MS HB1676

Amends Section 27-7-5 to subject nonresident individuals, corporations, partnerships, trusts and estates to Mississippi income tax on net income derived from property, activity or other sources within Mississippi.

Revises the definition of "doing business" in Section 27-7-23 to include 11 specific activities, including regular solicitation of business in Mississippi, issuance of credit cards to Mississippi customers, performance of services outside Mississippi where benefits are received within Mississippi, and franchising/licensing agreements with Mississippi franchisees or licensees.

Expands the definition of business income to include income from transactions and activities in the regular course of a taxpayer's trade or business conducted partly within Mississippi, even if the specific transaction does not occur in Mississippi.

Clarifies that income from services is apportioned to the state where the benefits of the service are received, and expands factors for determining whether property and income are integral to a taxpayer's trade or business operations.

Effective date: January 1, 2016.