Senate Bill 2062 Summary

• Phase out the Mississippi corporation franchise tax through a series of annual rate reductions from 2011 to 2014, reducing the tax rate from $2.50 per $1,000 of capital to $0.50 per $1,000 of capital by 2014.

• Repeal all corporation franchise tax laws (sections 27-13-1 through 27-13-67) effective January 1, 2015, eliminating the tax entirely for both domestic and foreign corporations operating in Mississippi.

• Apply the phase-out schedule identically to both domestic corporations under section 27-13-5 and foreign corporations under section 27-13-7.

• Preserve existing claims, assessments, and collection efforts for franchise taxes that accrued before January 1, 2015, including penalties and enforcement actions.

• Take effect upon passage, with all provisions becoming operative according to their specified dates through the complete repeal on January 1, 2015.