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Jackson, Mississippi, Sales Tax Rate Change, March 2014

  • Feb 13, 2014 | Gail Cole

 Jackson, Mississippi to have a sales tax rate change, March 2014.

Update, 5.22.14: House Bill 787, which took effect on April 24, 2014, removes "the portion of the tax levy that taxed the delivery of tangible personal property within the municipality... All businesses located in the City of Jackson should collect the one percent Special Infrastructure Tax on all sales of tangible personal property regardless of the point of delivery in Mississippi." In addition, the bill "added exemptions from the Special Infrastructure Tax for the wholesale sales of food and drink for human consumption sold to full service vending machine operators and the wholesale sales of light wine, beer and alcoholic beverages."

The Mississippi Department of Revenue has announced a new special sales tax that will take effect on March 1, 2014, in the City of Jackson. The 1% special sales tax “applies to every person making sales, delivery or installations of tangible personal property or services within the municipality.” However, the special 1% sales tax will not apply to:

  • Sales currently exempt from sales tax;
  • “Sales of restaurants derived from the sale of food and beverages;”
  • “Income of hotels and motels derived from the sale of hotel and motel rooms for lodging purposes;”
  • “Retail sales of food for human consumption not purchased with food stamps... which would be exempt if the food items were purchased with food stamps;” and
  • “Gross income of businesses engaging or continuing in the business of TV Cable systems, subscription TV services, and other similar activities….”

Taxable services that are performed at a location in Jackson are subject to the new special 1% sales tax even if the provider of the service is located outside the city limits. Taxable sales of goods delivered to a location in Jackson are subject to the tax, “even if the seller is not physically located in Jackson.” However, sales by a seller located in Jackson and delivered to (or in the case of a service, performed in) a location outside of the city limits are not subject to the 1% special tax. Additional information is available on a Mississippi Department of Revenue.

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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.