MISSISSIPPI LEGISLATURE
2021 Regular Session
To: Ways and Means
By: Representative Busby
AN ACT TO AMEND SECTION 27-55-11, MISSISSIPPI CODE OF 1972, TO INCREASE THE RATE OF THE GASOLINE EXCISE TAX; TO AMEND SECTIONS 27-55-519 AND 27-55-521, MISSISSIPPI CODE OF 1972, TO INCREASE THE RATE OF THE SPECIAL FUEL EXCISE TAX ON DIESEL FUEL; TO AMEND SECTION 65-39-35, MISSISSIPPI CODE OF 1972, TO EXCLUDE CERTAIN TAXES FROM THE RATE REDUCTION EFFECTIVE UPON THE COMPLETION OF CERTAIN TRANSPORTATION PROJECTS; TO AMEND SECTION 27-7-5, MISSISSIPPI CODE OF 1972, TO PHASE OUT INCOME TAXATION ON TAXABLE INCOME IN EXCESS OF FIVE THOUSAND DOLLARS UP TO AND INCLUDING TEN THOUSAND DOLLARS, OR ANY PART THEREOF; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-7-5, Mississippi Code of 1972, is amended as follows:
27-7-5. (1) There is hereby assessed and levied, to be collected and paid as hereinafter provided, for the calendar year 1983 and fiscal years ending during the calendar year 1983 and all taxable years thereafter, upon the entire net income of every resident individual, corporation, association, trust or estate, in excess of the credits provided, a tax at the following rates:
(a) (i) Through calendar year 2017, on the first Five Thousand Dollars ($5,000.00) of taxable income, or any part thereof, the rate shall be three percent (3%);
(ii) For calendar year 2018, on the first One Thousand Dollars ($1,000.00) of taxable income there shall be no tax levied, and on the next Four Thousand Dollars ($4,000.00) of taxable income, or any part thereof, the rate shall be three percent (3%);
(iii) For calendar year 2019, on the first Two Thousand Dollars ($2,000.00) of taxable income there shall be no tax levied, and on the next Three Thousand Dollars ($3,000.00) of taxable income, or any part thereof, the rate shall be three percent (3%);
(iv) For calendar year 2020, on the first Three Thousand Dollars ($3,000.00) of taxable income there shall be no tax levied, and on the next Two Thousand Dollars ($2,000.00) of taxable income, or any part thereof, the rate shall be three percent (3%);
(v) For calendar year 2021, on the first Four Thousand Dollars ($4,000.00) of taxable income there shall be no tax levied, and on the next One Thousand Dollars ($1,000.00) of taxable income, or any part thereof, the rate shall be three percent (3%);
(vi) For calendar year 2022 and all taxable years thereafter, there shall be no tax levied on the first Five Thousand Dollars ($5,000.00) of taxable income;
(b) (i) Through calendar year 2021, on taxable income in excess of Five Thousand Dollars ($5,000.00) up to and including Ten Thousand Dollars ($10,000.00), or any part thereof, the rate shall be four percent (4%);
(ii) For calendar year 2022, on taxable income in excess of Five Thousand Dollars ($5,000.00) up to and including Ten Thousand Dollars ($10,000.00), or any part thereof, the rate shall be three percent (3%);
(iii) For calendar year 2023, on taxable income in excess of Five Thousand Dollars ($5,000.00) up to and including Ten Thousand Dollars ($10,000.00), or any part thereof, the rate shall be two percent (2%);
(iv) For calendar year 2024, on taxable income in excess of Five Thousand Dollars ($5,000.00) up to and including Ten Thousand Dollars ($10,000.00), or any part thereof, the rate shall be one percent (1%);
(v) For calendar year 2025 and all taxable years thereafter, there shall be no tax levied on taxable income in excess of Five Thousand Dollars ($5,000.00) up to and including Ten Thousand Dollars ($10,000.00), or any part thereof; and
(c) On all taxable income in excess of Ten Thousand Dollars ($10,000.00), the rate shall be five percent (5%).
(2) An S corporation, as defined in Section 27-8-3(1)(g), shall not be subject to the income tax imposed under this section.
(3) A like tax is hereby imposed to be assessed, collected and paid annually, except as hereinafter provided, at the rate specified in this section and as hereinafter provided, upon and with respect to the entire net income, from all property owned or sold, and from every business, trade or occupation carried on in this state by individuals, corporations, partnerships, trusts or estates, not residents of the State of Mississippi.
(4) In the case of taxpayers having a fiscal year beginning in a calendar year with a rate in effect that is different than the rate in effect for the next calendar year and ending in the next calendar year, the tax due for that taxable year shall be determined by:
(a) Computing for the full fiscal year the amount of tax that would be due under the rates in effect for the calendar year in which the fiscal year begins; and
(b) Computing for the full fiscal year the amount of tax that would be due under the rates in effect for the calendar year in which the fiscal year ends; and
(c) Applying to the tax computed under paragraph (a) the ratio which the number of months falling within the earlier calendar year bears to the total number of months in the fiscal year; and
(d) Applying to the tax computed under paragraph (b) the ratio which the number of months falling within the later calendar year bears to the total number of months within the fiscal year; and
(e) Adding to the tax determined under paragraph (c) the tax determined under paragraph (d) the sum of which shall be the amount of tax due for the fiscal year.
