Pub. 1 2023 Issue 3

For Dealers Wanting To Fully Expense Long-Term Assets HB 1733 will allow businesses to fully expense longer-term assets in the year that they were put into service, rather than doing so over time. In 2017, the federal Tax Cuts and Jobs Act temporarily made this possible at the federal level, but that is set to phase back out over the next five years. Clarification on Taxing Software by the Department of Revenue SB 2449 preserves the state’s historical approach to taxing these items based on physical location while also addressing many important ancillary and compliance issues. Notably, the legislation codifies the Department of Revenue’s existing regulation that “computer software maintained on a server located outside the state and accessible for use only via the Internet is not a taxable retail sale.” It clarifies that Mississippi only taxes software that is physically downloaded or delivered into the state and excludes remote cloudbased applications. It takes a similar approach in taxing only those computer software services actually performed within the state, so computer support activities performed remotely would not fall within the scope of the tax. With the passage of HB 1733, Mississippi businesses will be able to depreciate their assets in a more expedient manner, with no real impact on state revenue. Contact Donna Allen at CCMSI | 601.608.1001 | dallen@ccmsi.com Celebrating 26 Years of Service! • CCMSI has handled the MADASIFs workers’ compensation claims since July 1997 • Representing New and Used Car Dealers in the State of Mississippi • Including Underwriting, Policy Issuance, Policy Service, Premium Collection, Audits, Financials, and Loss Control • Directly Written or with an Agent/Agency Workers’ Compensation Program Chairman Walt Massey, Lucedale Vice Chairman Roger Bacon, Picayune 17

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