House Bill 1092

AN ACT TO AMEND SECTION 27-67-5, MISSISSIPPI CODE OF 1972, TO REQUIRE AN INDIVIDUAL WHO IS REGISTERING HIS BOAT PURCHASED FROM AN OUT-OF-STATE DEALER FOR THE FIRST TIME WITH THE MISSISSIPPI DEPARTMENT OF WILDLIFE, FISHERIES AND PARKS, TO PROVIDE PROOF THAT MISSISSIPPI USE TAX OR SALES TAX WAS PREVIOUSLY PAID ON SUCH BOAT OR TO REQUIRE USE TAX BE PAID TO THE DEPARTMENT; TO REQUIRE THE DEPARTMENT TO SUBMIT PAYMENTS RECEIVED TO THE DEPARTMENT OF REVENUE; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 27-67-5, Mississippi Code of 1972, is amended as follows:

27-67-5. (1) There is hereby levied, assessed and shall be collected from every person a tax for the privilege of using, storing or consuming, within this state, any tangible personal property or specified digital product possession of which is acquired in any manner.

(a) The use tax hereby imposed and levied shall be collected at the same rates as imposed under Section 27-65-20, and Sections 27-65-17, 27-65-18, 27-65-19, 27-65-24, 27-65-25 and 27-65-26 computed on the purchase or sales price, or value, as defined in this article.

(b) It shall be the duty of the tax collectors of the several counties, or the commissioner, as the case may be, to collect, remit and account for the tax on the use of all vehicles licensed or registered by the State of Mississippi for the first time, except when the Mississippi use tax was collected by an authorized out-of-state dealer at the time of purchase, or when the use thereof was exempt by Section 27-67-7. The tax collector or the commissioner shall give to the person registering the vehicle a receipt in a form prescribed and furnished by the Department of Revenue for the amount of tax collected.

(c) (i) Before the registration for the first time of any boat, required to be registered with the Mississippi Department of Wildlife, Fisheries and Parks, hereinafter referred to as "department," which was purchased from a licensed out-of-state dealer, broker or other person engaged in the retail sales of boats, the department shall require payment of the tax levied under this article, or proof that such tax was previously paid or that Mississippi sales tax was paid.

Upon application for the registering of the boat, a person is required to submit either payment of the tax to the department or proof that the tax was previously paid or that Mississippi sales tax was previously paid. The person shall present to the department a properly executed bill(s) of sale including the purchase price of the hull and all components constituting an integral part of the boat. The bill(s) of sale of the boat shall include:

1. The name and address of both purchaser and seller;

2. The identification number, make and model and year of the boat;

3. The date of purchase of the boat; and

4. The total purchase price of the boat.

(ii) The department shall, on or before the twentieth day of each month, file a report with and pay to the Department of Revenue all funds collected under the provisions of this section, less a commission of three percent (3%) which shall be retained by the department as a commission for collecting such tax. The report required to be filed shall cover all collections made during the calendar month next preceding the date on which the report is due and filed.

Any error in the report and remittance to the Department of Revenue may be adjusted on a subsequent report. If the error was in the collection by the department, it shall be adjusted through the department with the taxpayer before credit is allowed by the Department of Revenue.

All information relating to the collection of this tax by the department and such records as the Department of Revenue may require shall be preserved in the department's office for a period of three (3) years for audit by the Department of Revenue.

(2) The tax collector or the commissioner is expressly prohibited from issuing a license tag to any applicant without collecting the tax levied by this article, unless positive proof is filed, together with the application for the license tag, that the Mississippi tax has been paid, or that the sale was exempt by Section 27-67-7.

(3) Persons not engaging and continuing in business so as to be registered for payment of sales and/or use tax may pay use tax due on the first use of boats, airplanes, equipment or other tangible personal property and specified digital products to county tax collectors who are hereby authorized to accept such payments on behalf of the commissioner. Receipts for all such payments shall be given to taxpayers in a form prescribed and furnished by the Department of Revenue.

(4) County tax collectors and the commissioner shall be liable for the tax they are required hereby to collect, and taxes which are in fact collected under authority of this section; and failure to properly collect or maintain proper records shall not relieve them of liability for payment to the commissioner. Deficiencies in collection or payment shall be assessed against the tax collector or the commissioner in the same manner and subject to the same penalties and provisions for appeal as are deficiencies assessed against taxpayers.

(5) A dealer authorized to collect and remit the tax to the Department of Revenue shall give to the purchaser a receipt for the payment of the tax, in a form prescribed and furnished by the commissioner, which shall serve as proof of payment to the tax collector of the county in which the license is to be issued.

(6) Each tax collector of the several counties shall, on or before the twentieth day of each month, file a report with and pay to the commissioner all funds collected under the provisions of this article, less a commission of five percent (5%) which shall be retained by the tax collector as a commission for collecting such tax and be deposited in the county general fund. The report required to be filed shall cover all collections made during the calendar month next preceding the date on which the report is due and filed.

(7) Any error in the report and remittance to the commissioner may be adjusted on a subsequent report. If the error was in the collection by the tax collector, it shall be adjusted through the tax collector with the taxpayer before credit is allowed by the commissioner.

(8) All information relating to the collection of use tax by tax collectors and such records as the commissioner may require shall be preserved in the tax collector's office for a period of three (3) years for audit by the commissioner.

SECTION 2. This act shall take effect and be in force from and after July 1, 2015.