MS SB2642

Phases out the corporation franchise tax for both domestic and foreign corporations over a five-year period from 2016 through 2019, with rates declining from $2.50 per $1,000 of capital value to $0.50 per $1,000.

Reduces the franchise tax rate for tax years beginning January 1, 2016 to $2.00 per $1,000; January 1, 2017 to $1.50 per $1,000; January 1, 2018 to $1.00 per $1,000; and January 1, 2019 to $0.50 per $1,000.

Maintains a minimum franchise tax of $25.00 per accounting period throughout the phase-out period.

Repeals all corporation franchise tax statutes (sections 27-13-1 through 27-13-67, Mississippi Code of 1972) effective January 1, 2020, completely eliminating the tax.

Preserves existing exemptions for corporations with fee-in-lieu agreements, approved business enterprises, regional economic development projects, redevelopment project areas, and certain tax-exempt business enterprises during the phase-out period.