Mississippi Code 1972 (2023) › Title 27 - TAXATION AND FINANCE (§§ 27-1-1 — 27-117-15) › Chapter 13 - CORPORATION FRANCHISE TAX (§§ 27-13-1 — 27-13-67) › Section 27-13-7 - [Repealed Effective 1/1/2028] Tax on foreign corporations

(1)
(a)
Franchise tax levy.
Except as otherwise provided in subsections (3), (4), (5) and (7) of this section, there is hereby imposed, levied and assessed upon every corporation, association or joint-stock company, or partnership treated as a corporation under the income tax laws or regulations as hereinbefore defined, organized and existing under and by virtue of the laws of some other state, territory or country, or organized and existing without any specific statutory authority, now or hereafter doing business or exercising any power, privilege or right within this state, as hereinbefore defined, a franchise or excise tax equal to:
(i)
For tax years beginning before January 1, 2018, Two Dollars and Fifty Cents ($2.50) of each One Thousand Dollars ($1,000.00), or fraction thereof, of the value of capital used, invested or employed within this state, except as hereinafter provided.
(ii)
For tax years beginning on or after January 1, 2018, but before January 1, 2019, Two Dollars and Fifty Cents ($2.50) for each One Thousand Dollars ($1,000.00), or fraction thereof, in excess of One Hundred Thousand Dollars ($100,000.00), of the value of the capital used, invested or employed in the exercise of any power, privilege or right enjoyed by such organization within this state, except as hereinafter provided.
(iii)
For tax years beginning on or after January 1, 2019, but before January 1, 2020, Two Dollars and Twenty-five Cents ($2.25) for each One Thousand Dollars ($1,000.00), or fraction thereof, in excess of One Hundred Thousand Dollars ($100,000.00), of the value of the capital used, invested or employed in the exercise of any power, privilege or right enjoyed by such organization within this state, except as hereinafter provided.
(iv)
For tax years beginning on or after January 1, 2020, but before January 1, 2021, Two Dollars ($2.00) for each One Thousand Dollars ($1,000.00), or fraction thereof, in excess of One Hundred Thousand Dollars ($100,000.00), of the value of the capital used, invested or employed in the exercise of any power, privilege or right enjoyed by such organization within this state, except as hereinafter provided.
(v)
For tax years beginning on or after January 1, 2021, but before January 1, 2022, One Dollar and Seventy-five Cents ($1.75) for each One Thousand Dollars ($1,000.00), or fraction thereof, in excess of One Hundred Thousand Dollars ($100,000.00), of the value of the capital used, invested or employed in the exercise of any power, privilege or right enjoyed by such organization within this state, except as hereinafter provided.
(vi)
For tax years beginning on or after January 1, 2022, but before January 1, 2023, One Dollar and Fifty Cents ($1.50) for each One Thousand Dollars ($1,000.00), or fraction thereof, in excess of One Hundred Thousand Dollars ($100,000.00), of the value of the capital used, invested or employed in the exercise of any power, privilege or right enjoyed by such organization within this state, except as hereinafter provided.
(vii)
For tax years beginning on or after January 1, 2023, but before January 1, 2024, One Dollar and Twenty-five Cents ($1.25) for each One Thousand Dollars ($1,000.00), or fraction thereof, in excess of One Hundred Thousand Dollars ($100,000.00), of the value of the capital used, invested or employed in the exercise of any power, privilege or right enjoyed by such organization within this state, except as hereinafter provided.
(viii)
For tax years beginning on or after January 1, 2024, but before January 1, 2025, One Dollar ($1.00) for each One Thousand Dollars ($1,000.00), or fraction thereof, in excess of One Hundred Thousand Dollars ($100,000.00), of the value of the capital used, invested or employed in the exercise of any power, privilege or right enjoyed by such organization within this state, except as hereinafter provided.
