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United States
Mississippi Codes TITLE 27 - TAXATION AND FINANCE Chapter 65 - Sales Tax.

  1. Chapter 65 - Sales Tax.
    1. 27-65-1 - Title of chapter.
    2. 27-65-3 - Definitions.
    3. 27-65-5 - Definitions; "Wholesaler, jobber or distributor"; "Wholesale sales."
    4. 27-65-7 - Definitions; "Retailer"; "Retail sales."
    5. 27-65-9 - Definitions; "Business"; "Doing business."
    6. 27-65-11 - Definitions; "Manufacturer"; "Manufacturing"; "Remanufacturing"; "Custom"; "Repairs"; "Producer."
    7. 27-65-13 - Tax levied.
    8. 27-65-15 - Repealed.
    9. 27-65-16 - Repealed.
    10. 27-65-17 - Selling tangible personal property wholesale and retail.
    11. 27-65-18 - Selling tangible personal property or performing construction upon certain floating structures and cruise vessels.
    12. 27-65-19 - Public utilities.
    13. 27-65-20 - Selling machinery, etc. used in operation of structures, facilities and land acquired and operated pursuant to Chapter 9, Title 59.
    14. 27-65-21 - Contracting, etc.
    15. 27-65-22 - Amusements.
    16. 27-65-23 - Miscellaneous businesses.
    17. 27-65-25 - Sales of alcoholic beverages.
    18. 27-65-26 - Selling, renting or leasing specified digital products.
    19. 27-65-27 - Permit to engage in business.
    20. 27-65-29 - Repealed.
    21. 27-65-31 - Seller to collect tax.
    22. 27-65-33 - Returns.
    23. 27-65-35 - Failure to file return; notice.
    24. 27-65-37 - Assessment of tax by commissioner.
    25. 27-65-39 - Penalties for deficient or delinquent return.
    26. 27-65-40 - Effect of state officer's or employee's failure to pay state sales tax.
    27. 27-65-41 - Tax constitutes a debt.
    28. 27-65-42 - Statute of limitations.
    29. 27-65-43 - Taxpayer must keep records.
    30. 27-65-45 - through 27-65-49. Repealed.
    31. 27-65-51 - Disbursement from treasury to taxpayer.
    32. 27-65-53 - Refunds.
    33. 27-65-55 - Liability of seller and purchaser of business, certain stockholders of small business corporations and agents for out-of-state dealers.
    34. 27-65-57 - Enrolling a judgment.
    35. 27-65-59 - Warrant for collection of tax.
    36. 27-65-61 - Jeopardy assessment and warrant.
    37. 27-65-63 - Execution of warrant by sheriff or special agent; fees.
    38. 27-65-65 - Commissioner may bid at sales.
    39. 27-65-67 - Alias executions.
    40. 27-65-69 - Sheriff and special agent not personally liable.
    41. 27-65-71 - Enforcement not to be enjoined.
    42. 27-65-73 - Sales tax as additional tax; remittances; how made.
    43. 27-65-75 - Distribution of sales taxes, contractor taxes, motor fuels taxes, and other revenue collected under this chapter.
    44. 27-65-76 - Repealed.
    45. 27-65-77 - Repealed.
    46. 27-65-79 - Records; preserved.
    47. 27-65-81 - Returns confidential.
    48. 27-65-83 - Repealed.
    49. 27-65-85 - Penalties for failure to comply with the chapter.
    50. 27-65-87 - Administration of the chapter vested in the chairman.
    51. 27-65-89 - Employees appointed by commissioner.
    52. 27-65-91 - Special agents designated by commissioner; authority.
    53. 27-65-93 - Commissioner to make regulations.
    54. 27-65-95 - Prior rights or actions not affected by this chapter.
    55. 27-65-97 - Erroneous diversion of collected sales tax monies to municipality with population of 500 or less.
    56. 27-65-101 - Exemptions; industrial.
    57. 27-65-103 - Exemptions; agricultural.
    58. 27-65-105 - Exemptions; governmental.
    59. 27-65-107 - Exemptions; utility.
    60. 27-65-109 - Exemptions; taxes.
    61. 27-65-111 - Exemptions; others.
    62. 27-65-201 - Tax upon sale or use of motor vehicles.
    63. 27-65-211 - Definitions.
    64. 27-65-213 - Legislative findings.
    65. 27-65-215 - Exemption from sales or gross receipts tax.
    66. 27-65-217 - Entry into tax collection agreements.
    67. 27-65-219 - Approval of tax collection agreements.
    68. 27-65-221 - Duration and renewal of tax collection agreements.
    69. 27-65-231 - Additional tax on persons engaging in business of renting motor vehicles.
    70. 27-65-241 - Certain municipalities authorized to impose special sales tax on persons engaging in business in municipality; exemptions; voter approval required before levying tax; authorized use of tax
    71. 27-65-243 - Exemption of certain businesses from tax imposed in § 27-65-241.

Mississippi Codes
TITLE 27 - TAXATION AND FINANCE
Chapter 65 - Sales Tax.

27-65-1 - Title of chapter.

§ 27-65-1. Title of chapter.
 

This chapter may be cited as the Mississippi Sales Tax Law. 
 

Sources: Codes, 1942, § 10103; Laws,  1934, ch. 119; Laws, 1936, ch. 158; Laws, 1938, ch. 113; Laws, 1944, ch. 129, § 1; Laws, 1954, ch. 369; Laws, 1955 Ex Sess, ch. 109, § 1, eff March 1, 1955.
 

27-65-3 - Definitions.

§ 27-65-3. Definitions.
 

[Until July 1, 2010, this section will read:]
 

The words, terms and phrases, when used in this chapter, shall have the meanings ascribed to them herein. 
 

(a) "Tax Commission" means the State Tax Commission of the State of Mississippi. 

(b) "Commissioner" means the Chairman of the State Tax Commission. 

(c) "Person" means and includes any individual, firm, copartnership, joint venture, association, corporation, promoter of a temporary event, estate, trust or other group or combination acting as a unit, and includes the plural as well as the singular in number. "Person" shall include husband or wife or both where joint benefits are derived from the operation of a business taxed hereunder. "Person" shall also include any state, county, municipal or other agency or association engaging in a business taxable under this chapter. 

(d) "Tax year" or "taxable year" means either the calendar year or the taxpayer's fiscal year. 

(e) "Taxpayer" means any person liable for or having paid any tax to the State of Mississippi under the provisions of this chapter. A taxpayer is required to obtain a sales tax permit under Section 27-65-27 before engaging in business in this state. If a taxpayer fails to obtain a sales tax permit before engaging in business in this state, the taxpayer shall pay the retail rate on all purchases of tangible personal property and/or services in this state, even if purchased for resale. Upon obtaining a sales tax permit, a previously unregistered taxpayer shall file sales tax returns for all tax periods during which he engaged in business in this state without a sales tax permit, and report and pay the sales tax accruing from his operation during this period and any applicable penalties and interest. On such return, the taxpayer may take a credit for any sales taxes paid during the period he operated without a sales tax permit on a purchase that would have constituted a wholesale sale if the taxpayer had a sales tax permit at the time of the purchase and if proper documentation exists to substantiate a wholesale sale. This credit may also be allowed in any audit of the taxpayer. Any penalties and interest owed by the taxpayer on the return or in an audit for a period during which he operated without a sales tax permit may be determined based on the sales tax accruing from the taxpayer's operation for that period after the taking of this credit. 

(f) "Sale" or "sales" includes the barter or exchange of property as well as the sale thereof for money or other consideration, and every closed transaction by which the title to taxable property passes shall constitute a taxable event. 

"Sale" shall also include the passing of title to property for a consideration of coupons, trading stamps or by any other means when redemption is subsequent to the original sale by which the coupon, stamp or other obligation was created. 

The situs of a sale for the purpose of distributing taxes to municipalities shall be the same as the location of the business from which the sale is made except that: 

(i) Retail sales along a route from a vehicle or otherwise by a transient vendor shall take the situs of delivery to the customer. 

(ii) The situs of wholesale sales of tangible personal property taxed at wholesale rates, the amount of which is allowed as a credit against the sales tax liability of the retailer, shall be the same as the location of the business of the retailer receiving the credit. 

(iii) The situs of wholesale sales of tangible personal property taxed at wholesale rates, the amount of which is not allowed as a credit against the sales tax liability of the retailer, shall have a rural situs. 

(iv) Income received from the renting or leasing of property used for transportation purposes between cities or counties shall have a rural situs. 

(g) "Delivery charges" shall mean and include any expenses incurred by a seller in acquiring merchandise for sale in the regular course of business commonly known as "freight-in" or "transportation costs-in." "Delivery charges" also include any charges made by the seller for delivery of property sold to the purchaser. 

(h) "Gross proceeds of sales" means the value proceeding or accruing from the full sale price of tangible personal property, including installation charges, carrying charges, or any other addition to the selling price on account of deferred payments by the purchaser, without any deduction for delivery charges, cost of property sold, other expenses or losses, or taxes of any kind except those expressly exempt by this chapter. 

"Gross proceeds of sales" includes consideration received by the seller from third parties if: 

(i) The seller actually received consideration from a party other than the purchaser and the consideration is directly related to a price reduction or discount on the sale; 

(ii) The seller has an obligation to pass the price reduction or discount through to the purchaser; 

(iii) The amount of the consideration attributable to the sale is fixed and determinable by the seller at the time of the sale of the item to the purchaser; and 

(iv) One (1) of the following criteria is met: 

1. The purchaser presents a coupon, certificate or other documentation to the seller to claim a price reduction or discount where the coupon, certificate or documentation is authorized, distributed or granted by a third party with the understanding that the third party will reimburse any seller to whom the coupon, certificate or documentation is presented; 

2. The purchaser identified himself or herself to the seller as a member of a group or organization entitled to a price reduction or discount (a "preferred customer" card that is available to any patron does not constitute membership in such a group); or 

3. The price reduction or discount is identified as a third party price reduction or discount on the invoice received by the purchaser or on a coupon, certificate or other documentation presented by the purchaser. 

Where a trade-in is taken as part payment on tangible personal property sold, "gross proceeds of sales" shall include only the difference received between the selling price of the tangible personal property and the amount allowed for a trade-in of property of the same kind. When the trade-in is subsequently sold, the selling price thereof shall be included in "gross proceeds of sales." 

"Gross proceeds of sales" shall include the value of any goods, wares, merchandise or property purchased at wholesale or manufactured, and any mineral or natural resources produced, which are withdrawn or used from an established business or from the stock in trade for consumption or any other use in the business or by the owner. However, "gross proceeds of sales" does not include meals prepared by a restaurant and provided at no charge to employees of the restaurant or donated to a charitable organization that regularly provides food to the needy and the indigent and which has been granted exemption from the federal income tax as an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986. 

"Gross proceeds of sales" shall not include bad check or draft service charges as provided for in Section 97-19-57. 

(i) "Gross income" means the total charges for service or the total receipts (actual or accrued) derived from trades, business or commerce by reason of the investment of capital in the business engaged in, including the sale or rental of tangible personal property, compensation for labor and services performed, and including the receipts from the sales of property retained as toll, without any deduction for rebates, cost of property sold, cost of materials used, labor costs, interest paid, losses or any expense whatever. 

"Gross income" shall also include the cost of property given as compensation when said property is consumed by a person performing a taxable service for the donor. 

However, "gross income" or "gross proceeds of sales" shall not be construed to include the value of goods returned by customers when the total sale price is refunded either in cash or by credit, or cash discounts allowed and taken on sales. Cash discounts shall not include the value of trading stamps given with a sale of property. 

(j) "Tangible personal property" means personal property perceptible to the human senses or by chemical analysis as opposed to real property or intangibles and shall include property sold on an installed basis which may become a part of real or personal property. 

(k) "Installation charges" shall mean and include the charge for the application of tangible personal property to real or personal property without regard to whether or not it becomes a part of the real property or retains its personal property classification. It shall include, but not be limited to, sales in place of roofing, tile, glass, carpets, drapes, fences, awnings, window air conditioning units, gasoline pumps, window guards, floor coverings, carports, store fixtures, aluminum and plastic siding, tombstones and similar personal property. 

(l) "Newspaper" means a periodical which: 

(i) Is not published primarily for advertising purposes and has not contained more than seventy-five percent (75%) advertising in more than one-half (1/2) of its issues during any consecutive twelve-month period excluding separate advertising supplements inserted into but separately identifiable from any regular issue or issues; 

(ii) Has been established and published continuously for at least twelve (12) months; 

(iii) Is regularly issued at stated intervals no less frequently than once a week, bears a date of issue, and is numbered consecutively; provided, however, that publication on legal holidays of this state or of the United States and on Saturdays and Sundays shall not be required, and failure to publish not more than two (2) regular issues in any calendar year shall not exclude a periodical from this definition; 

(iv) Is issued from a known office of publication, which shall be the principal public business office of the newspaper and need not be the place at which the periodical is printed and a newspaper shall be deemed to be "published" at the place where its known office of publication is located; 

(v) Is formed of printed sheets; provided, however, that a periodical that is reproduced by the stencil, mimeograph or hectograph process shall not be considered to be a "newspaper"; and 

(vi) Is originated and published for the dissemination of current news and intelligence of varied, broad and general public interest, announcements and notices, opinions as editorials on a regular or irregular basis, and advertising and miscellaneous reading matter. 

The term "newspaper" shall include periodicals which are designed primarily for free circulation or for circulation at nominal rates as well as those which are designed for circulation at more than a nominal rate. 

The term "newspaper" shall not include a publication or periodical which is published, sponsored by, is directly supported financially by, or is published to further the interests of, or is directed to, or has a circulation restricted in whole or in part to any particular sect, denomination, labor or fraternal organization or other special group or class or citizens. 

For purposes of this paragraph, a periodical designed primarily for free circulation or circulation at nominal rates shall not be considered to be a newspaper unless such periodical has made an application for such status to the Tax Commission in the manner prescribed by the commission and has provided to the Tax Commission documentation satisfactory to the commission showing that such periodical meets the requirements of the definition of the term "newspaper." However, if such periodical has been determined to be a newspaper under action taken by the State Tax Commission on or before April 11, 1996, such periodical shall be considered to be a newspaper without the necessity of applying for such status. A determination by the State Tax Commission that a publication is a newspaper shall be limited to the application of this chapter and shall not establish that the publication is a newspaper for any other purpose. 

(m) "MPC" or "Material Purchase Certificate" means a certificate for which a person that is liable for the tax levy under Section 27-65-21 can apply and obtain from the commissioner, and when issued, entitles the holder to purchase materials and services that are to become a component part of a structure to be erected or repaired with no tax due. Any person taxable under Section 27-65-21 who obtains an MPC for a project and purchases materials and services in this state that are to become a component part of a structure being erected or repaired in the project and at anytime pays sales tax on these purchases may, after obtaining the MPC for the project, take a credit against his sales taxes for the sales tax paid on these purchases if proper documentation exists to substantiate the payment of the sales tax on the purchase of component materials and services. This credit may also be allowed in any audit of the taxpayer. Any penalties and interest owed by the taxpayer on the return or in the audit where this credit is taken may be determined based on the sales tax due after the taking of this credit. 
 

[From and after July 1, 2010, this section will read:]
 

The words, terms and phrases, when used in this chapter, shall have the meanings ascribed to them herein. 

(a) "Tax Commission" or "department" means the Department of Revenue of the State of Mississippi. 

(b) "Commissioner" means the Commissioner of Revenue of the Department of Revenue. 

(c) "Person" means and includes any individual, firm, copartnership, joint venture, association, corporation, promoter of a temporary event, estate, trust or other group or combination acting as a unit, and includes the plural as well as the singular in number. "Person" shall include husband or wife or both where joint benefits are derived from the operation of a business taxed hereunder. "Person" shall also include any state, county, municipal or other agency or association engaging in a business taxable under this chapter. 

(d) "Tax year" or "taxable year" means either the calendar year or the taxpayer's fiscal year. 

(e) "Taxpayer" means any person liable for or having paid any tax to the State of Mississippi under the provisions of this chapter. A taxpayer is required to obtain a sales tax permit under Section 27-65-27 before engaging in business in this state. If a taxpayer fails to obtain a sales tax permit before engaging in business in this state, the taxpayer shall pay the retail rate on all purchases of tangible personal property and/or services in this state, even if purchased for resale. Upon obtaining a sales tax permit, a previously unregistered taxpayer shall file sales tax returns for all tax periods during which he engaged in business in this state without a sales tax permit, and report and pay the sales tax accruing from his operation during this period and any applicable penalties and interest. On such return, the taxpayer may take a credit for any sales taxes paid during the period he operated without a sales tax permit on a purchase that would have constituted a wholesale sale if the taxpayer had a sales tax permit at the time of the purchase and if proper documentation exists to substantiate a wholesale sale. This credit may also be allowed in any audit of the taxpayer. Any penalties and interest owed by the taxpayer on the return or in an audit for a period during which he operated without a sales tax permit may be determined based on the sales tax accruing from the taxpayer's operation for that period after the taking of this credit. 

(f) "Sale" or "sales" includes the barter or exchange of property as well as the sale thereof for money or other consideration, and every closed transaction by which the title to taxable property passes shall constitute a taxable event. 

"Sale" shall also include the passing of title to property for a consideration of coupons, trading stamps or by any other means when redemption is subsequent to the original sale by which the coupon, stamp or other obligation was created. 

The situs of a sale for the purpose of distributing taxes to municipalities shall be the same as the location of the business from which the sale is made except that: 

(i) Retail sales along a route from a vehicle or otherwise by a transient vendor shall take the situs of delivery to the customer. 

(ii) The situs of wholesale sales of tangible personal property taxed at wholesale rates, the amount of which is allowed as a credit against the sales tax liability of the retailer, shall be the same as the location of the business of the retailer receiving the credit. 

(iii) The situs of wholesale sales of tangible personal property taxed at wholesale rates, the amount of which is not allowed as a credit against the sales tax liability of the retailer, shall have a rural situs. 

