Mississippi Code
Miss. Code Ann. § 27-13-9 (2026)
[Repealed Effective 1/1/2028] Basis of valuation
✓ current as of July 2026
- (1) The tax imposed, levied and assessed, under the provisions of this chapter, shall be calculated on the basis of the value of the capital employed in this state for the year preceding the date of filing the return, whether a calendar year, or fiscal year, except where otherwise provided in this chapter, measured by the combined issued and outstanding capital stock, paid-in capital, surplus and retained earnings; provided, that in computing capital, paid-in capital, surplus and retained earnings, there shall be included deferred taxes, contingent liabilities and all true reserves, including all reserves other than for definite known fixed liabilities which do not enhance the value of assets; and amounts designated for the payment of dividends shall not be excluded from such calculations until such amounts are definitely and irrevocably placed to the credit of stockholders, subject to withdrawal on demand; provided, however, there shall not be included in the value of the capital stock any sums representing debts, notes, bonds and mortgages due and payable, except where notes or debts due are provided by an affiliated company as a substitute for stock or paid-in capital; nor depreciation reserves, bad debt reserves, nor reserves representing valuation accounts, nor redeemable preference shares issued by a railroad pursuant to Section 506 of the Railroad Revitalization and Regulatory Reform Act of 1976, and capital shall be reduced by the cost of treasury stock of the corporation. In the case of an association or other organization, except those exempted under Section 27-13-63, that does not have a capital structure like a corporation, the tax is based on that organization's accounts that are equivalent to the aforementioned corporate accounts, or any other capital employed in Mississippi. There shall not be any exclusion of capital by a corporation relating to the stock of another corporation except as otherwise provided in subsection (2). In no case shall the franchise tax so computed be less than Twenty-five Dollars ($25.00) for the period covering which the return is filed. In no case shall the determined capital in Mississippi be less than the assessed value of the real estate and tangible personal property in Mississippi for the year preceding the year in which the return is due.
- (2) In the case of a holding corporation, the value of the capital used, invested or employed in this state shall exclude that portion of the book value of the holding corporation's investment in stock or securities of its subsidiary corporation determined under the following formula:
- (a) the ratio between (i) the holding corporation's investment in stock or securities of its subsidiary corporation, computed pursuant to regulations promulgated by the commissioner, and (ii) the holding corporation's total assets shall be computed;
- (b) such ratio then shall be applied to the total capital stock, surplus, undivided profits and true reserves of the holding corporation in order to arrive at the amount of the exclusion.
Codes, 1942, § 9317; Laws, 1934, ch. 121; Laws, 1956, ch. 412, § 2; Laws, 1980, ch. 462; Laws, 1982, ch. 489, § 10; Laws, 1985, ch. 521, § 4; Laws, 1988, ch. 391, § 4; Laws, 1993, ch. 350, § 2; Laws, 1999, ch. 395, § 1, eff. 3/16/1999.
Repealed by Laws, 2016, ch. 499, SB 2858, 5, eff. 1/1/2028.
Amended by Laws, 2014, ch. 521, SB 2065, 1, eff. 7/1/2014.
Notes of Decisions
Cited in 14
cases, 1978–2020 · leading case: Mississippi State Tax Com'n v. Dyer Inv. Co., 507 So. 2d 1287 (Miss. 1987).
Mississippi State Tax Com'n v. Dyer Inv. Co., 507 So. 2d 1287 (Miss. 1987). “Miss. Code Ann. § 27-13-9 (1972). [3] The other statute in issue in this case is Miss.”
Tower Loan of Miss., Inc. v. Mississippi State Tax Com'n, 662 So. 2d 1077 (Miss. 1995). “The intent of the legislature to include the assets of a subsidiary corporation in the parent corporation's franchise tax base was made clear by the amendment in 1988 of Miss. Code Ann. § 27-13-9 . To that statute was added the statement that "[t]here shall not be any exclusion…”
Fishbelt Feeds, Inc. v. Mississippi Dep't of Revenue, 158 So. 3d 984 (Miss. 2014). “At issue in this case is the interpretation of Section 27-13-9 of the Mississippi Code, which provides the method for calculating the franchise tax.”