SECTION 2. Section 27-55-11, Mississippi Code of 1972, is amended as follows:
27-55-11. (1) (a)
Except as otherwise provided in this paragraph (a), any person in business
as a distributor of gasoline or who acts as a distributor of gasoline, as
defined in this article, shall pay for the privilege of engaging in such
business or acting as such distributor an excise tax equal to Eighteen Cents
(18˘) per gallon * * * on all gasoline and blend stock
stored, sold, distributed, manufactured, refined, distilled, blended or
compounded in this state or received in this state for sale, use on the
highways, storage, distribution, or for any purpose. From and after July 1,
2021, the rate of the tax imposed under this paragraph (a) shall be as follows:
(i) Through June 30, 2022, the tax shall be at the rate of Twenty Cents (20˘) per gallon;
(ii) From and after July 1, 2022, through June 30, 2023, the tax shall be at the rate of Twenty-two Cents (22˘) per gallon;
(iii) From and after July 1, 2023, through June 30, 2024, the tax shall be at the rate of Twenty-four Cents (24˘) per gallon; and
(iv) From and after July 1, 2024, the tax shall be at the rate of Twenty-six Cents (26˘) per gallon.
(b) Any person in business as a distributor of aviation gasoline, or who acts as a distributor of aviation gasoline, shall pay for the privilege of engaging in such business or acting as such distributor an excise tax equal to Six and Four-tenths Cents (6.4˘) per gallon on all aviation gasoline stored, sold, distributed, manufactured, refined, distilled, blended or compounded in this state or received in this state for sale, storage, distribution or for any purpose.
(c) The excise taxes collected under this section shall be paid and distributed in accordance with Section 27-5-101.
(2) (a) The tax
herein imposed and assessed shall be collected and paid to the State of
Mississippi but once in respect to any gasoline. The basis for determining the
tax liability shall be the correct invoiced gallons, adjusted to sixty (60)
degrees Fahrenheit at the refinery or point of origin of shipment when such
shipment is made by tank car or by motor carrier. The point of origin of
shipment of gasoline transported into this state by pipelines shall be deemed
to be that point in this state where such gasoline is withdrawn from the
pipeline for storage or distribution, and adjustment to sixty (60) degrees
Fahrenheit shall there be made. The basis for determining the tax liability on
gasoline shipped into this state in barge cargoes and by pipeline shall be the
actual number of gallons adjusted to sixty (60) degrees Fahrenheit unloaded
into storage tanks or other containers in this state, such gallonage to be
determined by measurement and/or gauge of storage tank or tanks or by any other
method authorized by the * * *commission department. The tank or tanks into which
barge cargoes of gasoline are discharged, or into which gasoline transported by
pipeline is discharged, shall have correct gauge tables listing capacity, such
gauge tables to be prepared by some recognized calibrating agency and to be
approved by the * * *
department.
(b) The tax
levied herein shall accrue at the time gasoline is withdrawn from a refinery in
this state except when withdrawal is by pipeline, barge, ship or vessel. The
refiner shall pay to the * * *commission department the tax levied herein when
gasoline is sold or delivered to persons who do not hold gasoline distributor
permits. The refiner shall report to the * * * department all sales and
deliveries of gasoline to bonded distributors of gasoline. The bonded distributor
of gasoline who purchases, receives or acquires gasoline from a refinery in
this state shall report such gasoline and pay the tax levied herein.
(c) Gasoline imported by common carrier shall be deemed to be received by the distributor of gasoline, and the tax levied herein shall accrue, when the car or tank truck containing such gasoline is unloaded by the carrier.
(d) With respect to distributors or other persons who bring, ship, have transported, or have brought into this state gasoline by means other than through a common carrier, the tax accrues and the tax liability attaches on the distributor or other person for each gallon of gasoline brought into the state at the time when and at the point where such gasoline is brought into the state.
(e) The tax
levied herein shall accrue on blend stock at the time it is blended with
gasoline. The blender shall pay to the * * * department the tax levied
herein when blend stock is sold or delivered to persons who do not hold
gasoline distributor permits. The blender shall report to the * * * department all sales and
deliveries of blend stock to bonded distributors of gasoline. The bonded
distributor of gasoline who purchases, receives or acquires blend stock from a
blender in this state shall report blend stock and pay the tax levied herein.
SECTION 3. Section 27-55-519, Mississippi Code of 1972, is amended as follows:
27-55-519. (1) Any person engaged in business as a distributor of special fuel or who acts as a distributor of special fuel, as defined in this article, shall pay for the privilege of engaging in such business or acting as such distributor an excise tax on all special fuel stored, used, sold, distributed, manufactured, refined, distilled, blended or compounded in this state or received in this state for sale, storage, distribution or for any purpose, adjusted to sixty (60) degrees Fahrenheit.
The excise tax shall become due and payable when:
(a) Special fuel is withdrawn from storage at a refinery, marine or pipeline terminal, except when withdrawal is by barge or pipeline.
