Senate Bill 2344

AN ACT TO AMEND SECTION 27-7-45, MISSISSIPPI CODE OF 1972, TO REMOVE PROVISIONS THAT PROVIDE THAT IF ANY OFFICER OR EMPLOYEE OF THE STATE OR A POLITICAL SUBDIVISION THEREOF DOES NOT PAY STATE INCOME TAX BY AUGUST 15, THAT HIS WAGES, SALARY OR OTHER COMPENSATION SHALL BE WITHHELD AND PAID TO THE DEPARTMENT OF REVENUE; TO PROVIDE THAT THE DEPARTMENT OF REVENUE MAY PURSUE ANY AND ALL REMEDIES FOR COLLECTION THAT ARE AVAILABLE TO IT IN THE COLLECTION OF INCOME TAXES OWED BY PERSONS WHO ARE NOT PUBLIC OFFICERS OR EMPLOYEES; TO PROVIDE THAT ANY GARNISHMENT MADE IN ACCORDANCE WITH LAW SHALL NOT BE LESS THAN 25% OF THE EMPLOYEE'S OR OFFICER'S SALARY OR THE AMOUNT OF THE OUTSTANDING TAX LIABILITY, WHICHEVER IS LESS; TO AMEND SECTION 27-65-40, MISSISSIPPI CODE OF 1972, TO REMOVE PROVISIONS THAT PROVIDE THAT IF ANY OFFICER OR EMPLOYEE OF THE STATE OF MISSISSIPPI, OR ANY POLITICAL SUBDIVISION THEREOF, DOES NOT PAY THE STATE SALES TAX FOR WHICH HE IS RESPONSIBLE TO PAY WITHIN TWO MONTHS AFTER SUCH SALES TAX BECOMES DUE AND PAYABLE, HE IS NOT ELIGIBLE TO RECEIVE ANY SALARY OR OTHER EMOLUMENTS OF OFFICE FROM THE STATE, OR FROM ANY POLITICAL SUBDIVISION THEREOF, UNTIL THE SALES TAX, INTEREST AND PENALTY, ARE PAID IN FULL; TO PROVIDE THAT THE DEPARTMENT OF REVENUE MAY PURSUE ALL REMEDIES AGAINST A PUBLIC EMPLOYEE OR OFFICER AS ARE AVAILABLE AGAINST OTHER PERSONS WHO FAIL TO PAY TAXES LEVIED UNDER THE SALES TAX LAW; TO PROVIDE THAT ANY GARNISHMENT TAKEN AGAINST SUCH PUBLIC EMPLOYEE OR OFFICER SHALL BE FOR AN AMOUNT OF 25% OF THE EMPLOYEE'S OR OFFICER'S SALARY OR OTHER EMOLUMENTS OF OFFICE FROM THE STATE OR ANY POLITICAL SUBDIVISION OR THE AMOUNT OF THE OUTSTANDING TAX LIABILITY, WHICHEVER IS LESS; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 27-7-45, Mississippi Code of 1972, is amended as follows:

27-7-45. (1) The tax levied by this article shall be paid when the return is due except as hereinafter provided.

(2) If any officer or employee of the State of Mississippi, or any political subdivision thereof, * * * is in arrears in child support payments for thirty (30) days after such payments become due and payable, his wages, salary or other compensation shall be withheld and paid to the * * * Department of Human Services * * * in satisfaction of such * * * any child support arrearage until paid in full. This provision shall apply to any installments of * * * child support due, after the first installment, to require payment of the entire balance of child support tax due, plus interest and penalty, if any, before an officer or employee of the State of Mississippi, or any political subdivision thereof, is eligible to draw any salary or other emoluments of office. * * * The Department of Human Services is required to furnish the officer's or the employee's employer, or other appropriate officer of the State of Mississippi or its political subdivision, as the case may be, with notice that child support payments have not been made. This notice shall serve as a lien or attachment upon any salary or compensation due any employee or officer, disregard of this notice creating personal liability against such officer for the full amount of the income tax due, plus interest and penalty. * * * Regardless of the amount designated in the Department of Human Service's notice for withholding and regardless of other fees imposed or amounts withheld pursuant to this section, the payor shall not deduct from the income of the officer or employee in excess of the amounts allowed under Section 303(b) of the Consumer Credit Protection Act, being 15 USCS 1673, as amended.

(3) The * * * child support payment may be paid with uncertified check during such time and under such regulations as * * * the Department of Human Services shall prescribe, but if the check so received is not paid by the bank on which it is drawn, the officer or employee for whom such check is tendered shall remain liable for the payment of the tax, child support payment and for all penalties, the same as if such check had not been tendered.

(4) If a corporation is subject to LIFO recapture pursuant to Section 1363(d) of the Code, then:

(a) Any increase in the tax imposed by Section 27-7-5 by reason of the inclusion of the LIFO recapture amount in its income shall be payable in four (4) equal installments;

(b) The first installment shall be paid on or before the due date (determined without regard to extensions) for filing the return for the first taxable year for which the corporation was subject to the LIFO recapture;

(c) The three (3) succeeding installments shall be paid on or before the due date (determined without regard to extensions) for filing the corporation's return for the three (3) succeeding taxable years; and

(d) For purposes of computing interest on underpayments, the last three (3) installments shall not be considered underpayments until after the payment due date specified above.

(5) If any officer or employee of the State of Mississippi, or any political subdivision thereof, does not pay his state income tax on or before August 15 after such income tax becomes due and payable, the Department of Revenue may pursue any and all remedies for collection that are available to it in the collection of such taxes owed by persons who are not public officers or employees. Any garnishment made in accordance with law shall not be less than twenty-five percent (25%) of the employee's or officer's salary or the amount of the outstanding tax liability, whichever is less.

(6) For purposes of this section, a political subdivision includes, but is not limited to, a county or separate school district, institution of higher learning, state college or university, or state community college.

(7) The tax levied by this article and paid by a business enterprise located in a redevelopment project area under Sections 57-91-1 through 57-91-11 shall be deposited into the Redevelopment Project Incentive Fund created in Section 57-91-9.

SECTION 2. Section 27-65-40, Mississippi Code of 1972, is amended as follows:

27-65-40. If any officer or employee of the State of Mississippi, or any political subdivision thereof, does not pay the state sales tax for which he is responsible to pay within two (2) months after such sales tax becomes due and payable, the Department of Revenue may pursue all remedies against such taxpayer as are available against other persons who fail to pay taxes levied by this chapter. Any garnishment taken against such public employee or officer shall be for an amount of twenty-five percent (25%) of the employee's or officer's salary or other emoluments of office from the state or any political subdivision thereof, or the amount of the outstanding tax liability, whichever is less. * * *

SECTION 3. This act shall take effect and be in force from and after July 1, 2012.