HB 861 — Taxation; authorize Commissioner of Revenue to reduce a tax assessment based on additional information after order of Board of Tax Appeals.

HB 861 (As PassedSent theto House)Governor) - 2020 Regular Session MISSISSIPPI LEGISLATURE Regular Session To:

Representative Lamar House Bill 861 (As PassedSent theto House)Governor) AN ACT TO AMEND SECTION 27-77-5, MISSISSIPPI CODE OF 1972, TO AUTHORIZE THE COMMISSIONER OF REVENUE TO REDUCE A TAX ASSESSMENT LIABILITY BASED ON ADDITIONAL INFORMATION OR DOCUMENTATION PROVIDED BY A TAXPAYER AFTER THE BOARD OF TAX APPEALS HAS ISSUED AN ORDER;

TO PROVIDE THAT THE COMMISSIONER SHALL HAVE DAYS TO ISSUE A DETERMINATION, DURING WHICH THE 60-DAY PERIOD FOR APPEAL TO THE CHANCERY COURT SHALL BE TOLLED;

          (b)  At a hearing of any action brought under this section, the Board of Tax Appeals shall give no deference to the decision of the Board of Review, but shall give deference to the department's interpretation and application of the statutes as reflected in duly enacted regulations and other officially adopted publications.  The Board of Tax Appeals shall conduct a hearing on all factual and legal issues raised by the taxpayer which address the substantive or procedural propriety of the actions being appealed.  The Board of Tax Appeals shall decide all factual and legal questions presented, including those as to legality and the amount of tax or refund due as well as whether and to what extent the imposition of interest and/or penalties is warranted under the facts of the case, and if it finds that the tax assessment, denial of refund claim or other action of the agency in issue is incorrect or invalid, in whole or in part, it shall determine the amount of tax or refund due, including interest and, if applicable, penalty to date, and enter such order or judgment as it deems proper.  Interest and penalty included in this determination shall be computed by the Board of Tax Appeals based on the methods for computing penalty and interest as specified by law for the type of tax in issue, and the Board of Tax Appeals shall have the same discretion as the commissioner in determining whether and to what extent such amounts are warranted under the facts of the case.  The rules of evidence shall be relaxed at the hearing. hearing.           (c)  Any appeal to chancery court from an order of the Board of Tax Appeals resulting from this type of hearing shall include a full evidentiary judicial hearing on all factual and legal issues raised by the taxpayer which address the substantive or procedural propriety of the department's action being appealed.  No official transcript shall be made of this hearing before the Board of Tax Appeals.

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          (d)  After reaching a decision on the issues presented, the Board of Tax Appeals shall enter its order setting forth its findings and decision on the appeal.  A copy of the order of the Board of Tax Appeals shall be mailed to the taxpayer and the agency.  If the order involves an appeal of a denial of a waiver of tag penalty, a copy of the order shall also be mailed to the tax collector that imposed the penalty.

     (7)  If in its order the Board of Tax Appeals orders a taxpayer to pay a tax assessment, the taxpayer shall, within sixty (60) days from the date the Board of Tax Appeals mailed the order, pay the amount ordered to be paid or properly appeal the order of the Board of Tax Appeals to chancery court as provided in Section 27-77-7.  During the sixty (60) days after the date the Board of Tax Appeals mailed the order, if the taxpayer provides additional documentation or information, the commissioner may further reduce the amount due by the taxpayer.  The commissioner shall have thirty (30) days from the date the taxpayer mails or otherwise provides in writing the additional documentation or information to issue a determination, during which the sixty-day appeal period provided in Section 27-77-7 is tolled.  If the commissioner issues a determination in less than thirty (30) days, the appeal period shall begin to run again at the time of the written notice of the commissioner's determination.  Written notice by the commissioner shall indicate that the sixty-day appeal period has begun to run again as of the date of the notice, and shall provide the taxpayer the date on which the appeal period will expire.  After the sixty-day period, if the tax determined by the Board of Tax Appeals or the reduced amount determined by the commissioner to be due is not paid and an appeal from the Board of Tax Appeals order has not been properly filed, the agency shall proceed to collect the tax assessment as affirmed by the Board of Tax Appeals or reduced by the commissioner.  If in its order the Board of Tax Appeals determines that the taxpayer has overpaid his taxes and an appeal from the Board of Tax Appeals order has not been properly filed in chancery court, the agency shall, within sixty (60) days from the date the Board of Tax Appeals mailed its order, refund or credit to the taxpayer, as provided by law, the amount of overpayment as determined and set out in the order.