MS SB2903

Removes the scheduled phase-out of the 3% income tax rate on the first $5,000 of taxable income, restoring the tax to apply to all residents and non-residents beginning January 1, 2020.

Eliminates the provision allowing self-employed individuals to deduct a percentage of federal self-employment taxes (17% for 2017, 34% for 2018, and 50% for 2019 and thereafter) from gross income.

Removes the scheduled phase-out of the corporation franchise tax, restoring the tax rate of $2.50 per $1,000 of capital value (or fraction thereof) in excess of $100,000 for all tax years beginning January 1, 2020 and thereafter.

Repeals Section 5 of Chapter 499, Laws of 2016, which had scheduled the complete elimination of the corporation franchise tax on January 1, 2028.

Effective date: January 1, 2020.