(ix)
For tax years beginning on or after January 1, 2025, but before January 1, 2026, Seventy-five Cents (75¢) for each One Thousand Dollars ($1,000.00), or fraction thereof, in excess of One Hundred Thousand Dollars ($100,000.00), of the value of the capital used, invested or employed in the exercise of any power, privilege or right enjoyed by such organization within this state, except as hereinafter provided.
(x)
For tax years beginning on or after January 1, 2026, but before January 1, 2027, Fifty Cents (50¢) for each One Thousand Dollars ($1,000.00), or fraction thereof, in excess of One Hundred Thousand Dollars ($100,000.00), of the value of the capital used, invested or employed in the exercise of any power, privilege or right enjoyed by such organization within this state, except as hereinafter provided.
(xi)
For tax years beginning on or after January 1, 2027, but before January 1, 2028, Twenty-five Cents (25¢) for each One Thousand Dollars ($1,000.00), or fraction thereof, in excess of One Hundred Thousand Dollars ($100,000.00), of the value of the capital used, invested or employed in the exercise of any power, privilege or right enjoyed by such organization within this state, except as hereinafter provided.
(b)
In no case shall the franchise tax due for the accounting period be less than Twenty-five Dollars ($25.00).
(c)
It is the purpose of this section to require the payment of a tax by all organizations not organized under the laws of this state, measured by the amount of capital or its equivalent, for which such organization receives the benefit and protection of the government and laws of the state.
(2)
Annual report of foreign corporations.
Each foreign corporation authorized to transact business in this state shall file an annual report as required by the provisions of Section
79-4-16.22
.
(3)
(a)
A corporation that has negotiated a fee-in-lieu as defined in Section
57-75-5
shall not be subject to the tax levied by this section on such project; however, the fee-in-lieu payment shall be otherwise treated in the same manner as the payment of franchise taxes.
(b)
(i)
As used in this paragraph:
1.
"Authority" shall have the meaning ascribed to such term in Section
57-75-5(b)
;
2.
"Project" shall have the meaning ascribed to such term in Section
57-75-5(f)(xxix)
; and
3.
"Enterprise" shall mean the corporation authorized for the project pursuant to Section
57-75-5(f)(xxix)
.
(ii)
The term of the franchise tax fee-in-lieu agreement negotiated under this subsection and authorized by Section
57-75-5(j)
, between the authority and the enterprise for the project shall not exceed twenty-five (25) years. The franchise tax fee-in-lieu agreement shall apply only to new franchise tax liability attributable to the project, and shall not apply to any existing franchise tax liability of the enterprise in connection with any current operations in this state.
(iii)
In the event that the annual number of full-time jobs maintained by the enterprise falls below the minimum annual number of full-time jobs required by the authority pursuant to a written agreement between the authority and the enterprise for two (2) consecutive years, the franchise tax fee-in-lieu for the project shall be suspended until the first tax year during which the annual number of full-time jobs maintained by the enterprise reaches the minimum annual number of full-time jobs required by the authority pursuant to a written agreement between the authority and the enterprise.
(iv)
The enterprise shall be entitled to utilize a single sales apportionment factor in the calculation of its liability for franchise tax imposed by this chapter which is attributable to the project for any year for which it files a Mississippi franchise tax return. The enterprise shall be entitled to continue to utilize such single sales apportionment factor notwithstanding a suspension of the franchise tax fee-in-lieu pursuant to subparagraph (iii) of this paragraph.
(c)
As used in this paragraph (c):
(i)
"Affiliated enterprise" or an "affiliate" shall have the meaning ascribed to such term in Section
57-75-5(k)(ii)
;
(ii)
"Authority" shall have the meaning ascribed to such term in Section
57-75-5(b)
;
(iii)
"Project" shall have the meaning ascribed to such term in Section
57-75-5(f)(xxxi)
; and
(iv)
"Enterprise" shall mean the corporation authorized for a particular project pursuant to Section
57-75-5(f)(xxxi)
, or any corporation which becomes subject to the tax levied by this section because it is an affiliate of the corporation or other enterprise authorized for a particular project pursuant to Section
57-75-5(f)(xxxi)
.
