Mississippi House Bill HB1669

Mississippi 2023 Regular Session

• Introduced: 2/15/23
• Refer: 2/15/23
• Failed: 2/22/23

Caption

Sales tax; revise defintion of "gross proceeds of sales" and "installation charges" and exempt certain services.

Impact

This legislative measure is set to exempt certain services from sales tax when they are provided in connection with a residence or dwelling place, including homes, mobile homes, and summer cottages, but explicitly excluding apartments or similar commercial establishments. The bill is expected to alleviate some tax burdens on residents when they engage in home-related services, which may foster a more favorable economic environment for homeowners and service providers alike by lowering costs. The new definitions clarify what constitutes taxable income derived from these services, potentially impacting those who operate in the home service industry.

Summary

House Bill 1669 aims to amend various provisions of the Mississippi Code concerning sales tax laws, specifically focusing on the definitions of 'gross proceeds of sales' and 'installation charges'. The bill seeks to revise these definitions as part of a broader effort to clarify and streamline taxation processes, specifically in the context of services provided in connection with residences and dwelling places for human beings. By making these definitions more explicit, the bill intends to improve compliance and reduce confusion regarding tax liabilities in these areas.

Contention

Notable points of contention surrounding HB 1669 revolve around the potential revenue implications for the state's tax base. Critics may argue that while the amendments aim to benefit residential property owners and home service providers, they could lead to reduced tax revenues for local governments. Gathering support for the bill may involve addressing concerns about sustaining state revenue levels while offering these exemptions. Additionally, the exclusion of certain commercial establishments from the tax exemption might lead to debates about fairness and equity in tax policy treatment among business types.