MS HB970

Expands Mississippi income tax on nonresidents to include net income derived from property, activity, or other sources within the state, not limited to specific business activities.

Broadens the definition of "doing business" to include 11 categories of activities such as regular solicitation in Mississippi, issuance of credit cards to state customers, and performance of services outside the state where benefits are received in Mississippi.

Adds restrictions on deductibility of intangible expenses and interest paid to related members unless the transaction has a valid business purpose, economic substance, and arm's-length terms comparable to unrelated party transactions.

Establishes that "valid business purpose" means business activities or transactions that improve the taxpayer's economic position apart from tax effects.

Effective date: January 1, 2012.