MISSISSIPPI LEGISLATURE

2013 Regular Session

To: Judiciary A

By: Representative Dixon

House Bill 1124

AN ACT TO AMEND SECTIONS 27-7-45, 27-7-55 AND 27-65-40, MISSISSIPPI CODE OF 1972, TO PROVIDE FOR THE GARNISHMENT OF SALARIES OF PUBLIC OFFICIALS AND EMPLOYEES WHO FAIL TO PAY TAXES AT 25% OF THE EMPLOYEE'S OR OFFICER'S SALARY OR FOR THE AMOUNT OF THE DELINQUENT TAXES, 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, * * *does not pay his state income tax on or before August 15 after such income tax becomes due and payable, or 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 Revenue  the Department of Human Services * * *, as the case may be, in satisfaction of such income tax, interest and penalty, if any, and any child support arrearage until paid in full.  This provision shall apply to any installments of income tax or 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 Commissioner of Revenue is required to furnish the State Fiscal Officer, chancery clerk, city clerk or other appropriate fiscal officer of a political subdivision, as the case may be, with notice that income taxes have not been paid.  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. * * * The Department of Revenue may, in its discretion, waive the provisions of this subsection on behalf of any public officer or employee in the event of an extended personal illness, an extended illness in his immediate family or other emergency. 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 * * *tax or child support payment may be paid with uncertified check during such time and under such regulations as the commissioner or 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)  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.

     (6)  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.

(7)  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 outstanding tax liability, whichever is less.

     SECTION 2.  Section 27-7-55, Mississippi Code of 1972, is amended as follows:

     27-7-55.  If any taxpayer, liable for the payment of income taxes, penalties or interest, fails or refuses to pay them after receiving the notice and demands as provided in Sections 27-7-49, 27-7-51 and 27-7-53, and if the taxpayer has not filed a timely appeal to the board of review as provided by law, the commissioner shall file a notice of tax lien for the income taxes, penalties and interest with the circuit clerk of the county in which the taxpayer resides or owns property, which shall be enrolled on the judgment roll.  Immediately upon receipt of the notice of tax lien for income taxes, penalties and interest, the circuit clerk shall enter upon the judgment roll, in the appropriate columns, the name of the taxpayer as judgment debtor, the name of the commissioner or * * *State Tax Commission Department of Revenue as judgment creditor, the amount of the taxes, penalties and interest, and the date and time of enrollment.  The judgment shall be valid as against mortgagees, pledgees, entrusters, purchasers, judgment creditors, and other persons from the time of filing with the clerk.  The amount of the judgment shall be a debt due the State of Mississippi and remain a lien upon all property and rights to property belonging to the taxpayer, both real and personal, including choses in action, with the same force and like effect as any enrolled judgment of a court of record, and shall continue until satisfied; however, the judgment shall not be a lien upon the property of the taxpayer for a longer period than seven (7) years from the date of the filing of the notice of tax lien for income taxes, penalties and interest unless an action is brought on the lien before the expiration of such time or unless the commissioner refiles the notice of tax lien before the expiration of such time.  The judgment shall be a lien upon the property of the taxpayer for a period of seven (7) years from the date of refiling such notice of tax lien unless an action is brought on the lien before the expiration of such time or unless the commissioner refiles such notice of tax lien before the expiration of such time.  There shall be no limit upon the number of times that the commissioner may refile notices of tax liens.  The judgment shall serve as authority for the issuance of writs of execution, writs of attachment, writs of garnishment or other remedial writs.  The commissioner may issue warrants for collection of income taxes from such judgments in lieu of the issuance of any remedial writ by the circuit clerk.

     Upon failure to pay the taxes imposed under this article by any taxpayer who has executed any bond, the commissioner shall give notice of the failure to the sureties of the bond and demand payment of the tax, penalties and interest within ten (10) days.  If the sureties of the taxpayer's bond shall fail or refuse to pay the penal sum demanded within the ten (10) days allowed, the commissioner shall file a notice of tax lien with the circuit clerk of the county in which the sureties reside or own property, which shall be enrolled upon the judgment roll, and the commissioner may proceed to collect from the sureties as * * *in this section provided in this section for collecting from any judgment debtor.

     The commissioner is hereby authorized to pay the clerk's fee for enrolling certificates of indebtedness and any court costs that may be adjudged against the * * *commission department or commissioner out of funds appropriated by the Legislature to defray expenses of the * * *State Tax Commission Department of Revenue.  Any action taken against public employees or officers for failing to pay taxes levied by this chapter shall be consistent with the requirements of Section 27-7-45.

     SECTION 3.  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, * * * he shall not be eligible to receive any salary or other emoluments of office from this state, or from any political subdivision thereof, until said sales tax, interest and penalty, if any, shall be paid in full.  This provision shall apply to any installments of sales tax due, after the first installment, to require payment of the entire balance of 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 Tax Commissioner is required to furnish the State Fiscal Officer or appropriate fiscal officer of the political subdivision, as the case may be, with notice that sales taxes have not been paid.  This notice shall serve as a stop order upon any salary due any employee or officer.  Disregard of this notice creating personal liability against such fiscal officer for the full amount of the sales tax due, plus interest and penalty.  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.  The sales tax may be paid with uncertified check during such time and under such regulations as the Commissioner shall prescribe, but if the check so received is not paid by the bank on which it is drawn, the taxpayer for whom such check is tendered shall remain liable for the payment of the tax and all penalties, the same as if such check had not been tendered.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 salary or for the outstanding tax liability, whichever is less.

     SECTION 4.  This act shall take effect and be in force from and after July 1, 2013.

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