Bill Text: MS SB2919 | 2013 | Regular Session | Introduced
Bill Title: Mississippi Infrastructure Company Recovery Act of 2013; create,.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2013-02-27 - Died In Committee [SB2919 Detail]
Download: Mississippi-2013-SB2919-Introduced.html
MISSISSIPPI LEGISLATURE
2013 Regular Session
To: Finance
By: Senator(s) Fillingane
Senate Bill 2919
AN ACT TO CREATE THE MISSISSIPPI INFRASTRUCTURE COMPANY RECOVERY ACT OF 2013; TO AMEND SECTION 27-7-15, MISSISSIPPI CODE OF 1972, TO EXCLUDE FROM GROSS INCOME UNDER THE STATE INCOME TAX LAW, AMOUNTS RECEIVED BY A FOREIGN INFRASTRUCTURE AFFILIATE EMPLOYEE FROM AN INFRASTRUCTURE COMPANY OR A FOREIGN INFRASTRUCTURE COMPANY AFFILIATE FOR DISASTER OR EMERGENCY RELATED WORK PERFORMED DURING A DISASTER PERIOD; TO DEFINE THE TERMS "DISASTER," "DISASTER OR EMERGENCY RELATED WORK," "DISASTER PERIOD," "FOREIGN INFRASTRUCTURE COMPANY AFFILIATE," "FOREIGN INFRASTRUCTURE AFFILIATE EMPLOYEE," "INFRASTRUCTURE" AND "INFRASTRUCTURE COMPANY" FOR THE PURPOSES OF SUCH EXCLUSION FROM GROSS INCOME; TO AMEND SECTION 27-7-37, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT ACTIVITY OF A FOREIGN INFRASTRUCTURE COMPANY AFFILIATE THAT IS CONDUCTED IN THIS STATE RELATING TO A DISASTER SHALL BE DISREGARDED WITH RESPECT TO ANY FILING REQUIREMENTS FOR INCOME TAX PURPOSES; TO AMEND SECTIONS 27-7-303, 27-7-305 AND 27-7-333, MISSISSIPPI CODE OF 1972, TO DEFINE THE TERMS "DISASTER," "DISASTER OR EMERGENCY-RELATED WORK," "DISASTER PERIOD," "FOREIGN INFRASTRUCTURE COMPANY AFFILIATE," "FOREIGN INFRASTRUCTURE AFFILIATE EMPLOYEE," "INFRASTRUCTURE" AND "INFRASTRUCTURE COMPANY" UNDER THE STATE INCOME TAX WITHHOLDING LAW; TO PROVIDE THAT A FOREIGN INFRASTRUCTURE COMPANY AFFILIATE WILL NOT BE CONSIDERED TO HAVE ESTABLISHED A PRESENCE IN THE STATE THAT WOULD REQUIRE THE BUSINESS TO WITHHOLD OR REMIT ANY TAXES FROM A FOREIGN INFRASTRUCTURE AFFILIATE EMPLOYEE OR TO OTHERWISE BE SUBJECTED TO ANY EMPLOYER TAX WITHHOLDINGS WITH RESPECT TO DISASTER OR EMERGENCY-RELATED WORK PERFORMED DURING A DISASTER PERIOD; TO AMEND SECTION 27-13-7, MISSISSIPPI CODE OF 1972, TO PROVIDE A CORPORATION FRANCHISE TAX EXEMPTION FOR A FOREIGN INFRASTRUCTURE COMPANY AFFILIATE THAT CONDUCTS OPERATIONS WITHIN THE STATE SOLELY FOR PURPOSES OF PERFORMING DISASTER OR EMERGENCY-RELATED WORK DURING A DISASTER PERIOD; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. This act shall be known and may be cited as the "Mississippi Infrastructure Company Recovery Act of 2013."
SECTION 2. Section 27-7-15, Mississippi Code of 1972, is amended as follows:
27-7-15. (1) For the purposes of this article, except as otherwise provided, the term "gross income" means and includes the income of a taxpayer derived from salaries, wages, fees or compensation for service, of whatever kind and in whatever form paid, including income from governmental agencies and subdivisions thereof; or from professions, vocations, trades, businesses, commerce or sales, or renting or dealing in property, or reacquired property; also from annuities, interest, rents, dividends, securities, insurance premiums, reinsurance premiums, considerations for supplemental insurance contracts, or the transaction of any business carried on for gain or profit, or gains, or profits, and income derived from any source whatever and in whatever form paid. The amount of all such items of income shall be included in the gross income for the taxable year in which received by the taxpayer. The amount by which an eligible employee's salary is reduced pursuant to a salary reduction agreement authorized under Section 25-17-5 shall be excluded from the term "gross income" within the meaning of this article.
