MS SB2724

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

Broadens the definition of "doing business" to include regular solicitation of business in Mississippi, issuance of credit/debit cards to Mississippi customers, performance of services outside Mississippi where benefits are received within the state, and regular transactions involving intangible personal property that produce receipts from within Mississippi.

Adds criteria for classifying income as business income using transactional and functional tests, including income from property held in furtherance of trade or business operations and income from isolated sales or licensing of intangible assets used in business operations.

Clarifies that income from services shall be apportioned to the state where the benefits of services are received and extends tax treatment to foreign corporations, associations, and other entities doing business in Mississippi.

Effective date: January 1, 2012.