MS HB1693

Expands Mississippi income tax to apply to nonresidents' net income derived from property, activity, or other sources within Mississippi, not just residents.

Revises 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 franchising/licensing agreements with Mississippi franchisees or licensees.

Adds definition of "business income" using transactional and functional tests, classifying income as business income if derived from regular course of trade or business partly conducted in Mississippi, or if property generating income is integral to business operations.

Specifies that income from services is apportioned to the state where benefits are received and clarifies allocation rules for various types of nonbusiness income including rents, royalties, capital gains, interest, and dividends.

Effective date: January 1, 2016.