The Mississippi Automatic Merchandising Association (MAMA) has urged members to encourage their state lawmakers to support H.B. 536, an inventory tax credit/rebate bill that could help businesses.
The Mississippi House Committee on Ways and Means has favorably released the bill, MAMA reported. The bill is now awaiting a vote on the house floor with a deadline of March 28, 2012.
Specifically, H.B. 536 would increase the tax credit on inventory tax to $10,000 in 2014, up from the current credit of $5,000. Beginning in 2015, the bill allows businesses to apply for a tax credit or rebate of up to 20 percent of the total tax paid and then an additional 20 percent each year for the next four years. The state department of revenue has estimated that upon full implementation in 2019, the legislation would impact the state general fund budget by about $126 million, MAMA reported.
The key component to this legislation is that counties, cities, and schools will not see a reduction in their tax revenues, MAMA reported.
The tax credit/rebate will be covered by the state's general fund. The implementation of the phase-in allows for an increase in general funds as the economy improves, which will help offset the cost of the tax credit or rebate.
To contact a state lawmaker, click the following link to send them an email that MAMA has prepared: http://www.votervoice.net/groups/nama/advocacy/?issueid=27856. For more information, visit www.NAMAVoice.org.