(iv) Income received from the renting or leasing of property used for transportation purposes between cities or counties shall have a rural situs. 

(g) "Delivery charges" shall mean and include any expenses incurred by a seller in acquiring merchandise for sale in the regular course of business commonly known as "freight-in" or "transportation costs-in." "Delivery charges" also include any charges made by the seller for delivery of property sold to the purchaser. 

(h) "Gross proceeds of sales" means the value proceeding or accruing from the full sale price of tangible personal property, including installation charges, carrying charges, or any other addition to the selling price on account of deferred payments by the purchaser, without any deduction for delivery charges, cost of property sold, other expenses or losses, or taxes of any kind except those expressly exempt by this chapter. 

"Gross proceeds of sales" includes consideration received by the seller from third parties if: 

(i) The seller actually received consideration from a party other than the purchaser and the consideration is directly related to a price reduction or discount on the sale; 

(ii) The seller has an obligation to pass the price reduction or discount through to the purchaser; 

(iii) The amount of the consideration attributable to the sale is fixed and determinable by the seller at the time of the sale of the item to the purchaser; and 

(iv) One (1) of the following criteria is met: 

1. The purchaser presents a coupon, certificate or other documentation to the seller to claim a price reduction or discount where the coupon, certificate or documentation is authorized, distributed or granted by a third party with the understanding that the third party will reimburse any seller to whom the coupon, certificate or documentation is presented; 

2. The purchaser identified himself or herself to the seller as a member of a group or organization entitled to a price reduction or discount (a "preferred customer" card that is available to any patron does not constitute membership in such a group); or 

3. The price reduction or discount is identified as a third-party price reduction or discount on the invoice received by the purchaser or on a coupon, certificate or other documentation presented by the purchaser. 

Where a trade-in is taken as part payment on tangible personal property sold, "gross proceeds of sales" shall include only the difference received between the selling price of the tangible personal property and the amount allowed for a trade-in of property of the same kind. When the trade-in is subsequently sold, the selling price thereof shall be included in "gross proceeds of sales." 

"Gross proceeds of sales" shall include the value of any goods, wares, merchandise or property purchased at wholesale or manufactured, and any mineral or natural resources produced, which are withdrawn or used from an established business or from the stock in trade for consumption or any other use in the business or by the owner. However, "gross proceeds of sales" does not include meals prepared by a restaurant and provided at no charge to employees of the restaurant or donated to a charitable organization that regularly provides food to the needy and the indigent and which has been granted exemption from the federal income tax as an organization described in Section 501(c) (3) of the Internal Revenue Code of 1986. 

"Gross proceeds of sales" shall not include bad check or draft service charges as provided for in Section 97-19-57. 

(i) "Gross income" means the total charges for service or the total receipts (actual or accrued) derived from trades, business or commerce by reason of the investment of capital in the business engaged in, including the sale or rental of tangible personal property, compensation for labor and services performed, and including the receipts from the sales of property retained as toll, without any deduction for rebates, cost of property sold, cost of materials used, labor costs, interest paid, losses or any expense whatever. 

"Gross income" shall also include the cost of property given as compensation when the property is consumed by a person performing a taxable service for the donor. 

However, "gross income" or "gross proceeds of sales" shall not be construed to include the value of goods returned by customers when the total sale price is refunded either in cash or by credit, or cash discounts allowed and taken on sales. Cash discounts shall not include the value of trading stamps given with a sale of property. 

(j) "Tangible personal property" means personal property perceptible to the human senses or by chemical analysis as opposed to real property or intangibles and shall include property sold on an installed basis which may become a part of real or personal property. 

(k) "Installation charges" shall mean and include the charge for the application of tangible personal property to real or personal property without regard to whether or not it becomes a part of the real property or retains its personal property classification. It shall include, but not be limited to, sales in place of roofing, tile, glass, carpets, drapes, fences, awnings, window air conditioning units, gasoline pumps, window guards, floor coverings, carports, store fixtures, aluminum and plastic siding, tombstones and similar personal property. 

(l) "Newspaper" means a periodical which: 

(i) Is not published primarily for advertising purposes and has not contained more than seventy-five percent (75%) advertising in more than one-half (1/2) of its issues during any consecutive twelve-month period excluding separate advertising supplements inserted into but separately identifiable from any regular issue or issues; 

(ii) Has been established and published continuously for at least twelve (12) months; 

(iii) Is regularly issued at stated intervals no less frequently than once a week, bears a date of issue, and is numbered consecutively; provided, however, that publication on legal holidays of this state or of the United States and on Saturdays and Sundays shall not be required, and failure to publish not more than two (2) regular issues in any calendar year shall not exclude a periodical from this definition; 

(iv) Is issued from a known office of publication, which shall be the principal public business office of the newspaper and need not be the place at which the periodical is printed and a newspaper shall be deemed to be "published" at the place where its known office of publication is located; 

(v) Is formed of printed sheets; provided, however, that a periodical that is reproduced by the stencil, mimeograph or hectograph process shall not be considered to be a "newspaper"; and 

(vi) Is originated and published for the dissemination of current news and intelligence of varied, broad and general public interest, announcements and notices, opinions as editorials on a regular or irregular basis, and advertising and miscellaneous reading matter. 

The term "newspaper" shall include periodicals which are designed primarily for free circulation or for circulation at nominal rates as well as those which are designed for circulation at more than a nominal rate. 

The term "newspaper" shall not include a publication or periodical which is published, sponsored by, is directly supported financially by, or is published to further the interests of, or is directed to, or has a circulation restricted in whole or in part to any particular sect, denomination, labor or fraternal organization or other special group or class or citizens. 
 

For purposes of this paragraph, a periodical designed primarily for free circulation or circulation at nominal rates shall not be considered to be a newspaper unless such periodical has made an application for such status to the department in the manner prescribed by the department and has provided to the department documentation satisfactory to the department showing that such periodical meets the requirements of the definition of the term "newspaper." However, if such periodical has been determined to be a newspaper under action taken by the department on or before April 11, 1996, such periodical shall be considered to be a newspaper without the necessity of applying for such status. A determination by the Department of Revenue that a publication is a newspaper shall be limited to the application of this chapter and shall not establish that the publication is a newspaper for any other purpose. 

(m) "MPC" or "Material Purchase Certificate" means a certificate for which a person that is liable for the tax levy under Section 27-65-21 can apply and obtain from the commissioner, and when issued, entitles the holder to purchase materials and services that are to become a component part of a structure to be erected or repaired with no tax due. Any person taxable under Section 27-65-21 who obtains an MPC for a project and purchases materials and services in this state that are to become a component part of a structure being erected or repaired in the project and at any time pays sales tax on these purchases may, after obtaining the MPC for the project, take a credit against his sales taxes for the sales tax paid on these purchases if proper documentation exists to substantiate the payment of the sales tax on the purchase of component materials and services. This credit may also be allowed in any audit of the taxpayer. Any penalties and interest owed by the taxpayer on the return or in the audit where this credit is taken may be determined based on the sales tax due after the taking of this credit. 
 

Sources: Codes, 1942, § 10104; Laws,  1934, ch. 119; Laws, 1936, ch. 158; Laws, 1938, ch. 113; Laws, 1944, ch. 129, § 1; Laws, 1946, ch. 262, § 1; Laws, 1948, ch. 467, § 1; Laws, 1950, ch. 530, § 1; Laws, 1954, ch. 369, § 2; Laws, 1955, Ex Sess, ch. 109, § 2; Laws, 1956, ch. 419, § 1; Laws, 1958, ch. 574, § 1; Laws, 1968, ch. 588, § 1; Laws, 1970, ch. 546, § 1; Laws, 1972, ch. 506, § 1; Laws, 1982, 1st Ex. Sess, ch. 17, § 32; brought forward, Laws, 1983, ch. 546, § 4; Laws, 1986, ch. 451, § 1; Laws,  1995, ch. 508, § 1; Laws, 1996, ch. 523, § 1; Laws, 1997, ch. 493, § 1; Laws, 2005, ch. 325, § 1; Laws, 2006, ch. 478, § 1; Laws, 2008, ch. 472, § 1; Laws, 2009, ch. 492, § 102, eff from and after July 1, 2010.
 

27-65-5 - Definitions; "Wholesaler, jobber or distributor"; "Wholesale sales."

§ 27-65-5. Definitions; "Wholesaler, jobber or distributor"; "Wholesale sales."
 

"Wholesaler," "jobber" or "distributor" means a person doing a regularly organized wholesale or jobbing business, known to the trade as such, and selling to licensed retail dealers or other wholesalers for resale in the regular course of business. This classification has no bearing on rates of tax due under this chapter, each sale or part of sales being taxable or exempt depending upon the class in which it falls. 
 

"Wholesale sales" shall apply to: 
 

(1) A sale of tangible personal property taxable under Sections 27-65-17 and 27-65-25 for resale in the regular line of business, when made in good faith to a retailer regularly selling or renting that property and when the dealer is licensed under Section 27-65-27 of this chapter if located in this state. 

A sale of a service taxable under Section 27-65-23 for resale in the regular line of business, when made to a regular dealer in that service and when the dealer is licensed under Section 27-65-27 of this chapter if located in this state, or a charge for custom processing rendered upon merchandise for resale or rental by a dealer licensed under Section 27-65-27. 

A sale of telecommunications services taxable under Section 27-65-19 for resale in the regular course of business, when made to a regular telecommunications provider of the service and the provider is the holder of a permit issued under Section 27-65-27 and is located in this state or is providing telecommunications services in this state. 

A sale of specified digital product taxable under Section 27-65-26 for resale in the regular course of business, when made to a regular dealer of specified digital products and the dealer is the holder of a permit issued under Section 27-65-27 and is located in this state. 

"Wholesale sale" shall not include a transaction whereby property is delivered to, and collection for the transaction is made from, a person that will consume the property rather than resell it even though the billing is to a retailer. 

However, when a taxpayer sells merchandise and has paid a rate equal to the retail rate of tax on the purchase price to a wholesaler, the taxpayer may take credit for the tax paid to the wholesaler from the tax due on the sale of the merchandise specifically included in his return to the commissioner. 

(2) A sale of tangible personal property (except sand or gravel when sold by the producer thereof) or service which is to become a component part of a structure or improvement erected, constructed, repaired, or made only when the sale is made to a contractor taxable under Section 27-65-21 of this chapter on the contract in which the component materials are to be used; and only when the contractor holds a material purchase certificate as required by Section 27-65-21 of this chapter. 

(3) A sale of boxes, crates, cartons, cans, bottles and other packaging materials to a retailer or retail custom processor for use as a container to accompany goods or services sold by the retailer or custom processor where possession thereof will pass to the customer at the time of sale of the goods or services contained therein. 

(4) The value of soft drinks and syrup withdrawn from the business by a manufacturer for sale at retail and food or drink withdrawn by a manufacturer or wholesaler to be sold through full service vending machines for human consumption. 

The quantity of property or services sold or the price at which sold is immaterial in determining whether or not a sale is at wholesale. Sales may be classed as wholesale, or exempt, only if evidenced by proper and adequate records and invoices to substantiate the wholesale rate or exemption from the tax on each individual sale. 

The substantiation of the wholesale sales must be by an invoice clearly indicating the date, the name and address of the vendor and vendee, the items sold and the price thereof. Such proof of wholesale sales shall be filed in chronological order and thus preserved for a period of three (3) years from the date of sale. These records shall be subject to inspection by the commissioner and his agents, at their discretion, for the verification of returns filed by either the wholesaler or his customers. 

The substantiation of an exempt sale must be by an invoice containing the same information as required for the wholesale sales. This requirement shall apply equally to a retailer making wholesale or exempt sales. 

Any failure to comply with all the above requirements shall subject the violator to the retail rate of tax on all such violations. 
 

Sources: Codes, 1942, § 10104-01; Laws,  1954, ch. 369, § 3; Laws, 1955, Ex Sess, ch. 109, § 3; Laws, 1956, ch. 419, § 2; Laws, 1958, ch. 574, § 2; Laws, 1964, ch. 530, § 1; Laws, 1982, 1st Ex Sess, ch. 17, § 33; brought forward, Laws, 1983, ch. 546, § 5; Laws, 1986, ch. 451, § 2; Laws, 2002, ch. 520, § 2; Laws, 2009, ch. 332, § 2, eff from and after July 1, 2009.
 

27-65-7 - Definitions; "Retailer"; "Retail sales."

§ 27-65-7. Definitions; "Retailer"; "Retail sales."
 

"Retailer" shall apply to a person making retail sales through vending machines, by maintaining a store, or operating as a transient vendor, or renting or leasing tangible personal property. 
 

"Retail sales" shall mean and include all sales of tangible personal property except those defined herein as wholesale and those made to a wholesaler, jobber, manufacturer or custom processor for resale or for further processing. 
 

"Retail sale" shall include the value of any tangible personal property manufactured or purchased at wholesale which is withdrawn from the business or stock in trade and is used or consumed within this state in the business or by the owner or by any other person, whether or not in the regular course of business or trade. 
 

"Retail sale" shall also include a sale invoiced to a retailer but delivered to another person who pays for the merchandise upon taking possession. 
 

Sources: Codes, 1942, § 10104-02; Laws,  1954, ch. 369, § 4; Laws, 1955, Ex Sess, ch. 109, § 4; Laws, 1958, ch. 574, § 3; Laws, 1964, ch. 530, § 2; Laws, 1982, 1st Ex Sess, ch. 17, § 34; brought forward, Laws, 1983, ch. 546, § 6; Laws, 2007, ch. 359, § 4, eff from and after July 1, 2007.
 

27-65-9 - Definitions; "Business"; "Doing business."

§ 27-65-9. Definitions; "Business"; "Doing business."
 

(1)  "Business" shall mean and include all activities or acts engaged in (personal or corporate), for benefit or advantage, either direct or indirect, and not exempting subactivities in connection therewith. Each of such subactivities shall be considered business engaged in, taxable in the class in which it falls. 

(2)  "Business" shall include activities engaged in by exempt organizations or political entities in competition with privately owned business subject to the provisions of this chapter; however, the term "business" shall not include the following activities: 

(a) Sales of prepaid student meal plans by public or private universities, colleges and community or junior colleges; 

(b) Sales of prepared meals by any public or private school to students in kindergarten through Grade 12; and 

(c) Retail sales of prepared meals when: 

(i) Sold on the campus of a public or private university, college or community or junior college in this state to a student enrolled at such university, college or community or junior college; and 

(ii) Payment for the sale is made through the use of a prepaid declining balance account or similar instrument or account issued to such student by the university, college or community or junior college that may be used only to purchase prepared meals. 

(3)  "Business" shall include the activity or activities of a person in this state performing a service under contract or agreement with another person when the service performed is taxable under the provisions of this chapter. 

(4)  "Doing business" shall include any person owning personal property located in this state under lease or rental agreement or any person installing personal property within this state. 

(5)  "Doing business" shall include any person represented in this state by salesmen taking or soliciting orders to be filled from points outside this state for subsequent delivery of the merchandise in equipment owned or leased by the seller to customers located in this state. 
 

Sources: Codes, 1942, § 10104-03; Laws,  1954, ch. 369, § 5; Laws, 1955, Ex Sess, ch. 109, § 5; Laws, 1958, ch. 574, § 4; Laws, 2006, ch. 464, § 1; Laws, 2007, ch. 359, § 3; Laws, 2009, ch. 479, § 1, eff from and after passage (approved Mar. 31, 2009.)
 

27-65-11 - Definitions; "Manufacturer"; "Manufacturing"; "Remanufacturing"; "Custom"; "Repairs"; "Producer."

§ 27-65-11. Definitions; "Manufacturer"; "Manufacturing"; "Remanufacturing"; "Custom"; "Repairs"; "Producer."
 

(a)  "Manufacturer" means one who is exclusively or predominately engaged in the business of manufacturing as defined under the terms "to manufacture" or "manufacturing." A person who is engaged in manufacturing and nonmanufacturing activities may be classified as a manufacturer as to his manufacturing activities which are operated as a separate business or division. 

(b)  "To manufacture" or "manufacturing" embraces activities of an industrial or commercial nature wherein labor or skill is applied, by hand or machinery, to materials belonging to the manufacturer so that a new, different, or more useful article of tangible personal property or substance of trade or commerce or electric power is produced for sale or rental and includes the production or fabrication of special-made or custom-made articles for sale or rental. 
 

"To manufacture" or "manufacturing" does not include activities such as cooking or preparing food or food products by a retailer in the regular course of retail trade; repairing and reconditioning property; the filling of prescriptions by a pharmacist; the washing or screening of mineral products; the cutting, hauling and decking of logs; or similar preparatory functions even when performed by a manufacturer. 

(c)  "Remanufacturing" embraces activities of an industrial or commercial nature wherein labor or skill is applied by hand or machinery to materials, a portion of which may belong to the customer, so that rebuilt articles of tangible personal property, comparable in quality to new articles of the same property, are created, a majority of the value of which is produced by the remanufacturing activity. 

(d)  "Custom processor" means one who is exclusively or predominately engaged in the business of custom processing or remanufacturing as defined under the terms "custom processing" and "remanufacturing." 

(e)  "Custom processing" means the performance of a manufacturing service done or made to order upon the property of the customer and shall include laundering, cleaning and pressing, but shall not include "repairs" or "maintenance" as these terms are defined herein; nor self-service commercial laundering, drying, cleaning and pressing equipment. 

(f)  "Manufacturing machinery" shall mean and include that machinery owned or leased by a manufacturer or custom processor for use by said manufacturer or custom processor in his plant directly and exclusively in manufacturing tangible personal property for subsequent sale, rental or in custom processing for a fee. Motorized units, conveyors, track and track structures, conduits, and similar items for use in transporting the unfinished product from storage or from one (1) phase of the manufacturing process to another may be classed as "manufacturing machinery." 
 