(2) In determining gross income for the purpose of this section, the following, under regulations prescribed by the commissioner, shall be applicable:
(a) Dealers in property. Federal rules, regulations and revenue procedures shall be followed with respect to installment sales unless a transaction results in the shifting of income from inside the state to outside the state.
(b) Casual sales of property.
(i) Prior to January 1, 2001, federal rules, regulations and revenue procedures shall be followed with respect to installment sales except they shall be applied and administered as if H.R. 3594, the Installment Tax Correction Act of 2000 of the 106th Congress, had not been enacted. This provision will generally affect taxpayers, reporting on the accrual method of accounting, entering into installment note agreements on or after December 17, 1999. Any gain or profit resulting from the casual sale of property will be recognized in the year of sale.
(ii) From and after January 1, 2001, federal rules, regulations and revenue procedures shall be followed with respect to installment sales except as provided in this subparagraph (ii). Gain or profit from the casual sale of property shall be recognized in the year of sale. When a taxpayer recognizes gain on the casual sale of property in which the gain is deferred for federal income tax purposes, a taxpayer may elect to defer the payment of tax resulting from the gain as allowed and to the extent provided under regulations prescribed by the commissioner. If the payment of the tax is made on a deferred basis, the tax shall be computed based on the applicable rate for the income reported in the year the payment is made. Except as otherwise provided in subparagraph (iii) of this paragraph (b), deferring the payment of the tax shall not affect the liability for the tax. If at any time the installment note is sold, contributed, transferred or disposed of in any manner and for any purpose by the original note holder, or the original note holder is merged, liquidated, dissolved or withdrawn from this state, then all deferred tax payments under this section shall immediately become due and payable.
(iii) If the selling price of the property is reduced by any alteration in the terms of an installment note, including default by the purchaser, the gain to be recognized is recomputed based on the adjusted selling price in the same manner as for federal income tax purposes. The tax on this amount, less the previously paid tax on the recognized gain, is payable over the period of the remaining installments. If the tax on the previously recognized gain has been paid in full to this state, the return on which the payment was made may be amended for this purpose only. The statute of limitations in Section 27-7-49 shall not bar an amended return for this purpose.
(c) Reserves of insurance companies. In the case of insurance companies, any amounts in excess of the legally required reserves shall be included as gross income.
(d) Affiliated companies or persons. As regards sales, exchanges or payments for services from one to another of affiliated companies or persons or under other circumstances where the relation between the buyer and seller is such that gross proceeds from the sale or the value of the exchange or the payment for services are not indicative of the true value of the subject matter of the sale, exchange or payment for services, the commissioner shall prescribe uniform and equitable rules for determining the true value of the gross income, gross sales, exchanges or payment for services, or require consolidated returns of affiliates.
(e) Alimony and separate maintenance payments. The federal rules, regulations and revenue procedures in determining the deductibility and taxability of alimony payments shall be followed in this state.
(f) Reimbursement for expenses of moving. There shall be included in gross income (as compensation for services) any amount received or accrued, directly or indirectly, by an individual as a payment for or reimbursement of expenses of moving from one (1) residence to another residence which is attributable to employment or self-employment.
(3) In the case of taxpayers other than residents, gross income includes gross income from sources within this state.
(4) The words "gross income" do not include the following items of income which shall be exempt from taxation under this article:
(a) The proceeds of life insurance policies and contracts paid upon the death of the insured. However, the income from the proceeds of such policies or contracts shall be included in the gross income.
(b) The amount received by the insured as a return of premium or premiums paid by him under life insurance policies, endowment, or annuity contracts, either during the term or at maturity or upon surrender of the contract.
(c) The value of property acquired by gift, bequest, devise or descent, but the income from such property shall be included in the gross income.