(b) Special fuel imported by a common carrier is unloaded by that carrier unless the special fuel is unloaded directly into the storage tanks of a refinery, marine or pipeline terminal.
(c) Special fuel imported by any person other than a common carrier enters the State of Mississippi unless the special fuel is unloaded directly into the storage tanks of a refinery, marine or pipeline terminal.
(d) Special fuel is blended in this state unless such blending occurs in a refinery, marine or pipeline terminal.
(e) Special fuel is acquired tax free.
(2) The special fuel excise tax shall be as follows:
(a) (i)
Eighteen Cents (18˘) per gallon on undyed diesel fuel until * * *
July 1, 2021;
(ii) From and after July 1, 2021, through June 30, 2022, Twenty-one Cents (21˘) per gallon on undyed diesel fuel;
(iii) From and after July 1, 2022, through June 30, 2023, Twenty-four Cents (24˘) per gallon on undyed diesel fuel;
(iv) From and after July 1, 2023, through June 30, 2024, Twenty-seven Cents (27˘) per gallon on undyed diesel fuel; and
(v) From and after July 1, 2024, Thirty Cents (30˘) per gallon on undyed diesel fuel;
(b) Five and Three-fourths Cents (5.75˘) per gallon on all special fuel except undyed diesel fuel and special fuel used as fuels in aircraft; and
(c) Five and One-fourth Cents (5.25˘) per gallon on special fuel used as fuel in aircraft.
SECTION 4. Section 27-55-521, Mississippi Code of 1972, is amended as follows:
27-55-521. (1) An excise
tax at the rate of Eighteen Cents (18˘) per gallon * * * is levied on any person engaged in business as
a distributor of special fuel or who acts as such who sells:
(a) Special fuel, except diesel fuel, for use in performing contracts for construction, reconstruction, maintenance or repairs, where such contracts are entered into with the State of Mississippi, any political subdivision of the State of Mississippi, or any department, agency, institution of the State of Mississippi or any political subdivision thereof.
(b) * * * Kerosene to a state or
local governmental entity for use on the highways in a motor vehicle.
(c) Special fuel, except diesel fuel, for use on the highway.
(2) An excise tax at the
rate of Eighteen Cents (18˘) per gallon * * * is levied on any person who:
(a) Uses * * * kerosene in a motor vehicle
on the highways of this state in violation of Section 27-55-539.
(b) Purchases or
acquires * * * kerosene for nonhighway use and subsequently uses such * * * kerosene in a motor vehicle on
the highways of this state.
(c) Purchases or acquires special fuel, except diesel fuel, for use in performing contracts as specified in this section.
(3) An excise tax at the rate provided in Section 27-55-519(2)(a) is levied on any person engaged in business as a distributor of special fuel or who acts as such who sells:
(a) Diesel fuel for use in performing contracts for construction, reconstruction, maintenance or repairs, where such contracts are entered into with the State of Mississippi, any political subdivision of the State of Mississippi, or any department, agency, institution of the State of Mississippi or any political subdivision thereof.
(b) Dyed diesel fuel to a state or local governmental entity for use on the highways in a motor vehicle.
(c) Diesel fuel, for use on the highway.
(4) An excise tax at the rate provided in Section 27-55-519(2)(a) is levied on any person who:
(a) Uses dyed diesel fuel in a motor vehicle on the highways of this state in violation of Section 27-55-539.
(b) Purchases or acquires undyed diesel fuel for nonhighway use and subsequently uses such diesel fuel in a motor vehicle on the highways of this state.
(c) Purchases or acquires diesel fuel, for use in performing contracts as specified in this section.
SECTION 5. Section 65-39-35, Mississippi Code of 1972, is amended as follows:
65-39-35. The date upon
which the taxes and fees levied and charged under the provisions of Sections * * * 27-57-37, 27-59-11, 27-19-43,
27-19-309 * * *
and 27-65-75 * * * are
reduced under such sections shall be the first day of the month immediately
following the date upon which:
(a) The Mississippi
Transportation Commission certifies to the * * * Department of Revenue
that:
(i) The highway program created under Section 65-3-97 and the Gaming Counties Infrastructure Program created under Section 65-39-3, are completed and no funds are any longer necessary to pay the costs of such programs; and
(ii) The Mississippi Transportation Commission will not declare the necessity for additional borrowings under Section 65-9-27, or for additional bonds under Sections 65-39-5 through 65-39-33; and
(b) The State Treasurer certifies:
(i) That the amount on deposit in the Gaming Counties Bond Sinking Fund, together with earnings on investments to accrue to such fund, is equal to or greater than the aggregate of the entire principal, redemption premium (if any), and interest due and to become due (until the final maturity date or earlier scheduled redemption date) on all general obligation bonds issued under Sections 65-39-5 through 65-39-33; and
(ii) That all principal, interest, cost and other expenses for all bonds, notes or other borrowings under Section 65-9-27 and Section 31-17-127 (including redemption notes, if any) have been paid and are completely satisfied.
SECTION 6. This act shall take effect and be in force from and after July 1, 2021.