"Manufacturing machinery" shall also include laboratory machinery which shall include X-ray machines and film, scales, chemical equipment, pressure and tensile analysis machines and similar equipment to determine the quality of the product in process of manufacture, and equipment used in the processing of waste materials to avoid air and water pollution, but only when located at the manufacturer's plant site. 
 

Machinery used by a manufacturer to move, repair, clean, alter, improve, or otherwise recondition, rail rolling stock for sale or rental shall likewise constitute "manufacturing machinery." 
 

"Manufacturing machinery" shall also include machinery and equipment used in the production of motion pictures such as editing equipment, audio equipment, lighting equipment, projection equipment, camera equipment, sound equipment, cables, computer equipment used in the editing process, computer equipment used in the creation of special effects, and computer equipment used in the graphic and animation process. For the purposes of this paragraph the term "motion picture" means a nationally distributed feature-length film, video, television series or commercial made in Mississippi, in whole or in part, for theatrical or television viewing or as a television pilot. The term "motion picture" shall not include the production of television coverage of news and athletic events, or a film, video, television series or commercial that contains any material or performance defined in Section 97-29-103. Manufacturing machinery used in the production of motion pictures shall not be limited to a plant site. 
 

"Manufacturing machinery" shall not include machinery for use in the hatching of baby chicks, the severance of timber, sand, gravel, oil, gas or other natural resources produced or severed from the soil or water, maintenance or repair machinery, research laboratory machinery, storage warehouse machinery, equipment for protection of the plant or comfort of the personnel, or other equipment and supplies of like character. "Manufacturing machinery" does not include machine foundations or materials for their construction. 

(g)  "Machine parts" are component parts of manufacturing machinery and do not include parts for service equipment, nonmanufacturing machinery, fuels, lubricants, paints, or tools for maintenance. 

(h)  "Manufacturing plant" means the real and personal property owned or leased by a manufacturer which is assembled and used at a fixed location to perform activities defined as "manufacturing." 

(i)  "Repair," "repairs," or "maintenance" means the restoring of property in some measure to its original condition, which may involve the use of either personal property or labor or both, but, for the purposes of this chapter, the total charge for the service shall constitute gross income taxable in the class in which it falls. 

(j)  "Producer" means any person producing natural resource products or agricultural or horticultural products from the soil or water for sale. 
 

Sources: Codes, 1942, § 10104-04; Laws,  1954, ch. 369, § 6; Laws, 1955, Ex Sess, ch. 109, § 6; Laws, 1958, ch. 574, § 5; Laws, 1965, ch. 22, § 1; Laws, 1978, ch. 532, § 1; Laws, 1980, ch. 501, § 2; Laws, 1981, ch. 328, § 1; Laws, 1985, ch. 516, § 1; Laws, 2004, ch. 528, § 5, eff from and after July 1, 2004.
 

27-65-13 - Tax levied.

§ 27-65-13. Tax levied.
 

There is hereby levied and assessed, and shall be collected, privilege taxes for the privilege of engaging or continuing in business or doing business within this state to be determined by the application of rates against gross proceeds of sales or gross income or values, as the case may be, as provided in the following sections. 
 

Sources: Codes, 1942, § 10105; Laws,  1932, chs. 90, 91; Laws, 1934, ch. 119; Laws, 1955, Ex Sess, ch. 109, § 7, eff. March 1, 1955.
 

27-65-15 - Repealed.

§ 27-65-15. Repealed.
 

Repealed by Laws, 2006, ch. 458, § 1 effective from and after July 1, 2006. 
 

[Codes, 1942, § 10106; Laws,  1932, chs. 90, 91; Laws, 1934, ch. 119; Laws, 1936, ch. 158; Laws, 1938, Ex Sess, ch. 89; Laws, 1940, ch. 113; Laws, 1944, ch. 134, § 12; Laws, 1948, ch. 446, § 1; Laws, 1955, Ex Sess, ch. 109, § 8; Laws, 1962, ch. 594, § 9; Laws, 1964, ch. 531, § 1; Laws, 1968, ch. 588, § 2; Laws, 1981, ch. 525, § 1; Laws, 1982, 1st Ex Sess, ch. 17, § 35; Laws, 1983, ch. 413, § 1; Laws, 1983, 2nd Ex Sess, ch. 6, § 4; Laws, 1984, 1st Ex Sess, ch. 10, § 2; Laws, 1985, ch. 435, § 1; Laws, 1992, ch. 419, § 2, eff from and after June 1, 1992.] 
 

27-65-16 - Repealed.

§ 27-65-16. Repealed.
 

Repealed by Laws, 1979, ch. 436, § 2, eff from and after July 1, 1979. 
 

[En Laws 1978, ch. 476, § 2] 
 

27-65-17 - Selling tangible personal property wholesale and retail.

§ 27-65-17. Selling tangible personal property wholesale and retail.
 

(1) (a)  Except as otherwise provided in this section, upon every person engaging or continuing within this state in the business of selling any tangible personal property whatsoever there is hereby levied, assessed and shall be collected a tax equal to seven percent (7%) of the gross proceeds of the retail sales of the business. 

(b) Retail sales of farm tractors and parts and labor used to maintain and/or repair such tractors shall be taxed at the rate of one and one-half percent (1-1/2%) when made to farmers for agricultural purposes. 

(c) (i) Retail sales of farm implements sold to farmers and used directly in the production of poultry, ratite, domesticated fish as defined in Section 69-7-501, livestock, livestock products, agricultural crops or ornamental plant crops or used for other agricultural purposes, and parts and labor used to maintain and/or repair such implements, shall be taxed at the rate of one and one-half percent (1-1/2%) when used on the farm. 

(ii) The one and one-half percent (1-1/2%) rate shall also apply to all equipment used in logging, pulpwood operations or tree farming, and parts and labor used to maintain and/or repair such equipment, which is either: 

1. Self-propelled, or 

2. Mounted so that it is permanently attached to other equipment which is self-propelled or permanently attached to other equipment drawn by a vehicle which is self-propelled. 

In order to be eligible for the rate of tax provided for in this subparagraph (ii), such sales must be made to a professional logger. For the purposes of this subparagraph (ii), a "professional logger" is a person, corporation, limited liability company or other entity, or an agent thereof, who possesses a professional logger's permit issued by the Mississippi State Tax Commission and who presents the permit to the seller at the time of purchase. The commission shall establish an application process for a professional logger's permit to be issued, which shall include a requirement that the applicant submit a copy of documentation verifying that the applicant is certified according to Sustainable Forestry Initiative guidelines. Upon a determination that an applicant is a professional logger, the commission shall issue the applicant a numbered professional logger's permit. 

(d) Except as otherwise provided in subsection (3) of this section, retail sales of aircraft, automobiles, trucks, truck-tractors, semitrailers and manufactured or mobile homes shall be taxed at the rate of three percent (3%). 

(e) Sales of manufacturing machinery or manufacturing machine parts when made to a manufacturer or custom processor for plant use only when the machinery and machine parts will be used exclusively and directly within this state in manufacturing a commodity for sale, rental or in processing for a fee shall be taxed at the rate of one and one-half percent (1-1/2%). 

(f) Sales of machinery and machine parts when made to a technology intensive enterprise for plant use only when the machinery and machine parts will be used exclusively and directly within this state for industrial purposes, including, but not limited to, manufacturing or research and development activities, shall be taxed at the rate of one and one-half percent (1-1/2%). In order to be considered a technology intensive enterprise for purposes of this paragraph: 

(i) The enterprise shall meet minimum criteria established by the Mississippi Development Authority; 

(ii) The enterprise shall employ at least ten (10) persons in full-time jobs; 

(iii) At least ten percent (10%) of the workforce in the facility operated by the enterprise shall be scientists, engineers or computer specialists; 

(iv) The enterprise shall manufacture plastics, chemicals, automobiles, aircraft, computers or electronics; or shall be a research and development facility, a computer design or related facility, or a software publishing facility or other technology intensive facility or enterprise as determined by the Mississippi Development Authority; 

(v) The average wage of all workers employed by the enterprise at the facility shall be at least one hundred fifty percent (150%) of the state average annual wage; and 

(vi) The enterprise must provide a basic health care plan to all employees at the facility. 

(g) Sales of materials for use in track and track structures to a railroad whose rates are fixed by the Interstate Commerce Commission or the Mississippi Public Service Commission shall be taxed at the rate of three percent (3%). 

(h) Sales of tangible personal property to electric power associations for use in the ordinary and necessary operation of their generating or distribution systems shall be taxed at the rate of one percent (1%). 

(i) Wholesale sales of beer shall be taxed at the rate of seven percent (7%), and the retailer shall file a return and compute the retail tax on retail sales but may take credit for the amount of the tax paid to the wholesaler on said return covering the subsequent sales of same property, provided adequate invoices and records are maintained to substantiate the credit. 

(j) Wholesale sales of food and drink for human consumption to full-service vending machine operators to be sold through vending machines located apart from and not connected with other taxable businesses shall be taxed at the rate of eight percent (8%). 

(k) Sales of equipment used or designed for the purpose of assisting disabled persons, such as wheelchair equipment and lifts, that is mounted or attached to or installed on a private carrier of passengers or light carrier of property, as defined in Section 27-51-101, at the time when the private carrier of passengers or light carrier of property is sold shall be taxed at the same rate as the sale of such vehicles under this section. 

(l) Sales of the factory-built components of modular homes, panelized homes and precut homes, and panel constructed homes consisting of structural insulated panels, shall be taxed at the rate of three percent (3%). 

(m) Sales of materials used in the repair, renovation, addition to, expansion and/or improvement of buildings and related facilities used by a dairy producer shall be taxed at the rate of three and one-half percent (3-1/2%). For the purposes of this paragraph (m), "dairy producer" means any person engaged in the production of milk for commercial use. 

(2)  From and after January 1, 1995, retail sales of private carriers of passengers and light carriers of property, as defined in Section 27-51-101, shall be taxed an additional two percent (2%). 

(3)  In lieu of the tax levied in subsection (1) of this section, there is levied on retail sales of truck-tractors and semitrailers used in interstate commerce and registered under the International Registration Plan (IRP) or any similar reciprocity agreement or compact relating to the proportional registration of commercial vehicles entered into as provided for in Section 27-19-143, a tax at the rate of three percent (3%) of the portion of the sale that is attributable to the usage of such truck-tractor or semitrailer in Mississippi. The portion of the retail sale that is attributable to the usage of such truck-tractor or semitrailer in Mississippi is the retail sales price of the truck-tractor or semitrailer multiplied by the percentage of the total miles traveled by the vehicle that are traveled in Mississippi. The tax levied pursuant to this subsection (3) shall be collected by the State Tax Commission from the purchaser of such truck-tractor or semitrailer at the time of registration of such truck-tractor or semitrailer. 

(4)  A manufacturer selling at retail in this state shall be required to make returns of the gross proceeds of such sales and pay the tax imposed in this section. 
 

Sources: Codes, 1942, § 10108; Laws,  1932, chs. 90, 91; Laws, 1934, chs. 119, 122; Laws, 1946, ch. 343; Laws, 1948, ch. 467, § 2; Laws, 1950, ch. 529; Laws, 1955, Ex Sess, ch. 109, § 9; Laws, 1958, ch. 574, § 6; Laws, 1960, ch. 167, § 1; Laws, 1962, ch. 596, §§ 1, 3; Laws, 1962, ch. 597, §§ 1, 3; Laws, 1964, ch. 532, § 1; Laws, 1964, ch. 531, § 2; Laws, 1965, Ex Sess, ch. 22, § 2; Laws, 1968, ch. 588, § 3; Laws, 1972, ch. 506, § 3; Laws, 1978, ch. 512, § 1; Laws, 1982, 1st Ex Sess, ch. 17, § 36; Laws, 1983, ch. 546, § 1; Laws, 1983, 2nd Ex Sess, ch. 6, § 5; Laws, 1984, 1st Ex Sess, ch. 10, § 3; Laws, 1985, ch. 351, § 1; Laws, 1985, ch. 516, § 2; Laws, 1987, ch. 322, § 26; Laws, 1987, ch. 426, § 1; Laws, 1988, ch. 506, § 1; Laws, 1992, ch. 419, § 3; Laws, 1992, ch. 509, § 1; Laws, 1994, ch. 563, § 7; Laws, 1998, ch. 410, § 1; Laws, 1999, ch. 452, § 1; Laws, 2005, ch. 532, § 19; Laws, 2005, 3rd Ex Sess, ch. 1, § 63; Laws, 2006, 2nd Ex Sess, ch. 1, § 1; Laws, 2007, ch. 359, § 5; Laws, 2009, ch. 493, § 1, eff from and after July 1, 2009.
 

27-65-18 - Selling tangible personal property or performing construction upon certain floating structures and cruise vessels.

§ 27-65-18. Selling tangible personal property or performing construction upon certain floating structures and cruise vessels.
 

(1)  There is levied, assessed and shall be collected a tax of three and one-half percent (3-1/2%) upon the gross proceeds of sales or gross receipts of sales of every person engaging or continuing within this state in the business of selling any tangible personal property or performing any construction activity upon (a) any floating structure that is normally moored and not normally engaged in the business of transporting people or property, and that is located in the waters within the State of Mississippi, and (b) any cruise vessel. Such structures include, but are not limited to, casinos, floating restaurants, floating hotels and similar property, regardless of whether the property is self-propelled. The tax imposed under this subsection (1) shall not apply to tangible personal property that is not a component part of the structure. 

(2)  If the owner of a structure described in subsection (1) of this section holds a direct pay permit issued by the State Tax Commission under Section 27-65-93, the owner shall furnish the permit to the seller or person performing the construction activity unless the holder of the direct pay permit is given written instructions or written authority to do otherwise by the commissioner. After being furnished the direct pay permit, the seller or person performing the construction activity shall be relieved of the duty to collect the tax imposed under subsection (1) of this section. The commissioner may assign a distinctive number to a structure and issue the distinctive number to the owner. The owner of the structure may furnish the distinctive number to persons performing construction activity in order to allow such persons to purchase component materials and parts for use in the construction activity without the requirement of paying sales tax on the purchases. 
 

Sources: Laws,  1996, ch. 503, § 1; Laws, 2004, ch. 351, § 1; Laws, 2007, ch. 468, § 1, eff from and after passage (approved Mar. 26, 2007.)
 

27-65-19 - Public utilities.

§ 27-65-19. Public utilities.
 

(1) (a)  Except as otherwise provided in this subsection, upon every person selling to consumers, electricity, current, power, potable water, steam, coal, natural gas, liquefied petroleum gas or other fuel, there is hereby levied, assessed and shall be collected a tax equal to seven percent (7%) of the gross income of the business. Provided, gross income from sales to consumers of electricity, current, power, natural gas, liquefied petroleum gas or other fuel for residential heating, lighting or other residential noncommercial or nonagricultural use, and sales of potable water for residential, noncommercial or nonagricultural use shall be excluded from taxable gross income of the business. Provided further, upon every such seller using electricity, current, power, potable water, steam, coal, natural gas, liquefied petroleum gas or other fuel for nonindustrial purposes, there is hereby levied, assessed and shall be collected a tax equal to seven percent (7%) of the cost or value of the product or service used. 

(b) There is hereby levied, assessed and shall be collected a tax equal to one and one-half percent (1-1/2%) of the gross income of the business when the electricity, current, power, steam, coal, natural gas, liquefied petroleum gas or other fuel is sold to or used by a manufacturer, custom processor, technology intensive enterprise meeting the criteria provided for in Section 27-65-17(1)(f), or public service company for industrial purposes, which shall include that used to generate electricity, to operate an electrical distribution or transmission system, to operate pipeline compressor or pumping stations or to operate railroad locomotives; however, the tax imposed on natural gas under this paragraph shall not exceed Ten and One-half Cents (10.5› per one thousand (1,000) cubic feet and sales of fuel used to produce electric power by a company primarily engaged in the business of producing, generating or distributing electric power for sale shall be exempt from sales tax as provided in Section 27-65-107. 

(c) (i) The one and one-half percent (1-1/2%) industrial rate provided for in this subsection shall also apply when the electricity, current, power, steam, coal, natural gas, liquefied petroleum gas or other fuel is sold to a producer or processor for use directly in the production of poultry or poultry products, the production of livestock and livestock products, the production of domesticated fish and domesticated fish products, the production of marine aquaculture products, the production of plants or food by commercial horticulturists, the processing of milk and milk products, the processing of poultry and livestock feed, and the irrigation of farm crops. 

(ii) The one and one-half percent (1-1/2%) rate provided for in this subsection shall also apply to the sale of naturally occurring carbon dioxide and anthropogenic carbon dioxide lawfully injected into the earth for: 

1. Use in an enhanced oil recovery project, including, but not limited to, use for cycling, repressuring or lifting of oil; or 

2. Permanent sequestration in a geological formation. 

(d) The one and one-half percent (1-1/2%) rate provided for in this subsection shall not apply to sales of fuel for automobiles, trucks, truck-tractors, buses, farm tractors or airplanes. 

(e) (i) Upon every person providing services in this state, there is hereby levied, assessed and shall be collected: 

1. A tax equal to seven percent (7%) of the gross income received from all charges for intrastate telecommunications services. 

2. A tax equal to seven percent (7%) of the gross income received from all charges for interstate telecommunications services. 

3. A tax equal to seven percent (7%) of the gross income received from all charges for international telecommunications services. 

4. A tax equal to seven percent (7%) of the gross income received from all charges for ancillary services. 

5. A tax equal to seven percent (7%) of the gross income received from all charges for products delivered electronically, including, but not limited to, software, music, games, reading materials or ring tones. 

(ii) A person, upon proof that he has paid a tax in another state on an event described in subparagraph (i) of this paragraph (e), shall be allowed a credit against the tax imposed in this paragraph (e) on interstate telecommunications service charges to the extent that the amount of such tax is properly due and actually paid in such other state and to the extent that the rate of sales tax imposed by and paid in such other state does not exceed the rate of sales tax imposed by this paragraph (e). 