(d) Interest upon the obligations of the United States or its possessions, or securities issued under the provisions of the Federal Farm Loan Act of July 17, 1916, or bonds issued by the War Finance Corporation, or obligations of the State of Mississippi or political subdivisions thereof.
(e) The amounts received through accident or health insurance as compensation for personal injuries or sickness, plus the amount of any damages received for such injuries or such sickness or injuries, or through the War Risk Insurance Act, or any law for the benefit or relief of injured or disabled members of the military or naval forces of the United States.
(f) Income received by any religious denomination or by any institution or trust for moral or mental improvements, religious, Bible, tract, charitable, benevolent, fraternal, missionary, hospital, infirmary, educational, scientific, literary, library, patriotic, historical or cemetery purposes or for two (2) or more of such purposes, if such income be used exclusively for carrying out one or more of such purposes.
(g) Income received by a domestic corporation which is "taxable in another state" as this term is defined in this article, derived from business activity conducted outside this state. Domestic corporations taxable both within and without the state shall determine Mississippi income on the same basis as provided for foreign corporations under the provisions of this article.
(h) In case of insurance companies, there shall be excluded from gross income such portion of actual premiums received from an individual policyholder as is paid back or credited to or treated as an abatement of premiums of such policyholder within the taxable year.
(i) Income from dividends that has already borne a tax as dividend income under the provisions of this article, when such dividends may be specifically identified in the possession of the recipient.
(j) Amounts paid by the United States to a person as added compensation for hazardous duty pay as a member of the Armed Forces of the United States in a combat zone designated by Executive Order of the President of the United States.
(k) Amounts received as retirement allowances, pensions, annuities or optional retirement allowances paid under the federal Social Security Act, the Railroad Retirement Act, the Federal Civil Service Retirement Act, or any other retirement system of the United States government, retirement allowances paid under the Mississippi Public Employees' Retirement System, Mississippi Highway Safety Patrol Retirement System or any other retirement system of the State of Mississippi or any political subdivision thereof. The exemption allowed under this paragraph (k) shall be available to the spouse or other beneficiary at the death of the primary retiree.
(l) Amounts received as retirement allowances, pensions, annuities or optional retirement allowances paid by any public or governmental retirement system not designated in paragraph (k) or any private retirement system or plan of which the recipient was a member at any time during the period of his employment. Amounts received as a distribution under a Roth Individual Retirement Account shall be treated in the same manner as provided under the Internal Revenue Code of 1986, as amended. The exemption allowed under this paragraph (l) shall be available to the spouse or other beneficiary at the death of the primary retiree.
(m) National Guard or Reserve Forces of the United States compensation not to exceed the aggregate sum of Five Thousand Dollars ($5,000.00) for any taxable year through the 2005 taxable year, and not to exceed the aggregate sum of Fifteen Thousand Dollars ($15,000.00) for any taxable year thereafter.
(n) Compensation received for active service as a member below the grade of commissioned officer and so much of the compensation as does not exceed the maximum enlisted amount received for active service as a commissioned officer in the Armed Forces of the United States for any month during any part of which such members of the Armed Forces (i) served in a combat zone as designated by Executive Order of the President of the United States or a qualified hazardous duty area as defined by federal law, or both; or (ii) was hospitalized as a result of wounds, disease or injury incurred while serving in such combat zone. For the purposes of this paragraph (n), the term "maximum enlisted amount" means and has the same definition as that term has in 26 USCS 112.
(o) The proceeds
received from federal and state forestry * * * incentive programs.
(p) The amount representing the difference between the increase of gross income derived from sales for export outside the United States as compared to the preceding tax year wherein gross income from export sales was highest, and the net increase in expenses attributable to such increased exports. In the absence of direct accounting, the ratio of net profits to total sales may be applied to the increase in export sales. This paragraph (p) shall only apply to businesses located in this state engaging in the international export of Mississippi goods and services. Such goods or services shall have at least fifty percent (50%) of value added at a location in Mississippi.
(q) Amounts paid by the federal government for the construction of soil conservation systems as required by a conservation plan adopted pursuant to 16 USCS 3801 et seq.
(r) The amount deposited in a medical savings account, and any interest accrued thereon, that is a part of a medical savings account program as specified in the Medical Savings Account Act under Sections 71-9-1 through 71-9-9; provided, however, that any amount withdrawn from such account for purposes other than paying eligible medical expense or to procure health coverage shall be included in gross income.
