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Mississippi: Reduced Sales Tax Rates and Exemptions

  • Jan 21, 2014 | Gail Cole

 Certain qualifying businesses in Mississippi may purchase power exempt from sales tax, July 1, 2014.

Legislation enacted last year under Governor Phil Bryant (R) allows certain businesses in Mississippi to qualify for a reduced sales tax rate on the purchase of power used in enhanced oil recovery. Other legislation allows qualifying businesses to purchase exempt from sales tax power used for industrial purposes.

Reduced rate of sales tax

Qualifying businesses may purchase power with a reduced industrial sales tax rate of 1.5%, effective July 1, 2013. Power includes electric power, light, gas, and other fuel distributors. Mississippi Code § 35.IV.6.01 will be amended, effective February 8, 2104, to reflect changes enacted by HB 841.

Exempt from sales tax

Effective July 1, 2014, “qualifying businesses may purchase electricity, current, power, steam, coal, natural gas, liquefied petroleum gas or other fuel used directly in the operations of a:

  • Manufacturer;
  • Customer processor;
  • Technology intensive enterprise;
  • Pipeline compressor or pumping stations;
  • Railroad locomotives;
  • Production of poultry, livestock, and domesticated fish;
  • Production of poultry products, livestock products, and domesticated fish products;
  • Production of marine aquaculture products;
  • Production of plants or food by commercial horticulturists;
  • Processing of milk and milk products;
  • Processing of poultry and livestock feed;
  • Irrigation of farm crops; and
  • Used by a commercial fisherman, shrimper or oysterman.

HB 844 amends Mississippi Code § 27-65-107 Sales Tax.

The Mississippi Department of Revenue lists bills relating to sales and use tax on its website.

You can spend your time perusing state department of revenue websites for sales tax changes. Or you can switch to an automated sales tax solution.

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Mississippi State Rates

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.