(iii) Charges by one (1) telecommunications provider to another telecommunications provider holding a permit issued under Section 27-65-27 for services that are resold by such other telecommunications provider, including, but not limited to, access charges, shall not be subject to the tax levied pursuant to this paragraph (e). 

(iv) For purposes of this paragraph (e): 

1. "Telecommunications service" means the electronic transmission, conveyance or routing of voice, data, audio, video or any other information or signals to a point, or between points. The term "telecommunications service" includes such transmission, conveyance or routing in which computer processing applications are used to act on the form, code or protocol of the content for purposes of transmission, conveyance or routing without regard to whether such service is referred to as voice over Internet protocol services or is classified by the Federal Communications Commission as enhanced or value added. The term "telecommunications service" shall not include: 

a. Data processing and information services that allow data to be generated, acquired, stored, processed or retrieved and delivered by an electronic transmission to a purchaser where such purchaser's primary purpose for the underlying transaction is the processed data or information; 

b. Installation or maintenance of wiring or equipment on a customer's premises; 

c. Tangible personal property; 

d. Advertising, including, but not limited to, directory advertising; 

e. Billing and collection services provided to third parties; 

f. Internet access service; 

g. Radio and television audio and video programming services regardless of the medium, including the furnishing of transmission, conveyance and routing of such services by the programming service provider. Radio and television audio and video programming services shall include, but not be limited to, cable service as defined in 47 USC 522(6) and audio and video programming services delivered by commercial mobile radio service providers, as defined in 47 CFR 20.3; 

h. Ancillary services; or 

i. Digital products delivered electronically, including, but not limited to, software, music, video, reading materials or ring tones. 

2. "Ancillary services" means services that are associated with or incidental to the provision of telecommunications services, including, but not limited to, detailed telecommunications billing, directory assistance, vertical service and voice mail service. 

a. "Conference bridging" means an ancillary service that links two (2) or more participants of an audio or video conference call and may include the provision of a telephone number. Conference bridging does not include the telecommunications services used to reach the conference bridge. 

b. "Detailed telecommunications billing service" means an ancillary service of separately stating information pertaining to individual calls on a customer's billing statement. 

c. "Directory assistance" means an ancillary service of providing telephone number information and/or address information. 

d. "Vertical service" means an ancillary service that is offered in connection with one or more telecommunications services, which offers advanced calling features that allow customers to identify callers and to manage multiple calls and call connections, including conference bridging services. 

e. "Voice mail service" means an ancillary service that enables the customer to store, send or receive recorded messages. Voice mail service does not include any vertical services that the customer may be required to have in order to utilize the voice mail service. 

3. "Intrastate" means telecommunication service that originates in one (1) United States state or United States territory or possession, and terminates in the same United States state or United States territory or possession. 

4. "Interstate" means a telecommunications service that originates in one (1) United States state or United States territory or possession, and terminates in a different United States state or United States territory or possession. 

5. "International" means a telecommunications service that originates or terminates in the United States and terminates or originates outside the United States, respectively. 

(v) For purposes of paragraph (e), the following sourcing rules shall apply: 

1. Except for the defined telecommunications services in item 3 of this subparagraph, the sales of telecommunications services sold on a call-by-call basis shall be sourced to: 

a. Each level of taxing jurisdiction where the call originates and terminates in that jurisdiction, or 

b. Each level of taxing jurisdiction where the call either originates or terminates and in which the service address is also located. 

2. Except for the defined telecommunications services in item 3 of this subparagraph, a sale of telecommunications services sold on a basis other than a call-by-call basis, is sourced to the customer's place of primary use. 

3. The sale of the following telecommunications services shall be sourced to each level of taxing jurisdiction as follows: 

a. A sale of mobile telecommunications services other than air-to-ground radiotelephone service and prepaid calling service is sourced to the customer's place of primary use as required by the Mobile Telecommunication Sourcing Act. 

A. A home service provider shall be responsible for obtaining and maintaining the customer's place of primary use. The home service provider shall be entitled to rely on the applicable residential or business street address supplied by such customer, if the home service provider's reliance is in good faith; and the home service provider shall be held harmless from liability for any additional taxes based on a different determination of the place of primary use for taxes that are customarily passed on to the customer as a separate itemized charge. A home service provider shall be allowed to treat the address used for purposes of the tax levied by this chapter for any customer under a service contract in effect on August 1, 2002, as that customer's place of primary use for the remaining term of such service contract or agreement, excluding any extension or renewal of such service contract or agreement. Month-to-month services provided after the expiration of a contract shall be treated as an extension or renewal of such contract or agreement. 

B. If the commissioner determines that the address used by a home service provider as a customer's place of primary use does not meet the definition of the term "place of primary use" as defined in subitem a.A of this item 3, the commissioner shall give binding notice to the home service provider to change the place of primary use on a prospective basis from the date of notice of determination; however, the customer shall have the opportunity, prior to such notice of determination, to demonstrate that such address satisfies the definition. 

C. The commission has the right to collect any taxes due directly from the home service provider's customer that has failed to provide an address that meets the definition of the term "place of primary use" which resulted in a failure of tax otherwise due being remitted. 

b. A sale of postpaid calling service is sourced to the origination point of the telecommunications signal as first identified by either: 

A. The seller's telecommunications system; or 

B. Information received by the seller from its service provider, where the system used to transport such signals is not that of the seller. 

c. A sale of a prepaid calling service or prepaid wireless calling service shall be subject to the tax imposed by this paragraph if the sale takes place in this state. If the customer physically purchases a prepaid calling service or prepaid wireless calling service at the vendor's place of business, the sale is deemed to take place at the vendor's place of business. If the customer does not physically purchase the service at the vendor's place of business, the sale of a prepaid calling card or prepaid wireless calling card is deemed to take place at the first of the following locations that applies to the sale: 

A. The customer's shipping address, if the sale involves a shipment; 

B. The customer's billing address; 

C. Any other address of the customer that is known by the vendor; or 

D. The address of the vendor, or alternatively, in the case of a prepaid wireless calling service, the location associated with the mobile telephone number. 

4. A sale of a private communication service is sourced as follows: 

a. Service for a separate charge related to a customer channel termination point is sourced to each level of jurisdiction in which such customer channel termination point is located. 

b. Service where all customer termination points are located entirely within one (1) jurisdiction or levels of jurisdiction is sourced in such jurisdiction in which the customer channel termination points are located. 

c. Service for segments of a channel between two (2) customer channel termination points located in different jurisdictions and which segment of channel are separately charged is sourced fifty percent (50%) in each level of jurisdiction in which the customer channel termination points are located. 

d. Service for segments of a channel located in more than one jurisdiction or levels of jurisdiction and which segments are not separately billed is sourced in each jurisdiction based on the percentage determined by dividing the number of customer channel termination points in such jurisdiction by the total number of customer channel termination points. 

5. A sale of ancillary services is sourced to the customer's place of primary use. 

(vi) For purpose of subparagraph (v) of this paragraph (e): 

1. "Air-to-ground radiotelephone service" means a radio service, as that term is defined in 47 CFR 22.99, in which common carriers are authorized to offer and provide radio telecommunications service for hire to subscribers in aircraft. 

2. "Call-by-call basis" means any method of charging for telecommunications services where the price is measured by individual calls. 

3. "Communications channel" means a physical or virtual path of communications over which signals are transmitted between or among customer channel termination points. 

4. "Customer" means the person or entity that contracts with the seller of telecommunications services. If the end user of telecommunications services is not the contracting party, the end user of the telecommunications service is the customer of the telecommunications service. Customer does not include a reseller of telecommunications service or for mobile telecommunications service of a serving carrier under an agreement to serve the customer outside the home service provider's licensed service area. 

5. "Customer channel termination point" means the location where the customer either inputs or receives the communications. 

6. "End user" means the person who utilizes the telecommunications service. In the case of an entity, "end user" means the individual who utilizes the service on behalf of the entity. 

7. "Home service provider" has the meaning ascribed to such term in Section 124(5) of Public Law 106-252 (Mobile Telecommunications Sourcing Act). 

8. "Mobile telecommunications service" has the meaning ascribed to such term in Section 124(7) of Public Law 106-252 (Mobile Telecommunications Sourcing Act). 

9. "Place of primary use" means the street address representative of where the customer's use of the telecommunications service primarily occurs, which must be the residential street address or the primary business street address of the customer. In the case of mobile telecommunications services, the place of primary use must be within the licensed service area of the home service provider. 

10. "Post-paid calling service" means the telecommunications service obtained by making a payment on a call-by-call basis either through the use of a credit card or payment mechanism such as a bank card, travel card, credit card or debit card, or by charge made to a telephone number which is not associated with the origination or termination of the telecommunications service. A post-paid calling service includes a telecommunications service, except a prepaid wireless calling service that would be a prepaid calling service except it is not exclusively a telecommunications service. 

11. "Prepaid calling service" means the right to access exclusively telecommunication services, which must be paid for in advance and which enables the origination of calls using an access number or authorization code, whether manually or electronically dialed, and that is sold in predetermined units or dollars of which the number declines with use in a known amount. 

12. "Prepaid wireless calling service" means a telecommunications service that provides the right to utilize mobile wireless service as well as other nontelecommunications services, including the download of digital products delivered electronically, content and ancillary service, which must be paid for in advance that is sold in predetermined units or dollars of which the number declines with use in a known amount. 

13. "Private communication service" means a telecommunication service that entitles the customer to exclusive or priority use of a communications channel or group of channels between or among termination points, regardless of the manner in which such channel or channels are connected, and includes switching capacity, extension lines, stations and any other associated services that are provided in connection with the use of such channel or channels. 

14. "Service address" means: 

a. The location of the telecommunications equipment to which a customer's call is charged and from which the call originates or terminates, regardless of where the call is billed or paid. 

b. If the location in subitem a of this item 14 is not known, the origination point of the signal of the telecommunications services first identified by either the seller's telecommunications system or in information received by the seller from its service provider, where the system used to transport such signals is not that of the seller. 

c. If the location in subitems a and b of this item 14 are not known, the location of the customer's place of primary use. 

(vii) 1. For purposes of this subparagraph (vii), "bundled transaction" means a transaction that consists of distinct and identifiable properties or services which are sold for a single nonitemized price but which are treated differently for tax purposes. 

2. In the case of a bundled transaction that includes telecommunications services, ancillary services, Internet access, or audio or video programming services taxed under this chapter in which the price of the bundled transaction is attributable to properties or services that are taxable and nontaxable, the portion of the price that is attributable to any nontaxable property or service shall be subject to the tax unless the provider can reasonably identify that portion from its books and records kept in the regular course of business. 

3. In the case of a bundled transaction that includes telecommunications services, ancillary services, Internet access, audio or video programming services subject to tax under this chapter in which the price is attributable to properties or services that are subject to the tax but the tax revenue from the different properties or services are dedicated to different funds or purposes, the provider shall allocate the price among the properties or services: 

a. By reasonably identifying the portion of the price attributable to each of the properties and services from its books and records kept in the regular course of business; or 

b. Based on a reasonable allocation methodology approved by the commission. 

4. This subparagraph (vii) shall not create a right of action for a customer to require that the provider or the commission, for purposes of determining the amount of tax applicable to a bundled transaction, allocate the price to the different portions of the transaction in order to minimize the amount of tax charged to the customer. A customer shall not be entitled to rely on the fact that a portion of the price is attributable to properties or services not subject to tax unless the provider elects, after receiving a written request from the customer in the form required by the provider, to provide verifiable data based upon the provider's books and records that are kept in the regular course of business that reasonably identifies the portion of the price attributable to the properties or services not subject to the tax. 

(2)  Persons making sales to consumers of electricity, current, power, natural gas, liquefied petroleum gas or other fuel for residential heating, lighting or other residential noncommercial or nonagricultural use or sales of potable water for residential, noncommercial or nonagricultural use shall indicate on each statement rendered to customers that such charges are exempt from sales taxes. 

(3)  There is hereby levied, assessed and shall be paid on transportation charges on shipments moving between points within this state when paid directly by the consumer, a tax equal to the rate applicable to the sale of the property being transported. Such tax shall be reported and paid directly to the State Tax Commission by the consumer. 
 

Sources: Codes, 1942, § 10109; Laws,  1932, chs. 90, 91; Laws, 1934, ch. 119; Laws, 1936, ch. 158; Laws, 1944, ch. 129, § 2; Laws, 1955, Ex Sess, ch. 109, § 10; Laws, 1956, ch. 419, § 3; Laws, 1958, ch. 574, § 7; Laws, 1964, ch. 531, § 3; Laws, 1968, ch. 588, § 4; Laws, 1972, ch. 506, § 2; Laws, 1978, ch. 490, §§ 1, 2; Laws, 1979, ch. 302, § 7; Laws, 1982, Ex Sess, ch. 17, § 37; Laws, 1983, 2nd Ex Sess, ch. 6, § 6; Laws, 1984, 1st Ex Sess, Ch. 10, § 4; Laws, 1985, ch. 351, § 2; Laws, 1992, ch. 419, § 4; Laws, 1993, ch. 473, § 1; Laws, 1997, ch. 536, § 2; Laws, 1998, ch. 519, § 1; Laws, 2000, ch. 303, § 6; Laws, 2001, ch. 464, § 1; Laws, 2002, ch. 520, § 1; Laws, 2004, ch. 306, § 1; Laws, 2005, 3rd Ex Sess, ch. 1, § 64; Laws, 2006, ch. 461, § 1; Laws, 2007, ch. 329, § 1; Laws, 2009, ch. 475, § 1, eff from and after July 1, 2009.
 

27-65-20 - Selling machinery, etc. used in operation of structures, facilities and land acquired and operated pursuant to Chapter 9, Title 59.

§ 27-65-20. Selling machinery, etc. used in operation of structures, facilities and land acquired and operated pursuant to Chapter 9, Title 59.
 

Upon every person engaging or continuing within this state in the business of selling machinery, machine parts and/or equipment to an operator or lessee of any structures, facilities and lands acquired and operated or leased pursuant to any of the provisions of Chapter 9, Title 59, Mississippi Code of 1972, which machinery, machine parts and/or equipment is to be located on and used exclusively and directly in the operation of such structures, facilities and lands, there is hereby levied, assessed and shall be collected a tax equal to one and one-half percent (11/2%) of the gross proceeds of such retail sales of the business. 
 

Sources: Laws,  1990, 1st Ex Sess, ch. 71, § 21, eff from and after passage (approved June 30, 1990).
 

27-65-21 - Contracting, etc.

§ 27-65-21. Contracting, etc.
 

(1) (a) (i)  Upon every person engaging or continuing in this state in the business of contracting or performing a contract or engaging in any of the activities, or similar activities, listed below for a price, commission, fee or wage, there is hereby levied, assessed and shall be collected a tax equal to three and one-half percent (3-1/2%) of the total contract price or compensation received, including all charges related to the contract such as finance charges and late charges, from constructing, building, erecting, repairing, grading, excavating, drilling, exploring, testing or adding to any building, highway, street, sidewalk, bridge, culvert, sewer, irrigation or water system, drainage or dredging system, levee or levee system or any part thereof, railway, reservoir, dam, power plant, electrical system, air conditioning system, heating system, transmission line, pipeline, tower, dock, storage tank, wharf, excavation, grading, water well, any other improvement or structure or any part thereof when the compensation received exceeds Ten Thousand Dollars ($10,000.00). Such activities shall not include constructing, repairing or adding to property which retains its identity as personal property. The tax imposed in this section is levied upon the prime contractor and shall be paid by him. 

(ii) Amounts included in the contract price or compensation received representing the sale of manufacturing or processing machinery for a manufacturer or custom processor shall be taxed at the rate of one and one-half percent (1-1/2%) in lieu of the three and one-half percent (3-1/2%). 

(b) The following shall be excluded from the tax levied by this section: 

(i) The contract price or compensation received for constructing, building, erecting, repairing or adding to any building, electrical system, air conditioning system, heating system or any other improvement or structure which is used for or primarily in connection with a residence or dwelling place for human beings. Such residences shall include homes, mobile homes, summer cottages, fishing and hunting camp buildings and similar buildings, but shall not include apartment buildings, condominiums, hotels, motels, hospitals, nursing or retirement homes, tourist cottages or other commercial establishments. 

(ii) The portion of the total contract price attributable to design or engineering services if the total contract price for the project exceeds the sum of One Hundred Million Dollars ($100,000,000.00). 

(iii) The contract price or compensation received to restore, repair or replace a utility distribution or transmission system that has been damaged due to ice storm, hurricane, flood, tornado, wind, earthquake or other natural disaster if such restoration, repair or replacement is performed by the entity providing the service at its cost. 

(c) Sales of materials and services for use in the activities hereby excluded from taxes imposed by this section, except services used in activities excluded pursuant to paragraph (b) (iii) of this subsection, shall be subject to taxes imposed by other sections in this chapter. 

(2)  Upon every person engaging or continuing in this state in the business of contracting or performing a contract of redrilling, or working over, or of drilling an oil well or a gas well, regardless of whether such well is productive or nonproductive, for any valuable consideration, there is hereby levied, assessed and shall be collected a tax equal to three and one-half percent (3-1/2%) of the total contract price or compensation received when such compensation exceeds Ten Thousand Dollars ($10,000.00).
 

The words, terms and phrases as used in this subsection shall have the meaning ascribed to them as follows: 
 

"Operator" - One who holds all or a fraction of the working or operating rights in an oil or gas lease, and is obligated for the costs of production either as a fee owner or under a lease or any other form of contract creating working or operating rights. 
 

"Bottom-hole contribution" - Money or property given to an operator for his use in the drilling of a well on property in which the payor has no interest. The contribution is payable whether the well is productive or nonproductive. 
 

"Dry-hole contribution" - Money or property given to an operator for his use in the drilling of a well on property in which the payor has no interest. Such contribution is payable only in the event the well is found to be nonproductive. 
 

"Turnkey drilling contract" - A contract for the drilling of a well which requires the driller to drill a well and, if commercial production is obtained, to equip the well to such stage that the lessee or operator may turn a valve and the oil will flow into a tank. 
 