(s) Amounts paid by the Mississippi Soil and Water Conservation Commission from the Mississippi Soil and Water Cost-Share Program for the installation of water quality best management practices.
(t) Dividends received by a holding corporation, as defined in Section 27-13-1, from a subsidiary corporation, as defined in Section 27-13-1.
(u) Interest, dividends, gains or income of any kind on any account in the Mississippi Affordable College Savings Trust Fund, as established in Sections 37-155-101 through 37-155-125, to the extent that such amounts remain on deposit in the MACS Trust Fund or are withdrawn pursuant to a qualified withdrawal, as defined in Section 37-155-105.
(v) Interest, dividends or gains accruing on the payments made pursuant to a prepaid tuition contract, as provided for in Section 37-155-17.
(w) Income resulting from transactions with a related member where the related member subject to tax under this chapter was required to, and did in fact, add back the expense of such transactions as required by Section 27-7-17(2). Under no circumstances may the exclusion from income exceed the deduction add-back of the related member, nor shall the exclusion apply to any income otherwise excluded under this chapter.
(x) Amounts that are subject to the tax levied pursuant to Section 27-7-901, and are paid to patrons by gaming establishments licensed under the Mississippi Gaming Control Act.
(y) Amounts that are subject to the tax levied pursuant to Section 27-7-903, and are paid to patrons by gaming establishments not licensed under the Mississippi Gaming Control Act.
(z) Interest, dividends, gains or income of any kind on any account in a qualified tuition program and amounts received as distributions under a qualified tuition program shall be treated in the same manner as provided under the United States Internal Revenue Code, as amended. For the purposes of this paragraph (z), the term "qualified tuition program" means and has the same definition as that term has in 26 USCS 529.
(aa) The amount deposited in a health savings account, and any interest accrued thereon, that is a part of a health savings account program as specified in the Health Savings Accounts Act created in Sections 83-62-1 through 83-62-9; however, any amount withdrawn from such account for purposes other than paying qualified medical expenses or to procure health coverage shall be included in gross income, except as otherwise provided by Sections 83-62-7 and 83-62-9.
(bb) Amounts received as qualified disaster relief payments shall be treated in the same manner as provided under the United States Internal Revenue Code, as amended.
(cc) Amounts received as a "qualified Hurricane Katrina distribution" as defined in the United States Internal Revenue Code, as amended.
(dd) Amounts received by an individual which may be excluded from income as foreign earned income for federal income tax purposes.
(ee) Amounts received by a qualified individual, directly or indirectly, from an employer or nonprofit housing organization that are qualified housing expenses associated with an employer-assisted housing program. For purposes of this paragraph (ee):
(i) "Qualified individual" means any individual whose household income does not exceed one hundred twenty percent (120%) of the area median gross income (as defined by the United States Department of Housing and Urban Development), adjusted for household size, for the area in which the housing is located.
(ii) "Nonprofit housing organization" means an organization that is organized as a not-for-profit organization under the laws of this state or another state and has as one (1) of its purposes:
1. Home ownership education or counseling;
2. The development of affordable housing; or
3. The development or administration of employer-assisted housing programs.
(iii) "Employer-assisted housing program" means a separate written plan of any employer (including, without limitation, tax-exempt organizations and public employers) for the exclusive benefit of the employer's employees to pay qualified housing expenses to assist the employer's employees in securing affordable housing.
(iv) "Qualified housing expenses" means:
1. With respect to rental assistance, an amount not to exceed Two Thousand Dollars ($2,000.00) paid for the purpose of assisting employees with security deposits and rental subsidies; and
2. With respect to home ownership assistance, an amount not to exceed the lesser of Ten Thousand Dollars ($10,000.00) or six percent (6%) of the purchase price of the employee's principal residence that is paid for the purpose of assisting employees with down payments, payment of closing costs, reduced interest mortgages, mortgage guarantee programs, mortgage forgiveness programs, equity contribution programs, or contributions to home buyer education and/or home ownership counseling of eligible employees.
(ff) For the 2010 taxable year and any taxable year thereafter, amounts converted in accordance with the United States Internal Revenue Code, as amended, from a traditional Individual Retirement Account to a Roth Individual Retirement Account. The exemption allowed under this paragraph (ff) shall be available to the spouse or other beneficiary at the death of the primary retiree.
