Bill Text: MS SB3161 | 2024 | Regular Session | Engrossed
Bill Title: Ad valorem tax; authorize a tax credit for certain refineries of oil, gas and petroleum products.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2024-04-16 - Died In Committee [SB3161 Detail]
Download: Mississippi-2024-SB3161-Engrossed.html
MISSISSIPPI LEGISLATURE
2024 Regular Session
To: Finance
By: Senator(s) Harkins
Senate Bill 3161
(As Passed the Senate)
AN ACT TO AUTHORIZE AN AD VALOREM TAX CREDIT FOR A PERSON, FIRM, OR CORPORATION OPERATING A REFINERY FOR THE REFINING OF OIL, GAS OR PETROLEUM PRODUCTS AND OWNING OIL, GAS OR PETROLEUM PRODUCTS, WHETHER PRODUCED WITHIN OR WITHOUT THE STATE, WHICH ARE LOCATED AT SUCH A REFINERY PRIOR TO BEING REFINED, ARE IN THE PROCESS OF BEING REFINED AT SUCH REFINERY, OR HAVE BEEN REFINED AT SUCH REFINERY AND ARE STORED AT SUCH REFINERY; TO PROVIDE THAT THE TAX CREDIT SHALL BE FOR THE AMOUNT OF ALL AD VALOREM TAXES PAYABLE THAT ARE ATTRIBUTABLE TO SUCH OIL, GAS, OR PETROLEUM PRODUCTS AND SHALL BE APPLIED AGAINST OTHER AD VALOREM TAXES PAYABLE ON OTHER TAXABLE REFINERY PROPERTY OF THE PERSON, FIRM OR CORPORATION OPERATING THE REFINERY; TO PROVIDE THAT AD VALOREM TAXES THAT ARE APPLIED AND USED AS A TAX CREDIT UNDER SECTION 27-7-22.5 MAY NOT BE APPLIED AND USED AS AN INCOME CREDIT UNDER THIS ACT; TO AMEND SECTION 27-7-22.5, MISSISSIPPI CODE OF 1972, WHICH AUTHORIZES AN INCOME TAX CREDIT FOR ANY MANUFACTURER, DISTRIBUTOR, WHOLESALE OR RETAIL MERCHANT WHO PAYS AD VALOREM TAXES IMPOSED ON COMMODITIES, RAW MATERIALS, WORKS-IN-PROCESS, PRODUCTS, GOODS, WARES AND MERCHANDISE HELD FOR RESALE, TO PROVIDE THAT AD VALOREM TAXES THAT ARE APPLIED AND USED AS A TAX CREDIT UNDER THIS ACT MAY NOT BE APPLIED AND USED AS AN INCOME CREDIT UNDER SUCH SECTION; TO BRING FORWARD SECTION 27-31-19, MISSISSIPPI CODE OF 1972, WHICH PROVIDES AN AD VALOREM TAX EXEMPTION FOR OIL, GAS, AND PETROLEUM PRODUCTS, WHETHER PRODUCED WITHIN OR WITHOUT THE STATE, WHICH ARE OWNED BY A PERSON, FIRM, OR CORPORATION OPERATING A REFINERY FOR THE REFINING OF OIL, GAS OR PETROLEUM PRODUCTS IN THE STATE, WHICH ARE IN TRANSIT TO OR SITUATED AT SUCH A REFINERY FOR REFINING THEREAT, ARE IN THE PROCESS OF BEING REFINED AT SUCH A REFINERY OR HAVE BEEN REFINED AT SUCH REFINERY AND ARE STILL OWNED BY OR IN THE HANDS OF THE REFINER, FOR THE PURPOSES OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) A person, firm, or corporation operating a refinery for the refining of oil, gas or petroleum products and owning oil, gas or petroleum products, whether produced within or without the state, which (a) are located at such a refinery prior to being refined, (b) are in the process of being refined at such refinery, or (c) have been refined at such refinery and are stored at such refinery, and which are subject to ad valorem taxes levied or hereafter levied by any county, municipality, levee district, school district or any other taxing authority of the state or a political subdivision thereof shall be allowed a tax credit for the amount of all ad valorem taxes payable by the person, firm or corporation that are attributable to such oil, gas or petroleum products. The tax credit may be applied against other ad valorem taxes payable on other taxable refinery property of such person, firm or corporation by the same county, municipality, levee district, school district or any other taxing authority of the state or a political subdivision thereof. However, the amount of credit that may be utilized during a taxable year cannot exceed the ad valorem tax liability of the person, firm or corporation on such other property for the taxable year. The tax credit provided by this section shall also extend to ad valorem taxes payable that are attributable to such oil, gas and petroleum products owned by any corporation controlled by or under common control with, or controlling such refiner; however, the tax credit shall not extend to those finished petroleum products no longer at the refinery incident to regular, normal and customary marketing operations held in marketing bulk plants and retail service stations.
(2) The administration of the tax credit provided by this section will be performed by the tax assessor and/or tax collector of the county in which each refinery is located, and may include a credit applied by the tax assessor against the assessed value of other taxable property, or a credit applied by the tax collector against taxes on other taxable property which have been determined but not yet billed.
