Mississippi: Reduced Sales Tax Rates and Exemptions
- Jan 21, 2014 | Gail Cole
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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