Mississippi governor authorizes inventory legislation change
May 15, 2012
Mississippi Governor Phil Bryant recently signed inventory legislation
to give companies a larger income tax credit when they pay inventory taxes.
State businesses that pay the inventory tax are permitted to claim up to $5,000 in credit on their corporate income tax under the current law. The new law will raise this cap to $10,000 in 2014 and $15,000 in 2015. The following year, the inventory compliance
legislation will make the credit equal to whichever total is smaller between inventory tax and state income tax.
"We want (company owners) to take that money that they would've otherwise (placed) on paying taxes and actually invest in their business and hire new employees," said the state's Republican Lieutenant Governor, Tate Reeves, as quoted by The Associated Press
Opponents argue that requiring businesses to pay inventory tax puts Mississippi at an economic disadvantage, as it is one of only a few states in the nation to levy such a tax.