Bill Text: MS SB2746 | 2018 | Regular Session | Engrossed
Bill Title: Sales tax; revise provisions regarding denial/revocation of permit due to unpaid tax liability.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2018-02-27 - Died In Committee [SB2746 Detail]
Download: Mississippi-2018-SB2746-Engrossed.html
MISSISSIPPI LEGISLATURE
2018 Regular Session
To: Finance
By: Senator(s) Fillingane
Senate Bill 2746
(As Passed the Senate)
AN ACT TO AMEND SECTION 27-65-27, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE COMMISSIONER OF REVENUE MAY DENY AN APPLICATION FOR A SALES TAX PERMIT OR REVOKE A SALES TAX PERMIT IF THE APPLICANT OR TAXPAYER IS AN ENTITY AND ANY PARTNER, MEMBER, OR PRINCIPAL OFFICER OF SUCH ENTITY HAS FAILED TO SATISFY ALL OF THE FINALLY DETERMINED TAX LIABILITIES OWED BY THAT PARTNER, MEMBER OR PRINCIPAL OFFICER FROM A PREVIOUS BUSINESS; TO PROVIDE THAT SUCH DENIAL OR REVOCATION BASED ON A PARTNER'S, MEMBER'S OR PRINCIPAL OFFICER'S FINALLY DETERMINED TAX LIABILITY SHALL ONLY BE AUTHORIZED IF THE PARTNER, MEMBER OR PRINCIPAL OFFICER OWNS 10% OR MORE OF THE ENTITY, IS OR WILL BE EXERCISING RESPONSIBILITY FOR FISCAL MANAGEMENT AND WAS EXERCISING RESPONSIBILITY FOR FISCAL MANAGEMENT WHEN THE TAX LIABILITY OF THE PREVIOUS BUSINESS ACCRUED; TO PROVIDE THAT IN LIEU OF DENYING OR REVOKING A PERMIT, THE COMMISSIONER MAY ACCEPT AN INCREASED OR ADDITIONAL BOND WHICH SHALL BE IN THE AMOUNT OF THE LIABILITY DUE; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-65-27, Mississippi Code of 1972, is amended as follows:
27-65-27. (1) Any person who engages, or who intends to engage, in any business or activity which will subject such person to a privilege tax imposed by this chapter, shall apply to the commissioner for a permit to engage in and to conduct any business or activity upon the condition that he shall pay the tax accruing to the State of Mississippi under the provisions of this chapter, and shall keep adequate records of such business or activity as required by this chapter. By making an application for a permit issued pursuant to this section, a person agrees, regardless of his presence in this state, to:
(a) Be subject to the jurisdiction of this state for purposes of taxation;
(b) Collect and remit all taxes levied under this chapter on the type of business or activity to be conducted by the applicant;
(c) Be subject to all the provisions of this chapter.
(2) Upon receipt of the permit, the applicant shall be duly licensed under this chapter to engage in and conduct the business or activity. The permit shall continue in force so long as the person to whom it is issued shall continue in the same business at the same location, unless revoked by the commissioner for cause.
(3) The commissioner shall require of every person desiring to engage in business within this state who maintains no permanent place of business within this state, of every person desiring to engage in the business of making sales of mobile homes, a cash bond or an approved surety bond in an amount sufficient to cover twice the estimated tax liability for a period of three (3) months. However, the bond shall in no case be less than One Hundred Dollars ($100.00) and the tax may be prepaid in lieu of filing bond if the amount is approved by the commissioner. This bond shall be filed with the commissioner prior to the issuance of a permit to do business and before any such person may engage in business within this state. Failure to comply with the provision will subject such person to the penalties provided by this chapter.
(4) The commissioner is
authorized to deny the application for a permit or revoke the permit of any
person who has failed or is failing to comply with any of the provisions of
this chapter. The commissioner may also deny the application for a
permit or revoke the permit of any person who has failed to satisfy all of the
finally determined tax liabilities owed by that person. If the applicant or
taxpayer is an entity, the commissioner may also deny the application for a
permit or revoke the permit if any partner, member or principal
officer of such entity has failed to satisfy all of the finally determined tax
liabilities owed by that partner, member or principal officer from
a previous business. Any denial or revocation of an entity's permit
based on a partner's, member's or principal officer's finally determined tax
liability shall only be authorized if the partner, member or principal officer
owns ten percent (10%) or more of the entity, is or will be exercising
responsibility for fiscal management, and such person was exercising
responsibility for fiscal management when the tax liability of the previous
business accrued. In lieu of denying or revoking a sole proprietor or entity's
permit, the commissioner may accept an increased or additional bond which shall
be in the amount of the liability due. The bond shall remain in place until
the finally determined liability has been satisfied, or after a four-year
period commencing from the beginning date of the new business and during such
time the taxpayer has demonstrated compliance with all
provisions of this chapter. As used in this subsection, "finally
determined tax liabilities" means any state tax, fee, penalty and/or
interest owed by a person to the Mississippi * * * Department of Revenue
where the assessment of the liability has been made against that person as
provided by law and such assessment is not subject to any further timely filed
administrative or judicial review. Revocation of such permit, or
engaging or continuing in business after such permit is revoked or engaging in
business without a permit, shall subject the person to all the penalties
imposed by this chapter.
(5) Any person liable for the tax who fails to obtain a permit from the commissioner, or who continues in business after such permit has been revoked, or who fails to make his returns for taxation as provided, or who fails to keep adequate records and invoices provided by this chapter, or who fails or refuses to permit inspection of such records, or who fails to pay any taxes due hereunder, shall forfeit his rights to do business in this state until he complies with all the provisions of this chapter and until he enters into a bond, with sureties, to be approved by the commissioner, in an amount not to exceed twice the amount of all taxes estimated to become due under this chapter by the person for any period of three (3) months, conditioned to comply with the provisions of this chapter, and pay all taxes legally due by him.
(6) If any person is engaged in or continuing in this state in any business or activity without obtaining a permit, or after the permit has been revoked, or without filing a required bond, or without keeping and allowing inspection of all records required by this chapter, or without making a return, or returns, and without paying all taxes due by him hereunder, it shall be the duty of the commissioner to proceed by injunction to prevent the continuance of the business. Any temporary injunction enjoining the continuance of the business shall be granted without notice by a judge or chancellor now authorized to grant injunctions.
SECTION 2. This act shall take effect and be in force from and after its passage.
