Bill Text: MS SB2011 | 2023 | Regular Session | Enrolled
Bill Title: Sales tax; exempt motor vehicle transfers to and from trusts, corporations, partnerships and limited liability companies.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2023-03-10 - Approved by Governor [SB2011 Detail]
Download: Mississippi-2023-SB2011-Enrolled.html
MISSISSIPPI LEGISLATURE
2023 Regular Session
To: Finance
By: Senator(s) Johnson
Senate Bill 2011
(As Sent to Governor)
AN ACT TO AMEND SECTION 27-65-201, MISSISSIPPI CODE OF 1972, TO EXEMPT FROM SALES TAXATION TRANSFERS OF MOTOR VEHICLE TITLES BETWEEN A TRUSTEE AND A BENEFICIARY OF A TRUST, BETWEEN A CORPORATION AND ONE OF ITS SHAREHOLDERS IN A TRANSACTION QUALIFYING FOR NONRECOGNITION OF GAIN OR LOSS PURSUANT TO SECTION 351 OF THE INTERNAL REVENUE CODE, AND BETWEEN A PARTNERSHIP OR LIMITED LIABILITY COMPANY AND ONE OF ITS PARTNERS OR OWNERS; TO REQUIRE THAT SUCH TRANSFERS BE EVIDENCED BY AN AFFIDAVIT PREPARED BY THE DEPARTMENT OF REVENUE AND SIGNED BY THE TRANSFEROR; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-65-201, Mississippi Code of 1972, is amended as follows:
27-65-201. (1) For the purposes of this section, unless the context otherwise requires, the term "motor vehicle" means a motor vehicle required to be registered or licensed by the county tax collectors pursuant to Section 27-19-43.
(2) Upon every person, firm or corporation purchasing other than at wholesale within this state any motor vehicle required to be registered or licensed with the tax collector of any county in this state from any person, firm or corporation which is not a licensed dealer engaged in selling motor vehicles, there shall be levied and collected a sales tax at the rate of five percent (5%) of the true value of the motor vehicle as calculated by using the most current official motor vehicle assessment schedule supplied by the Department of Revenue.
(3) Upon every person, firm or corporation purchasing other than at wholesale outside the state any motor vehicle required to be registered or licensed with the tax collector of any county in this state from any person, firm or corporation which is not a licensed dealer engaged in selling motor vehicles, for use, storage or other consumption within this state there is levied a use tax at the rate of five percent (5%) of the true value of the motor vehicle as calculated by using the most current official motor vehicle assessment schedule supplied by the Department of Revenue.
(4) Where any motor vehicle is taken in trade as a credit or part payment on the sale of a motor vehicle taxable under this section, the tax levied by this section shall be paid on the net difference, that is, the true value of the motor vehicle sold less the credit for the motor vehicle taken in trade.
(5) The tax levied by this section shall be collected by the tax collector at the time of, and as a prerequisite to, the registration of or licensing of any such motor vehicle. The tax collector shall give to the person registering the vehicle a receipt in a form prescribed and furnished by the Department of Revenue for the amount of tax collected.
(6) County tax collectors shall be liable for the tax they are required to collect, and taxes which are in fact collected, under this section and failure to properly collect or maintain proper records shall not relieve them of liability for payment to the Department of Revenue. Deficiencies in collection or payment shall be assessed against the tax collector, or his successor, in the same manner and subject to the same penalties and provisions for appeal as are deficiencies assessed against taxpayers under Chapter 65, Title 27, Mississippi Code of 1972.
Each tax collector of the several counties shall, on or before the twentieth day of each month, file a report with and pay to the Department of Revenue all funds collected under the provisions of this section, less a commission of three percent (3%) which shall be retained by the tax collector as a commission for collecting such tax, and such commission shall be deposited in the county general fund. The report required to be filed shall cover all collections made during the calendar month next preceding the date on which the report is due and filed.
Any error in the report and remittance to the Department of Revenue may be adjusted on a subsequent report. If the error was in the collection by the tax collector, it shall be adjusted through the tax collector with the taxpayer before credit is allowed by the Department of Revenue.
All information relating to the collection of this tax by tax collectors and such records as the Department of Revenue may require shall be preserved in the tax collector's office for a period of three (3) years for audit by the Department of Revenue.
(7) The tax levied by this section shall not apply to the following:
(a) Transfers of legal ownership of motor vehicles currently registered or licensed in the transferor's name between husband and wife, parent and child, or grandparents and grandchildren, unless the transferor is a licensed dealer of motor vehicles and the transfer of the motor vehicle is made in the regular course of business.
(b) Transfers of legal ownership of motor vehicles pursuant to a will or pursuant to any law providing for the distribution of the property of one dying intestate.
(c) Transfers of legal ownership of motor vehicles ten (10) or more years after the date of the manufacture of such vehicle.
(d) Transfers of legal ownership of motor vehicles between siblings, unless the transferor is a licensed dealer of motor vehicles and the transfer of the motor vehicle is made in the regular course of business.
(e) Transfers of legal ownership of motor vehicles, without actual consideration for the transfer, between a trustee and a beneficiary of a trust, as evidenced by an affidavit prepared by the Department of Revenue and signed by the transferor.
(f) Transfers of legal ownership of motor vehicles between a corporation and one (1) of its shareholders in a transaction which qualifies for nonrecognition of gain or loss pursuant to Section 351 of the Internal Revenue Code as it exists at the time of the transfer, as evidenced by an affidavit prepared by the Department of Revenue and signed by the transferor.
(g) Transfers of legal ownership of motor vehicles between a partnership or limited liability company and one (1) of its partners or owners, as evidenced by an affidavit prepared by the Department of Revenue and signed by the transferor.
SECTION 2. This act shall take effect and be in force from and after July 1, 2023.
