As Amended
SEC. 27-13-13. Multistate corporations.
(1) In the case of organizations doing business both within and without Mississippi, the value of the capital employed in this state shall be determined by first computing the ratio between (1) the real and tangible personal property owned in Mississippi and gross receipts from business carried on in Mississippi, and (2) the total real and tangible personal property owned and gross receipts wherever located and from wherever received. Said ratio then shall be applied to the total capital stock, surplus, undivided profits and true reserves and the result of that application shall be the capital employed in this state. Where an organization owns an interest in a passthrough entity, such as a partnership, limited liability company or a limited liability partnership, the real and tangible personal property owned by such passthrough entity shall be included in the computation of the ratio provided for in this subsection as though such property is owned or was received by the organization. Provided, however, that the amount of the determined capital in Mississippi shall in no case be less than the assessed value of the Mississippi property of the organization for the year preceding the year in which the return is due. The assessed value of the property owned by a passthrough entity shall be included as being owned by the organization.
(2) (a) For the purpose of this section, for tax returns for tax years ending before January 1, 1999, an organization which uses a formula method of apportionment in making income tax returns to this state shall determine its gross receipts from business carried on in Mississippi by applying to total unitary receipts the ratio achieved, or which would be achieved, by such formula and adding to the result of such application any nonunitary Mississippi receipts.
(b) For the purpose of this section, for tax returns for tax years ending on or after January 1, 1999, the gross receipts of an organization that is required to use a formula method of apportionment in making income tax returns to this state shall be the same (both as to gross receipts from business carried on in Mississippi and gross receipts wherever located) as the gross receipts (or sales) used for the receipts or sales factor in the applicable income tax formula. However, gross receipts from business carried on in Mississippi, for the purposes of this section, shall also include any receipts from the taxpayer's business operations which are not apportioned but rather are directly allocated or assigned to this state. If the taxpayer is required to use a formula method of apportionment in making income tax returns which does not have a receipts or sales factor, then the receipts factor for the franchise tax formula shall be determined by regulation of the commission. Receipt of a passthrough entity added to the organization's receipts in subsection (1) of this section shall be in lieu of including any allocated income of that passthrough entity as provided for in this subsection.
SOURCE: Codes, 1942, § 9319; Laws, 1934, ch. 121; Laws, 1956, ch. 412, § 4; Laws, 1975, ch. 467, § 4; Laws, 1997, ch. 536, § 1; Laws, 2001, ch. 586, § 7, SB 2609, eff from and after Jan. 1, 2001.
PREVIOUS VERSIONS: Pre-2001