Mississippi 2022 Regular Session

Mississippi Senate Bill SB2196

Introduced

1/13/22

Refer

1/13/22

Failed

2/23/22

Caption

Sales taxation; exempt sales to certain community action agencies exempted from federal income taxation.

Impact

The bill potentially impacts state tax regulations by expanding the list of entities exempt from sales tax. Supporters argue that this will enable community action organizations to utilize more of their budget for services rather than taxes, thereby enhancing their capacity to assist those in need. Moreover, this could foster an environment where these organizations can thrive without the additional strain of sales taxes, leading to greater community support and engagement.

Summary

Senate Bill 2196 aims to amend Section 27-65-111 of the Mississippi Code of 1972 by providing an exemption from sales taxation for sales of tangible personal property and services made to certain community action organizations. These organizations must be exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code. The legislation is intended to support community initiatives by alleviating financial burdens associated with sales taxes on purchases made by these entities, which typically provide vital services to low-income or underserved populations.

Contention

Notably, discussions surrounding SB2196 may center on the implications of tax exemptions on state revenues. Critics may argue that broadening tax exemptions could strain the state's budget, leading to less funding for essential public services. The balance between supporting community organizations and ensuring sufficient state revenue will likely be a point of contention, as lawmakers weigh the benefits of reduced operational costs for non-profits against the potential economic repercussions.