MISSISSIPPI LEGISLATURE
2021 Regular Session
To: Ways and Means
By: Representative Lamar
AN ACT TO AMEND SECTION 27-65-23, MISSISSIPPI CODE OF 1972, TO LEVY A SALES TAX ON THE TRANSMITTING OF MONEY FROM A LOCATION ORIGINATING IN MISSISSIPPI TO A LOCATION OUTSIDE OF THE UNITED STATES OR ITS TERRITORIES BY A PERSON LICENSED UNDER THE MISSISSIPPI MONEY TRANSMITTERS ACT; TO AMEND SECTION 27-65-53, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT ANY PERSON WHO HAS PAID THE SALES TAX ON THE TRANSMITTING OF MONEY WHO IS A UNITED STATES CITIZEN WITH A SOCIAL SECURITY NUMBER OR TAXPAYER IDENTIFICATION NUMBER SHALL BE PAID A REFUND OF THE TAXES PAID UPON APPLICATION TO THE DEPARTMENT OF REVENUE; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-65-23, Mississippi Code of 1972, is amended as follows:
27-65-23. (1) Upon every person engaging or continuing in any of the following businesses or activities there is hereby levied, assessed and shall be collected a tax equal to seven percent (7%) of the gross income of the business, except as otherwise provided:
(a) Air-conditioning installation or repairs;
(b) Automobile, motorcycle, boat or any other vehicle repairing or servicing;
(c) Billiards, pool or domino parlors;
(d) Bowling or tenpin alleys;
(e) Burglar and fire alarm systems or services;
(f) Car washing — automatic, self-service, or manual;
(g) Computer software sales and services;
(h) Cotton compresses or cotton warehouses;
(i) Custom creosoting or treating, custom planing, custom sawing;
(j) Custom meat processing;
(k) Electricians, electrical work, wiring, all repairs or installation of electrical equipment;
(l) Elevator or escalator installing, repairing or servicing;
(m) Film developing or photo finishing;
(n) Foundries, machine or general repairing;
(o) Furniture repairing or upholstering;
(p) Grading, excavating, ditching, dredging or landscaping;
(q) Hotels (as defined in Section 41-49-3), motels, tourist courts or camps, trailer parks;
(r) Insulating services or repairs;
(s) Jewelry or watch repairing;
(t) Laundering, cleaning, pressing or dyeing;
(u) Marina services;
(v) Mattress renovating;
(w) Office and business machine repairing;
(x) Parking garages and lots;
(y) Plumbing or pipe fitting;
(z) Public storage warehouses (There shall be no tax levied on gross income of a public storage warehouse derived from the temporary storage of tangible personal property in this state pending shipping or mailing of the property to another state.);
(aa) Refrigerating equipment repairs;
(bb) Radio or television installing, repairing, or servicing;
(cc) Renting or leasing personal property used within this state;
(dd) Services performed in connection with geophysical surveying, exploring, developing, drilling, producing, distributing, or testing of oil, gas, water and other mineral resources;
(ee) Shoe repairing;
(ff) Storage lockers;
(gg) Telephone answering or paging services;
(hh) Termite or pest control services;
(ii) Tin and sheet metal shops;
(jj) Transmitting of money from a location originating in this state to a location outside of the United States or its territories by a person licensed under the Mississippi Money Transmitters Act, Section 75-15-1 et seq.;
(kk) TV cable systems, subscription TV services, and other similar activities;
(ll) Vulcanizing, repairing or recapping of tires or tubes;
(mm) Welding; and
(nn) Woodworking or wood-turning shops.
(2) Income from services taxed herein performed for electric power associations in the ordinary and necessary operation of their generating or distribution systems shall be taxed at the rate of one percent (1%).
(3) Income from services taxed herein performed on materials for use in track or track structures to a railroad whose rates are fixed by the Interstate Commerce Commission or the Mississippi Public Service Commission shall be taxed at the rate of three percent (3%).
(4) Income from renting or leasing tangible personal property used within this state shall be taxed at the same rates as sales of the same property.
(5) Persons doing business in this state who rent transportation equipment with a situs within or without the state to common, contract or private commercial carriers are taxed on that part of the income derived from use within this state. If specific accounting is impracticable, a formula may be used with approval of the commissioner.
(6) A lessor may deduct from the tax computed on the rental income from tangible personal property a credit for sales or use tax paid to this state at the time of purchase of the specific personal property being leased or rented until such credit has been exhausted.
(7) Charges for custom processing and repairing services may be excluded from gross taxable income when the property on which the service was performed is delivered to the customer in another state either by common carrier or in the seller's equipment.
(8) When a taxpayer performs unitary services covered by this section, which are performed both in intrastate and interstate commerce, the commissioner is hereby invested with authority to formulate in each particular case and to fix for such taxpayer in each instance formulae of apportionment which will apportion to this state, for taxation, that portion of the services which are performed within the State of Mississippi.
SECTION 2. Section 27-65-53, Mississippi Code of 1972, is amended as follows:
27-65-53. (1) If
the commissioner finds that the taxpayer has overpaid his tax for any reason
and the taxpayer has discontinued business and there is no subsequent liability
upon which the excess may be credited, or if the amount of the excess so paid
shall exceed the estimated liability for the next twelve (12) months, the
excess shall be refunded to the taxpayer. Such amount shall be certified to
the State * * * Fiscal Officer by the * * * department. The * * * State Fiscal Officer is * * *authorized to make such investigation
and audit of the claim as he or she finds necessary. If he or she
finds that the commissioner is correct in his or her determination, the * * * State Fiscal Officer may issue
his or her warrant to the State Treasurer in favor of the taxpayer for
the amount of tax erroneously paid into the State Treasury, such refunds to be
made from current sales tax collections. If part of the overpayment has been
disbursed to any municipality or state institution of higher learning, under
authority of Section 27-65-75, the municipality or state institution of higher
learning, having erroneously received the money, shall adjust the amount with
the commissioner, or the overpayment may be withheld by the state from any
funds due by the state to the municipality or state institution of higher
learning.
(2) * * * Where the taxpayer has overpaid
his tax, the commissioner may give credit for same and allow the taxpayer to
take credit on a subsequent return or, if necessary, in his or her
discretion, have the taxpayer file for a refund as provided herein.
(3) If any overpayment
of tax as reflected in an application or amended return, or both, filed by the
taxpayer, and verified by the commissioner or otherwise determined to be due by
the commissioner or * * *
department, is not refunded or credited to a taxpayer's account within
ninety (90) days after the application or amended return is filed or the date
the * * *
commissioner or department determines a refund is due, whichever is
later, interest at the rate of one-half of one percent (1/2 of 1%) per month
shall be allowed on such overpayment computed for the period after expiration
of the ninety-day period provided herein to the date of payment.
(4) Any person who has paid the tax levied by Section 27-65-23(1)(jj) who is a United States citizen with a social security number or taxpayer identification number shall be paid a refund of the taxes paid upon application to the department with proof of the amount of the taxes paid and any additional information that the department may require. If the taxes for which a refund application has been filed are not refunded within ninety (90) days after the application is filed or the date the department determines that a refund is due, whichever is later, interest shall be allowed on the amount of the refund in the same manner as provided in subsection (3) of this section.
SECTION 3. This act shall take effect and be in force from and after July 1, 2021.