2000 Regular Session
By: Senator(s) Carlton
Senate Bill 2673
AN ACT TO PROVIDE A CREDIT AGAINST STATE INCOME TAXES FOR TAXPAYERS MAKING EXPENDITURES FOR THE NEW CONSTRUCTION OR THE ACQUISITION AND REHABILITATION OF CERTAIN QUALIFIED LOW-INCOME HOUSING PROJECTS; TO LIMIT THE AMOUNT OF THE INCOME TAX CREDIT THAT MAY BE TAKEN BY A TAXPAYER; TO PROVIDE THAT THE MISSISSIPPI STATE TAX COMMISSION SHALL DETERMINE THE AMOUNT OF CREDIT THAT MAY BE CLAIMED BY A TAXPAYER; TO PROVIDE FOR THE APPLICATION OF THE CREDIT AGAINST INCOME TAX LIABILITY IN CASES OF CORPORATIONS, INDIVIDUALS AND CERTAIN OTHER BUSINESS ENTITIES; TO AMEND SECTION 27-3-31, MISSISSIPPI CODE OF 1972, TO CONFORM TO THE PROVISIONS OF THIS ACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) (a) Any taxpayer making expenditures for the new construction or the acquisition and rehabilitation of qualified low-income housing projects in the State of Mississippi shall be allowed a credit in the amount authorized in subsection (2) of this section against corporate and personal income tax imposed upon the taxpayer under the laws of this state. The amount of the credit shall be determined in accordance with subsection (2) of this section and computed in the same manner as the federal low-income housing credit allowed under 26 USCS Section 42, as amended, and the Treasury Regulations promulgated thereunder. For the purposes of this section, "qualified low-income housing project" shall have the same meaning as that ascribed to the term in 26 USCS Section 42, as amended.
(b) The credit provided for in this section shall not exceed the state income tax liability imposed upon the taxpayer for the taxable year in which the expenditures are made or for which the credit is claimed.
(2) (a) The Mississippi State Tax Commission shall authorize the amount of credit to be allocated to any project in accordance with the requirements of this section, based on the need of the project for the credit for economic feasibility.
(b) In order for a taxpayer to claim the credit provided for in this section, the qualified low-income housing project for which the credit is claimed must be located in the State of Mississippi and satisfy at least one (1) of the following requirements:
(i) The Mississippi State Tax Commission allocates a credit to the project for federal income tax purposes under 26 USCS Section 42, as amended, and the Treasury Regulations promulgated thereunder; or
(ii) The project qualifies for a low-income housing credit under 26 USCS Section 42(h)(4), as amended, and the Treasury Regulations promulgated thereunder.
(c) The Mississippi State Tax Commission shall certify to the taxpayer the amount of the credit allocated to a project for each year of the credit period. For the purposes of this paragraph, the term "credit period" shall have the same meaning as that ascribed to the term in 26 USCS Section 42(f)(1), as amended.
(d) The aggregate credit dollar amount which the Mississippi State Tax Commission may allocate to a project for a calendar year shall be calculated in the same manner as the state housing credit ceiling applicable to the State of Mississippi for the applicable year under 26 USCS Section 42(h)(3), as amended, except that the portion of the formula contained in 26 USCS Section 42(h)(3)(C)(i), as amended, shall be derived by multiplying Three Dollars ($3.00), rather than One Dollar and Twenty-five Cents ($1.25), by the state population.
(3) Notwithstanding any other provision of law to the contrary, the following rules shall govern the application of the credit provided for in this section:
(a) The credit for new construction or acquisition and rehabilitation expenditures made by a corporation shall be applied against the state income tax liability of the corporation.
(b) The credit for new construction or acquisition and rehabilitation expenditures made by an individual shall be applied against the state income tax liability of the individual.
(c) The credit for new construction or acquisition and rehabilitation expenditures made by a corporation for which a valid election as an S corporation under 26 USCS Section 1362(a), is in effect, shall be applied first against the corporate income tax liability of the corporation, and the remainder of the credit shall be allocated to the shareholder or shareholders of the corporation based on the proportion of their respective interests and applied against the state income tax liability of the shareholder or shareholders.
