May 8, 2021

Volume XI, Number 128

Advertisement

May 07, 2021

Subscribe to Latest Legal News and Analysis

May 06, 2021

Subscribe to Latest Legal News and Analysis

May 05, 2021

Subscribe to Latest Legal News and Analysis
Advertisement

Mississippi Lt. Governor: Use Tax Remote Seller Collection Bill “Unconstitutional”, Expected To Die In Senate Committee

Mississippi Lt. Gov. Tate Reeves on Monday released a statement that H.B. 480 would not be acted on in the Senate, effectively killing the bill by not advancing it out of the Finance Committee by a February 28 legislative deadline. As previously reported, H.B. 480 would have required remote sellers with over $250,000 of sales to Mississippi customers to collect and remit the state’s use tax. The Lt. Governor was quoted in numerous local media outlets as acknowledging that the bill would violate Quill Corp. v. North Dakota, 504 U.S. 298 (1992), would have unnecessarily entangled the state in protracted and costly litigation, and would be unlikely to produce any new revenue unless and until that litigation was resolved in the state’s favor.

Mississippi, MapLeft unresolved by the demise of the bill is what the state might do to fund road and bridge improvements, as the proposed legislation earmarked 70% of new use tax collections for those purposes. This funding mechanism led to widespread support for passage of the bill throughout the Mississippi business community.

While this announcement appears to doom the Legislature’s efforts to “deputize an out-of-state retailer as its collection agent for a use tax,” (see, National Bellas Hess v. Department of Revenue, 386 U.S. 753, 757 (1967)) the Department of Revenue is expected to proceed with its parallel efforts to enact an identical collection requirement via regulation. The Department has made no new pronouncements refuting its previously stated intent to act independently of the Legislature following its public hearing on the proposed regulation on February 15.

Advertisement
© 2021 Jones Walker LLPNational Law Review, Volume VII, Number 60
Advertisement
Advertisement

TRENDING LEGAL ANALYSIS

Advertisement
Advertisement

About this Author

John Fletcher Tax Lawyer Jones Walker Law Firm
Partner

John Fletcher is a partner in the firm's Tax & Estates Practice Group and practices from the Jackson, Mississippi office. With more than twenty years' experience in the legal, corporate, and accounting arenas, his practice focuses primarily on state tax matters, encompassing Mississippi, Louisiana and multi-state income, franchise, sales, use and local ad valorem taxes.

He is a contributor for Cooking with SALT, a legal blog committed to providing timely insights on recent legal and practical developments concerning clients...

601-949-4620
Advertisement
Advertisement