Miss. seeks to close $30 million in tax loopholes

By Jeff Amy/The Associated Press

JACKSON — A Mississippi House panel is supporting a plan to change tax law to raise $30 million more in corporate income taxes.

House Bill 970 passed the Ways and Means Committee on Thursday. It would close a loophole where companies that do business in Mississippi can now pay royalties to a parent company in a state with no corporate income tax, allowing them avoid Mississippi taxes on that income. For example, a company can pay royalties to the home company for the use of trademarks and logos.

Another provision would tax companies that solicit business in Mississippi, issue credit cards in Mississippi, have independent contractors or franchisees in the state or provide services from outside the state to people within the state.

Officials describe both changes as modernizing state tax rules.

Click video to hear audio