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S.A.L.T. Select Developments: Mississippi

Baker Donelson's S.A.L.T. Select Developments will identify important state and local tax developments from Mississippi.


State and local taxes impact almost every taxpayer. S.A.L.T developments in any one jurisdiction can be frequent and sometimes confusing. Where multiple jurisdictions are involved, staying current with state and local tax developments can be overwhelming for any taxpayer.

To assist you with staying current on a periodic basis, Baker Donelson's S.A.L.T. Select Developments will identify one or more recent state and local tax developments from Mississippi.

November 2019

Income Tax: The Children's Promise Act made an income tax credit available for business enterprises engaged in commercial, industrial or professional activities operating as a corporation, limited liability company, partnership or sole proprietorship. The credit is allowed against the taxes imposed by Miss. Code Ann. Sections 27-7-5, 27-15-103, 27-15-109 and 27-15-123, for voluntary cash contributions during the taxable year to eligible charitable organizations. The amount of credit that may be utilized in a taxable year is limited to an amount not to exceed 50 percent of the total tax liability of the business enterprise for the taxes imposed by such sections of law. The aggregate of amount of tax credits available for calendar year 2019 was $5,000,000. The Mississippi Department of Revenue recently announced that all available credits for 2019 have been allocated. The Department will begin accepting applications for allocations of the 2020 credit amount after January 1, 2020. The Department has published a bulletin explaining the details of the credit that can be found here.

October 2019

Income Tax: The Mississippi Department of Revenue has proposed changes to its regulations related to the taxation of dividends. Under the new proposed regulation, dividends issued by a holding company are included in the shareholder's gross income "if such dividends have not already borne a tax in Mississippi or another state prior to the receipt of same by such shareholders." The current regulation purported to exclude from income only those dividends that had been taxed in Mississippi. The portion of the underlying statute that provided support for the current regulation (specifically by limiting the exclusion to dividends taxed in Mississippi) was held unconstitutional by the Mississippi Supreme Court in Mississippi Department of Revenue v. AT&T Corp. (No. 2015-CA-00600-SCT, Oct. 27, 2016). The proposed regulation also provides additional guidance on the taxation of dividends paid after stock is sold and when stock dividends may be taxable. The full text of the proposed regulation can be found here.

September 2019

Income Tax: The Mississippi Department of Revenue has issued Notice 80-19-002 providing guidance on changes to the Military Spouses Residency Relief Act enacted by Congress in 2018. The changes to federal law allow spouses of military personnel who move to Mississippi due to the service member spouse being posted in Mississippi for military duty to elect to use the same state of residence as the service member. The notice sets out details on how to make the election and also how to claim refunds of Mississippi taxes paid in prior open years. The full Notice is available here.

July 2019

Sales Tax: The Mississippi Sales Tax Holiday is scheduled to take place between 12:01 a.m. Friday, July 26, 2019 and 12:00 a.m. on Saturday, July 27, 2019. During the holiday period, sales tax is not due on the sale of articles of clothing, footwear, or school supplies if the sales price of a single item is less than $100.00. The Mississippi Department of Revenue has published an official guide to the Sales Tax Holiday, which is available here.

June 2019

Incentives: Sunset dates for several tax incentives were recently extended by Mississippi Legislature. These include the corporate income tax credit for certain costs incurred to relocate corporate headquarters employees into Mississippi (extended until July 1, 2022 by House Bill 695) and sales and use tax incentives created under the Major Economic Impact Act and the Growth and Property Act (extended until July 1, 2023 by Senate Bill 2133). The Mississippi Department of Revenue publishes a guide to Mississippi Tax Incentives, Exemptions and Credits that can be found here.

For more information about state and local tax developments in Mississippi, please contact:

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