Bill Text: MS HB1694 | 2013 | Regular Session | Introduced

Mississippi House Bill 1694 (Prior Session Legislation)

Introduced

Bill Title: Income tax; provide a credit for certain appraisers incurring loss due to appraiser management company's bankruptcy.

Sponsorship: Partisan Bill (Republican 1)

Status: (Failed) 2013-02-27 - Died In Committee [HB1694 Detail]

Download: Mississippi-2013-HB1694-Introduced.html

MISSISSIPPI LEGISLATURE

2013 Regular Session

To: Ways and Means

By: Representative Frierson

House Bill 1694

AN ACT TO PROVIDE AN INCOME TAX CREDIT FOR CERTAIN REAL ESTATE APPRAISERS WHO INCUR A FINANCIAL LOSS DUE TO THE APPRAISAL MANAGEMENT COMPANY FOR WHICH APPRAISAL SERVICES HAVE BEEN PERFORMED FILING FOR BANKRUPTCY; TO PROVIDE FOR THE AMOUNT OF THE FILING BANKRUPTCY; TO PROVIDE FOR THE AMOUNT OF THE CREDIT; TO PROVIDE THAT ANY UNUSED PORTION OF THE CREDIT MAY BE CARRIED FORWARD FOR THE SUCCEEDING FIVE TAX YEARS; TO BRING FORWARD SECTION 73-34-45, MISSISSIPPI CODE OF 1972, WHICH PRESCRIBES FEES TO BE CHARGED BY THE MISSISSIPPI REAL ESTATE COMMISSION AND CREATES THE REAL ESTATE APPRAISAL LICENSE FUND, FOR PURPOSES OF POSSIBLE AMENDMENT; TO BRING FORWARD SECTION 73-34-103, MISSISSIPPI CODE OF 1972, WHICH REQUIRES APPRAISAL MANAGEMENT COMPANIES TO OBTAIN REGISTRATION FROM THE MISSISSIPPI REAL ESTATE APPRAISER LICENSING AND CERTIFICATION BOARD, FOR PURPOSES OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) An individual taxpayer who, as a real estate appraiser having performed appraisal services for an appraisal management company registered under Chapter 34, Title 73, Mississippi Code of 1972, which has filed for bankruptcy under Title 11 of the United States Code, incurs a loss of income due to the appraisal management company's bankruptcy shall be allowed a credit against the income taxes imposed under this chapter in an amount equal to that owed and not paid by the appraisal management company to the taxpayer in the form of appraisal fees, commissions, salary or other compensation for services performed and any unreimbursed expenses. The credit may be claimed in the taxable year in which the individual taxpayer determines that the amount owed by the appraisal management company is not listed as a debt in the debtor's bankruptcy schedule or has been discharged through bankruptcy.

(2) The credit that may be used under this section shall be limited to an amount not greater than the total state income tax liability of the individual taxpayer. Any tax credit claimed under this section but not used in any taxable year may be carried forward for five (5) consecutive years from the close of the tax year in which the credits were earned.

SECTION 2. Section 73-34-45, Mississippi Code of 1972, is brought forward as follows:

73-34-45. (1) The commission shall charge and collect appropriate fees for its services under this chapter. The fees charged shall not exceed the amounts indicated below and shall be set by the board.

LICENSURE FEES:

Application and examination $225.00

Initial and renewal license $325.00

Delinquent renewal penalty 100% of renewal fee

SERVICES:

For each change of address $ 25.00

For each duplicate license $ 25.00

To change status as a licensee from active to

inactive $ 25.00

For each bad check received by the commission $ 25.00

(2) (a) The board shall establish the fee to be paid by each appraisal management company making application for registration under this chapter, that is sufficient for the administration regulation and enforcement of the provisions of the Mississippi Appraisal Management Company Registration Act (Section 73-34-101 et seq.), but in no case shall the fee for initial registration be more than One Thousand Dollars ($1,000.00). However, beginning July 1, 2015, the board may increase the registration fee to an amount not to exceed One Thousand Five Hundred Dollars ($1,500.00) if the board finds the increase necessary for the regulation and enforcement of this chapter.

(b) The board may establish a similar fee, not to exceed One Thousand Dollars ($1,000.00), for the renewal of any registration, and a delinquent renewal penalty not to exceed one hundred percent (100%) of the renewal fee. However, beginning July 1, 2015, the board may increase the renewal fee to an amount not to exceed One Thousand Five Hundred Dollars ($1,500.00) if the board finds the increase necessary for the regulation and enforcement of this chapter, and a delinquent renewal penalty not to exceed one hundred percent (100%) of the renewal fee.

