Mississippi Supreme Court-trial court lacked jurisdiction when ruling dividends received deduction and consolidated filing election unconstitutional

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The Mississippi Supreme Court vacated a chancery court's ruling that the following were unconstitutional: (1) the state's limitation of its dividends received deduction (DRD) to dividends paid by an entity that does business and files a return in Mississippi; and (2) the consolidated filing election available only to an affiliated group conducting 100% of its business in the state.

The Mississippi Supreme Court found that the chancery court lacked appellate jurisdiction and should not have reached the merits of the case. Accordingly, the Commissioner's order (from which the chancery court's dispute was appealed) imposing the DRD limitation and combined return remained in effect. [Mississippi Department of Revenue v. AT&T Corporation, Miss. Supreme Court, No. 2010-SA-02013-SCT (9/6/12)]



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