"Total contract price or compensation received" - As related to oil and gas well contractors, shall include amounts received as compensation for all costs of performing a turnkey drilling contract; amounts received or to be received under assignment as dry-hole money or bottom-hole money; and shall mean and include anything of value received by the contractor as remuneration for services taxable hereunder. When the kind and amount of compensation received by the contractor is contingent upon production, the taxable amount shall be the total compensation receivable in the event the well is a dry hole. The taxable amount in the event of production when the contractor receives a production interest of an undetermined value in lieu of a fixed compensation shall be an amount equal to the compensation to the contractor if the well had been a dry hole. 

(3)  When the work to be performed under any contract is sublet by the prime contractor to different persons, or in separate contracts to the same persons, each such subcontractor performing any part of said work shall be liable for the amount of the tax which accrues on account of the work performed by such person when the tax heretofore imposed has not been paid upon the whole contract by the prime contractor. 
 

When a person engaged in any business on which a tax is levied in Section 27-65-23, also qualifies as a contractor, and contracts with the owner of any project to perform any services in excess of Ten Thousand Dollars ($10,000.00) herein taxed, such person shall pay the tax imposed by this section in lieu of the tax imposed by Section 27-65-23. 
 

Any person entering into any contract over Seventy-five Thousand Dollars ($75,000.00) as defined in this section shall, before beginning the performance of such contract or contracts, either pay the contractors' tax in advance, together with any use taxes due under Section 27-67-5, or execute and file with the Chairman of the State Tax Commission a good and valid bond in a surety company authorized to do business in this state, or with sufficient sureties to be approved by the commissioner conditioned that all taxes which may accrue to the State of Mississippi under this chapter, or under Section 27-67-5 and Section 27-7-5, will be paid when due. Such bonds shall be either (a) "job bonds" which guarantee payment when due of the aforesaid taxes resulting from performance of a specified job or activity regardless of date of completion; or (b) "blanket bonds" which guarantee payment when due of the aforesaid taxes resulting from performance of all jobs or activities taxable under this section begun during the period specified therein, regardless of date of completion. The payments of the taxes due or the execution and filing of a surety bond shall be a condition precedent to the commencing work on any contract taxed hereunder. Provided, that when any bond is filed in lieu of the prepayment of the tax under this section, that the tax shall be payable monthly on the amount received during the previous month, and any use taxes due shall be payable on or before the twentieth day of the month following the month in which the property is brought into Mississippi. 
 

Any person failing either to execute any bond herein provided, or to pay the taxes in advance, before beginning the performance of any contract shall be denied the right to perform such contract until he complies with such requirements, and the commissioner is hereby authorized to proceed either under Section 27-65-59, under Section 27-65-61 or by injunction to prevent any activity in the performance of such contract until either a satisfactory bond is executed and filed, or all taxes are paid in advance, and a temporary injunction enjoining the execution of such contract shall be granted without notice by any judge or chancellor now authorized by law to grant injunctions. 
 

Any person liable for a tax under this section may apply for and obtain a material purchase certificate from the commissioner which may entitle the holder to purchase materials and services that are to become a component part of the structure to be erected or repaired with no tax due. Provided, that the contractor applying for the contractor's material purchase certificate shall furnish the State Tax Commission a list of all work sublet to others, indicating the amount of work to be performed, and the names and addresses of each subcontractor. 
 

Sources: Codes, 1942, § 10110; Laws,  1934, ch. 119; Laws, 1936, ch. 158; Laws, 1942, ch. 122; Laws, 1944, ch. 129, § 3; Laws, 1950, ch. 530, § 2; Laws, 1955, Ex Sess, ch. 109, § 11; Laws, 1956, ch. 420, § 1; Laws, 1958, ch. 574, § 8; Laws, 1962, ch. 598, §§ 1, 3; Laws, 1964, ch. 532, § 2; Laws, 1968, ch. 588, § 5; Laws, 1982, ch. 442, § 1; Laws, 1984, ch. 458, § 1; Laws, 1985, ch. 351, § 3; Laws, 1987, ch. 432; Laws, 1996, ch. 503, § 2; Laws, 1997, ch. 320, § 1; Laws, 2005, ch. 434, § 1; Laws, 2007, ch. 442, § 1, eff from and after July 1, 2007.
 

27-65-22 - Amusements.

§ 27-65-22. Amusements.
 

(1)  Upon every person engaging or continuing in any amusement business or activity, which shall include all manner and forms of entertainment and amusement, all forms of diversion, sport, recreation or pastime, shows, exhibitions, contests, displays, games or any other and all methods of obtaining admission charges, donations, contributions or monetary charges of any character, from the general public or a limited or selected number thereof, directly or indirectly in return for other than tangible property or specific personal or professional services, whether such amusement is held or conducted in a public or private building, hotel, tent, pavilion, lot or resort, enclosed or in the open, there is hereby levied, assessed and shall be collected a tax equal to seven percent (7%) of the gross income received as admission, except as otherwise provided herein. In lieu of the rate set forth above, there is hereby imposed, levied and assessed, to be collected as hereinafter provided, a tax of three percent (3%) of gross revenue derived from sales of admission to (a) publicly owned enclosed coliseums and auditoriums (except admissions to athletic contests between colleges and universities) or (b) livestock facilities, agriculture facilities or other facilities constructed, renovated or expanded with funds from the grant program authorized under Section 18 of Chapter 530, Laws of 1995. There is hereby imposed, levied and assessed a tax of seven percent (7%) of gross revenue derived from sales of admission to events conducted on property managed by the Mississippi Veterans Memorial Stadium, which tax shall be administered in the manner prescribed in this chapter, subject, however, to the provisions of Sections 55-23-3 through 55-23-11. 

(2)  The operator of any place of amusement in this state shall collect the tax imposed by this section, in addition to the price charged for admission to any place of amusement, and under all circumstances the person conducting the amusement shall be liable for, and pay the tax imposed based upon the actual charge for such admission. Where permits are obtained for conducting temporary amusements by persons who are not the owners, lessees or custodians of the buildings, lots or places where the amusements are to be conducted, or where such temporary amusement is permitted by the owner, lessee or custodian of any place to be conducted without the procurement of a permit as required by this chapter, the tax imposed by this chapter shall be paid by the owner, lessee or custodian of such place where such temporary amusement is held or conducted, unless paid by the person conducting the amusement, and the applicant for such temporary permit shall furnish with the application therefor, the name and address of the owner, lessee or custodian of the premises upon which such amusement is to be conducted, and such owner, lessee or custodian shall be notified by the commission of the issuance of such permit, and of the joint liability for such tax. 

(3)  The tax imposed by this section shall not be levied or collected upon: 

(a) Any admissions charged at any place of amusement operated by a religious, charitable or educational organization, or by a nonprofit civic club or fraternal organization (i) when the net proceeds of such admissions do not inure to any one or more individuals within such organization and are to be used solely for religious, charitable, educational or civic purposes; or (ii) when the entire net proceeds are used to defray the normal operating expenses of such organization, such as loan payments, maintenance costs, repairs and other operating expenses; 

(b) Any admissions charged to hear gospel singing when promoted by a duly constituted local, bona fide nonprofit charitable or religious organization, irrespective of the fact that the performers and promoters are paid out of the proceeds of admissions collected, provided the program is composed entirely of gospel singing and not generally mixed with hillbilly or popular singing; 

(c) Any admissions charged at any athletic games or contests between high schools or between grammar schools; 

(d) Any admissions or tickets to or for baseball games between teams operated under a professional league franchise; 

(e) Any admissions to county, state or community fairs, or any admissions to entertainments presented in community homes or houses which are publicly owned and controlled, and the proceeds of which do not inure to any individual or individuals; 

(f) Any admissions or tickets to organized garden pilgrimages and to antebellum and historic houses when sponsored by an organized civic or garden club; 

(g) Any admissions to any golf tournament held under the auspices of the Professional Golf Association or United States Golf Association wherein touring professionals compete, if such tournament is sponsored by a nonprofit association incorporated under the laws of the State of Mississippi where no dividends are declared and the proceeds do not inure to any individual or group; 

(h) Any admissions to university or community college conference, state, regional or national playoffs or championships; 

(i) Any admissions or fees charged by any county or municipally owned and operated swimming pools, golf courses and tennis courts other than sales or rental of tangible personal property; 

(j) Any admissions charged for the performance of symphony orchestras, operas, vocal or instrumental artists in which professional or amateur performers are compensated out of the proceeds of such admissions, when sponsored by local music or charity associations, or amateur dramatic performances or professional dramatic productions when sponsored by a children's dramatic association, where no dividends are declared, profits received, nor any salary or compensation paid to any of the members of such associations, or to any person for procuring or producing such performance; 

(k) Any admissions or tickets to or for hockey games between teams operated under a professional league franchise; and 

(l) Any admissions or tickets to or for events sanctioned by the Mississippi Athletic Commission that are held within publicly owned enclosed coliseums and auditoriums. 
 

Sources: Laws,  1978, ch. 501, § 1; Laws, 1979, ch. 428, § 2; Laws, 1982, Ex Sess, ch. 17, § 38; Laws, 1983, 2nd Ex Sess, ch. 6, § 7; Laws, 1984, 1st Ex Sess, ch. 10, § 5; Laws, 1989, ch. 479, § 1; Laws, 1989, ch. 548, § 7; Laws, 1990, ch. 312, § 1; Laws, 1992, ch. 419, § 5; Laws, 1994, ch. 322, § 1; Laws, 1996, ch. 524, § 1; Laws, 1997, ch. 568, § 1; Laws, 2007, ch. 512, § 1, eff from and after July 1, 2007.
 

27-65-23 - Miscellaneous businesses.

§ 27-65-23. Miscellaneous businesses.
 

Upon every person engaging or continuing in any of the following businesses or activities there is hereby levied, assessed and shall be collected a tax equal to seven percent (7%) of the gross income of the business, except as otherwise provided: 
 

Air conditioning installation or repairs; 
 

Automobile, motorcycle, boat or any other vehicle repairing or servicing; 
 

Billiards, pool or domino parlors; 
 

Bowling or tenpin alleys; 
 

Burglar and fire alarm systems or services; 
 

Car washing - automatic, self-service, or manual; 
 

Computer software sales and services; 
 

Cotton compresses or cotton warehouses; 
 

Custom creosoting or treating, custom planing, custom sawing; 
 

Custom meat processing; 
 

Electricians, electrical work, wiring, all repairs or installation of electrical equipment; 
 

Elevator or escalator installing, repairing or servicing; 
 

Film developing or photo finishing; 
 

Foundries, machine or general repairing; 
 

Furniture repairing or upholstering; 
 

Grading, excavating, ditching, dredging or landscaping; 
 

Hotels (as defined in Section 41-49-3), motels, tourist courts or camps, trailer parks; 
 

Insulating services or repairs; 
 

Jewelry or watch repairing; 
 

Laundering, cleaning, pressing or dyeing; 
 

Marina services; 
 

Mattress renovating; 
 

Office and business machine repairing; 
 

Parking garages and lots; 
 

Plumbing or pipe fitting; 
 

Public storage warehouses (There shall be no tax levied on gross income of a public storage warehouse derived from the temporary storage of tangible personal property in this state pending shipping or mailing of the property to another state.); 
 

Refrigerating equipment repairs; 
 

Radio or television installing, repairing, or servicing; 
 

Renting or leasing personal property used within this state; 
 

Services performed in connection with geophysical surveying, exploring, developing, drilling, producing, distributing, or testing of oil, gas, water and other mineral resources; 
 

Shoe repairing; 
 

Storage lockers; 
 

Telephone answering or paging services; 
 

Termite or pest control services; 
 

Tin and sheet metal shops; 
 

TV cable systems, subscription TV services, and other similar activities; 
 

Vulcanizing, repairing or recapping of tires or tubes; 
 

Welding; and 
 

Woodworking or wood turning shops. 
 

Income from services taxed herein performed for electric power associations in the ordinary and necessary operation of their generating or distribution systems shall be taxed at the rate of one percent (1%). 
 

Income from services taxed herein performed on materials for use in track or track structures to a railroad whose rates are fixed by the Interstate Commerce Commission or the Mississippi Public Service Commission shall be taxed at the rate of three percent (3%). 
 

Income from renting or leasing tangible personal property used within this state shall be taxed at the same rates as sales of the same property. 
 

Persons doing business in this state who rent transportation equipment with a situs within or without the state to common, contract or private commercial carriers are taxed on that part of the income derived from use within this state. If specific accounting is impracticable, a formula may be used with approval of the commissioner. 
 

A lessor may deduct from the tax computed on the rental income from tangible personal property a credit for sales or use tax paid to this state at the time of purchase of the specific personal property being leased or rented until such credit has been exhausted. 
 

Charges for custom processing and repairing services may be excluded from gross taxable income when the property on which the service was performed is delivered to the customer in another state either by common carrier or in the seller's equipment. 
 

When a taxpayer performs unitary services covered by this section, which are performed both in intrastate and interstate commerce, the commissioner is hereby invested with authority to formulate in each particular case and to fix for such taxpayer in each instance formulae of apportionment which will apportion to this state, for taxation, that portion of the services which are performed within the State of Mississippi. 
 

Sources: Codes, 1942, § 10111; Laws,  1932, chs. 90, 91; Laws, 1934, ch. 119; Laws, 1936, ch. 158; Laws, 1938, ch. 113; Laws, 1942, ch. 122; Laws, 1944, ch. 129, § 4; Laws, 1946, ch. 262, § 3; Laws, 1948, ch. 461, § 1; Laws, 1950, ch. 530, § 3; Laws, 1954, ch. 383; Laws, 1955, Ex Sess, ch. 109, § 12; Laws, 1956, ch. 421, § 1; Laws, 1958, ch. 574, § 9; Laws, 1962, ch. 599, §§ 1, 2; Laws, 1964, ch. 532, § 3; Laws, 1964, ch. 531, § 4; Laws, 1968, ch. 588, § 6; Laws, 1978, ch. 440, § 1; Laws, 1982, 1st Ex Sess, ch. 17, § 39; Laws, 1983, ch. 546, § 2; Laws, 1983, 2nd Ex Sess, ch. 6, § 8; Laws, 1984, ch. 458, § 2; Laws, 1984, 1st Ex Sess, ch. 10, § 6; Laws, 1985, ch. 351, § 4; Laws, 1988, ch. 491, § 1; Laws, 1992, ch. 419, § 6; Laws, 1997, ch. 489, § 1; Laws, 2001, ch. 309, § 1; Laws, 2005, ch. 486, § 1; Laws, 2006, ch. 498, § 1; Laws, 2007, ch. 526, § 2, eff from and after passage (approved Apr. 18, 2007.)
 

27-65-25 - Sales of alcoholic beverages.

§ 27-65-25. Sales of alcoholic beverages.
 

Upon every person engaging or continuing within this state in the business of selling alcoholic beverages, the sales of which are legal under the provisions of Chapter 1 of Title 67, Mississippi Code of 1972, there is hereby levied, assessed and shall be collected a tax equal to seven percent (7%) of the gross proceeds of the retail sales of the business. All sales at wholesale to retailers shall be taxed at the same rate as provided in this section for retail sales. A retailer in computing the tax on sales may take credit for the amount of the tax paid to the wholesaler at the rates provided herein and remit the difference to the commissioner, provided adequate records and all invoices are maintained to substantiate the credit claimed. 
 

Sources: Codes, 1942, § 10112; Laws,  1932, chs. 90, 91; Laws, 1934, ch. 119; Laws, 1958, ch. 575, § 1; Laws, 1962, ch. 601, §§ 1, 3; Laws, 1964, ch. 532, § 4; Laws, 1966, ch. 650, § 1; Laws, 1968, ch. 588, § 7; Laws, 1982, Ex Sess, ch. 17, § 40; Laws, 1983, 2nd Ex Sess, ch. 6, § 9; Laws, 1984, 1st Ex Sess, ch. 10, § 7; Laws, 1992, ch. 419, § 7, eff from and after June 1, 1992.
 

27-65-26 - Selling, renting or leasing specified digital products.

§ 27-65-26. Selling, renting or leasing specified digital products.
 

(1)  Upon every person engaging or continuing within this state in the business of selling, renting or leasing specified digital products, there shall be levied, assessed and shall be collected a tax equal to seven percent (7%) of the gross income of the business. The sale of a digital code that allows the purchaser to obtain a specified digital product shall be taxed in the same manner as the sale of a specified digital product. The tax is imposed when: 

(a) The sale is to an end user; 

(b) The seller grants the right of permanent or less than permanent use of the products transferred electronically; or 

(c) The sale is conditioned or not conditioned upon continued payment. 

(2)  Charges by one (1) specified digital products provider to another specified digital products provider holding a permit issued under Section 27-65-27 for services that are resold by such other specified digital products provider shall not be subject to the tax levied pursuant to this section. 

(3)  For purposes of this section: 

(a) "Specified digital products" means electronically transferred digital audio-visual works, digital audio works and digital books. 

(b) "Digital audio-visual works" means a series of related images which, when shown in succession, impart an impression of motion, together with accompanying sounds, if any. 

(c) "Digital audio works" means works that result from the fixation of a series of musical, spoken or other sounds, including ringtones. "Ringtones" means digitized sound files that are downloaded onto a device and that may be used to alert the customer with respect to a communication. 

(d) "Digital books" means works that are generally recognized in the ordinary and usual sense as "books." 

(e) "Electronically transferred" means obtained by the purchaser by means other than tangible storage media. 

(f) "End user" means any person other than a person who receives by contract a product transferred electronically for further commercial broadcast, rebroadcast, transmission, retransmission, licensing, relicensing, distribution, redistribution or exhibition of the product, in whole or in part, to another person or persons. 

(g) "Permanent use" means for purposes of this section for perpetual or for an indefinite or unspecified length of time. 

(h) "Digital code" means a code that permits a purchaser to obtain a specified digital product at a later date. 
 

Sources: Laws, 2009, ch. 332, § 1, eff from and after July 1, 2009.
 

