Bill > HB543

This bill makes several revisions to Mississippi's income tax law: 1. It specifies that the net income of nonresidents derived from property, activity or other sources within Mississippi is subject to the state income tax. 2. It revises the definition of "doing business" for purposes of the state income tax law to include a broader range of business activities and transactions within Mississippi, such as the regular sale or distribution of products or services, the regular solicitation of business, and the regular conduct of transactions involving intangible personal property. 3. It defines the term "valid business purpose" under the state income tax law for purposes of restrictions on the deduction of certain intangible expenses and interest incurred in connection with transactions with related members. This requires the transaction to have a valid business purpose and economic substance, be comparable to an arm's-length transaction, and not be primarily motivated by tax avoidance. 4. The bill also makes other technical and conforming changes to the state's income tax laws.

Budget and Finance

http://billstatus.ls.state.ms.us/2020/pdf/history/HB/HB0543.xml