MISSISSIPPI LEGISLATURE
2014 Regular Session
To: Finance
By: Senator(s) Hopson
AN ACT TO AMEND SECTION 27-65-33, MISSISSIPPI CODE OF 1972, TO REMOVE THE PROVISION THAT REQUIRES A TAXPAYER WHO IS REQUIRED TO COLLECT SALES TAXES AND WHO HAS AN AVERAGE MONTHLY SALES TAX LIABILITY OF AT LEAST $20,000.00 TO PAY A PORTION OF HIS SALES TAX LIABILITY FOR THE MONTH OF JUNE ON OR BEFORE JUNE 25; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-65-33, Mississippi Code of 1972, is amended as follows:
27-65-33. (1) (a) Except as otherwise provided in this section, the taxes levied by this chapter shall be due and payable on or before the twentieth day of the month next succeeding the month in which the tax accrues, except as otherwise provided. Returns and payments placed in the 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, returns and payments placed in the mail must be postmarked by the first working day following the due date in order to be considered timely filed. The taxpayer shall make a return showing the gross proceeds of sales or the gross income of the business, and any and all allowable deductions, or exempt sales, and compute the tax due for the period covered.
(b) As compensation for collecting sales and use taxes, complying fully with the applicable statutes, filing returns and supplements thereto and paying all taxes by the twentieth of the month following the period covered, the taxpayer may discount and retain two percent (2%) of the liability on each return subject to the following limitations:
(i) The compensation or discount shall not apply to taxes levied under the provisions of Sections 27-65-19 and 27-65-21, or on charges for ginning cotton under Section 27-65-23.
(ii) The compensation or discount shall not apply to taxes collected by a county official or state agency.
(iii) The compensation or discount shall not exceed Fifty Dollars ($50.00) per month, or Six Hundred Dollars ($600.00) per calendar year, per business location on each state sales tax return, or on each use tax return.
(iv) The compensation or discount shall not apply to any wholesale tax, the rate of which is equal to or greater than the tax rate applicable to retail sales of the same property or service. The retailer of such items shall be entitled to the compensation based on the tax computed on retail sales before application of the credit for any tax paid to the wholesaler, jobber or other person.
(v) The compensation or discount allowed and taken for any filing period may be reassessed and collected when an audit of a taxpayer's records reveals a tax deficiency for that period.
(c) As compensation for collecting any tax imposed under the authority of a local and private law of the State of Mississippi which is collected and paid to the Department of Revenue in the same or similar manner that state sales taxes are collected and paid, complying fully with such applicable law, filing returns and supplements thereto and paying all taxes by the twentieth of the month following the period covered, the taxpayer may discount and retain two percent (2%) of the liability on each return subject to the following limitations:
(i) The compensation or discount shall not apply to taxes collected by a county official or state agency.
(ii) The compensation or discount shall not exceed Fifty Dollars ($50.00) per month, or Six Hundred Dollars ($600.00) per calendar year, per business location on each tax return.
(iii) The compensation or discount allowed and taken for any filing period may be reassessed and collected when an audit of a taxpayer's records reveals a tax deficiency for that period.
* * *
( * * *2) All returns shall be sworn to by
the taxpayer, if made by an individual, or by the president, vice president,
secretary or treasurer of a corporation, or authorized agent, if made on behalf
of a corporation. If made on behalf of a partnership, joint venture,
association, trust, estate, or in any other group or combination acting as a
unit, any individual delegated by such firm shall swear to the return on behalf
of the taxpayer. The commissioner may prescribe methods by which the taxpayer
may swear to his return.
( * * *3) The commissioner may promulgate
rules and regulations to require or permit filing periods of any duration, in
lieu of monthly filing periods, for any taxpayer or group thereof.
( * * *4) The commissioner may require the
execution and filing by the taxpayer with the commissioner of a good and
solvent bond with some surety company authorized to do business in Mississippi
as surety thereon in an amount double the aggregate tax liability by such
taxpayer for any previous three-month period within the last calendar year or
estimated three (3) months' tax liability. The bond is to be conditioned for
the prompt payment of such taxes as may be due for each such return.
( * * *5) The commissioner, for good cause,
may grant such reasonable additional time within which to make any return
required under the provisions of this chapter as he may deem proper, but the
time for filing any return shall not be extended beyond the twentieth of the
month next succeeding the regular due date of the return without the imposition
of interest at the rate of one percent (1%) per month or fractional part of a
month from the time the return was due until the tax is paid.
( * * *6) For persistent, willful or
recurring failure to make any return and pay the tax shown thereby to be due by
the time specified, there shall be added to the amount of tax shown to be due
ten percent (10%) damages, or interest at the rate of one percent (1%) per
month, or both.
( * * *7) Any taxpayer may, upon making
application therefor, obtain from the commissioner an extension of time for the
payment of taxes due on credit sales until collections thereon have been made.
When such extension is granted, the taxpayer shall thereafter include in each
monthly or quarterly report all collections made during the preceding month or
quarter, and shall pay the taxes due thereon at the time of filing such
report. Such permission may be revoked or denied at the discretion of the
commissioner when, in his opinion, a total sales basis will best reflect the
taxable income or expedite examination of the taxpayer's records.
( * * *8) Any taxpayer reporting credit sales
before collection thereof has been made may take credit on subsequent returns
or reports for bad debts actually charged off, if such amounts charged off have
previously been included in taxable gross income or taxable gross proceeds of
sales, as the case may be, and the tax paid thereon. However, any amounts
subsequently collected on accounts that have been charged off as bad debts
shall be included in subsequent reports and the tax shall be paid thereon.
( * * *9) In cases where an extension of
time has been granted by the commissioner for payment of taxes due on credit
sales and the taxpayer thereafter discontinues the business, such taxpayer
shall be required to file with the commissioner within ten (10) days, or such
further time as the commissioner may direct, from the date of the
discontinuance of such business, a special report showing the amounts of any
credit sales which have not been included in determining the measure of the tax
previously paid and any other information with reference to credit sales as the
commissioner may require. The commissioner shall thereupon investigate the
facts with reference to credit sales and the condition of the accounts, and
shall determine, from the best evidence available, the value of all open
accounts, notes or other evidence of debt arising from credit sales. The value
of all notes, open accounts and other evidence of debt, as thus determined by
the commissioner, shall be used in determining the amount of the tax for which
such taxpayer shall be liable. When the amount of the tax shall have been
ascertained, the taxpayer shall be required to pay the same within ten (10)
days or such further time as the commissioner may allow, notwithstanding the
fact that such note or accounts may still remain uncollected.
SECTION 2. This act shall take effect and be in force from and after its passage.