxes imposed by Sections 27-15-103, 27-15-109 and 27-15-123 shall be allowed in the amount provided in subsection (3) of this section.
(2) For purposes of this section, the term "school tuition organization" means a charitable organization in this state which is exempt from federal taxation under Section 501(c)(3) of the Internal Revenue Code and which allocates at least ninety percent (90%) of its annual revenue for educational scholarships or tuition grants to children in order to allow them to attend a nonpublic school in this state of their parent's or guardian's choice. The term "nonpublic school" has the meaning ascribed under the Mississippi Compulsory School Attendance Law (Section 37-13-91) and is limited to nonpublic schools receiving contributions from a school tuition organization which do not discriminate on the basis of race, color, sex, handicap or national origin and which maintain educational standards equivalent to the standards established by the State Department of Education for the state schools as outlined in the Approval Requirements of the State Board of Education for Nonpublic Schools.
(3) The insurance premium tax credit provided in subsection (1) of this section for a voluntary cash contribution to a school tuition organization shall be equal to the amount of the contribution to such organization during the taxable year, not to exceed the lesser of Five Hundred Dollars ($500.00) or the amount of insurance premium tax imposed upon the taxpayer for the taxable year reduced by the sum of all other credits allowable to such taxpayer under the state insurance premium tax laws. Any unused portion of the credit may be carried forward for the next five (5) succeeding tax years.
(4) The tax credit provided for in this section shall not be allowed if the taxpayer designates the taxpayer's cash contribution to the school tuition organization for the direct benefit of any dependent of the taxpayer.
SECTION 3. (1) For any taxpayer who makes a voluntary cash contribution to a school tuition organization, a credit against the severance taxes imposed by Sections 27-25-503 and 27-25-703 shall be allowed in the amount provided in subsection (3) of this section.
(2) For purposes of this section, the term "school tuition organization" means a charitable organization in this state which is exempt from federal taxation under Section 501(c)(3) of the Internal Revenue Code and which allocates at least ninety percent (90%) of its annual revenue for educational scholarships or tuition grants to children in order to allow them to attend a nonpublic school in this state of their parent's or guardian's choice. The term "nonpublic school" has the meaning ascribed under the Mississippi Compulsory School Attendance Law (Section 37-13-91) and is limited to nonpublic schools receiving contributions from a school tuition organization which do not discriminate on the basis of race, color, sex, handicap or national origin and which maintain educational standards equivalent to the standards established by the State Department of Education for the state schools as outlined in the Approval Requirements of the State Board of Education for Nonpublic Schools.
(3) The severance tax credit provided in subsection (1) of this section for a voluntary cash contribution to a school tuition organization shall be equal to the amount of the contribution to such organization during the taxable year, not to exceed the lesser of Five Hundred Dollars ($500.00) or the amount of severance tax imposed upon the taxpayer for the taxable year reduced by the sum of all other credits allowable to such taxpayer under the state severance tax laws. Any unused portion of the credit may be carried forward for the next five (5) succeeding tax years.
(4) The tax credit provided for in this section shall not be allowed if the taxpayer designates the taxpayer's cash contribution to the school tuition organization for the direct benefit of any dependent of the taxpayer.
SECTION 4. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under Sections 27-7-1 et seq., 27-15-103, 27-15-109, 27-15-123, 27-25-503 and 27-25-703, Mississippi Code of 1972, before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of those statutes are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.
SECTION 5. Section 1 of this act shall be codified as a new section in Chapter 7, Title 27, Mississippi Code of 1972. Section 2 of this act shall be codified as a new section in Chapter 15, Title 27, Mississippi Code of 1972. Section 3 of this act shall be codified as a new section in Chapter 25, Title 27, Mississippi Code of 1972.
SECTION 6. This act shall take effect and be in force from and after January 1, 2015.