27-65-27 - Permit to engage in business.

§ 27-65-27. Permit to engage in business.
 

(1)  Any person who engages, or who intends to engage, in any business or activity which will subject such person to a privilege tax imposed by this chapter, shall apply to the commissioner for a permit to engage in and to conduct any business or activity upon the condition that he shall pay the tax accruing to the State of Mississippi under the provisions of this chapter, and shall keep adequate records of such business or activity as required by this chapter. By making an application for a permit issued pursuant to this section, a person agrees, regardless of his presence in this state, to: 

(a) Be subject to the jurisdiction of this state for purposes of taxation; 

(b) Collect and remit all taxes levied under this chapter on the type of business or activity to be conducted by the applicant; 

(c) Be subject to all the provisions of this chapter. 

(2)  Upon receipt of the permit, the applicant shall be duly licensed under this chapter to engage in and conduct the business or activity. The permit shall continue in force so long as the person to whom it is issued shall continue in the same business at the same location, unless revoked by the commissioner for cause. 

(3)  The commissioner shall require of every person desiring to engage in business within this state who maintains no permanent place of business within this state, of every person desiring to engage in the business of making sales of mobile homes, a cash bond or an approved surety bond in an amount sufficient to cover twice the estimated tax liability for a period of three (3) months. However, the bond shall in no case be less than One Hundred Dollars ($100.00) and the tax may be prepaid in lieu of filing bond if the amount is approved by the commissioner. This bond shall be filed with the commissioner prior to the issuance of a permit to do business and before any such person may engage in business within this state. Failure to comply with the provision will subject such person to the penalties provided by this chapter. 

(4)  The commissioner is authorized to deny the application for a permit or revoke the permit of any person who has failed or is failing to comply with any of the provisions of this chapter. The commissioner may also deny the application for a permit or revoke the permit of any person who has failed to satisfy all of the finally determined tax liabilities owed by that person. As used in this subsection, "finally determined tax liabilities" means any state tax, fee, penalty and/or interest owed by a person to the Mississippi State Tax Commission where the assessment of the liability has been made against that person as provided by law and such assessment is not subject to any further timely filed administrative or judicial review. Revocation of such permit, or engaging or continuing in business after such permit is revoked or engaging in business without a permit, shall subject the person to all the penalties imposed by this chapter. 

(5)  Any person liable for the tax who fails to obtain a permit from the commissioner, or who continues in business after such permit has been revoked, or who fails to make his returns for taxation as provided, or who fails to keep adequate records and invoices provided by this chapter, or who fails or refuses to permit inspection of such records, or who fails to pay any taxes due hereunder, shall forfeit his rights to do business in this state until he complies with all the provisions of this chapter and until he enters into a bond, with sureties, to be approved by the commissioner, in an amount not to exceed twice the amount of all taxes estimated to become due under this chapter by the person for any period of three (3) months, conditioned to comply with the provisions of this chapter, and pay all taxes legally due by him. 

(6)  If any person is engaged in or continuing in this state in any business or activity without obtaining a permit, or after the permit has been revoked, or without filing a required bond, or without keeping and allowing inspection of all records required by this chapter, or without making a return, or returns, and without paying all taxes due by him hereunder, it shall be the duty of the commissioner to proceed by injunction to prevent the continuance of the business. Any temporary injunction enjoining the continuance of the business shall be granted without notice by a judge or chancellor now authorized to grant injunctions. 
 

Sources: Codes, 1942, § 10115; Laws,  1932, ch. 90; Laws, 1934, ch. 119; Laws, 1936, ch. 158; Laws, 1938, ch. 113; Laws, 1948, ch. 440, § 1; Laws, 1952, ch. 403, § 1; Laws, 1955, Ex Sess, ch. 109, § 15; Laws, 1978, ch. 476, § 3, ch. 512, § 2; Laws, 1979, ch. 436, § 1; Laws, 2002, ch. 520, § 3; Laws, 2005, ch. 499, § 27, eff from and after July 1, 2005.
 

27-65-29 - Repealed.

§ 27-65-29. Repealed.
 

Repealed by Laws, 1978, ch. 347, § 1, eff from and after July 1, 1978. 
 

[Codes, 1942, § 10116; Laws, 1932, chs. 90, 91; Laws, 1934, ch. 119; Laws, 1936, ch. 158; Laws, 1938, ch. 126; Laws, 1946, ch. 262, § 5; Laws, 1950, ch. 530, § 4; Laws, 1955, Ex Sess, ch. 109, § 16; Laws, 1957, Ex Sess, ch. 20, § 1; Laws, 1958, ch. 574; Laws, 1962, ch. 602, §§ 1, 3; Laws, 1964, ch. 532, § 5; Laws, 1965, Ex Sess, ch. 22, § 4; Laws, 1968, ch. 588, § 8; Laws, 1972, ch. 506, § 4; Laws, 1975, ch. 435] 
 

27-65-31 - Seller to collect tax.

§ 27-65-31. Seller to collect tax.
 

Any person liable for a privilege tax levied and assessed by this chapter except the taxes levied by Sections 27-65-15, 27-65-17(3) and 27-65-21, Mississippi Code of 1972, shall add the amount of such tax due by him to the sales price or gross income and, in addition thereto, shall collect, insofar as practicable, the amount of the tax due by him from the purchaser at the time the sales price or gross income is collected. 
 

The commissioner is authorized, in his discretion, to prescribe by rule or regulation, brackets or schedules by which the applicable tax shall be collected from the purchaser. 
 

The commissioner shall have the authority to make changes as necessary by rule or regulation to implement an agreement for the collection of sales tax by direct marketers with limited contact in Mississippi if, in his discretion, it is beneficial to the state for him to do so. 
 

It shall be unlawful for any person, who is liable for a privilege tax levied by this chapter except the taxes levied by Sections 27-65-15, 27-65-17(3) and 27-65-21, Mississippi Code of 1972, to fail or refuse to add to the sales price and collect, insofar as practicable, the amount of tax due by him on each sale, except where the tax was included in the cost of furnishing service when said cost was a factor in the fixing of rates and charges. 
 

The tax due under the provisions of this chapter shall be computed and paid on gross income or gross proceeds of sales of the business, regardless of the fact that small unit sales may be within the bracket of one (1) of the schedules which does not provide for the collection of the tax from the customer. 
 

Nothing in this section with reference to the collection of the tax from the customer shall be construed to impair, abridge, alter or affect the obligation of any contract in existence at the time it becomes effective. 
 

When the tax collected for any filing period is in excess of the amount due, the total tax collected, including that in excess of the computed liability, shall be paid to the commissioner. This provision shall be construed with other provisions of the law and given effect so as to result in the payment to the commissioner of the total tax collected if in excess of the amount due when computed at the applicable rates. 
 

The funds collected by the taxpayer (seller) from the purchaser pursuant to the provisions of this chapter shall be considered "trust fund monies" and the taxpayer shall hold these funds in trust for the State of Mississippi; said funds to be separately accounted for as provided by regulation of the commissioner. If the taxpayer fails to remit these trust fund monies as required by law, then the taxpayer may be assessed with a penalty in three (3) times the amount of taxes due. This penalty is to be assessed and collected in the same manner as taxes imposed by this chapter and shall be in addition to all other penalties and/or interest otherwise imposed. For purposes of this section there shall be a presumption that the taxpayer collected the tax from the customer or purchaser. 
 

Any person violating the provisions of this section shall be guilty of a misdemeanor and, upon conviction, shall be fined in a sum not less than Fifty Dollars ($50.00) nor more than One Hundred Dollars ($100.00). 
 

Sources: Codes, 1942, § 10117; Laws,  1932, ch. 90; Laws, 1934, ch. 119; Laws, 1936, ch. 158; Laws, 1938, ch. 113; Laws, 1948, ch. 440, § 2; Laws, 1952, ch. 403, § 2; Laws, 1955, Ex Sess, ch. 109, § 17; Laws, 1958, ch. 574, § 12; Laws, 1970, ch. 547, § 1; Laws, 1978, ch. 476, § 4; Laws, 1986, ch. 451, § 3; Laws, 1998, ch. 359, § 1; Laws, 1999, ch. 452, § 2, eff from and after July 1, 1999.
 

27-65-33 - Returns.

§ 27-65-33. Returns.
 

[Until July 1, 2010, this section shall read as follows:]
 

(1)  Except as otherwise provided in this section, the taxes levied by this chapter shall be due and payable on or before the twentieth day of the month next succeeding the month in which the tax accrues, except as otherwise provided. Returns and payments placed in the mail must be postmarked by the due date in order to be considered timely filed, except when the due date falls on a weekend or holiday, returns and payments placed in the mail must be postmarked by the first working day following the due date in order to be considered timely filed. The taxpayer shall make a return showing the gross proceeds of sales or the gross income of the business, and any and all allowable deductions, or exempt sales, and compute the tax due for the period covered. 
 

As compensation for collecting sales and use taxes, complying fully with the applicable statutes, filing returns and supplements thereto and paying all taxes by the twentieth of the month following the period covered, the taxpayer may discount and retain two percent (2%) of the liability on each return subject to the following limitations: 

(a) The compensation or discount shall not apply to taxes levied under the provisions of Sections 27-65-19 and 27-65-21, or on charges for ginning cotton under Section 27-65-23. 

(b) The compensation or discount shall not apply to taxes collected by a county official or state agency. 

(c) The compensation or discount shall not exceed Fifty Dollars ($50.00) per month, or Six Hundred Dollars ($600.00) per calendar year, per business location on each state sales tax return, or on each use tax return. 

(d) The compensation or discount shall not apply to any wholesale tax, the rate of which is equal to or greater than the tax rate applicable to retail sales of the same property or service. The retailer of such items shall be entitled to the compensation based on the tax computed on retail sales before application of the credit for any tax paid to the wholesaler, jobber, or other person. 

(e) The compensation or discount allowed and taken for any filing period may be reassessed and collected when an audit of a taxpayer's records reveals a tax deficiency for that period. 

(2)  A taxpayer required to collect sales taxes under this chapter and having an average monthly sales tax liability of at least Twenty Thousand Dollars ($20,000.00) for the preceding calendar year shall pay to the State Tax Commission on or before June 25, 2003, and on or before the twenty-fifth day of June of each succeeding year thereafter, an amount equal to at least seventy-five percent (75%) of such taxpayer's estimated sales tax liability for the month of June of the current calendar year, or an amount equal to at least seventy-five percent (75%) of the taxpayer's sales tax liability for the month of June of the preceding calendar year. Payments required to be made under this subsection must be received by the State Tax Commission no later than June 25 in order to be considered timely made. A taxpayer that fails to comply with the requirements of this subsection may be assessed a penalty in an amount equal to ten percent (10%) of the difference between any amount the taxpayer pays pursuant to this subsection and the taxpayer's actual sales tax liability for the month of June for which the estimated payment was required to be made. Payments made by a taxpayer under this subsection shall not be considered to be collected for the purposes of any sales tax diversions required by law until the taxpayer files a return for the actual sales taxes collected during the month of June. This subsection shall not apply to any agency, department or instrumentality of the United States, any agency, department, institution, instrumentality or political subdivision of the State of Mississippi, or any agency, department, institution or instrumentality of any political subdivision of the State of Mississippi. Payments made pursuant to this subsection for the month of June 2003, shall be deposited by the State Tax Commission into the Budget Contingency Fund created under Section 27-103-301, and payments made pursuant to this subsection for the month of June of 2004, and each succeeding year thereafter, shall be deposited by the State Tax Commission into the State General Fund. 

(3)  All returns shall be sworn to by the taxpayer, if made by an individual, or by the president, vice president, secretary or treasurer of a corporation, or authorized agent, if made on behalf of a corporation. If made on behalf of a partnership, joint venture, association, trust, estate, or in any other group or combination acting as a unit, any individual delegated by such firm shall swear to the return on behalf of the taxpayer. The commissioner may prescribe methods by which the taxpayer may swear to his return. 

(4)  The commissioner may promulgate rules and regulations to require or permit filing periods of any duration, in lieu of monthly filing periods, for any taxpayer or group thereof. 

(5)  The commissioner may require the execution and filing by the taxpayer with the commissioner of a good and solvent bond with some surety company authorized to do business in Mississippi as surety thereon in an amount double the aggregate tax liability by such taxpayer for any previous three (3) months' period within the last calendar year or estimated three (3) months' tax liability. Said bond is to be conditioned for the prompt payment of such taxes as may be due for each such return. 

(6)  The commissioner, for good cause, may grant such reasonable additional time within which to make any return required under the provisions of this chapter as he may deem proper, but the time for filing any return shall not be extended beyond the twentieth of the month next succeeding the regular due date of the return without the imposition of interest at the rate of one percent (1%) per month or fractional part of a month from the time the return was due until the tax is paid. 

(7)  For persistent, willful, or recurring failure to make any return and pay the tax shown thereby to be due by the time specified, there shall be added to the amount of tax shown to be due ten percent (10%) damages, or interest at the rate of one percent (1%) per month, or both. 

(8)  Any taxpayer may, upon making application therefor, obtain from the commissioner an extension of time for the payment of taxes due on credit sales until collections thereon have been made. When such extension is granted, the taxpayer shall thereafter include in each monthly or quarterly report all collections made during the preceding month or quarter, and shall pay the taxes due thereon at the time of filing such report. Such permission may be revoked or denied at the discretion of the commissioner when, in his opinion, a total sales basis will best reflect the taxable income or expedite examination of the taxpayer's records. 

(9)  Any taxpayer reporting credit sales before collection thereof has been made may take credit on subsequent returns or reports for bad debts actually charged off, if such amounts charged off have previously been included in taxable gross income or taxable gross proceeds of sales, as the case may be, and the tax paid thereon. However, any amounts subsequently collected on accounts that have been charged off as bad debts shall be included in subsequent reports and the tax shall be paid thereon. 

(10)  In cases where an extension of time has been granted by the commissioner for payment of taxes due on credit sales and the taxpayer thereafter discontinues the business, such taxpayer shall be required to file with the commissioner within ten (10) days, or such further time as the commissioner may direct, from the date of the discontinuance of such business, a special report showing the amounts of any credit sales which have not been included in determining the measure of the tax previously paid and any other information with reference to credit sales as the commissioner may require. The commissioner shall thereupon investigate the facts with reference to credit sales and the condition of the accounts, and shall determine, from the best evidence available, the value of all open accounts, notes, or other evidence of debt arising from credit sales. The value of all notes, open accounts and other evidence of debt, as thus determined by the commissioner, shall be used in determining the amount of the tax for which such taxpayer shall be liable. When the amount of the tax shall have been ascertained, the taxpayer shall be required to pay the same within ten (10) days or such further time as the commissioner may allow, notwithstanding the fact that such note or accounts may still remain uncollected. 
 

[From and after July 1, 2010, this section shall read as follows:]

(1)  Except as otherwise provided in this section, the taxes levied by this chapter shall be due and payable on or before the twentieth day of the month next succeeding the month in which the tax accrues, except as otherwise provided. Returns and payments placed in the mail must be postmarked by the due date in order to be considered timely filed, except when the due date falls on a weekend or holiday, returns and payments placed in the mail must be postmarked by the first working day following the due date in order to be considered timely filed. The taxpayer shall make a return showing the gross proceeds of sales or the gross income of the business, and any and all allowable deductions, or exempt sales, and compute the tax due for the period covered. 
 

As compensation for collecting sales and use taxes, complying fully with the applicable statutes, filing returns and supplements thereto and paying all taxes by the twentieth of the month following the period covered, the taxpayer may discount and retain two percent (2%) of the liability on each return subject to the following limitations: 

(a) The compensation or discount shall not apply to taxes levied under the provisions of Sections 27-65-19 and 27-65-21, or on charges for ginning cotton under Section 27-65-23. 

(b) The compensation or discount shall not apply to taxes collected by a county official or state agency. 

(c) The compensation or discount shall not exceed Fifty Dollars ($50.00) per month, or Six Hundred Dollars ($600.00) per calendar year, per business location on each state sales tax return, or on each use tax return. 

(d) The compensation or discount shall not apply to any wholesale tax, the rate of which is equal to or greater than the tax rate applicable to retail sales of the same property or service. The retailer of such items shall be entitled to the compensation based on the tax computed on retail sales before application of the credit for any tax paid to the wholesaler, jobber or other person. 

(e) The compensation or discount allowed and taken for any filing period may be reassessed and collected when an audit of a taxpayer's records reveals a tax deficiency for that period. 

(2)  A taxpayer required to collect sales taxes under this chapter and having an average monthly sales tax liability of at least Fifty Thousand Dollars ($50,000.00) for the preceding calendar year shall pay to the State Tax Commission on or before June 25, 2011, and on or before the twenty-fifth day of June of each succeeding year thereafter, an amount equal to at least seventy-five percent (75%) of such taxpayer's estimated sales tax liability for the month of June of the current calendar year, or an amount equal to at least seventy-five percent (75%) of the taxpayer's sales tax liability for the month of June of the preceding calendar year. For the purposes of calculating a taxpayer's estimated sales tax liability for the month of June of the current calendar year, the taxpayer does not have to include taxes due on credit sales for which the taxpayer has not received payment before June 20. Payments required to be made under this subsection must be received by the State Tax Commission no later than June 25 in order to be considered timely made. A taxpayer that fails to comply with the requirements of this subsection may be assessed a penalty in an amount equal to ten percent (10%) of the difference between any amount the taxpayer pays pursuant to this subsection and the taxpayer's actual sales tax liability for the month of June for which the estimated payment was required to be made. Payments made by a taxpayer under this subsection shall not be considered to be collected for the purposes of any sales tax diversions required by law until the taxpayer files a return for the actual sales taxes collected during the month of June. This subsection shall not apply to any agency, department or instrumentality of the United States, any agency, department, institution, instrumentality or political subdivision of the State of Mississippi, or any agency, department, institution or instrumentality of any political subdivision of the State of Mississippi. 

