SALT Report 1906 – In his Executive Budget for Fiscal Year 2014, Mississippi Governor Phil Bryant urged the state’s Legislature to exempt small businesses from having to make an accelerated sales tax payment.
Currently, businesses with an average monthly sales tax liability of $20,000 or more are required to estimate their taxes for June and pay 75% of those taxes on or before June 20. The accelerated payment is in addition to the May sales tax payment that is also due on June 20.
In 2007, the state passed a bill that raised the tax liability threshold for the accelerated payment from $20,000 to $50,000; however, the state’s Legislature has repeatedly postponed the implementation of this law. As a result, small businesses are required to make two tax payments in June.
In an effort to promote a better business climate, the Governor recommends enacting the provisions of the 2007 bill. Further, the Governor proposes to offset any budget deficits that would arise from the enactment of this bill with the state’s special funds surplus.
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