(v)
The term of the franchise tax fee-in-lieu agreement negotiated under this subsection and authorized by Section
57-75-5(j)
, between the authority and the enterprise shall expire in 2028 upon the repeal of the tax levied by this section. The franchise tax fee-in-lieu agreement shall apply only to new franchise tax liability attributable to the project, and shall not apply to any existing franchise tax liability of the enterprise in connection with any current operations in this state.
(vi)
In the event that the annual number of full-time jobs maintained by the enterprise falls below the minimum annual number of full-time jobs required by the authority pursuant to a written agreement between the authority and the enterprise for one or more years, the franchise tax fee-in-lieu for the project may be reduced or suspended by the authority until the first tax year during which the annual number of full-time jobs maintained by the enterprise and/or its affiliates reaches the minimum annual number of full-time jobs required by the authority pursuant to a written agreement between the authority and the enterprise.
(vii)
The enterprise shall be entitled to utilize a single sales apportionment factor in the calculation of its liability for franchise tax imposed by this chapter which is attributable to the project for any year for which it files a Mississippi franchise tax return. The enterprise shall be entitled to continue to utilize such single sales apportionment factor notwithstanding a suspension of the franchise tax fee-in-lieu pursuant to subparagraph (vi) of this paragraph. In no event shall an enterprise be entitled to utilize a single sales apportionment factor for purposes of calculating its liability for franchise tax imposed by this chapter attributable to any operations or activities thereof subject to tax liability imposed by this chapter prior to January 1, 2023, except to the extent that the enterprise is entitled to utilize a single sales apportionment factor in the calculation of its liability for franchise tax attributable to any operations or activities thereof subject to tax liability imposed by this chapter prior to January 1, 2023, pursuant to any other section of law or regulation duly adopted by the department.
(d)
As used in this paragraph (d):
(i)
"Affiliated enterprise" or an "affiliate" shall have the meaning ascribed to such term in Section
57-75-5(k)(iii)
;
(ii)
"Authority" shall have the meaning ascribed to such term in Section
57-75-5(b)
;
(iii)
"Project" shall have the meaning ascribed to such term in Section
57-75-5(f)(xxxii)
; and
(iv)
"Enterprise" shall mean the corporation authorized for a particular project pursuant to Section
57-75-5(f)(xxxii)
, or any corporation which becomes subject to the tax levied by this section because it is an affiliate of the corporation or other enterprise authorized for a particular project pursuant to Section
57-75-5(f)(xxxii)
.
(v)
The term of the franchise tax fee-in-lieu agreement negotiated under this subsection and authorized by Section
57-75-5(j)
, between the authority and the enterprise shall expire in 2028 upon the repeal of the tax levied by this section. The franchise tax fee-in-lieu agreement shall apply only to new franchise tax liability attributable to the project, and shall not apply to any existing franchise tax liability of the enterprise in connection with any current operations in this state.
(vi)
In the event that the annual number of full-time jobs maintained by the enterprise falls below the minimum annual number of full-time jobs required by the authority pursuant to a written agreement between the authority and the enterprise for one or more years, the franchise tax fee-in-lieu for the project may be reduced or suspended by the authority until the first tax year during which the annual number of full-time jobs maintained by the enterprise and/or its affiliates reaches the minimum annual number of full-time jobs required by the authority pursuant to a written agreement between the authority and the enterprise.
(e)
As used in this paragraph (e):
(i)
"Affiliated enterprise" or an "affiliate" shall have the meaning ascribed to such term in Section
57-75-5(k)(iv)
.
(ii)
"Authority" shall have the meaning ascribed to such term in Section
57-75-5(b)
.
(iii)
"Project" shall have the meaning ascribed to such term in Section
57-75-5(f)(xxxiii)
.