(3) Any amount of ad valorem taxes applied and used as a tax credit under Section 27-7-22.5, Mississippi Code of 1972, may not be applied and used as a tax credit under this section.
SECTION 2. Section 27-7-22.5, Mississippi Code of 1972, is amended as follows:
27-7-22.5. (1) (a) For any manufacturer, distributor, wholesale or retail merchant who pays to a county, municipality, school district, levee district or any other taxing authority of the state or a political subdivision thereof, ad valorem taxes imposed on commodities, raw materials, works-in-process, products, goods, wares and merchandise held for resale, a credit against the income taxes imposed under this chapter shall be allowed for the portion of the ad valorem taxes so paid in the amounts prescribed in subsection (2).
(b) (i) For any person, firm or corporation who pays to a county, municipality, school district, levee district or any other taxing authority of the state or a political subdivision thereof, ad valorem taxes imposed on rental equipment, a credit against the income taxes imposed under this chapter shall be allowed for the portion of the ad valorem taxes so paid in the amounts prescribed in subsection (2).
(ii) As used in this paragraph, "rental equipment" means any rental equipment or other rental items which are held for short-term rental to the public:
1. Under rental agreements with no specific term;
2. Under at-will or open-ended agreements; or
3. Under rental agreements with terms ordinarily of less than three hundred sixty-five (365) days; and
4. Is not subject to privilege taxes imposed in Title 27, Chapter 19, Mississippi Code of 1972.
(c) The tax credit allowed by this section may not be claimed by a taxpayer that is a medical cannabis establishment as defined in the Mississippi Medical Cannabis Act.
(2) The tax credit allowed by this section shall not exceed the amounts set forth in paragraphs (a) through (g) of this subsection; and may be claimed for each location where such commodities, raw material, works-in-process, products, goods, wares, merchandise and/or rental equipment are found and upon which the ad valorem taxes have been paid. Any tax credit claimed under this section but not used in any taxable year may be carried forward for five (5) consecutive years from the close of the tax year in which the credit was earned.
(a) For the 1994 taxable year, the tax credit for each location of the taxpayer shall not exceed the lesser of Two Thousand Dollars ($2,000.00) or the amount of income taxes due the State of Mississippi that are attributable to such location.
(b) For the 1995 taxable year, the tax credit for each location of the taxpayer shall not exceed the lesser of Three Thousand Dollars ($3,000.00) or the amount of income taxes due the State of Mississippi that are attributable to such location.
(c) For the 1996 taxable year, the tax credit for each location of the taxpayer shall not exceed the lesser of Four Thousand Dollars ($4,000.00) or the amount of income taxes due the State of Mississippi that are attributable to such location.
(d) For the 1997 taxable year and each taxable year thereafter through taxable year 2013, the tax credit for each location of the taxpayer shall not exceed the lesser of Five Thousand Dollars ($5,000.00) or the amount of income taxes due the State of Mississippi that are attributable to such location.
(e) For the 2014 taxable year, the tax credit for each location of the taxpayer shall not exceed the lesser of Ten Thousand Dollars ($10,000.00) or the amount of income taxes due the State of Mississippi that are attributable to such location.
(f) For the 2015 taxable year, the tax credit for each location of the taxpayer shall not exceed the lesser of Fifteen Thousand Dollars ($15,000.00) or the amount of income taxes due the State of Mississippi that are attributable to such location.
(g) For the 2016 taxable year and each taxable year thereafter, the tax credit of the taxpayer shall be the lesser of the amount of the ad valorem taxes described in subsection (1) paid or the amount of income taxes due the State of Mississippi that are attributable to such location.
(3) Any amount of ad valorem taxes paid by a taxpayer that is applied toward the tax credit allowed in this section may not be used as a deduction by the taxpayer for state income tax purposes. In the case of a taxpayer that is a partnership, limited liability company or S corporation, the credit may be applied only to the tax attributable to partnership, limited liability company or S corporation income derived from the taxpayer.
(4) Any amount of ad valorem taxes applied and used as a tax credit under Section 1 of this act may not be applied and used as a tax credit under this section.
SECTION 3. Section 27-31-19, Mississippi Code of 1972, is brought forward as follows:
27-31-19. There shall be exempt from all ad valorem taxes now levied or hereafter levied by the State of Mississippi, or any county, municipality, levee district, school, or any other taxing district within the state, all oil, gas, and petroleum products, whether produced within or without the state, which oil, gas or petroleum products are owned by a person, firm, or corporation operating a refinery for the refining of oil, gas or petroleum products in the state, and either (1) are in transit to or situated at such a refinery for refining thereat; (2) are in the process of being refined at such a refinery; or (3) have been refined at such refinery and are still owned by or in the hands of the refiner. Such exemption shall also extend to such oil, gas and petroleum products owned by any corporation controlled by, under common control with, or controlling such a refiner; provided, however, that the exemption afforded by this section shall not extend to those finished petroleum products incident to regular, normal, and customary marketing operations held in marketing bulk plants or retail service stations.
SECTION 4. This act shall take effect and be in force from and after July 1, 2024, and shall stand repealed on June 30, 2024.
