MISSISSIPPI LEGISLATURE
2023 Regular Session
To: Ways and Means
By: Representative Lamar
AN ACT TO AMEND SECTION 27-7-45, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT IF ANY OFFICER OR EMPLOYEE OF THE STATE OR A POLITICAL SUBDIVISION THEREOF DOES NOT PAY STATE INCOME TAX BY AUGUST 15 AFTER SUCH INCOME TAX BECOMES DUE AND PAYABLE, THE OFFICER OR EMPLOYEE MAY ELECT TO HAVE FIFTY PERCENT, INSTEAD OF THE FULL AMOUNT, OF HIS WAGES, SALARY OR OTHER COMPENSATION WITHHELD AND PAID TO THE DEPARTMENT OF REVENUE IN SATISFACTION OF SUCH INCOME TAX, INTEREST AND PENALTY, IF ANY, UNTIL PAID IN FULL; TO AMEND SECTION 7-7-43, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; 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) (a) 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 * * *
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 * * * 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 * * * 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.
(b) If any officer or employee of the State of Mississippi, or any political subdivision thereof, does not pay his or her state income tax on or before August 15 after such income tax becomes due and payable, his or her wages, salary or other compensation shall be withheld and paid to the Department of Revenue in satisfaction of such income tax, interest and penalty, if any, until paid in full, unless the officer or employee elects under this paragraph (b) to have a lesser amount withheld. This provision shall apply to any installments of income tax after the first installment, to require payment of the entire balance of tax due, plus interest and penalty, if any. 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. 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. Upon receipt of such notice from the Commissioner of Revenue, the State Fiscal Officer, chancery clerk, city clerk or other appropriate fiscal officer of a political subdivision, as the case may be, shall notify the officer or employee of such nonpayment of income taxes and allow the officer or employee to elect to have fifty percent (50%), instead of the full amount, of his or her wages withheld and paid to the Department of Revenue in satisfaction of such income tax, interest and penalty, if any, until paid in full. If the officer or employee does not make such an election, then his or her wages, salary or other compensation shall be withheld and paid to the Department of Revenue in satisfaction of such income tax, interest and penalty, if any, until paid in full. The Department of Revenue, in its discretion, may waive the provisions of this paragraph (b) on behalf of any public officer or employee in the event of an extended personal illness, an extended illness in his or her immediate family or other emergency.
(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.
SECTION 2. Section 7-7-43, Mississippi Code of 1972, is amended as follows:
7-7-43. (1) Except as otherwise provided in this section, the State Fiscal Officer, any chancery or city clerk, or the fiscal officer of any county or separate school district, institution of higher learning, state college, university or state community college, shall not issue any warrant upon any allowance made to, or claim in favor of, any person, his agent, or assignee who shall be indebted to the state, or against whom there shall be any balance appearing in favor of the state; but such officer shall allow such debtor a credit on his account for such allowance or claim.
(2) For state tax claims,
the * * *
Commissioner of Revenue is required to furnish the appropriate fiscal
officer with notice that state taxes have not been paid. This notice shall
serve as a stop order or order for the lesser amount provided in Section 27-7-45(2)(b),
as the case may be, upon any allowance made to, or claim in favor of, any
person, his agent, or assignee who shall be indebted to the state, or any
political subdivision thereof, or against whom there shall be any balance
appearing in favor of the state or any political subdivision thereof.
Disregard of the order notice shall create a personal liability against such
fiscal officer for the full amount of state taxes due, plus interest and
penalty.
SECTION 3. This act shall take effect and be in force from and after July 1, 2023.