(gg) Amounts received by a foreign infrastructure affiliate employee from an infrastructure company or a foreign infrastructure company affiliate for disaster or emergency-related work performed in the state during a disaster period. For purposes of this paragraph (gg):
(i) "Disaster" means a disaster that has been declared by the Governor or the President of the United States as described in Section 33-15-5.
(ii) "Disaster or emergency-related work" means repairing, renovating, installing, building, rendering services or other business activities that relate to infrastructure that has been damaged, impaired or destroyed by a disaster.
(iii) "Disaster period" means a period that begins within ten (10) days of the first day of the Governor's or the President's declaration (whichever occurs first) of a disaster and that extends for a period of sixty (60) calendar days after the end of the declared period of the disaster.
(iv) "Foreign infrastructure company affiliate" means a business entity that is affiliated with an infrastructure company and has no registrations or tax filings or nexus in the state prior to a relevant disaster.
(v) "Foreign infrastructure affiliate employee" means an employee of a foreign infrastructure company affiliate who does not work in the state other than performing disaster or emergency-related work.
(vi) "Infrastructure" means property and equipment owned or used by communications networks, and electric generation, transmission and distribution systems and related support facilities that serves multiple customers or citizens, including, but not limited to, real and personal property.
(vii) "Infrastructure company" means a corporation or partnership or other business entity that owns and operates infrastructure.
(5) Prisoners of war, missing in action-taxable status.
(a) Members of the Armed Forces. Gross income does not include compensation received for active service as a member of the Armed Forces of the United States for any month during any part of which such member is in a missing status, as defined in paragraph (d) of this subsection, during the Vietnam Conflict as a result of such conflict.
(b) Civilian employees. Gross income does not include compensation received for active service as an employee for any month during any part of which such employee is in a missing status during the Vietnam Conflict as a result of such conflict.
(c) Period of conflict. For the purpose of this subsection, the Vietnam Conflict began February 28, 1961, and ends on the date designated by the President by Executive Order as the date of the termination of combatant activities in Vietnam. For the purpose of this subsection, an individual is in a missing status as a result of the Vietnam Conflict if immediately before such status began he was performing service in Vietnam or was performing service in Southeast Asia in direct support of military operations in Vietnam. "Southeast Asia," as used in this paragraph, is defined to include Cambodia, Laos, Thailand and waters adjacent thereto.
(d) "Missing status" means the status of an employee or member of the Armed Forces who is in active service and is officially carried or determined to be absent in a status of (i) missing; (ii) missing in action; (iii) interned in a foreign country; (iv) captured, beleaguered or besieged by a hostile force; or (v) detained in a foreign country against his will; but does not include the status of an employee or member of the Armed Forces for a period during which he is officially determined to be absent from his post of duty without authority.
(e) "Active service" means active federal service by an employee or member of the Armed Forces of the United States in an active duty status.
(f) "Employee" means one who is a citizen or national of the United States or an alien admitted to the United States for permanent residence and is a resident of the State of Mississippi and is employed in or under a federal executive agency or department of the Armed Forces.
(g) "Compensation" means (i) basic pay; (ii) special pay; (iii) incentive pay; (iv) basic allowance for quarters; (v) basic allowance for subsistence; and (vi) station per diem allowances for not more than ninety (90) days.
(h) If refund or
credit of any overpayment of tax for any taxable year resulting from the
application of subsection (5) of this section is prevented by the operation of
any law or rule of law, such refund or credit of such overpayment of tax may,
nevertheless, be made or allowed if claim therefor is filed with the * * * Department of Revenue
within three (3) years after the date of the enactment of this subsection.
(i) The provisions of this subsection shall be effective for taxable years ending on or after February 28, 1961.
(6) A shareholder of an S corporation, as defined in Section 27-8-3(1)(g), shall take into account the income, loss, deduction or credit of the S corporation only to the extent provided in Section 27-8-7(2).
SECTION 3. Section 27-7-37, Mississippi Code of 1972, is amended as follows:
27-7-37. (1) Every corporation subject to taxation shall make a separate return, stating specifically the items of its gross income and the deductions and credits allowed by this article. The return shall be signed by either the president, vice president, secretary or treasurer.