STATE TAX COM'N v. Lady Forest Farms, Inc., 701 So. 2d 294 (Miss. 1997). “I am compelled to dissent because, in my view, any reasonable assessment of the present circumstances leads to the conclusion that the assets sought to be included in the base for franchise taxes are clearly capital employed in this state under the statute.”
Mississippi Power & Light Co. v. Mississippi State Tax Comm'n, 704 So. 2d 1343 (Miss. Ct. App. 1997). “Section 27-13-9 provides generally that the tax shall be levied against “combined issued and outstanding capital stock, paid-in capital, surplus and retained earnings_” Miss.Code Ann. § 27-13-9 (Supp.1996 ). As we have observed, section 27-13-11 creates the presumptions that…”
Calhoun Cty. Bd. of Sup'rs v. Grenada Bk., 543 So. 2d 138 (Miss. 1989). “This argument, accepted by the trial court, is based upon analogy to Miss. Code Ann. § 27-13-9 (Supp. 1982) which sets forth the valuation formula for computing corporation franchise tax.”
Mississippi Dep't of Revenue v. Comcast of Georgia/Virginia, Inc. n/k/a Comcast Cable Commc'ns, LLC (Miss. 2020). “” Miss. Code Ann. § 27-13-9 (1). Indeed, [t]he express language of the franchise tax statutes provides no exemptions for the retained earnings of a subsidiary.”
Mississippi State Tax Comm'n v. Illinois Cent. Gulf R.R., 360 So. 2d 1218 (Miss. 1978). “Mississippi Code Annotated Section 27-13-9 (1972) provides: “The tax imposed, levied, and assessed, under the provisions of this chapter, shall be calculated on the basis of the value of the capital employed in this state for the year preceding the date of filing the.”
Mississippi Power & Light Co. v. Mississippi State Tax Comm'n (Miss. 1996). “" Miss. Code Ann. § 27-13-9 (Supp. 1996 ). As we have observed, section 27- 13-11 creates the presumptions that determine whether the balances in these accounts as reflected in the books and records of the corporation will conclusively define the taxable capital base or whether…”
Emhart Indus., Inc. v. Mississippi State Tax Comm'n (Miss. 1999). “Emhart argues that capital subject to the corporate franchise tax is determined by statute and specifically points to Miss. Code Ann. § 27-13-9 (1999), which provides that amounts designated for payment as dividends, when "definitely and irrevocably placed to the credit of…”
Gencorp, Inc. v. State Tax Comm'n, 543 So. 2d 657 (Miss. 1989). “, INVOLVED CONTINGENCIES, AND THAT THESE ACCOUNTS ARE PROPERLY INCLUDED IN THE FRANCHISE TAX BASE WITHIN THE MEANING OF MCA § 27-13-9 (SUPP. 1984), AND ARE NOT EXCLUDABLE FROM THE FRANCHISE TAX BASE AS RESERVES REPRESENTING “DEFINITE KNOWN FIXED LIABILITIES.”
Emhart Indus., Inc. v. Mississippi State Tax Comm'n, 798 So. 2d 340 (Miss. 2000). “Emhart argues that capital subject to the corporate franchise tax is determined by statute and specifically points to Miss.Code Ann. § 27-13-9 (1999), which provides that amounts designated for payment as dividends, when “definitely and irrevocably placed to the credit of…”
— Miss. Code Ann. § 27-13-9(1) — 2 cases
Fishbelt Feeds, Inc. v. Mississippi Dep't of Revenue, 158 So. 3d 984 (Miss. 2014). “At issue in this case is the interpretation of Section 27-13-9 of the Mississippi Code, which provides the method for calculating the franchise tax.”
Mississippi Dep't of Revenue v. Comcast of Georgia/Virginia, Inc. n/k/a Comcast Cable Commc'ns, LLC (Miss. 2020). “” Miss. Code Ann. § 27-13-9 (1). Indeed, [t]he express language of the franchise tax statutes provides no exemptions for the retained earnings of a subsidiary.”
— Miss. Code Ann. § 27-13-9(2) — 1 case
Mississippi Dep't of Revenue v. Comcast of Georgia/Virginia, Inc. n/k/a Comcast Cable Commc'ns, LLC (Miss. 2020). “” Miss. Code Ann. § 27-13-9 (1). Indeed, [t]he express language of the franchise tax statutes provides no exemptions for the retained earnings of a subsidiary.”
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