(d) The credit for new construction or acquisition and rehabilitation expenditures made by a partnership, partnership in commendam, registered limited liability partnership or limited liability company shall be allocated to the partners or members according to their distributive shares of the gross income of such business entity and applied against the state income tax liability of such partners or members.
(e) The credit authorized in this section shall be allowed only for new construction or acquisition and rehabilitation expenditures placed in service on or after January 1, 2000. For the purposes of this paragraph, the term "placed in service" shall have the same meaning as that used in 26 USCS Section 42, as amended, and the Treasury Regulations promulgated thereunder.
SECTION 2. Section 27-3-31, Mississippi Code of 1972, is amended as follows:
27-3-31. It shall specifically be the duty of the State Tax Commission, and it shall have power and authority:
(a) To adopt, amend or repeal those rules or regulations necessary to implement the duties assigned to the commission in this section.
(b) Each commissioner and authorized agent, and the secretary of the commission is empowered to administer and certify oaths.
(c) To confer with and advise assessing officers, boards of supervisors and other county officers as to their duties relative to taxation under the law; and to advise them in the collection, filing and preservation of data relative to matters of assessment.
(d) To prepare and have printed in pamphlet form full instructions governing the duties of and the application of the revenue laws of the state to county tax assessors, the clerk and members of the boards of supervisors, and to promptly advise such officers of all decisions of the Supreme Court relating to matters of revenue and taxation when such decisions affect the duties of such officers.
(e) To become familiar with property values and general conditions in the counties of the state and to direct the collection and preservation of data and information pertaining to the quantity and value of property in each county in the state, subject to assessment, necessary to enable the commission to determine the assessed value of classes of property and whether assessments comply with acceptable performance standards as required by Section 27-35-113.
(f) To direct the collection, preparation and preservation of data and information pertaining to the quantity, value and location of property belonging to railroads, persons, corporations and associations which is required to be assessed by the State Tax Commission.
(g) To supervise and direct the preparation of forms for the assessment of property of railroads and public service corporations assessed by the commission, and the filing of their rolls or schedules of assessment.
(h) To determine the location of all property subject to assessment by the commission in the various counties of the state, the municipalities and taxing districts therein, and to ascertain and report as far as practicable the value and ownership of all such property.
(i) To keep informed of the work of the assessors and supervisors of the various counties of the state as required by Section 27-3-51, and to have charge of the details necessary to the equalization by the commission of assessments among the various counties pursuant to Section 27-35-113.
(j) To prepare all forms for tax lists, assessment rolls and perform other duties relating thereto.
(k) To prepare data and statistics relating to property assessments which are deemed advisable for publication or which may be required by the Legislature.
(l) To confer with assessors, supervisors and other local taxing officials who may have business with the commission.
(m) To consider and approve or disapprove all orders of boards of supervisors making increases and decreases in assessments and orders of boards of supervisors granting homestead exemptions.
(n) To have jurisdiction of all taxpayer appeals from decisions on the chairman of the commission to the entire commission, to arrange the time and place of hearing and appeals, and to provide for the preparation and presentation to the full commission of all evidence, documents and other matters necessary and proper for a decision on the matters and questions involved in the appeal.
(o) To direct and supervise the preparation of any record to be filed in any court of the state.
(p) To attend to all appeals from decisions of the State Tax Commission to the courts, and cooperate with the Attorney General and district attorneys to the end that the interests of the state shall be presented fairly and properly to the courts, without undue delay.
(q) To administer and enforce the "Local Option Alcoholic Beverage Control Law," being Section 67-1-1 et seq., except as provided in Section 67-1-23.
(r) To adopt and enforce rules and regulations prescribing the manner and method by which tax returns and documents may be filed with the commission as provided under Section 27-3-83.
(s) To authorize and certify to taxpayers the amount of income tax credits allocated to qualified low-income housing projects under Section 1 of Senate Bill No. 2673, 2000 Regular Session.
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 July 1, 2000.