(2) (a) Two (2) or more members of an affiliated group of corporations, each taxable in Mississippi, may elect to file a combined income tax return. Corporations electing to file combined returns under this section shall determine the Mississippi net business income (or loss) on an individual corporate member basis as required in Section 27-7-23 and, if applicable, Sections 27-7-24, 27-7-24.1, 27-7-24.3, 27-7-24.5 and 27-7-24.7. The Mississippi net business income (or loss) so computed for each individual member shall be combined to determine the Mississippi net business income (or loss) of the combined group of affiliated corporations. To the amount so determined shall be added nonbusiness income of the combined members directly allocable to Mississippi to determine Mississippi taxable income.
The commissioner may require a corporation taxable under this article that is affiliated with one or more corporations that are not taxable under this article to file a combined return with the affiliated corporation or corporations if he believes that the intercompany transactions of such taxable corporation have resulted in the shifting of taxable income from itself to another member or members of its affiliated group not subject to tax under this article. Also, the commissioner may require a group of affiliated corporations taxable under this article to file a combined return if he believes that the intercompany transactions of such corporations have resulted in the shifting of taxable income between members of the included affiliated group. In the event that such a combined return is required, the net income or loss of each member of the group required to be combined, shall be combined pursuant to regulations prescribed by the commissioner to determine the total combined taxable income and the Mississippi taxable income of the group. The tax imposed by this article shall be computed and assessed upon the Mississippi taxable income of the combined group which shall be treated as the taxpayer.
(b) The privilege to file combined returns shall be limited to members of an affiliated group of corporations which are subject to taxation under the provisions of this article. The privilege of making a combined return may be exercised only if all corporations subject to taxation under this article which were members of the affiliated group at any time during the taxable year consent to a combined return prior to the last day prescribed by law for the filing of such return. The making of a combined return shall be considered as such consent. In the case of a taxable corporation which is a member of the affiliated group for a fractional part of the year, the combined return shall include the income of such corporation for such part of the year as it is a member of the affiliated group.
(c) The commissioner shall prescribe such regulations as he may deem necessary in order that the tax liability of any affiliated group of corporations making a combined return and of each corporation in the group, both during and after the period of affiliation, may be returned, determined, computed, assessed, collected and adjusted, in such manner as clearly to reflect the income tax liability and the various factors necessary for the determination of such liability, and in order to prevent avoidance of such tax liability.
(d) As used in this article, the term "affiliated group" means one or more corporations connected through stock ownership with a common parent corporation where at least eighty percent (80%) of the voting power of all classes of stock and at least eighty percent (80%) of each class of the nonvoting stock of each of the member corporations, except the common parent corporation, is owned directly by one or more of the other member corporations; and the common parent corporation owns directly stock possessing at least eighty percent (80%) of the voting power of all classes of stock and at least eighty percent (80%) of each class of the nonvoting stock of at least one (1) of the other member corporations. As used in this subsection, the term "stock" does not include nonvoting stock which is limited and preferred as to dividends.
(e) If a corporation elects or is required to file returns on a combined basis, all subsequent returns shall be made upon the same basis unless permission to change the basis is granted by the commissioner, or unless the commissioner requires a change in the basis.
(3) If any foreign corporation has no office or place of business in this state but has an agent in this state, the returns shall be made by the agent.
(4) In the case of a receiver, trustee in bankruptcy, or assignees operating the property or business of a corporation, such receiver, trustee or assignee shall make returns for such corporation in the same manner and form as corporations are required to make returns; and any tax due on the basis of such returns shall be collected in the same manner as if collected from the corporation of whose business or property they have custody or control.
(5) A corporation required to include the activity of a disregarded entity for federal income tax purposes shall do likewise for the purpose of computing income for this state.
(6) All activity of a foreign infrastructure company affiliate that is conducted in this state relating to a disaster shall be disregarded with respect to any filing requirements for such tax including any filing required for a unitary or combined group of which the foreign infrastructure company affiliate may be a part. For the purposes of this subsection (6), the terms "foreign infrastructure company affiliate" and "disaster" mean and have the same definitions as such terms have in Section 27-7-15(4)(gg).
SECTION 4. Section 27-7-303, Mississippi Code of 1972, is amended as follows:
27-7-303. As used in this article:
(a) "Commissioner" means the Commissioner of Revenue of the Department of Revenue.
