The Mississippi Business Income Apportionment Schedule is used to calculate the portion of a business’s income that is attributable to Mississippi when the business has activity both inside and outside the state. The schedule compares Mississippi property, payroll, and sales amounts with the business’s total amounts everywhere, then uses the applicable formula for the type of business completing the return. A retail, rental, service, merchandising, or wholesale business generally uses the sales factor. A manufacturer selling mainly at retail uses a weighted calculation involving property, payroll, and sales. Financial institutions, pipelines, and manufacturers selling mainly at wholesale generally use an average of all three factors, while airlines, motor carriers, express companies, telephone companies, and telegraph companies must use a special formula. The final Mississippi ratio calculated on this schedule is entered on Form 84-122, line 21, so the state can determine the share of business income subject to Mississippi tax. All ratios in Part I should be rounded to four decimal places.
How To Complete The Mississippi Business Income Apportionment Schedule
Complete this schedule when your business needs to determine the percentage of income apportioned to Mississippi. Start by entering the business FEIN. Next, complete Part I by reporting Mississippi amounts in Column A and total amounts everywhere in Column B. Use those amounts to calculate the Mississippi ratios in Column C. After Part I is complete, go to Part II and check only the business category that applies to your operation. Complete the corresponding calculation for that category and transfer the final ratio to Form 84-122, line 21. If your business falls under a category requiring a special formula, prepare the required supporting schedule and report the resulting ratio on Form 84-122, line 21.
The Top Identification Section
FEIN: Enter the business’s Federal Employer Identification Number so the apportionment schedule is connected to the correct taxpayer account.
Tax Year: The schedule is prepared for the 2025 tax year. Make sure the amounts used in all calculations relate to the same tax period reported on the business return.
Part I: Computation Of Apportionment Factors
Part I calculates the property, payroll, and sales ratios used in Part II. Report each applicable amount in the correct column:
Column A, Total Mississippi: Enter only amounts connected with business activity located or assigned to Mississippi.
Column B, Total Everywhere: Enter the total amount for the business in all locations, including Mississippi and locations outside Mississippi.
Column C, Mississippi Ratio: Calculate the Mississippi portion by dividing the Column A amount by the Column B amount where instructed. Round the result to four decimal places.
Property Factor
Line 1a, Beginning Of Taxable Year: Enter the net book value of business property at the beginning of the tax year. Report Mississippi property in Column A and total property everywhere in Column B.
Line 1b, End Of Taxable Year: Enter the net book value of business property at the end of the tax year. Use Column A for Mississippi property and Column B for total property everywhere.
Line 1c, Total Property Value: Add line 1a and line 1b in each column. Enter the Mississippi total in Column A and the total everywhere amount in Column B.
Line 1d, Average Net Book Value Of Assets: Divide line 1c by two for each column. This gives the average value of assets during the tax year.
Line 1e, Rental Property: Enter the annual rental amount multiplied by eight. Report the Mississippi rental property amount in Column A and the total rental property amount everywhere in Column B.
Line 1f, Total Property Amount: Add line 1d and line 1e for each column. This produces the property amount used to calculate the Mississippi property factor.
Line 1g, Mississippi Property Factor: Divide line 1f, Column A by line 1f, Column B. Enter the resulting percentage in Column C and round it to four decimal places.
Payroll Factor
Line 2, Payroll Factor: Enter total Mississippi payroll in Column A and total payroll everywhere in Column B. Divide Column A by Column B and enter the Mississippi payroll percentage in Column C. Round the ratio to four decimal places.
Sales Factor
Line 3, Sales Factor: Enter total Mississippi sales in Column A and total sales everywhere in Column B. Divide Column A by Column B and enter the Mississippi sales percentage in Column C. Round the ratio to four decimal places.
Part II: Application Of Apportionment Factors
Part II applies the correct calculation based on the type of business. Check only one category, then complete the lines for that category.
Retailing, Renting, Servicing, Merchandising Or Wholesaling
Check this box if the business operates primarily through retailing, renting, servicing, merchandising, or wholesaling activities, unless it belongs in another specifically listed category.
Line 4, Sales Factor: Transfer the percentage from Part I, line 3, Column C. Enter this ratio on Form 84-122, line 21.
Manufacturers That Sell Principally At Retail
Check this box if the business is a manufacturer whose sales are mainly made at retail.
Line 5a, Property Factor: Transfer the Mississippi property factor from Part I, line 1g, Column C.
Line 5b, Payroll Factor: Transfer the Mississippi payroll factor from Part I, line 2, Column C.
Line 5c, Subtotal: Add line 5a and line 5b.
Line 5d, Average Of Property And Payroll Factors: Divide line 5c by two.
Line 5e, Sales Factor: Transfer the Mississippi sales factor from Part I, line 3, Column C.
Line 5f, Total Weighted Amount: Add line 5d and line 5e.
Line 5g, Weighted Average: Divide line 5f by two. Enter this final Mississippi apportionment ratio on Form 84-122, line 21.
Financial Institutions, Pipelines Or Manufacturers That Sell Principally At Wholesale
Check this box if the business is a financial institution, pipeline, or manufacturer whose sales are mainly wholesale. Major medical or pharmaceutical suppliers should review the applicable instructions for Form 84-100 before completing this calculation.
Line 6a, Property Factor: Transfer the Mississippi property factor from Part I, line 1g, Column C.
Line 6b, Payroll Factor: Transfer the Mississippi payroll factor from Part I, line 2, Column C.
Line 6c, Sales Factor: Transfer the Mississippi sales factor from Part I, line 3, Column C.
Line 6d, Total Of Three Factors: Add lines 6a, 6b, and 6c.
Line 6e, Average Apportionment Ratio: Divide line 6d by three. Enter this final ratio on Form 84-122, line 21.
Airlines, Motor Carriers, Express Companies, Telephone Companies And Telegraph Companies
Check this box if the business is an airline, motor carrier, express company, telephone company, or telegraph company.
Line 7, Special Formula Required: Calculate the Mississippi apportionment ratio using the special formula that applies to this business category. Attach the supporting schedule showing the calculation, then enter the resulting ratio on Form 84-122, line 21.
Important Completion Tips
Use consistent tax-year amounts throughout the schedule. Enter only Mississippi amounts in Column A and business totals from all locations in Column B. Calculate Column C ratios carefully and round Part I percentages to four decimal places. In Part II, select only the category that matches the business activity and complete only the related calculation lines. The final ratio from line 4, line 5g, line 6e, or line 7 must be entered on Form 84-122, line 21, depending on the business category selected.