House Bill 82

AN ACT TO AMEND SECTION 27-7-18, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT TUITION PAYMENTS MADE BY A TAXPAYER FOR TUITION REQUIRED FOR A DEPENDENT CHILD TO ATTEND A NONPUBLIC SCHOOL, CERTAIN EXPENSES PAID BY A TAXPAYER FOR THE HOME SCHOOLING OF A DEPENDENT CHILD AND CERTAIN COSTS PAID BY A TAXPAYER WHICH ARE ASSOCIATED WITH THE ENROLLMENT OF A DEPENDENT CHILD IN A PUBLIC SCHOOL, ARE DEDUCTIBLE AS AN ADJUSTMENT TO GROSS INCOME FOR STATE INCOME TAX PURPOSES; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 27-7-18, Mississippi Code of 1972, is amended as follows:

27-7-18. (1) Alimony payments. In the case of a person described in Section 27-7-15(2)(e), there shall be allowed as a deduction from gross income amounts paid as periodic payments to the extent of such amounts as are includible in the gross income of the spouse as provided in Section 27-7-15(2)(e), payment of which is made within the person's taxable year.

(2) Unreimbursed moving expenses incurred after December 31, 1994, are deductible as an adjustment to gross income in accordance with provisions of the United States Internal Revenue Code, and rules, regulations and revenue procedures thereunder relating to moving expenses, not in direct conflict with the provisions of the Mississippi Income Tax Law.

(3) Amounts paid after December 31, 1998, by a self-employed individual for insurance which constitute medical care for the taxpayer, his spouse and dependents, are deductible as an adjustment to gross income in accordance with provisions of the United States Internal Revenue Code, and rules, regulations and revenue procedures thereunder relating to such payments, not in direct conflict with the provisions of the Mississippi Income Tax Law.

(4) Contributions or payments to a Mississippi Affordable College Savings (MACS) Program account are deductible from gross income as provided in Section 37-155-113. Payments made under a prepaid tuition contract entered into under the Mississippi Prepaid Affordable College Tuition Program are deductible as provided in Section 37-155-17.

(5) (a) Unreimbursed travel expenses, lodging expenses and lost wages an individual incurred as a result of, and related to, the donation, while living, of one or more of his or her organs for human organ transplantation, are deductible from gross income. The deduction from gross income authorized by this subsection may be claimed for only once and may not exceed Ten Thousand Dollars ($10,000.00).

(b) As used in this subsection, "organ" means all or part of a liver, pancreas, kidney, intestine, lung or bone marrow.

(6) (a) Payments made by a taxpayer for tuition required for a child who is a dependent of the taxpayer to attend a nonpublic elementary or secondary school are deductible as an adjustment to gross income. The deduction authorized in this subsection shall be equal to the amount of such tuition paid during a taxable year; however, the deduction shall not exceed Five Thousand Dollars ($5,000.00) per child for a taxable year. The aggregate amount of deductions claimed by a taxpayer under this subsection for a taxable year shall not exceed the taxpayer's total taxable income for the taxable year.

(b) As used in this subsection, the following words and phrases shall have the meanings ascribed herein unless the context clearly indicates otherwise:

(i) "Tuition" means the:

1. Monthly, semester, annual or other term charge and all required fees imposed as a condition of enrollment in a nonpublic school;

2. Costs required for the purchase of school uniforms required by a nonpublic school for general day-to-day use;

3. Costs required for the purchase of textbooks, curricula and/or other instructional materials required by a nonpublic school; and

4. Costs required for the purchase of school supplies required by a nonpublic school.

(ii) "Nonpublic school" means an institution for the teaching of children, consisting of a physical plant (whether owned or leased), instructional staff members and students, and which is in session each school year and maintains educational standards equivalent to the standards established by the State Department of Education for the state schools as outlined in the Approval Requirements of the State Board of Education for Nonpublic Schools. The term "nonpublic school" includes, but is not limited to, private, church and parochial schools.

(7) Expenses paid by a taxpayer for the home schooling of a child who is a dependent of the taxpayer are deductible as an adjustment to gross income. The deduction authorized in this subsection shall be equal to fifty percent (50%) of the amount of such expenses paid by a taxpayer during a taxable year; however, the deduction shall not exceed Five Thousand Dollars ($5,000.00) per child for a taxable year. The aggregate amount of deductions claimed by a taxpayer under this subsection for a taxable year shall not exceed the taxpayer's total taxable income for the taxable year. Expenses for which a deduction may be claimed under this subsection include the purchase of textbooks and curricula necessary for the home schooling of a child. For the purposes of this subsection, a child is "home schooled" if the child is being educated by private teachers, parents, guardians or custodians in a legitimate home instruction program, as described in the Mississippi Compulsory School Attendance Law (Section 37-13-91).

(8) Amounts paid by a taxpayer which are associated with the enrollment of a child who is a dependent of the taxpayer in a public elementary or secondary school are deductible as an adjustment to gross income. The deduction authorized in this subsection shall be equal to fifty percent (50%) of the amount of such payments made during a taxable year; however, the deduction shall not exceed Five Thousand Dollars ($5,000.00) per child for a taxable year. The aggregate amount of deductions claimed by a taxpayer under this subsection for a taxable year shall not exceed the taxpayer's total taxable income for the taxable year. Expenses for which a deduction may be claimed under this section include (i) costs required for the purchase of school uniforms required by a primary or secondary public school for general day-to-day use; (ii) costs required for the purchase of textbooks, curricula and/or other instructional materials required by a primary or secondary public school; and (iii) costs required for the purchase of school supplies required by a public elementary or secondary school.

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. This act shall take effect and be in force from and after January 1, 2014.