MS HB1597

Expands Mississippi income tax to nonresidents on net income derived from property, activity, or other sources within Mississippi, rather than limiting taxation to specific business categories.

Broadens definition of "doing business" in Mississippi to include regular solicitation of business from potential customers, issuance of credit/debit cards to Mississippi customers, performance of services outside Mississippi with benefits received in-state, franchising/licensing agreements, and transactions involving intangible personal property.

Modifies income tax brackets for residents starting in 2018, gradually increasing the tax-free threshold from $1,000 in 2018 to $5,000 in 2022 and beyond, while maintaining 3%, 4%, and 5% tax rates on income brackets above $5,000.

Revises business income classification to apply transactional and functional tests, establishing that income is presumed business income unless proven otherwise, and clarifies that service income apportions to the state where benefits are received.

Effective January 1, 2017.