MS HB107

Defines "Captive REIT" as a real estate investment trust that distributes one-half or more of its federal taxable income to related entities or persons on a consolidated return, and requires Captive REITs to add back any dividends deducted for state tax purposes.

Expands restrictions on deductibility of interest expenses, intangible expenses, and management/administrative fees paid to related members by requiring taxpayers to add back these costs unless the related member paid the corresponding income and it was subject to net income tax in Mississippi, another U.S. state, or a foreign nation with a U.S. income tax treaty.

Adds new definitions including "management and administrative fees" (expenses for services like accounting, payroll, and insurance), "intangible property" (patents, trademarks, copyrights, franchises, and similar assets), and "subchapter K entity" (partnerships and LLCs subject to federal subchapter K taxation).

Clarifies that interest expenses paid by subchapter K entities or corporations to related members are considered income derived from sources within Mississippi to the recipient.

Effective January 1, 2015, with no effect on tax claims or assessments accrued before the effective date.