14 Feb Legislative Update – February 14, 2022
Today marks the 42nd calendar day of the 2022 Legislative Session, and a week since the key deadline passed for bills to be reported out of their original chamber. Each chamber debated nearly 200 bills, and while many of them passed with little opposition, some bills died on the floor or died on the calendar (this means that the bill passed out of committee but was never considered on the floor).
The next major deadline is February 23, and this date is the deadline for revenue and appropriation bills to pass their respective chambers. Unlike general bills and constitutional amendments, there is no committee deadline, only a floor deadline. This week will likely include a lot of debate on revenue and appropriation bills, and the Senate is expected to officially unveil their proposal to provide tax relief to Mississippi taxpayers.
Earlier in the Session, Speaker Gunn introduced HB 531 in an attempt to eliminate the state personal income tax. The bill passed out of the House, was referred to the Senate Finance committee, and is subject to the March 15 deadline.
Two of MAR’s 2022 Legislative Priories have been signed into law (SB 2095 and SB 2097); however, the Board of Directors voted to add an additional legislative item to the Legislative Priorities- SB 2831. This legislation seeks to preserve the status quo on how software services are treated for tax purposes. This is a complex issue to consider, but the policy could have a significant impact on the real estate industry including: standard forms, online document signing, online banking, and the Multiple Listing Service. Here is a summary of the legislation provided to the business community through BIPEC (Business Industry Political Education Committee):
SB 2831 is an attempt to preserve the status quo as to Mississippi’s taxation of Internet-based software products and related services. Current sales and use tax laws and regulations reflect the traditional model in which software generally was maintained locally on computers and equipment, and the state could identify those local purchases and tax them accordingly.
Technology has now evolved and new means of cross-border delivery of computer- and software-related services have emerged (e.g. SaaS, PaaS, etc.), all of which now enable local taxpayers to utilize software and computer hardware that is maintained outside the state in ways not previously contemplated. This new technology is evolving rapidly and presents complicated tax policy challenges that virtually all the states currently are trying to address.
Present Department of Revenue regulations provide that taxpayers who use the Internet to remotely access software maintained on out-of-state servers do not incur sales or use tax because no software has actually been imported or delivered into the State. The Department of Revenue has proposed new regulations that would remove this provision and potentially subject that out-of-state software or its use by in-state taxpayers to sales or use tax.
SB 2831 recognizes the need to update Mississippi’s laws to address these complicated issues but reflects the importance of public input and addressing this legislatively rather than through regulation. The intent of the bill is temporarily to codify existing tax policy in these areas to allow the Legislature to study the issue in more depth and allow sufficient input from taxpayers and businesses who would potentially be impacted by the proposed regulatory changes.
In addition to the software taxation bill, MAR is carefully watching and evaluating the multiple Landlord Tenant bills that have passed each chamber and are expected to head to conference.
Below you will find a complete summary of MAR’s 2022 Legislative Priorities as well as a list of bills MAR staff will continue to monitor and evaluate as the Session progresses. Keep in mind, most of the bills on the watchlist will not make it through to final passage and the list will be amended after each deadline has passed.
Mississippi REALTORS® 2022 Legislative Priorities
Taxation
Any tax revision or increases enacted by the Mississippi Legislature should encourage savings, investment, and home ownership. The Mississippi REALTORS® oppose any tax provisions that are unfair to the real estate industry and property owners. The Mississippi REALTORS® oppose any effort to tax professional real estate services.
HB 531
Principal Sponsor: Philip Gunn
Co- Sponsors: Lamar, White, Steverson, Barnett, Massengill, Bain, Newman, Rushing, Kinkade, Morgan, Pigott, Ford (73rd), Calvert, Smith, Creekmore IV, Goodin, Tullos, Carpenter, Hood, Oliver, Robinson, Boyd, Eure, McKnight, Owen, Sanders, Crawford, Darnell
Current Status: Passed by the House. Referred to Senate Finance Committee
*HB 531 is a bill to eliminate Mississippi’s personal income tax. In its current form, this legislation does not contain any tax on professional services. The legislation does provide a Motor Vehicle Ad Valorem Tax Credit (the car tags should be cut by 50%). The legislation will establish a reimbursement fund so that counties will “be made whole” and should not result in a loss of revenue. MAR will continue to monitor this bill as it advances through the legislative process. This week, the Senate is expected to unveil their tax relief proposal. *
SB 2831
Principal Author: Josh Harkins
Local Zoning and Planning for Medical Marijuana
The Mississippi REALTORS® believe in the fundamental right of all private property owners working through local government to determine the highest and best use of their land. We maintain that planning for the classification and use of land must adequately consider the needs of housing, agriculture, commercial and industrial growth as well as quality of life and a healthy local economy. The Mississippi REALTORS® support legislation that allows local municipalities to zone and/or opt out of a Mississippi medical marijuana program.
