NEWS

Bill would allow taxpayers to haggle with state

Geoff Pender
The Clarion-Ledger

The House has unanimously approved a bill that would allow the state Department of Revenue to reach compromises with taxpayers on what they owe like the Internal Revenue Service does with federal taxes.

"Section 100 of the state constitution actually precludes any offer of compromise on state taxes unless it is a quote 'doubtful claim,'" said Ways and Means Chairman Jeff Smith, R-Columbus. "The department has talked about it for years, but it doesn't have the authority. They can work with people on interest and stuff, but not on the principal, even if you feel it's inaccurate. This is something whose time has come."

Smith said House Bill 391, which he authored, would expand on the "doubtful claim" clause in the constitution to give DOR some room to haggle with taxpayers. The bill passed Ways and Means and the full House on Thursday and now heads to the Senate.

Other tax bills passed by the House on Thursday include:

House Bill 425, which would allow county tax collectors to auction property for tax sale online. Smith said this would be optional for counties, must be approved by boards of supervisors, and collectors would still have to advertise in local newspapers when the sales would be held and the website.

"This is discretionary and would allow some of the younger tax assessors that are actually in the 21st century to use an alternate method," Smith said. "The state code now still says it must be done by 'public outcry.'"

House Bill 446, which would extend income tax credits about to expire for employers that provide skills training for employees to 2018.

Rep. Omeria Scott, D-Laurel, Questioned whether the tax credits would be given to "new industry" coming to the state.

"The short answer is yes," Smith said. "The long answer is I'm not going to get into it today."

House Bill 496, which would extend tax credits of $2,000 per full time employee for "cut-and-sew" jobs.

Rep. Gary Chism, R-Columbus, noted, "This industry has really been decimated in Northeast Mississippi."

House Bill 461, which clarifies tax filing deadlines in Mississippi match federal ones.

Chism said the federal government has changed some filing dates for corporations and partnerships and the state will use the same deadlines.

Contact  Geoff Pender at (601) 961-7266 or gpender@jackson.gannett.com. Follow @GeoffPender on Twitter.

Ways and Means Chairman Jeff Smith, R-Columbus