(3)  All returns shall be sworn to by the taxpayer, if made by an individual, or by the president, vice president, secretary or treasurer of a corporation, or authorized agent, if made on behalf of a corporation. If made on behalf of a partnership, joint venture, association, trust, estate, or in any other group or combination acting as a unit, any individual delegated by such firm shall swear to the return on behalf of the taxpayer. The commissioner may prescribe methods by which the taxpayer may swear to his return. 

(4)  The commissioner may promulgate rules and regulations to require or permit filing periods of any duration, in lieu of monthly filing periods, for any taxpayer or group thereof. 

(5)  The commissioner may require the execution and filing by the taxpayer with the commissioner of a good and solvent bond with some surety company authorized to do business in Mississippi as surety thereon in an amount double the aggregate tax liability by such taxpayer for any previous three-month period within the last calendar year or estimated three (3) months' tax liability. The bond is to be conditioned for the prompt payment of such taxes as may be due for each such return. 

(6)  The commissioner, for good cause, may grant such reasonable additional time within which to make any return required under the provisions of this chapter as he may deem proper, but the time for filing any return shall not be extended beyond the twentieth of the month next succeeding the regular due date of the return without the imposition of interest at the rate of one percent (1%) per month or fractional part of a month from the time the return was due until the tax is paid. 

(7)  For persistent, willful or recurring failure to make any return and pay the tax shown thereby to be due by the time specified, there shall be added to the amount of tax shown to be due ten percent (10%) damages, or interest at the rate of one percent (1%) per month, or both. 

(8)  Any taxpayer may, upon making application therefor, obtain from the commissioner an extension of time for the payment of taxes due on credit sales until collections thereon have been made. When such extension is granted, the taxpayer shall thereafter include in each monthly or quarterly report all collections made during the preceding month or quarter, and shall pay the taxes due thereon at the time of filing such report. Such permission may be revoked or denied at the discretion of the commissioner when, in his opinion, a total sales basis will best reflect the taxable income or expedite examination of the taxpayer's records. 

(9)  Any taxpayer reporting credit sales before collection thereof has been made may take credit on subsequent returns or reports for bad debts actually charged off, if such amounts charged off have previously been included in taxable gross income or taxable gross proceeds of sales, as the case may be, and the tax paid thereon. However, any amounts subsequently collected on accounts that have been charged off as bad debts shall be included in subsequent reports and the tax shall be paid thereon. 

(10)  In cases where an extension of time has been granted by the commissioner for payment of taxes due on credit sales and the taxpayer thereafter discontinues the business, such taxpayer shall be required to file with the commissioner within ten (10) days, or such further time as the commissioner may direct, from the date of the discontinuance of such business, a special report showing the amounts of any credit sales which have not been included in determining the measure of the tax previously paid and any other information with reference to credit sales as the commissioner may require. The commissioner shall thereupon investigate the facts with reference to credit sales and the condition of the accounts, and shall determine, from the best evidence available, the value of all open accounts, notes or other evidence of debt arising from credit sales. The value of all notes, open accounts and other evidence of debt, as thus determined by the commissioner, shall be used in determining the amount of the tax for which such taxpayer shall be liable. When the amount of the tax shall have been ascertained, the taxpayer shall be required to pay the same within ten (10) days or such further time as the commissioner may allow, notwithstanding the fact that such note or accounts may still remain uncollected. 
 

Sources: Codes, 1942, § 10118; Laws,  1932, ch. 90; Laws, 1934, ch. 119; Laws, 1952, ch. 403, § 3; Laws, 1955, Ex Sess, ch. 109, § 18; Laws, 1958, ch. 575, § 2; Laws, 1968, ch. 588, § 10; Laws, 1976, ch. 395; Laws, 1978, ch. 476, § 5; Laws, 1984, ch. 458, § 3; Laws, 1986, ch. 451, § 4; Laws, 1994, ch. 309 § 1; Laws, 1995, ch. 508, § 2; Laws, 1995, ch. 549, § 2; Laws, 2002, ch. 539, § 2; Laws, 2005, ch. 330, § 2; Laws, 2007, ch. 536, § 2; Laws, 2008, ch. 507, § 10; Laws, 2009, ch. 563, § 8, eff from and after passage (approved May 13, 2009.)
 

27-65-35 - Failure to file return; notice.

§ 27-65-35. Failure to file return; notice.
 

[Until July 1, 2010, this section will read:]
 

If no return is made on or before the due date by any taxpayer required to make a return, the commissioner, as soon as practicable after the due date, shall make an assessment of taxes and damages from any information available, which shall be prima facie correct. The commissioner shall give written notice to the taxpayer of the tax and damages thus assessed and demand payment within thirty (30) days from the date of the notice. The notice shall be sent by mail to the taxpayer, or delivered by an agent of the commissioner either to the taxpayer or someone of suitable age and discretion at the taxpayer's place of business or residence. However, if the taxpayer shall file a return and pay the tax shown to be due within thirty (30) days from the date of the assessment, the return and payment shall be accepted in lieu of the assessment. 
 

[From and after July 1, 2010, this section will read:]
 

If no return is made on or before the due date by any taxpayer required to make a return, the commissioner, as soon as practicable after the due date, shall make an assessment of taxes and damages from any information available, which shall be prima facie correct. The commissioner shall give written notice to the taxpayer of the tax and damages thus assessed and demand payment within sixty (60) days from the date of the notice. The notice shall be sent by mail to the taxpayer, or delivered by an agent of the commissioner either to the taxpayer or someone of suitable age and discretion at the taxpayer's place of business or residence. However, if the taxpayer shall file a return and pay the tax shown to be due within sixty (60) days from the date of the assessment, the return and payment shall be accepted in lieu of the assessment. 
 

Sources: Codes, 1942, § 10119; Laws,  1932, ch. 90; Laws, 1934, ch. 119; Laws, 1936, ch. 158; Laws, 1938, ch. 113; Laws, 1942, ch. 138; Laws, 1944, ch. 129, § 7; Laws, 1952, ch. 403, § 4; Laws, 1955, Ex Sess, ch. 106, § 1; Laws, 1958, ch. 576; Laws, 1976, ch. 435; Laws, 1992, ch. 407, § 1; Laws, 2007, ch. 359, § 1; Laws, 2009, ch. 492, § 103, eff from and after July 1, 2010.
 

27-65-37 - Assessment of tax by commissioner.

§ 27-65-37. Assessment of tax by commissioner.
 

[Until July 1, 2010, this section will read:]
 

If adequate records of the gross income or gross proceeds of sales are not maintained or invoices preserved as provided herein, or if an audit of the records of a taxpayer, or any return filed by him, or any other information discloses that taxes are due and unpaid, the commissioner shall make assessments of taxes, damages, and interest from any information available, which shall be prima facie correct. The commissioner shall give notice to the taxpayer of such assessments and demand payment of the tax, damages and interest within thirty (30) days from date of delivery of the notice. The notice shall be sent by certified or registered mail or delivered by an agent of the commissioner either to the taxpayer or someone of suitable age and discretion at the taxpayer's residence or place of business. 
 

If the taxpayer shall fail or refuse to comply with the notice of assessment or shall fail to petition for a hearing, the commissioner shall proceed as provided in Section 27-65-39. 
 

[From and after July 1, 2010, this section will read:]
 

If adequate records of the gross income or gross proceeds of sales are not maintained or invoices preserved as provided herein, or if an audit of the records of a taxpayer, or any return filed by him, or any other information discloses that taxes are due and unpaid, the commissioner shall make assessments of taxes, damages, and interest from any information available, which shall be prima facie correct. The commissioner shall give notice to the taxpayer of such assessments and demand payment of the tax, damages and interest within sixty (60) days from the date of the notice. The notice shall be sent by certified or registered mail or delivered by an agent of the commissioner either to the taxpayer or someone of suitable age and discretion at the taxpayer's residence or place of business. 
 

If the taxpayer shall fail or refuse to comply with the notice of assessment or shall fail to petition for a hearing, the commissioner shall proceed as provided in Section 27-65-39. 
 

Sources: Codes, 1942, § 10119; Laws,  1932, ch. 90; Laws, 1934, ch. 119; Laws, 1936, ch. 158; Laws, 1938, ch. 113; Laws, 1942, ch. 138; Laws, 1944, ch. 129, § 7; Laws, 1952, ch. 403, § 4; Laws, 1955, Ex Sess, ch. 106, § 1; Laws, 1958, ch. 576; Laws, 2007, ch. 359, § 2; Laws, 2009, ch. 492, § 104, eff from and after July 1, 2010.
 

27-65-39 - Penalties for deficient or delinquent return.

§ 27-65-39. Penalties for deficient or delinquent return.
 

If any part of the deficient or delinquent tax is due to negligence or failure to comply with the provisions of this chapter or authorized rules and regulations promulgated under the provisions of this chapter without intent to defraud, there may be added as damages ten percent (10%) for the first offense, fifteen percent (15%) for the second offense, twenty-five percent (25%) for the third offense, and fifty percent (50%) for any subsequent offense of the total amount of deficiency or delinquency in the tax, or interest at the rate of one percent (1%) per month, or both, from the date such tax was due until paid, and said tax, damages and interest shall become payable upon notice and demand by the commissioner. 
 

If any part of the deficient or delinquent tax is due to intentional disregard of the provisions of this chapter or authorized rules and regulations promulgated under the provisions of this chapter, or to fraud with intent to evade the law, then there shall be added as damages fifty percent (50%) of the total amount of the deficiency or delinquency of the tax, and in such case the whole amount of tax unpaid, including the charges so added, shall become due and payable upon notice and demand by the commissioner, and interest of one percent (1%) per month of the tax shall be added from the date such tax was due until paid. 
 

If the deficient or delinquent tax is not paid pursuant to the commissioner's notice and it is necessary to resort to the issuance of the notice of tax lien or a warrant, the damages may be increased to fifteen percent (15%) for the first offense, twenty-five percent (25%) for the second offense and fifty percent (50%) for any subsequent offense. 
 

Sources: Codes, 1942, § 10119; Laws,  1932, ch. 90; Laws, 1934, ch. 119; Laws, 1936, ch. 158; Laws, 1938, ch. 113; Laws, 1942, ch. 138; Laws, 1944, ch. 129, § 7; Laws, 1952, ch. 403, § 4; Laws, 1955, Ex Sess, ch. 106, § 1; Laws, 1958, ch. 576.
 

27-65-40 - Effect of state officer's or employee's failure to pay state sales tax.

§ 27-65-40. Effect of state officer's or employee's failure to pay state sales tax.
 

If any officer or employee of the State of Mississippi, or any political subdivision thereof, does not pay the state sales tax for which he is responsible to pay within two (2) months after such sales tax becomes due and payable, he shall not be eligible to receive any salary or other emoluments of office from this state, or from any political subdivision thereof, until said sales tax, interest and penalty, if any, shall be paid in full. This provision shall apply to any installments of sales tax due, after the first installment, to require payment of the entire balance of tax due, plus interest and penalty, if any, before an officer or employee of the State of Mississippi, or any political subdivision thereof, is eligible to draw any salary or other emoluments of office. The Tax Commissioner is required to furnish the State Fiscal Officer or appropriate fiscal officer of the political subdivision, as the case may be, with notice that sales taxes have not been paid. This notice shall serve as a stop order upon any salary due any employee or officer. Disregard of this notice creating personal liability against such fiscal officer for the full amount of the sales tax due, plus interest and penalty. For purposes of this section, a political subdivision includes, but is not limited to, a county or separate school district, institution of higher learning, state college or university, or state community college. The sales tax may be paid with uncertified check during such time and under such regulations as the Commissioner shall prescribe, but if the check so received is not paid by the bank on which it is drawn, the taxpayer for whom such check is tendered shall remain liable for the payment of the tax and all penalties, the same as if such check had not been tendered. 
 

Sources: Laws,  1993, ch. 563, § 4, eff from and after July 1, 1993.
 

27-65-41 - Tax constitutes a debt.

§ 27-65-41. Tax constitutes a debt.
 

The tax imposed by this chapter or damages assessed or interest applied by authority of this chapter shall constitute a debt due the State of Mississippi from the time the tax is due until it is paid and shall be a lien upon the property or rights to property of any person subject to the provisions of this chapter including the statute of limitations set forth in Section 27-65-42. 
 

Sources: Codes, 1942, § 10119; Laws,  1932, ch. 90; Laws, 1934, ch. 119; Laws, 1936, ch. 158; Laws, 1938, ch. 113; Laws, 1942, ch. 138; Laws, 1944, ch. 129, § 7; Laws, 1952, ch. 403, § 4; Laws, 1955, Ex Sess ch. 106, § 1; Laws, 1958, ch. 576; Laws, 1972, ch. 405, § 1, eff from and after sixty (60) days after passage (approved April 27, 1972).
 

27-65-42 - Statute of limitations.

§ 27-65-42. Statute of limitations.
 

The amount of tax due on any return which has been filed as required by this chapter shall be determined and assessed within thirty-six (36) months from the date such return was filed, and no suit or other proceedings for the collection of any taxes due shall be begun after the expiration of thirty-six (36) months from the date such return was filed. However, when an examination of a taxpayer's records to verify returns made under this chapter has been initiated and the taxpayer notified thereof, either by certified mail or personal delivery by an agent of the Commissioner, within the thirty-six-month examination period provided herein, the determination of the correct tax liability may be made by the commission after the expiration of said thirty-six-month examination period, provided that said determination shall be made with reasonable promptness and diligence. When a false or fraudulent return has been filed with the intent to evade tax or in case no return has been filed, the amount of tax due may be determined, assessed and collected and suit or proceedings for the collection of the tax may be begun at any time after it becomes due. 
 

A taxpayer may apply to the Commissioner for revision of the tax assessed against him, or paid by him, at any time within thirty-six (36) months from the date of the assessment or from the date the return was filed. Unless a claim for credit or refund is filed by the taxpayer within thirty-six (36) months from the time the return was filed or assessment made, no credit or refund shall be allowed. 
 

Sources: Codes, 1942, § 10119(e); Laws,  1972, ch. 405, § 1; Laws, 1993, ch. 563, § 5, eff from and after passage (approved April 20, 1993).
 

27-65-43 - Taxpayer must keep records.

§ 27-65-43. Taxpayer must keep records.
 

It shall be the duty of every person taxable under this chapter to keep and preserve for a period of three (3) years adequate records of the gross income, gross receipts or gross proceeds of sales of the business, including all invoices of merchandise purchased, all bank statements and cancelled checks, and all other books or accounts as may be necessary to determine the amount of tax for which he is liable. Said records shall be adequate in substance to conform with the provisions of this chapter and the regulations promulgated by the commissioner, and all of such records shall be written in the English language. All records shall be open for examination, at any time, by the commissioner or his duly authorized agent. 
 

The commissioner may require any information or records from computer information systems on media common to those systems. Taxpayers' records may be sampled for audit purposes at the discretion of the commissioner and any assessment rendered as a result of same shall be considered prima facie correct. 
 

The records provided for in this section shall be kept at the taxpayer's principal place of business within this state, and failure to keep and allow examination of such records shall subject the taxpayer to all the penalties of Section 27-65-85 of this chapter. 
 

Sources: Codes, 1942, § 10120; Laws,  1932, ch. 90; Laws, 1934, ch. 119; Laws, 1936, ch. 158; Laws, 1938, ch. 113; Laws, 1944, ch. 129, § 8; Laws, 1952, ch. 403, § 5; Laws, 1992, ch. 402, § 1, eff from and after July 1, 1992.
 

27-65-45 - through 27-65-49. Repealed.

§§ 27-65-45 through 27-65-49. Repealed.
 

Repealed by Laws, 2005, ch. 499, § 36 effective from and after July 1, 2005. 
  § 27-65-45. [Codes, 1942, § 10121; Laws,  1932, ch. 90; Laws, 1934, ch. 119; Laws, 1938, ch. 113, 1952, ch. 403, § 6; Laws, 1955, Ex Sess ch. 106, § 2; Laws, 1971, ch. 464, § 1; Laws, 1986, ch. 451, § 5, eff from and after May 1, 1986.] 

§ 27-65-47. [Codes, 1942, § 10121.1; Laws,  1971, ch. 464, § 1, eff from and after passage (approved March 30, 1971).] 

§ 27-65-49. [Codes, 1942, § 10121.2; Laws,  1971, ch. 464, § 1, eff from and after passage (approved March 30, 1971).]   

27-65-51 - Disbursement from treasury to taxpayer.

§ 27-65-51. Disbursement from treasury to taxpayer.
 

In the event a final judgment is rendered in favor of the taxpayer in a suit to recover illegal taxes, and provided the taxpayer is not otherwise indebted to the state, it shall be the duty of the state auditor, upon receipt of a certified copy of the final judgment, to issue a warrant directed to the state treasurer, in favor of the taxpayer, to pay the part of the illegal tax as was paid into the state treasury, and to certify to the treasurer of any municipality, county or other taxing authority as to the amount of the illegal taxes paid to such municipality, county, or other taxing authority having received any part of the illegal tax, who is required hereby to refund the amount of such taxes certified by the auditor, included in the amount for which the judgment was rendered in favor of the taxpayer. 
 

If any municipality, county or other taxing authority, having received any part of taxes for the recovery of which such judgment is rendered, is unable, unwilling or otherwise fails or refuses to make refund of the amount certified by the state auditor to be due such taxpayer, then the commissioner is hereby authorized to withhold from such municipality, county, or other taxing authority, sufficient funds from any subsequent amount which may be due to such municipality, county, or other taxing authority, to cover the amount not refunded to the taxpayer. Any such amount so withheld shall be paid into the state treasury and a warrant issued by the state auditor against such fund in payment of the balance due under the judgment rendered in favor of the taxpayer for such taxes. 
 

Sources: Codes, 1942, § 10121.3; Laws,  1971, ch. 464, § 1, eff from and after passage (approved March 30, 1971).
 

27-65-53 - Refunds.

§ 27-65-53. Refunds.
 

