Mississippi AG Issues Opinion on Local Privilege Tax for Banks

The Mississippi Attorney General (AG) issued an opinion concluding that banks located within a municipality are liable to pay privilege tax to the municipality. The opinion addressed whether a bank located within a municipality is required to obtain a privilege license and pay a local privilege tax to conduct business. The AG found that while Mississippi Code Annotated Section 27-21-3 exempts banks from a statewide privilege tax on finance companies, it does not exempt banks from the local privilege tax mandated by Section 27-17-9. The determination of whether a particular bank constitutes a business subject to the local privilege tax ...