MS SB2417

Changes Mississippi franchise tax levy from prior calculation method to $2.50 for each $1,000 (or fraction thereof) of retained earnings employed in the state for domestic and foreign corporations.

Applies $25.00 minimum franchise tax per accounting period to all taxable entities.

Maintains existing exemptions for corporations with fee-in-lieu agreements, approved business enterprises in growth and prosperity areas, redevelopment project areas, and certain tax-exempt business enterprises.

Requires calculation of in-state retained earnings using a ratio formula comparing Mississippi property and receipts to total property and receipts, with special rules for entities using income tax apportionment formulas and flow-through entity ownership interests.

Effective date is July 1, 2011.