Bill Text: MS SB2643 | 2015 | Regular Session | Introduced
Bill Title: Income tax; reduce the rate of tax.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Failed) 2015-02-25 - Died In Committee [SB2643 Detail]
Download: Mississippi-2015-SB2643-Introduced.html
MISSISSIPPI LEGISLATURE
2015 Regular Session
To: Finance
By: Senator(s) McDaniel, Sojourner
Senate Bill 2643
AN ACT TO AMEND SECTION 27-7-5, MISSISSIPPI CODE OF 1972, TO REDUCE THE RATE OF THE STATE INCOME TAX BY PROVIDING THAT ALL TAXABLE INCOME IN EXCESS OF $5,000.00 SHALL BE TAXED AT THE RATE OF 4%; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-7-5, Mississippi Code of 1972, is amended as follows:
27-7-5. (1) (a) There is hereby assessed and levied, to be collected and paid as hereinafter provided, for the calendar year 1983 and fiscal years ending during the calendar year 1983 and all taxable years thereafter through calendar year 2015, upon the entire net income of every resident individual, corporation, association, trust or estate, in excess of the credits provided, a tax at the following rates:
On the first Five Thousand Dollars ($5,000.00) of taxable income, or any part thereof, at the rate of three percent (3%);
On the next Five Thousand Dollars ($5,000.00) of taxable income, or any part thereof, at the rate of four percent (4%); and
On all taxable income in excess of Ten Thousand Dollars ($10,000.00), at the rate of five percent (5%).
(b) There is hereby assessed and levied, to be collected and paid as hereinafter provided, for calendar year 2016 and fiscal years ending during calendar year 2016 and all taxable years thereafter, upon the entire net income of every resident individual, corporation, association, trust or estate, in excess of the credits provided, a tax at the following rates:
On the first Five Thousand Dollars ($5,000.00) of taxable income, or any part thereof, at the rate of three percent (3%); and
On all taxable income in excess of Five Thousand Dollars ($5,000.00), at the rate of four percent (4%).
(2) An S corporation, as defined in Section 27-8-3(1)(g), shall not be subject to the income tax imposed under this section.
(3) A like tax is hereby imposed to be assessed, collected and paid annually, except as hereinafter provided, at the rate specified in this section and as hereinafter provided, upon and with respect to the entire net income, from all property owned or sold, and from every business, trade or occupation carried on in this state by individuals, corporations, partnerships, trusts or estates, not residents of the State of Mississippi.
(4) In the case of taxpayers having a fiscal year beginning in the calendar year 1982 and ending after the first day of January 1983, the tax due for that taxable year shall be determined by:
(a) Computing for the full fiscal year the amount of tax that would be due under the rates in effect for the calendar year 1982; and
(b) Computing for the full fiscal year the amount of tax that would be due under the rates in effect for the calendar year 1983; and
(c) Applying to the tax computed under paragraph (a) the ratio which the number of months falling within the earlier calendar year bears to the total number of months in the fiscal year; and
(d) Applying to the tax computed under paragraph (b) the ratio which the number of months falling within the later calendar year bears to the total number of months within the fiscal year; and
(e) Adding to the tax determined under paragraph (c) the tax determined under paragraph (d) the sum of which shall be the amount of tax due for the fiscal year.
(5) In the case of a taxpayer having a fiscal year beginning in the calendar year 2015 and ending after the first day of January 2016, the tax due for that taxable year shall be determined by:
(a) Computing for the full fiscal year the amount of tax that would be due under the rates in effect for the calendar year 2015;
(b) Computing for the full fiscal year the amount of tax that would be due under the rates in effect for the calendar year 2016;
(c) Applying to the tax computed under paragraph (a) the ratio which the number of months falling within the earlier calendar year bears to the total number of months in the fiscal year;
(d) Applying to the tax computed under paragraph (b) the ratio which the number of months falling within the later calendar year bears to the total number of months within the fiscal year; and
(e) Adding to the tax determined under paragraph (c) the tax determined under paragraph (d) the sum of which shall be the amount of tax due for the fiscal year.
SECTION 2. This act shall take effect and be in force from and after July 1, 2015.
