MISSISSIPPI LEGISLATURE
2012 Regular Session
To: Ways and Means
By: Representatives Smith (39th), Formby, Baker, Chism, Gunn, Moore, Snowden, Monsour, Dixon
AN ACT TO AMEND SECTION 27-7-22.5, MISSISSIPPI CODE OF 1972, TO INCREASE THE INCOME TAX CREDIT FOR AD VALOREM TAXES PAID BY TAXPAYERS ON CERTAIN INVENTORY; TO INCLUDE RAW MATERIALS OR WORKS-IN-PROCESS IN THE TYPE OF INVENTORY COVERED BY THE CREDIT; TO PROVIDE THAT BEGINNING WITH THE 2015 TAXABLE YEAR A TAXPAYER MAY CLAIM A PERCENTAGE OF THE AD VALOREM TAXES THAT HE PAYS ON INVENTORY FOR THE CREDIT; TO INCREASE THE PERCENTAGE AMOUNT OF AD VALOREM TAXES PAID BY THE TAXPAYER THAT MAY BE CLAIMED FOR SUCH CREDIT EACH TAXABLE YEAR FOR FIVE TAXABLE YEARS UNTIL SUCH TIME AS THE ENTIRE AMOUNT OF AD VALOREM TAX PAID ON INVENTORY BY THE TAXPAYER MAY BE UTILIZED FOR SUCH CREDIT; TO PROVIDE THAT THE TAXPAYER SHALL BE ELIGIBLE FOR A PAYMENT FROM THE STATE IN THE AMOUNT THAT THE AD VALOREM TAX CREDIT EXCEEDS THE AMOUNT OF INCOME TAX DUE THE STATE IN THE CALENDAR YEAR IN WHICH THE CREDIT IS CLAIMED; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-7-22.5, Mississippi Code of 1972, is amended as follows:
27-7-22.5. (1) For any manufacturer, distributor, wholesale or retail merchant who pays to a county, municipality, school district, levee district or any other taxing authority of the state or a political subdivision thereof, ad valorem taxes imposed on commodities, raw materials, works-in-process, products, goods, wares and merchandise held for resale, a credit against the income taxes imposed under this chapter shall be allowed for the portion of the ad valorem taxes so paid in the amounts prescribed in subsection (2).
(2) The tax credit allowed by this section shall not exceed the amounts set forth in paragraphs (a) through (j) of this subsection; may be claimed only in the year in which the ad valorem taxes are paid; and may be claimed for each location where such commodities, raw material, works-in-process, products, goods, wares and merchandise are found and upon which the ad valorem taxes have been paid.
(a) For the 1994 taxable year, the tax credit for each location of the taxpayer shall not exceed the lesser of Two Thousand Dollars ($2,000.00) or the amount of income taxes due the State of Mississippi that are attributable to such location.
(b) For the 1995 taxable year, the tax credit for each location of the taxpayer shall not exceed the lesser of Three Thousand Dollars ($3,000.00) or the amount of income taxes due the State of Mississippi that are attributable to such location.
(c) For the 1996 taxable year, the tax credit for each location of the taxpayer shall not exceed the lesser of Four Thousand Dollars ($4,000.00) or the amount of income taxes due the State of Mississippi that are attributable to such location.
(d) For the 1997 taxable year and each taxable year thereafter through taxable year 2013, the tax credit for each location of the taxpayer shall not exceed the lesser of Five Thousand Dollars ($5,000.00) or the amount of income taxes due the State of Mississippi that are attributable to such location.
(e) For the 2014 taxable year, the tax credit for each location of the taxpayer shall not exceed the lesser of Ten Thousand Dollars ($10,000.00) or the amount of income taxes due the State of Mississippi that are attributable to such location.
(f) For the 2015 taxable year, a taxpayer shall be allowed as a tax credit the greater of:
(i) A tax credit not exceeding the lesser of Fifteen Thousand Dollars ($15,000.00) or the amount of income taxes due the State of Mississippi that are attributable to such location; or
(ii) A refundable tax credit in an amount equal to twenty percent (20%) of the ad valorem taxes paid to a county, municipality, school district, levee district or any other taxing authority of the state or a political subdivision thereof, on commodities, raw materials, works-in-process, products, goods, wares and merchandise held for resale.
(g) For the 2016 taxable year, a taxpayer shall be allowed as a tax credit the greater of:
(i) A tax credit not exceeding the lesser of Fifteen Thousand Dollars ($15,000.00) or the amount of income taxes due the State of Mississippi that are attributable to such location; or
(ii) A refundable tax credit in an amount equal to forty percent (40%) of the ad valorem taxes paid to a county, municipality, school district, levee district or any other taxing authority of the state or a political subdivision thereof, on commodities, raw materials, works-in-process, products, goods, wares and merchandise held for resale.
(h) For the 2017 taxable year, a taxpayer shall be allowed as a tax credit the greater of:
(i) A tax credit not exceeding the lesser of Fifteen Thousand Dollars ($15,000.00) or the amount of income taxes due the State of Mississippi that are attributable to such location; or
(ii) A refundable tax credit in an amount equal to sixty percent (60%) of the ad valorem taxes paid to a county, municipality, school district, levee district or any other taxing authority of the state or a political subdivision thereof, on commodities, raw materials, works-in-process, products, goods, wares and merchandise held for resale.
(i) For the 2018 taxable year, a taxpayer shall be allowed as a tax credit the greater of:
(i) A tax credit not exceeding the lesser of Fifteen Thousand Dollars ($15,000.00) or the amount of income taxes due the State of Mississippi that are attributable to such location; or
(ii) A refundable tax credit in an amount equal to eighty percent (80%) of the ad valorem taxes paid to a county, municipality, school district, levee district or any other taxing authority of the state or a political subdivision thereof, on commodities, raw materials, works-in-process, products, goods, wares and merchandise held for resale.
(j) For the 2019 taxable year and each taxable year thereafter, a taxpayer shall be allowed a refundable tax credit in an amount equal to the ad valorem taxes paid to a county, municipality, school district, levee district or any other taxing authority of the state or a political subdivision thereof, on commodities, raw materials, works-in-process, products, goods, wares and merchandise held for resale.
(3) (a) A taxpayer claiming the refundable tax credit authorized in subsection (2)(f), (g), (h), (i) and (j) of this section shall be entitled to a payment from the state for the amount of the credit that exceeds the amount of the income taxes due the State of Mississippi from the taxpayer in the taxable year in which the credit is claimed.
(b) An eligible taxpayer shall apply to the department for the payment authorized by this subsection.
(c) A taxpayer applying for the tax credit authorized by this subsection shall submit to the department verifiable documentation of the amount of ad valorem taxes paid and the political subdivision to which the payment was made during the preceding calendar year.
(d) After a payment claim is verified, the department shall make the payment to the taxpayer.
(4) Any amount of ad valorem taxes paid by a taxpayer that is applied toward the tax credit allowed in this section may not be used as a deduction by the taxpayer for state income tax purposes. In the case of a taxpayer that is a partnership or S corporation, the credit may be applied only to the tax attributable to partnership or S corporation income derived from the taxpayer.
SECTION 2. This act shall take effect and be in force from and after January 1, 2012.