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Local tax rate changes in Mississippi


 Mississippi tax rate changes.

Unlike some states, Mississippi doesn’t often have many local tax rate changes. While this makes tax compliance easier in some respects, it makes it more challenging in others.

In states with frequent rate changes, retailers should be primed to keep their eyes peeled for them. In Mississippi, retailers may be lulled into a false sense of complacency. Yet rate changes do happen in Mississippi: There was one in January of this year, and one each in September, October, and November 2016.

Mississippi tax rate changes typically involve sales of prepared foods in restaurants or hotel and motel room rentals. That trend holds true with the following changes.

Changes effective September 1, 2017

Booneville is levying a special 2 percent tourism, parks, and recreation tax on the gross proceeds of the following:

  • Room rentals in hotels and motels
  • Sales of prepared food in restaurants

The special tax is in addition to all other taxes. Additional information.

Changes effective August 1, 2017

Brandon is imposing a special 3 percent amphitheatre and ancillary improvement tax as of August 1. Levied on the gross proceeds of hotel and motel room rentals, it is in addition to all other taxes. Additional information.

Byram is levying a special 2 percent tax on the gross proceeds of hotel and motel room rentals. This tax is also in addition to all taxes already imposed on these room rentals. Additional information.

Changes effective July 1, 2017

As of July 1, the Pascagoula special 3 percent tourism and economic development tax on the gross proceeds of hotel and motel room rentals is discontinued. Additional information.

Southaven also discontinued a tax as of July 1: the 1 percent restaurant tax on the gross proceeds of sales of prepared food and beverages at restaurants. Additional information.

Don’t let infrequent rate changes mislead you into thinking they don’t happen. Stay on top of updates with tax automation software that allows you to seamlessly comply with rate changes wherever you do business. Learn more.


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.