MS SB2589

Shifts responsibility for withholding taxes from the buyer to the seller in sales of real property and associated tangible personal property by nonresidents when gross proceeds exceed $100,000.

Seller must withhold and pay 5% of the amount realized to the Department of Revenue, or only the net proceeds if the withholding amount exceeds available proceeds.

Seller may provide an affidavit to the Department of Revenue showing the actual gain recognized to reduce the withholding amount to the applicable percentage of the recognized gain if excess withholding would occur.

Seller may file a refund claim with the Department of Revenue if the withheld amount exceeds the tax obligation, supported by an affidavit stating the actual gain recognized from the sale.

Real estate agents and closing agents have no duty or liability regarding compliance with, violation of, or enforcement of this section.

Takes effect July 1, 2015.