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Mississippi's franchise tax applies to most corporations doing business in the State. The rate is $2.50 per $1,000 of the value of capital used, invested, or employed in the State. The tax base consists of capital stock issued and outstanding, surplus and undivided profits, and true reserves; however, the tax base cannot be less than the corporation's assessed value of real and intangible personal property in Mississippi. For multi-state corporations, capital is apportioned to Mississippi on a formula/ratio basis. The ratio is calculated by dividing (a) the sum of the book value of real and tangible personal property owned in the State, plus the gross receipts received from business activity in the State; by (b) the sum of the book value of real and tangible total corporate personal property plus total corporate gross receipts received. The ratio is then applied to the total capital stock, surplus and undivided profits, and true reserves to calculate the amount of capital apportioned to Mississippi. This amount is then multiplied by the franchise tax to obtain the amount of franchise tax owed. |
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