House Bill 1590

AN ACT ENTITLED THE "MISSISSIPPI CRITICAL PHYSICIAN, PHYSICIAN ASSISTANT, NURSE, NURSE PRACTITIONER, NURSE ANESTHETIST AND DENTIST SHORTAGE INCENTIVE ACT OF 2015"; TO PROVIDE THAT THE NET INCOME OF NEWLY LICENSED PHYSICIANS, PHYSICIAN ASSISTANTS, NURSES, NURSE PRACTITIONERS, NURSE ANESTHETISTS AND DENTISTS WHICH IS DERIVED FROM PRACTICING IN CRITICAL PHYSICIAN SHORTAGE AREAS SHALL BE EXEMPT FROM INCOME TAXATION; TO PROVIDE THAT THE EXEMPTION FROM INCOME TAXATION AUTHORIZED BY THIS ACT MAY BE UTILIZED BY THE QUALIFYING PHYSICIAN, PHYSICIAN ASSISTANT, NURSE, NURSE PRACTITIONER, NURSE ANESTHETIST OR DENTIST FOR TEN CONSECUTIVE YEARS IF THE PHYSICIAN, PHYSICIAN ASSISTANT, NURSE, NURSE PRACTITIONER, NURSE ANESTHETIST OR DENTIST PRACTICES IN SUCH AN AREA FOR THAT PERIOD OF TIME; TO AMEND SECTION 27-7-5, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) This act shall be known and may be cited as the "Mississippi Critical Physician, Physician Assistant, Nurse, Nurse Practitioner, Nurse Anesthetist and Dentist Shortage Incentive Act of 2015."

(2) The purpose of this act is to attract newly licensed and qualified physicians, physician assistants, nurses, nurse practitioners, nurse anesthetists and dentists to practice in geographical areas of the state in which there exists a critical shortage of physicians and to retain such physicians, physician assistants, nurses, nurse practitioners, nurse anesthetists and dentists in such areas.

SECTION 2. (1) As used in this section:

(a) "Critical physician shortage area" means an area of the state certified and designated annually by December 31, by the Office of Mississippi Physician Workforce at the University of Mississippi Medical Center as having not more than one (1) physician practicing in the area per two thousand five hundred (2,500) residents in the area. The designation as a "critical physician shortage area" is effective for the tax years that a physician, physician assistant, nurse, nurse practitioner, nurse anesthetist or dentist practices in the area after the designation and will remain in effect for such time that the physician, physician assistant, nurse, nurse practitioner, nurse anesthetist or dentist practices in the area regardless of whether the physician to residents ratio changes to such an extent that the area would not be certified and designated as a "critical physician shortage area."

(b) "Newly licensed physician" means a physician who has been licensed to practice medicine or has completed post graduate medical residency or fellowship training for less than one (1) year.

(c) "Newly licensed physician assistant" means a physician assistant who has been licensed under Section 73-26-1 et seq. for less than one (1) year.

(d) "Newly licensed nurse" means a nurse who has been licensed under Section 73-15-19 for less than one (1) year. (e) "Newly licensed nurse anesthetist" means a nurse anesthetist who has been certified under Section 73-15-20 for less than one (1) year.

(f) "Newly licensed nurse practitioner" means a nurse practitioner who has been certified under Section 73-15-20 for less than one (1) year.

(g) "Newly licensed dentist" means a dentist who has been licensed under Section 73-9-1 et seq. for less than one (1) year.

(2) The net income, which is derived from providing medical services in critical physician shortage areas, of newly licensed physicians, physician assistants, nurses, nurse practitioners, nurse anesthetists and dentists practicing in critical physician shortage areas shall be exempt from taxation under this article. The exemption from taxation authorized by this section may be utilized by the qualifying physician, physician assistant, nurse, nurse practitioner, nurse anesthetist or dentist for ten (10) consecutive years if the physician, physician assistant, nurse, nurse practitioner, nurse anesthetist or dentist practices in such an area for that period of time.

(3) The Department of Revenue shall have all powers necessary to implement and administer the provisions of this section, and the department shall promulgate rules and regulations, in accordance with the Mississippi Administrative Procedures Law, necessary for the implementation of this section.

SECTION 3. Section 27-7-5, Mississippi Code of 1972, is amended as follows:

27-7-5. (1) There is hereby assessed and levied, to be collected and paid as hereinafter provided, for the calendar year 1983 and fiscal years ending during the calendar year 1983 and all taxable years thereafter, upon the entire net income of every resident individual, corporation, association, trust or estate, in excess of the credits provided, a tax at the following rates:

On the first Five Thousand Dollars ($5,000.00) of taxable income, or any part thereof, at the rate of three percent (3%);

On the next Five Thousand Dollars ($5,000.00) of taxable income, or any part thereof, at the rate of four percent (4%); and

On all taxable income in excess of Ten Thousand Dollars ($10,000.00), at the rate of five percent (5%).

(2) An S corporation, as defined in Section 27-8-3(1)(g), shall not be subject to the income tax imposed under this section.

(3) Net income exempt from taxation under Section 2 of this act shall not be subject to the income tax imposed under this section.

( * * *34) A like tax is hereby imposed to be assessed, collected and paid annually, except as hereinafter provided, at the rate specified in this section and as hereinafter provided, upon and with respect to the entire net income, from all property owned or sold, and from every business, trade or occupation carried on in this state by individuals, corporations, partnerships, trusts or estates, not residents of the State of Mississippi.

( * * *45) In the case of taxpayers having a fiscal year beginning in the calendar year 1982 and ending after the first day of January 1983, the tax due for that taxable year shall be determined by:

(a) Computing for the full fiscal year the amount of tax that would be due under the rates in effect for the calendar year 1982; and

(b) Computing for the full fiscal year the amount of tax that would be due under the rates in effect for the calendar year 1983; and

(c) Applying to the tax computed under paragraph (a) the ratio which the number of months falling within the earlier calendar year bears to the total number of months in the fiscal year; and

(d) Applying to the tax computed under paragraph (b) the ratio which the number of months falling within the later calendar year bears to the total number of months within the fiscal year; and

(e) Adding to the tax determined under paragraph (c) the tax determined under paragraph (d) the sum of which shall be the amount of tax due for the fiscal year.

SECTION 4. Section 2 of this act shall be codified as a new section in Chapter 7, Title 27, Mississippi Code of 1972.

SECTION 5. This act shall take effect and be in force from and after July 1, 2015.