(3) All fees charged and collected under this chapter shall be paid by the commission at least once a week, accompanied by a detailed statement thereof, to the credit of the fund known as the "Real Estate Appraisal License Fund," hereby created in the State Treasury. All monies which are collected under this chapter shall be paid into and credited to the fund for the use of the board in carrying out the provisions of this chapter including the payment of salaries and expenses, printing an annual directory of licensees, and for educational purposes. The commission shall submit a monthly statement to the board detailing any expenses which it bears as a share in the expense of administering this chapter, for which expenses it shall be reimbursed in the amount approved by the board. The commission shall prepare an annual statement of income and expenses related to its appraisal related administrative function.

(4) If any applicant for licensing for the examinations given under this chapter before January 1, 1991, prepays the examination fee before August 1, 1990, he shall pay a fee of One Hundred Seventy-five Dollars ($175.00) in lieu of the Two Hundred Twenty-five Dollars ($225.00) application and examination fee as stated in this section.

(5) The provisions of this section shall stand repealed on July 1, 2016.

SECTION 3. Section 73-34-103, Mississippi Code of 1972, is brought forward as follows:

73-34-103. (1) It is unlawful for a person to directly or indirectly engage or attempt to engage in business as an appraisal management company in this state or to advertise or hold itself out as engaging in or conducting business as an appraisal management company in this state without first obtaining a registration issued by the Mississippi Real Estate Appraiser Licensing and Certification Board under the provisions of this chapter.

(a) An applicant for registration as an appraisal management company in this state shall submit to the Mississippi Real Estate Commission an application on a form or forms prescribed by the board accompanied by an original or certified copy of a surety bond payable to the State of Mississippi in the amount of Twenty Thousand Dollars ($20,000.00) for the use, benefit and indemnity of any person who suffers any damage or loss as a result of the appraisal management company's breach of contract or of any obligation arising therefrom or any violation of law.

(b) In the event a registration process is unavailable upon the effective date of this act, an appraisal management company already conducting business in this state may continue to conduct business in accordance with Sections 73-34-101 through

73-34-131 until one hundred twenty (120) days after a registration process becomes available.

(2) An application for the registration required by subsection (1) of this section shall, at a minimum, include:

(a) The name of the person seeking registration and the fictitious name or names under which he does business in any state;

(b) The business address of the entity seeking registration;

(d) If the person is not a corporation that is domiciled in this state, the name and contact information for the person's agent for service of process in this state;

(e) The name, address, and contact information for any individual or any corporation, partnership, or other business entity that owns ten percent (10%) or more of the appraisal management company;

(f) The name, address, and contact information for one (1) controlling person designated as the main contact for all communication between the appraisal management company and the commission;

(g) A certification that the person has a system and process in place to verify that a person being added to the appraiser panel of the appraisal management company holds a license in good standing in this state under the Real Estate Appraiser Licensing and Certification Act if a license or certification is required to perform appraisals;

(h) A certification that the person requires appraisers completing appraisals at its request to comply with the Uniform Standards of Professional Appraisal Practice (USPAP), including the requirements for geographic and product competence;

(i) A certification that the person has a system in place to verify that only licensed or certified appraisers are used for federally related transactions;

(j) A certification that the person has a system in place to require that appraisals are conducted independently and free from inappropriate influence and coercion as required by the appraisal independence standards established under Section 129E of the Truth in Lending Act, including the requirements for payment of a reasonable and customary fee to appraisers when the appraisal

management company is providing services for a consumer credit transaction secured by the principal dwelling of a consumer;

(k) A certification that the person maintains a detailed record of each service request that it receives

and the appraiser that performs the residential real estate appraisal services for the appraisal management company;

(l) An irrevocable Consent to Service of Process required under Section 73-34-107;

(m) Any other information required by the board which is reasonably necessary to implement Sections 73-34-101 through 73-34-131.

(3) An application for the renewal of a registration shall include substantially similar information required for the initial registration as noted in subsection (2), as determined by the board.

(4) A registration granted by the commission under the provisions of Sections 73-34-101 through 73-34-131 shall be valid for one (1) year from the date on which it is issued.

(5) The provisions of this section shall stand repealed on July 1, 2016.

SECTION 4. Section 1 of this act shall be codified as a new section in Chapter 7, Title 27, Mississippi Code of 1972.

SECTION 5. Nothing in Section 1 of this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax laws 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 the income tax laws 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 6. This act shall take effect and be in force from and after July 1, 2013.