MISSISSIPPI LEGISLATURE

1997 Regular Session

To: Finance

By: Senator(s) Johnson (19th), Furniss

AN ACT TO PROVIDE AN INCOME TAX CREDIT TO TAXPAYERS WHO UTILIZE SHORT-LINE RAILROADS; TO LIMIT THE AMOUNT OF THE INCOME TAX CREDIT THAT MAY BE TAKEN BY A TAXPAYER; TO PROVIDE THAT A TAXPAYER MUST PROVIDE CERTAIN INFORMATION TO THE STATE TAX COMMISSION TO RECEIVE SUCH CREDIT; TO REQUIRE THE MISSISSIPPI DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT TO REPORT ANNUALLY TO THE LEGISLATURE REGARDING THE IMPACT OF THIS ACT; AND FOR RELATED PURPOSES. 

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

SECTION 1. (1) As used in this section, the term "short-line railroad" means railroads designated as Class 2 or Class 3 railroads by the Interstate Commerce Commission or any rail service provider commonly referred to as short-line railroads.

(2) For any income taxpayer utilizing short-line railroads, a credit against the taxes imposed pursuant to this chapter shall be allowed in the amount of Two Hundred Dollars ($200.00) per railcar utilized (regardless of whether loaded or unloaded) by such taxpayer, except as otherwise provided by subsection (4) of this section.

(3) The credit provided for in this section shall not exceed fifty percent (50%) of the amount of tax imposed upon the taxpayer for the taxable year reduced by the sum of all other credits allowable to such taxpayer under this chapter, except credit for tax payments made by or on behalf of the taxpayer. Any unused portion of the credit may be carried forward for the succeeding five (5) years. The maximum cumulative credit that may be claimed by a taxpayer pursuant to this act and for the period of time beginning on January 1, 1997, and ending on December 31, 2001, is limited to Five Hundred Thousand Dollars ($500,000.00).

(4) To obtain the credit provided for in this section, a taxpayer must provide to the State Tax Commission proof of the number of railcars utilized by the taxpayer for which a credit is claimed and any other information required by the State Tax Commission.

(5) The Mississippi Department of Economic and Community Development shall report annually to the Legislature regarding the impact of the credit granted in this section on shipping and economic growth. The Mississippi Department of Economic and Community Development shall file a copy of the report with the Governor, the Secretary of Senate, the Clerk of the House of Representatives and the Chairmen of the House Ways and Means Committee and the Senate Finance Committee of the Legislature on May 1 of each year. The State Tax Commission and the Mississippi Department of Transportation shall cooperate with the Mississippi Department of Economic and Community Development in providing the information required in the annual reports.

SECTION 2. The provisions of Section 1 of this act shall be codified in Title 27, Chapter 7, Mississippi Code of 1972.

SECTION 3. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the income tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the income tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.

SECTION 4. This act shall take effect and be in force from and after January 1, 1998, and shall stand repealed from and after December 31, 2002.