(b) "Commission," "State Tax Commission," "Tax Commission" or "department" means the Department of Revenue of the State of Mississippi.
(c) "Employee" means any individual subject to the provisions of Article 1 of this chapter, who performs or performed services for an employer as defined herein and receives wages therefor.
(d) "Employer" means a person doing business in, or deriving income from sources within, the state, who has control of the payment of wages to an individual for services performed, or a person who is the officer or agent of the person having control of the payment of wages.
(e) "Estimated tax" means the amount by which the tax liability of the taxpayer under Article 1 of this chapter can reasonably be expected to exceed the amount withheld from wages of the taxpayer pursuant to this article during the income year.
(f) "Income year" means the calendar or fiscal year upon the basis of which the net income of the taxpayer is computed under the provisions of Article 1 of this chapter; if no fiscal year has been established, it means the calendar year.
(g) "Payroll period" means a period for which a payment of wages is made to the employee by the employer.
(h) "Person" means and includes individuals, fiduciaries, corporations, partnerships, associations, the state and its political subdivisions, and the federal government, its agencies and instrumentalities.
(i) "Taxpayer" means and includes any individual, fiduciary, corporation or other legal entity subject to the tax imposed by the provisions of Article 1 of this chapter.
(j) "Wages" means remuneration in cash or any other form for services performed by an employee for an employer, except that it shall not include remuneration paid:
(i) For domestic service in a private home, local college club, or local chapter of a college fraternity or sorority; or
(ii) For services performed by an employee in connection with farming activities; or
(iii) For services not in the course of the employer's trade or business performed by an employee in any calendar quarter; or
(iv) For services performed by a duly ordained, commissioned or licensed minister of a church in the exercise of his ministry, or by a member of a religious order performing duties required by the order.
(k) "Transient employer" means an employer who is not a resident of this state and who temporarily engages in any activity within the state for the production of income. Without intending to exclude others who may come within the foregoing definition, any nonresident employer engaging in any such activity within the state which, as of any date, cannot be reasonably expected to continue for a period of eighteen (18) consecutive months, shall be deemed to be temporarily engaged in such activity.
(l) "Calendar quarter" means the period of three (3) consecutive months ending on March 31, June 30, September 30 or December 31.
(m) "Disaster" means a disaster that has been declared by the Governor or the President of the United States as described in Section 33-15-5.
(n) "Disaster or emergency-related work" means repairing, renovating, installing, building, rendering services or other business activities that relate to infrastructure that has been damaged, impaired or destroyed by a disaster.
(o) "Disaster Period" means a period that begins within ten (10) days of the first day of the Governor's or the President's declaration (whichever occurs first) of a disaster and that extends for a period of sixty (60) calendar days after the end of the declared period of the disaster.
(p) "Foreign infrastructure company affiliate" means a business entity that is affiliated with an infrastructure company and has no registrations or tax filings or nexus in the state prior to a relevant disaster.
(q) "Foreign infrastructure affiliate employee" means an employee of a foreign infrastructure company affiliate who does not work in the state other than performing disaster or emergency-related work.
(r) "Infrastructure" means property and equipment owned or used by communications networks, and electric generation, transmission and distribution systems and related support facilities that serves multiple customers or citizens, including, but not limited to, real and personal property.
(s) "Infrastructure company" means a corporation or partnership or other business entity that owns and operates infrastructure.
SECTION 5. Section 27-7-305, Mississippi Code of 1972, is amended as follows:
27-7-305. Except as otherwise provided in this section, every employer making payments of wages to employees shall deduct and withhold from such wages an amount determined from withholding tables promulgated by the commissioner and furnished to the employer. The full amount deducted and withheld from any employee's wages during the income year shall be credited against the tax liability of the employee under the provisions of Article 1 of this chapter for that year. Any such tables promulgated by the commissioner shall not be designed to collect more than the amount of tax that the taxpayer can reasonably be expected to owe for the income year. Businesses that lease employees by a contract of employment with a leasing firm may be considered the employer for Mississippi withholding tax purposes. In such cases payments to the leasing company may be attached for such withholding taxes upon default by the leasing firm.
