MISSISSIPPI LEGISLATURE

1997 Regular Session

To: Finance

By: Senator(s) Robertson

AN ACT TO AMEND SECTION 27-13-13, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT CERTAIN MULTISTATE CORPORATIONS MAY DETERMINE GROSS RECEIPTS BY DIRECT OR SEPARATE ACCOUNTING FOR THE PURPOSE OF COMPUTING THE CORPORATE FRANCHISE TAX; AND FOR RELATED PURPOSES. 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 27-13-13, Mississippi Code of 1972, is amended as follows:

27-13-13. In the case of organizations doing business both within and without Mississippi, the value of the capital employed in this state shall be determined by first computing the ratio between (1) the real and tangible personal property owned in Mississippi and gross receipts from business carried on in Mississippi, and (2) the total real and tangible personal property owned and gross receipts wherever located and from wherever received. Said ratio then shall be applied to the total capital stock, surplus, undivided profits and true reserves and the result of that application shall be the capital employed in this state. Provided, however, that the amount of the determined capital in Mississippi shall in no case be less than the assessed value of the Mississippi property of the organization for the year preceding the year in which the return is due.

For the purpose of this section, an organization which uses a formula method of apportionment in making income tax returns to this state shall determine its gross receipts from business carried on in Mississippi by applying to total unitary receipts the ratio achieved, or which would be achieved, by such formula and adding to the result of such application any nonunitary Mississippi receipts, except that an organization which can determine its gross receipts from business carried on in Mississippi by direct or separate accounting may use, in its discretion, direct or separate accounting. For purposes of using direct or separate accounting, gross receipts shall be assigned to Mississippi in accordance with the provisions of Section 27-7-23(c)(3). An organization that cannot determine all of its gross receipts from business carried on in Mississippi by direct or separate accounting shall apply to its unitary gross receipts the apportionment formula used by such organization to determine its net income and shall add the receipts apportioned to Mississippi by such formula to any nonunitary Mississippi receipts to determine total gross receipts from business carried on in Mississippi. For purposes of this section, "unitary gross receipts" shall mean that part of the gross receipts of an organization derived from multistate activities that cannot be allocated to any state by use of direct or separate accounting.

SECTION 2. This act shall take effect and be in force from and after July 1, 1997.