MISSISSIPPI LEGISLATURE
2022 Regular Session
To: Ways and Means
By: Representatives Yancey, Bain, Barnett, Deweese, Guice, Newman, Roberson, Shanks, Steverson
AN ACT TO AUTHORIZE AN INCOME TAX CREDIT FOR A TAXPAYER CLAIMING A HOMESTEAD EXEMPTION WHO ALSO OWNS CLASS II PROPERTY THAT WOULD QUALIFY AS CLASS I PROPERTY IF THE TAXPAYER HAD CLAIMED A VALID HOMESTEAD EXEMPTION ON THE PROPERTY; TO PROVIDE FOR THE AMOUNT OF THE INCOME TAX CREDIT AUTHORIZED BY THIS ACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) A taxpayer claiming an exemption under Section 27-33-75 who also owns eligible property, and has ad valorem tax liability on such property, is allowed a credit against the taxes imposed under this chapter. The amount of the credit shall be equal to the difference between the taxpayer's ad valorem tax liability on the eligible property and what the taxpayer's ad valorem tax liability on the eligible property would have been if the property had been assessed as Class I property. However, the tax credit provided in this section shall not exceed the amount of tax imposed upon the taxpayer for the taxable year reduced by the sum of all other credits allowable to the taxpayer under this chapter, except credit for tax payments made by or on behalf of the taxpayer. Any tax credit claimed under this section but not used in any taxable year may be carried forward for five (5) consecutive years from the close of the tax year in which the credit was earned. For the purposes of this section, "eligible property" means Class II property owned by a taxpayer and used by the taxpayer for residential purposes and which would qualify for an exemption under Section 27-33-75 if the taxpayer had claimed a valid exemption on the property under Section 27-33-75.
(2) 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.
SECTION 2. 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 3. Section 1 of this act shall be codified as a new section in Chapter 7, Title 27, Mississippi Code of 1972.
SECTION 4. This act shall take effect and be in force from and after January 1, 2022.