House Bill 1544

AN ACT TO PROVIDE AN INCOME TAX CREDIT FOR TAXPAYERS WHO PAY AD VALOREM TAXES ON CERTAIN PERSONAL PROPERTY; TO LIMIT THE AMOUNT OF SUCH TAX CREDIT; TO PROVIDE THAT THE TAX CREDIT AUTHORIZED BY THIS ACT MAY NOT BE CLAIMED FOR AD VALOREM TAXES PAID ON CERTAIN TYPES OF PERSONAL PROPERTY; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) Subject to the provisions of this section, for any taxpayer 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 personal property, a credit against the income taxes imposed under this chapter shall be allowed in the amounts prescribed in subsection (2) of this section.

(2) The credit provided for in this section shall not exceed the lesser of Five Thousand Dollars ($5,000.00) or the amount of income tax imposed upon the taxpayer for the taxable year reduced by the sum of all other credits allowable to such taxpayer under this chapter, except credit for tax payments made by or on behalf of the taxpayer. However, the credit provided for in this section may not be claimed for ad valorem taxes paid: (a) on motor vehicles, (b) on personal property included in Class IV property as defined in Section 112, Mississippi Constitution of 1890, or (c) which may be claimed as a credit under Section 27-7-22.5.

(3) 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. Section 1 of this act shall be codified in Chapter 7, Title 27, Mississippi Code of 1972.

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 January 1, 2006.