April 8, 2022
Mississippi Authorizes City of Fulton Restaurant Tax
On April 1, 2022, Mississippi Governor signed a bill that enables the City of Fulton to collect an additional 3% sales tax from restaurants. This act is effective immediately and will expire on and after July 1, 2026. The city of Fulton is required to place the proceeds of the restaurant tax in a dedicated to tourism promotion and the maintenance of city park and recreation properties.
February 8, 2022
Mississippi Governor Legalizes Medical Cannabis
Effective February 2, 2022, Governor Tate signed legislation authorizing the use of medical cannabis by patients with debilitating conditions. The bill provides for sales tax on purchases of medical cannabis, allows ordinary and necessary business expense deductions for expenses incurred in producing/distributing medical cannabis, and excludes medical cannabis establishments from receiving tax credits.
Excise Tax: The bill imposes an excise tax on medical cannabis cultivation facilities at a rate of 5% of the fair market value, which will be determined by the Department of Revenue no later than November 1, 2022. Beginning January 1, 2023, the Department of Revenue must recalculate and adjust the fair market value of the cannabis flower and trim bi-annually on January 1 and July 1. A dispensary must collect and remit sales tax at a rate of 7% from each retail sale of medical cannabis. The excise tax applies regardless of the ownership of the medical cannabis establishment to which the cannabis cultivation facility sells or transfers the cannabis flower or cannabis trim. As such, related party transactions are still subject to excise tax.
Sales tax on dispensaries: A dispensary is required to collect and remit sales tax levied at the rate of 7% on the gross proceeds from the retail sale of medical cannabis.
Business Expenses and Deductions: The bill provides an income tax deduction for all ordinary and necessary business expenses paid or incurred during a taxable year in carrying on a trade or business as a medical cannabis establishment, including a reasonable allowance for salaries and employee/officer compensation.
December 31, 2021
Mississippi Extends Relief to File, Pay State Taxes for Hurricane Ida Victims
On December 28, 2021, the Mississippi Department of Revenue issued a notice extending the tax relief for victims of Hurricane Ida for individual, corporate, franchise, partnership, and S corporation income taxpayers. Prior to this notice, taxpayers who were eligible for this relief had until January 3, 2022 to file their 2020 income tax returns and quarterly estimated payments. Mississippi will follow the extended federal due date and eligible taxpayers will now have until February 15, 2022 to file returns and pay any taxes that were originally due between August 28, 2021 and February 15, 2022.
March 23, 2021
Mississippi Update on Extension of Filing Deadline
The Mississippi Department of Revenue has issued a notice explaining that Mississippi will follow the federal extension to file 2020 individual income tax returns. The due date is extended from April 15, 2021 to May 17, 2021. The extension applies only to the filing of individual income tax returns and the payment of taxes due. Penalties and interest will not accrue on returns filed and payments made on or before May 17, 2021. The Department also noted that the extension does not apply to quarterly estimated payments due on April 15, 2021. (Notice 80-21-002, Miss. Dept. Rev., 03/22/2021.)
March 3, 2021
Mississippi Moving Toward Ending Personal Income Tax, Increasing Sales Tax
Mississippi is trending towards ending personal income tax and increasing state sales tax. If the proposal is passed, the bill would immediately eliminate income tax for people making less than $50,000 a year (or $100,000 for married filers), and income tax would be completely phased out by 2030. Further, the general sales tax rate would jump to 9.5% from 7% effective July 1 of this year.
April 3, 2020
Individual and Corporate Deadline
Mississippi’s Department of Revenue has extended the deadline to file and pay the 2019 individual income tax and corporate income tax to May 15, 2020. Withholding tax payments for the month of April are extended until May 15, 2020. This extension does not apply to Sales Tax, Use Tax, or any other tax types – those returns should be filed and paid on the normal due date.
Source: https://www.dor.ms.gov/Documents/COVID Extension.pdf