MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Ways and Means

By: Representative Compretta

AN ACT TO PROVIDE THAT IF THE INCOME TAX REVENUE COLLECTIONS IN THE STATE GENERAL FUND FOR FISCAL YEAR 2000, OR ANY FISCAL YEAR THEREAFTER, EXCEED BY TWO PERCENT OR MORE THE FINAL GENERAL FUND INCOME TAX REVENUE ESTIMATE FOR THE FISCAL YEAR, AN INCOME TAX REFUND SHALL BE ISSUED TO TAXPAYERS WHO PAID TAXES ON INCOME EARNED DURING THE CALENDAR YEAR 1999 OR ANY CALENDAR YEAR THEREAFTER, AS APPROPRIATE; TO PROVIDE FOR THE METHOD OF CALCULATING SUCH REFUNDS AND FOR THE ISSUANCE OF THE REFUNDS BY THE STATE TAX COMMISSION; TO AMEND SECTION 27-7-71, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) This section shall apply if, at the end of June 2000, or any year thereafter, the income tax revenue collections in the State General Fund for the fiscal year 2000, or any fiscal year thereafter, exceed by two percent (2%) or more, the final general fund income tax revenue estimate adopted by the Legislative Budget Office for such fiscal year pursuant to Chapter 103, Title 27, Mississippi Code of 1972, which shall include all subsequent adjustments adopted thereto. This excess of two percent (2%) or more above such final general fund income tax revenue estimate shall be termed the excess surplus amount.

(2) Any taxpayer who filed an income tax return, and who paid Mississippi state income taxes on income earned during the calendar year 1999, or any calendar year thereafter as appropriate, is eligible for a refund of a portion of such taxes. The amount of the refund shall be based on the proportion that the income tax paid by the taxpayer bears to the aggregate income tax paid by all taxpayers. However, no taxpayer may receive a refund in excess of ten percent (10%) of the income tax paid by the taxpayer.

(3) The Legislature shall appropriate funds during the next regular session following the fiscal year resulting in an excess surplus amount for the purpose of making the refunds described in this section.

(4) After June 30 but before August 30 of the next fiscal year following the fiscal year resulting in an excess surplus amount, the State Tax Commission shall issue the refunds described in this section, after determining whether or not each taxpayer is entitled to a refund and the amount of the refund that shall be issued to each such taxpayer. The refunds shall be issued by the State Tax Commission without the necessity for any other legislative action, other than the passage of this act. Any taxpayer who believes that he is aggrieved by any decision of the State Tax Commission made under this section may appeal such decision in the manner as provided for in Sections 27-7-71 and 27-7-73.

SECTION 2. Section 27-7-71, Mississippi Code of 1972, is amended as follows:

27-7-71. (1) A taxpayer who feels aggrieved at any action of the commissioner under Sections 27-7-49, 27-7-51, * * * 27-7-53 or Section 1 of House Bill No. , 1999 Regular Session, may appeal to the Board of Review, as legally constituted and authorized by Section 27-7-79, for a hearing in the matter within thirty (30) days from the date of said action. The Board of Review shall grant a hearing thereon at the earliest practical date. At said hearing, the Board of Review shall try the issues presented, according to law and the facts, and shall within thirty (30) days from the date of said hearing make a determination, subject to and with the approval of the commissioner, and notify the taxpayer of its findings. Any overpayment of tax determined by the approved order of the Board of Review shall be credited, or refunded, to the taxpayer. Any tax deficiency, including any penalty and interest, determined by the approved order of the Board of Review shall be paid by the taxpayer within thirty (30) days from the date of notification to the taxpayer, and, if said sum is not paid within said thirty-day period, the commissioner shall proceed to collect same under the provisions of Sections 27-7-55 to 27-7-67 of this article; provided, that within said thirty-day period the taxpayer may appeal to the State Tax Commission from the decision of the Board of Review, as hereinafter set out.

(2) A taxpayer who feels aggrieved at any decision by the Board of Review, may appeal to the State Tax Commission by petition, in writing, within thirty (30) days from the date of said decision, for a hearing upon the action or decision of the Board of Review, in which petition said taxpayer shall set forth the reasons such hearing should be granted. The State Tax Commission shall promptly consider the petition, grant the hearing, and notify the petitioner of the time and place fixed for the hearing. In any hearing before the State Tax Commission, two (2) members constitute a quorum. At said hearing, the State Tax Commission shall try the issues presented, according to the law and the facts, and shall, as soon as practical thereafter, notify the taxpayer of its determination. Any overpayment of tax which the State Tax Commission may determine to have been paid shall be credited or refunded to the taxpayer. Any tax deficiency, including any penalty and interest, determined by the State Tax Commission shall be paid within thirty (30) days from the date of notification of the taxpayer, and if said sum is not paid within said thirty-day period, the State Tax Commission shall proceed to collect same under the provisions of Sections 27-7-55 to 27-7-67; provided that within said thirty-day period the taxpayer may appeal from the decision of the State Tax Commission as hereinafter set out.

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, 1999.