Firms that lease employees
to businesses are required to maintain separate ledgers of account for these
employees. These lease firms shall furnish the * * * Department of Revenue
annually a summary of wages paid, number of employees and amounts withheld by
location. In addition, the commissioner shall require firms that lease
employees to businesses to give 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. This bond shall be filed with the commissioner prior to
beginning business in this state. Failure to comply with this provision shall
subject such person to the penalties provided by this chapter.
A foreign infrastructure company affiliate shall not be considered to have established a presence in the state that would require the business to withhold or remit any taxes from a foreign infrastructure affiliate employee or to otherwise be subjected to any employer tax withholdings with respect to disaster or emergency-related work performed during a disaster period.
SECTION 6. Section 27-7-333, Mississippi Code of 1972, is amended as follows:
27-7-333. Except as otherwise provided in this section, every employer, as defined herein, shall, on or before January 1, 1969, make application to the commissioner for and be assigned an employer's withholding account number. The account number assigned to an employee shall be used by such employer on all returns, reports and inquiries addressed to the commissioner.
This section shall not apply to a foreign infrastructure company affiliate during a disaster period.
SECTION 7. Section 27-13-7, Mississippi Code of 1972, is amended as follows:
27-13-7. (1) Franchise
tax levy. Except as otherwise provided in subsections (3), (4), (5) * * *, (7) and (8) of this section,
there is hereby imposed, levied and assessed upon every corporation,
association or joint-stock company, or partnership treated as a corporation
under the Income Tax Laws or regulations as hereinbefore defined, organized and
existing under and by virtue of the laws of some other state, territory or
country, or organized and existing without any specific statutory authority,
now or hereafter doing business or exercising any power, privilege or right
within this state, as hereinbefore defined, a franchise or excise tax equal to
Two Dollars and Fifty Cents ($2.50) of each One Thousand Dollars ($1,000.00),
or fraction thereof, of the value of capital used, invested or employed within
this state, except as hereinafter provided. In no case shall the franchise tax
due for the accounting period be less than Twenty-five Dollars ($25.00). It is
the purpose of this section to require the payment of a tax by all
organizations not organized under the laws of this state, measured by the
amount of capital or its equivalent, for which such organization receives the
benefit and protection of the government and laws of the state.
(2) Annual report of foreign corporations. Each foreign corporation authorized to transact business in this state shall file, within the time prescribed by Section 79-3-251, an annual report as required by the provisions of Section 79-3-249.
(3) A corporation that has negotiated a fee-in-lieu as defined in Section 57-75-5 shall not be subject to the tax levied by this section on such project; provided, however, that the fee-in-lieu payment shall be otherwise treated in the same manner as the payment of franchise taxes.
(4) An approved business enterprise as defined in the Growth and Prosperity Act shall not be subject to the tax levied by this section on the value of capital used, invested or employed by the approved business enterprise in a growth and prosperity county or supervisors district as provided in the Growth and Prosperity Act.
(5) A business enterprise operating a project as defined in Section 57-64-33, in a county that is a member of a regional economic development alliance created under the Regional Economic Development Act shall not be subject to the tax levied by this section on the value of capital used, invested or employed by the business enterprise in such a county as provided in Section 57-64-33.
(6) The tax levied by this chapter and paid by a business enterprise located in a redevelopment project area under Sections 57-91-1 through 57-91-11 shall be deposited into the Redevelopment Project Incentive Fund created in Section 57-91-9.
(7) A business enterprise as defined in Section 57-113-1 that is exempt from certain state taxes under Section 57-113-5 shall not be subject to the tax levied by this section on the value of capital used, invested or employed by the business enterprise.
(8) This section does not apply to a foreign infrastructure company affiliate that conducts operations within the state solely for purposes of performing disaster or emergency-related work during a disaster period. For the purposes of this subsection (8), the terms "foreign infrastructure company affiliate," "disaster or emergency-related work" and "disaster period" mean and have the same definitions as such terms have in Section 27-7-15(4)(gg).
SECTION 8. Unless otherwise exempted under applicable law, this act shall not exempt foreign infrastructure company affiliates or foreign infrastructure affiliate employees from payment of transaction taxes and fees including, but not limited to, fuel taxes, sales taxes or use taxes on materials or services subject to sales tax or use tax, hotel taxes, automobile rental taxes or fees that foreign infrastructure company affiliates
purchases for use or consumption in the state during a disaster period.
SECTION 9. This act shall take effect and be in force from and after its passage.