SB 2095
Principal Sponsor: Kevin Blackwell
Co-Sponsors: Barnett, Butler (36th), Butler (38th), DeLano, Hickman, Horhn, Jackson (11th), Simmons (12th), Simmons (13th)
- SB 2095 contains language (Section 19) that establishes zoning provisions where a dispensary cannot be located less than 1,000 feet from a school, church, or childcare facility. There is also language that allows a school, church, or childcare facility to waive the 1,000 feet buffer, but it may not be less than 500 feet.
- Marijuana dispensaries must be no less 1,500 feet apart.
- (Section 30) SB 2095 gives local governing boards the option to opt-out of participating in the medical marijuana program. The governing boards have 90 days to vote to opt out. After 90 days, if no action is taken by the local governing boards, then the city/county is opted into the program and may not opt out without a referendum. If a local governing board opts out of a program, the citizens, through referendum, may opt back in.
Current Status: LAW
Enhance Due Process Rights for Real Estate Licensees
The Mississippi REALTORS® strive to enhance the ability of its members to achieve career success in an ethical and professional manner and to promote and protect the rights of private property ownership. Through years of member surveys and member input, Mississippi REALTORS® have consistently expressed an interest in amplifying the rights of licensees when dealing with the regulatory authority. The Mississippi REALTORS® continue to support legislation and/or regulation that enhances due process rights of licensees including supersedeas provisions in Mississippi real estate license law.
SB 2097
Principal Sponsor: Daniel Sparks
Co-Sponsors: Tate, Thompson, DeLano, Boyd, Hickman, Chism, Whaley, McCaughn, Seymour, Moran, England, McMahan, Caughman, Barnett, Younger, Suber, McLendon, Jackson (11th), Branning, Thomas, Polk, Williams
Current Status: LAW
In addition to MAR’s 2022 Legislative Priorities, the bills on the list below are being monitored by MAR staff and directly or indirectly impact the real estate profession. There may be additional bills introduced and added to this list.
HB 71: Housing Repair Grant Fund; authorize issuance of bonds to provide funds for grants to low-income individuals for home repairs.
HB 111: Housing Loan Assistance Pilot Program; create and authorize issuance of bonds to provide funds for.
HB 256: Manufactured and mobile homes; require certain notice to tax collector when relocated to another county.
HB 372: Sixteenth section land; authorize leasing of certain classified land to cities/counties for less than 5% of market value.
HB 379: Property interest; conveyance to married individuals considered to create joint tenancy with right of survivorship.
HB 531: Mississippi Tax Freedom Act of 2022; create.
HB 548: Ad valorem tax; exempt motor homes and trailers.
HB 551: Ad valorem taxation; exempt real property.
HB 585: Ad valorem tax; exempt property of certain nonprofit corporations.
HB 616: Menaced property; authorize municipalities to secure abandoned or dilapidated buildings on such property
HB 617: Municipalities; authorize waiver of liens, under certain circumstances, for costs associated with cleaning menaced property.
HB 626: Scrap metal; revise valuation of for penalties.
HB 686: Appraisal Management Companies; extend repealer on registration requirements under Mississippi Appraisal Company Act.
HB 826: Ad valorem tax; provide partial exemption for certain business personal property.
HB 827: Ad valorem tax; exempt certain business personal property from.
HB 828: Homestead exemption; increase for persons 65 years of age or older or totally disabled.
HB 842: Rural Fire Truck Acquisition Assistance Program; authorize an additional round for counties and municipalities.
HB 917: “Home-based Opportunity Freedom Act of 2022”; create
HB 933: Homeowners’ associations; regulate managing agents of and provide certain requirements for.
HB 1015: “Property Clean-up Revolving Fund”; establish.
HB 1061: Residential Landlord Tenant Act; revise evictions procedures of the.
HB 1069: Liens for delinquent county garbage fees; require chancery to keep certain record of.
HB 1105: Notaries; revise residency requirements of.
HB 1159: Sixteenth section lands; authorize local school boards to enter into public or private contracts for sale of forestry products grown on.
HB 1205: Appropriation; Rural Fire Truck Fund for additional round of trucks under Acquisition Assistance Program.
SB 2039: Real estate appraisal management companies; extend repealer on registration provisions.
SB 2072: Ad valorem taxes; consider annexed business “new enterprise” for purposes of eligibility for certain municipal tax exemptions.
SB 2082: Ad valorem tax on inventory; phase in exemption for certain small businesses.
SB 2094: Appropriation; Rural Fire Truck Fund for additional round of trucks under Acquisition Assistance Program.
SB 2194: Ad valorem tax; exempt property owned by a university foundation.
SB 2370: Ad valorem taxation; exempt property used for housing and providing services to victims of domestic violence and sexual assault.
SB 2461: Landlord-tenant law; revise provisions of to create procedures and protection for evictions.
SB 2465: Construction liens; failure to file notice shall not invalidate claim of lien.
SB 2626: Comprehensive Landlord and Tenant Act; enact.
SB 2769: Ad valorem tax; exempt property owned by a university foundation.
SB 2831: Sales and use taxes; bring forward code sections for purpose of possible amendment.