Mississippi provides new apportionment method for major pharmaceutical and medical suppliers

April 2014


On March 31, 2014, the Mississippi governor signed Senate Bill 2933, which provides a new method of apportionment for certain major pharmaceutical and medical product suppliers.  The bill is “in force from and after January 1, 2014.”
Mississippi Senate Bill 2933 provides that for purposes of the income tax, a major medical or pharmaceutical supplier of a Mississippi distribution facility whose business activity is taxable both within and without the state, shall apportion its business income in the following manner:
“Adding together a payroll factor, which shall be counted twice, a property factor, which shall be counted twice, and a sales factor, which shall be counted once, and then dividing the sum of such factors by five.”

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