(iv)
"Enterprise" shall mean the corporation authorized for a particular project pursuant to Section
57-75-5(f)(xxxiii)
, or any corporation which becomes subject to the tax levied by this section because it is an affiliate of the corporation or other enterprise authorized for a particular project pursuant to Section
57-75-5(f)(xxxiii)
.
(v)
The term of the franchise tax fee-in-lieu agreement negotiated under this subsection and authorized by Section
57-75-5(j)
, between the authority and the enterprise shall expire in 2028 upon the repeal of the tax levied by this section. The franchise tax fee-in-lieu agreement shall apply only to new franchise tax liability attributable to the project, and shall not apply to any existing franchise tax liability of the enterprise in connection with any current operations in this state.
(vi)
In the event that the annual number of full-time jobs maintained by the enterprise falls below the minimum annual number of full-time jobs required by the authority pursuant to a written agreement between the authority and the enterprise for one or more years, the franchise tax fee-in-lieu for the project may be reduced or suspended by the authority until the first tax year during which the annual number of full-time jobs maintained by the enterprise and/or its affiliates reaches the minimum annual number of full-time jobs required by the authority pursuant to a written agreement between the authority and the enterprise.
(4)
An approved business enterprise as defined in the Growth and Prosperity Act shall not be subject to the tax levied by this section on the value of capital used, invested or employed by the approved business enterprise in a growth and prosperity county or supervisors district as provided in the Growth and Prosperity Act.
(5)
A business enterprise operating a project as defined in Section
57-64-33
, in a county that is a member of a regional economic development alliance created under the Regional Economic Development Act shall not be subject to the tax levied by this section on the value of capital used, invested or employed by the business enterprise in such a county as provided in Section
57-64-33
.
(6)
The tax levied by this chapter 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
.
(7)
A business enterprise as defined in Section
57-113-1
or
57-113-21
that is exempt from certain state taxes under Section
57-113-5
or
57-113-25
shall not be subject to the tax levied by this section on the value of capital used, invested or employed by the business enterprise.
(8)
A taxpayer who is eligible to apply as a credit against the tax levied by this chapter a tax credit awarded by the Mississippi Development Authority in accordance with the Mississippi Flexible Tax Incentive Act may apply the tax credit in the amount available for such purpose, or such lesser amount determined by the taxpayer, pursuant to the Mississippi Flexible Tax Incentive Act. The credit applied for a tax-reporting period shall be reflected on the form of the return in the manner prescribed by the commissioner.
Codes, 1942, § 9314; Laws, 1934, ch. 121; Laws, 1940, ch. 115; Laws, 1955, Ex. Ch. 118, § 2; Laws, 1962, ch. 589, § 2; Laws, 1964, ch. 512, § 2; Laws, 1975, ch. 467, § 3; Laws, 1982, ch. 489, § 9; Laws, 1989, ch. 485, § 6; Laws, 2000, 2nd Ex Sess, ch. 1, § 50; Laws, 2002, ch. 464, § 7; Laws, 2005, ch. 468, § 9; Laws, 2010, ch. 533, § 22, eff. 7/1/2010.
Amended by Laws, 2024EX2, ch. (number not assigned at time of publication), SB 2001,§ 14, eff. 1/30/2024.
Amended by Laws, 2024EX1, ch. (number not assigned at time of publication), HB 1,§ 12, eff. 1/22/2024.
Amended by Laws, 2022EX1, ch. 1, HB 1,§ 12, eff. 11/17/2022.
Amended by Laws, 2022, ch. 462, SB 2159,§ 14, eff. 7/1/2022.
Amended by Laws, 2019, ch. 396, SB 2271,§ 6, eff. 7/1/2019.
Repealed by Laws, 2016, ch. 499, SB 2858, 5, eff. 1/1/2028.
Amended by Laws, 2016, ch. 499, SB 2858, 4, eff. 1/1/2016.
Amended by Laws, 2016EX1, ch. 1, HB 1,§ 18, eff. 2/8/2016.
Amended by Laws, 2013, ch. 419, SB 2684, 2, eff. 7/1/2013.