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Public Law 86-272 potentially applies to companies located outside of California whose only in-state activity is the solicitation of sale of tangible personal property to California customers. Businesses that qualify for the protections of Public Law 86-272 are exempt from state taxes that are based on your net income.
86-272 prohibits states from imposing income taxes, such as corporate or franchise tax, under specific conditions. Out-of-state businesses whose activities in California are limited to selling tangible personal property and soliciting sales may be exempt from state income tax.
Hear this out loud Pause¶16-310, Subtractions--Net Operating Loss Mississippi allows a subtraction from the taxable income base for net operating losses. NOLs may be carried back two years and carried forward 20 years.
Hear this out loud PausePublic Law 86-272 (15 USC Section 381) prevents States from asserting their right to impose a tax based on net income, such as the corporate income tax or franchise tax. Public Law 86-272 protection is available to out-of-state business entities that: Sell tangible personal property in this state.
PL 86-272 or the Interstate Income Act of 1959 does provide limited protection from a state's net income tax. In order to qualify for this protection, a company can only be selling tangible personal property (TPP) in the state. It can not be offering any additional services or intangibles.
PL 86-272 prohibits a state from imposing a net income tax on the income of a person derived within the state from interstate commerce if the only business activities within the state conducted by or on behalf of the person consist of the solicitation of orders for sales of tangible personal property.
Hear this out loud PauseMississippi Business Taxes This tax is imposed on corporations or associations doing business in Mississippi. The Franchise tax is calculated at $2.50 per $1,000 of the value of the capital employed or the assessed property values in Mississippi, whichever is greater. The minimum franchise tax payment due is $25.
Hear this out loud PauseYou must also submit an account closure request by logging on to TAP and selecting "Close This Account" under "I Want To" and then select the "More" tab. If you are not able to submit a request online, you may fax a signed written request to the Withholding Division at (601) 923-7188.