If the commissioner finds that the taxpayer has overpaid his tax for any reason and the taxpayer has discontinued business and there is no subsequent liability upon which the excess may be credited, or if the amount of the excess so paid shall exceed the estimated liability for the next twelve (12) months, the excess shall be refunded to the taxpayer. Such amount shall be certified to the State Auditor of Public Accounts by the commission. The said auditor is hereby authorized to make such investigation and audit of the claim as he finds necessary. If he finds that the commissioner is correct in his determination, the auditor may issue his warrant to the State Treasurer in favor of the taxpayer for the amount of tax erroneously paid into the State Treasury, such refunds to be made from current sales tax collections. If part of the overpayment has been disbursed to any municipality or state institution of higher learning, under authority of Section 27-65-75, the municipality or state institution of higher learning, having erroneously received the money, shall adjust the amount with the commissioner, or the overpayment may be withheld by the state from any funds due by the state to the municipality or state institution of higher learning. 
 

Provided, that where the taxpayer has overpaid his tax, the commissioner may give credit for same and allow the taxpayer to take credit on a subsequent return or, if necessary, in his discretion, have the taxpayer file for a refund as provided herein. 
 

If any overpayment of tax as reflected in an application or amended return, or both, filed by the taxpayer, and verified by the commissioner or otherwise determined to be due by the commissioner or commission, is not refunded or credited to a taxpayer's account within ninety (90) days after the application or amended return is filed or the date the commission or commissioner determines a refund is due, whichever is later, interest at the rate of one percent (1%) per month shall be allowed on such overpayment computed for the period after expiration of the ninety-day period provided herein to the date of payment. 
 

Sources: Codes, 1942, § 10121.4; Laws,  1971, ch. 464, § 1; Laws, 1981, ch. 328, § 2; Laws, 1991, ch. 383, § 1; Laws, 1998, ch. 337, § 2; Laws, 2006, ch. 365, § 2, eff from and after July 1, 2006.
 

27-65-55 - Liability of seller and purchaser of business, certain stockholders of small business corporations and agents for out-of-state dealers.

§ 27-65-55. Liability of seller and purchaser of business, certain stockholders of small business corporations and agents for out-of-state dealers.
 

The tax imposed by this chapter shall be a lien upon the property of any person subject to the provisions thereof who shall sell out his business or stock of goods, or shall quit business, and such person shall be required to make out the return provided for under Section 27-65-33 within ten (10) days after the date he sold out his business or stock of goods, or quit business, and pay the tax imposed by this chapter. The purchaser or transferee in business shall be required to withhold sufficient of the purchase money to cover the amount of any taxes, damages and interest due until such time as the former owner shall produce a receipt from the commissioner showing that such liability has been paid, or a certificate that no taxes are due. In the event the former owner shall fail to pay any taxes, damages and interest due the state within the time allowed, the successor in business shall pay such taxes, damages and interest to the commissioner upon demand. If the purchaser or transferee of a business or stock of goods shall fail to withhold purchase money as provided and the taxes, damages and interest shall be due and unpaid after the period of ten (10) days allowed, he shall be personally liable for the payment of taxes, damages and interest of the former owner, and the property sold or transferred may be proceeded against by the commissioner in the hands of the purchaser or transferee as though no sale or transfer had been made. 
 

Persons owning stock of ten percent (10%) or more of the total of corporations or ten percent (10%) interest in limited liability companies with thirty-five (35) or fewer owners and exercising responsibility for fiscal management, shall be jointly and severally liable for sales taxes levied by this chapter upon such corporations when such taxes become due and unpaid to the extent that such taxes accrued while such person was exercising responsibility for fiscal management. The commissioner shall make assessments against said persons of such taxes, damages and interest, and effect collection by the same procedures herein provided for assessment and collection of all taxes levied by this chapter. 
 

Any person, acting as agent for a dealer who has no permanent place of business in this state, who sells tangible personal property in this state, either at auction or as a transient vendor, shall be liable for collection of sales tax, where applicable, and payment of the same of this state unless the vendor principal is authorized to collect the tax and is registered under Section 27-65-27. Such persons shall maintain for a period of three (3) years adequate records which shall be available for inspection by the commissioner or his agent and which shall reveal the true sales tax liability of all parties to each transaction. Failure to maintain and permit examination of such records shall render the agent liable for sales tax accruing from all sales as determined by the commissioner from any information available. The commissioner shall effect collection by the same procedures herein provided for assessment and collection of all taxes levied by this chapter. 
 

Sources: Codes, 1942, § 10122; Laws,  1932, ch. 90; Laws, 1934, ch. 119; Laws, 1938, ch. 113; Laws, 1946, ch. 262, § 6; Laws, 1952, ch. 403, § 7; Laws, 1958, ch. 574, § 13; Laws, 1977, ch. 439, § 2; Laws, 1988, ch. 491, § 2; Laws, 1994, ch. 503, § 2; Laws, 1995, ch. 508, § 3, eff from and after July 1, 1995.
 

27-65-57 - Enrolling a judgment.

§ 27-65-57. Enrolling a judgment.
 

If any person liable for the payment of sales taxes, damages or interest fails or refuses to pay them after receiving the notice and demand as provided in Sections 27-65-35 and 27-65-37, and if such person has not filed a timely appeal to the board of review as provided by law, the commissioner may file a notice of a tax lien for the sales taxes, damages and interest with the circuit clerk of the county in which the taxpayer resides or owns property which shall be enrolled as a judgment on the judgment roll. 
 

Immediately upon receipt of the notice of the tax lien for sales taxes, damages and interest, the circuit clerk shall enter the notice of a tax lien as a judgment upon the judgment roll and show in the appropriate columns the name of the taxpayer as judgment debtor, the name of the commissioner or State Tax Commission as judgment creditor, the amount of the taxes, damages and interest, and the date and time of enrollment. The judgment shall be valid as against mortgagees, pledgees, entrusters, purchasers, judgment creditors, and other persons from the time of filing with the clerk. The amount of the judgment shall be a debt due the State of Mississippi and remain a lien upon all property and rights to property belonging to the taxpayer, both real and personal, including choses in action, with the same force and like effect as any enrolled judgment of a court of record, and shall continue until satisfied. The judgment shall be the equivalent of any enrolled judgment of a court of record and shall serve as authority for the issuance of writs of execution, writs of attachment, writs of garnishment or other remedial writs. The commissioner may issue warrants for collection of sales taxes from such judgments, in lieu of the issuance of any remedial writ by the circuit clerk, as provided in Sections 27-65-59 and 27-65-61 hereof; however, such judgment shall not be a lien upon the property of the taxpayer for a longer period than seven (7) years from the date of the filing of the notice of tax lien for sales taxes, damages and interest unless action be brought thereon before the expiration of such time or unless the commissioner refiles the notice of tax lien before the expiration of such time. The judgment shall be a lien upon the property of the taxpayer for a period of seven (7) years from the date of refiling the notice of tax lien unless action be brought thereon before the expiration of such time or unless the commissioner refiles the notice of tax lien before the expiration of such time. There shall be no limit upon the number of times that the commissioner may refile notices of tax liens. 
 

Upon failure to pay the taxes imposed under this chapter by any taxpayer who has executed any bond under provisions of this chapter, the commissioner shall give notice of the failure to the sureties of the bond and demand payment of the tax, damages and interest within ten (10) days. If the sureties on the taxpayer's bond shall fail or refuse to pay the penal sum demanded within the ten (10) days allowed, the commissioner shall file a notice of tax lien with the circuit clerk of the county in which the sureties reside or own property which shall be enrolled upon the judgment roll, and the commissioner may proceed to collect from the sureties as hereinafter provided for collecting from any judgment debtor. 
 

The commissioner is hereby authorized to pay the clerk's fee for enrolling the notice of tax lien out of funds appropriated by the Legislature to defray expenses of the State Tax Commission. 
 

Sources: Codes, 1942, §§ 10123, 10124; Laws,  1932, ch. 90; Laws, 1934, ch. 119; Laws, 1936, ch. 158; Laws, 1938, ch. 113; Laws, 1952, ch. 403, § 8; Laws, 1955, Ex Sess, ch. 106, § 3; Laws, 1990, ch. 332, § 2; Laws, 2005, ch. 499, § 28, eff from and after July 1, 2005.
 

27-65-59 - Warrant for collection of tax.

§ 27-65-59. Warrant for collection of tax.
 

The commissioner may issue a warrant under official seal directed to the sheriff of any county of the state, or to a special agent of the commission, commanding him to immediately seize and sell the real and personal property of the person owning the same found within the county in which the judgment is enrolled for the payment of the amount of tax, damages and interest, if any, as set forth in the warrant, and the cost of executing the warrant. 
 

Sources: Codes, 1942, § 10125; Laws,  1932, ch. 90; Laws, 1934, ch. 119; Laws, 1936, ch. 158; Laws, 1938, ch. 113; Laws, 1952, ch. 403, § 9; Laws, 1955, Ex Sess, ch. 106, § 4; Laws, 1956, ch. 425, § 1; Laws, 1966, ch. 651, § 1(a); Laws, 1972, ch. 376, § 1, eff from and after passage (approved April 26, 1972).
 

27-65-61 - Jeopardy assessment and warrant.

§ 27-65-61. Jeopardy assessment and warrant.
 

If the commissioner has cause to believe and believes that the collection of taxes due by any taxpayer will be jeopardized by delay, he may assess such taxes immediately, together with damages and interest, and may immediately file with the circuit clerk a notice of tax lien for sales taxes, damages, and interest and issue a jeopardy warrant under official seal directed to the sheriff of any county of this state or to a special agent of the tax commission. 
 

The circuit clerk shall proceed as provided in Section 27-65-57 upon receiving a copy of the notice of tax lien from the commissioner. Any tax determined to be due under a jeopardy assessment shall be a debt due to the state, and, when thus enrolled upon the judgment roll of the county, shall be the equivalent of any enrolled judgment of a court of record, and shall constitute a lien on all property and rights to property of the judgment debtor. The sheriff, or the special agent, as the case may be, upon receipt of the jeopardy warrant, shall immediately proceed in accordance with Section 27-65-63. However, where property has been seized under authority of a jeopardy warrant, the taxpayer may file a petition for a hearing and revision of the assessment with the commissioner at any time prior to the date of the sale, provided such taxpayer executes a supersedeas surety bond in a surety company authorized to do business and doing business in this state for double the amount of the assessment. Such bond shall be conditioned that any taxes, damages, interest and costs adjudged to be due after the hearing will be paid promptly upon order of the state tax commission. 
 

Sources: Codes, 1942, § 10125-01; Laws,  1955, Ex Sess, ch. 106, § 4; Laws, 1956, ch. 425, § 1; Laws, 1966, ch. 651, § 1(b); Laws, 1972, ch. 376, § 2, eff from and after passage (approved April 26, 1972).
 

27-65-63 - Execution of warrant by sheriff or special agent; fees.

§ 27-65-63. Execution of warrant by sheriff or special agent; fees.
 

The sheriff or special agent of the Tax Commission, upon receipt of a warrant or a jeopardy warrant, shall immediately seize any property of the taxpayer named in the warrant, in all respects, with like effect, and in the manner prescribed by law with respect to executions of judgments, and he shall execute such warrant and return it to the commissioner, and pay to him the money collected by virtue thereof by the date specified therein, but not to exceed sixty (60) days. 
 

The sheriff or special agent shall be entitled to the fees for his services in the same amount, and to be collected in like manner, as provided by Section 25-7-19, Mississippi Code of 1972, for like services under a writ of execution. Provided, however, that the minimum total of all such fees shall be Ten Dollars ($10.00). All such fees collected by a special agent of the Tax Commission shall be paid to the Tax Commission and deposited in a fund to be expended by the chairman to help defray the costs of carrying out the provisions of this chapter. Provided, further, that when a warrant issued to a sheriff shall be withdrawn by the commissioner prior to its expiration date, the commissioner is authorized to pay to the sheriff the fees allowed by law for services actually performed and costs actually incurred, out of money collected as fees from the taxpayer, or from funds appropriated for the operation of the Tax Commission. 
 

Real property shall be disposed of according to Section 13-3-163, Mississippi Code of 1972, and, except as otherwise provided in this paragraph, personal property shall be disposed of according to Section 13-3-165, Mississippi Code of 1972. However, perishable personal property may be disposed of as provided by Section 13-3-167, Mississippi Code of 1972. In addition to the advertising requirements provided in Section 13-3-165 for the sale of personal property, the Tax Commission may, when the commissioner determines the need to do so, advertise sales of personal property in any additional manner determined appropriate by the commissioner. The costs of any such additional advertising shall be considered a cost of the sale and shall be collected from the proceeds of the sale. The failure to advertise the sale of personal property in any form other than that required by Section 13-3-165 shall not invalidate a sale. For any sale of property by the Tax Commission, the commissioner may determine acceptable methods of payments to be received from the highest bidder for any sale. 
 

Sources: Codes, 1942, § 10125-02; Laws,  1955, Ex Sess, ch. 106, § 4; Laws, 1956, ch. 425, § 1; Laws, 1966, ch. 651, § 1(c); Laws, 1972, ch. 376, § 3; Laws, 2002, ch. 404, § 2, eff from and after passage (approved Mar. 19, 2002.)
 

27-65-65 - Commissioner may bid at sales.

§ 27-65-65. Commissioner may bid at sales.
 

When any property is offered for sale under the authority of a warrant or writ of execution for the collection of sales taxes, damages or interest, and no bid is submitted equal to the reasonable value of the property, the commissioner or his agent may bid therefor on behalf of the State of Mississippi an amount not to exceed the amount of the warrant and costs, and if declared the successful bidder for that particular piece of property, such title as may be conveyed shall pass to the state, and the state's interest in the property may then be sold at public or private sale to the best interest of the state. 
 

Sources: Codes, 1942, § 10125-03; Laws,  1955, Ex Sess, ch. 106, § 4; Laws, 1956, ch. 425, § 1; Laws, 1966, ch. 651, § 1(d), eff from and after July 1, 1966.
 

27-65-67 - Alias executions.

§ 27-65-67. Alias executions.
 

Whenever any property, personal or real, which is seized and sold by virtue of the foregoing provisions, is not sufficient to satisfy the claim of the State of Mississippi for which distraint or seizure is made, the commissioner may, thereafter, and as often as the same may be necessary, issue alias warrants or have issued alias writs of execution authorizing the sheriff or special agent of the tax commission to proceed to seize and sell in like manner any other property liable to seizure of the person against whom such claim exists, until the amount due from him, together with all expenses, is fully paid. 
 

Sources: Codes, 1942, § 10125-04; Laws,  1955, Ex Sess, ch. 106, § 4; Laws, 1956, ch. 425, § 1; Laws, 1966, ch. 651, § 1(e), eff from and after July 1, 1966.

 

27-65-69 - Sheriff and special agent not personally liable.

§ 27-65-69. Sheriff and special agent not personally liable.
 

Every warrant issued to a sheriff of any county of this state, or to a special agent of the State Tax Commission, shall provide that the State Tax Commission will indemnify and save harmless the said sheriff or special agent against all damages which he may sustain in consequence of the seizure and sale of the property, and the commissioner is hereby authorized to pay all obligations which may accrue by reason of the issuance and execution of any warrant authorized by this chapter, out of funds appropriated by the Legislature to defray the expenses of the State Tax Commission. Any claimant shall be barred of any action against the sheriff or special agent of the tax commission for damages sustained by the same as a consequence of the levying of process authorized by this chapter. 
 

Sources: Codes, 1942, § 10125-05; Laws,  1955, Ex Sess, ch. 106, § 4; Laws, 1956, ch. 425, § 1; Laws, 1966, ch. 651, § 1(f), eff from and after July 1, 1966.
 

27-65-71 - Enforcement not to be enjoined.

§ 27-65-71. Enforcement not to be enjoined.
 

No injunction shall be awarded by any court or judge to restrain the collection of the taxes imposed by this chapter, or to restrain the enforcement of this chapter. The provisions of Section 11-13-11, Mississippi Code of 1972, shall not apply to taxes imposed by this chapter. 
 

Sources: Codes, 1942, § 10125-06; Laws,  1955, Ex Sess, ch. 106, § 4; Laws, 1956, ch. 425, § 1; Laws, 1966, ch. 651, § 1(g), eff from and after July 1, 1966.
 

27-65-73 - Sales tax as additional tax; remittances; how made.

§ 27-65-73. Sales tax as additional tax; remittances; how made.
 

The tax imposed by this chapter shall be in addition to all other licenses and taxes levied by law as a condition precedent to engaging in any business taxable hereunder, except as in this chapter otherwise specifically provided. But no municipality or levee district shall be authorized to levy any tax by virtue of the provisions of this chapter. 
 

All remittances of taxes imposed by this chapter shall be made to the commissioner by bank draft, check, cashier's check, money order or money. The commissioner shall issue his receipts therefor to the taxpayer, when requested, and shall deposit all moneys received in the state treasury on the same day collected. Provided, however, no remittance other than cash shall be final discharge of liability for the tax herein assessed and levied unless and until it has been paid in cash to the commissioner. 
 

The apportionment of tax collections as provided by Section 27-65-75 shall be certified by the state tax commission to the state treasurer to be distributed as provided by law upon warrant of the state auditor or by electronic funds transfer. 
 

Sources: Codes, 1942, § 10126; Laws,  1934, ch. 119; Laws, 1936, ch. 158; Laws, 1984, ch. 478, § 24, eff from and after July 1, 1984.
 

27-65-75 - Distribution of sales taxes, contractor taxes, motor fuels taxes, and other revenue collected under this chapter.

§ 27-65-75. Distribution of sales taxes, contractor taxes, motor fuels taxes, and other revenue collected under this chapter.
 

On or before the fifteenth day of each month, the revenue collected under the provisions of this chapter during the preceding month shall be paid and distributed as follows: 
 

(1) (a) On or before August 15, 1992, and each succeeding month thereafter through July 15, 1993, eighteen percent (18%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Sections 27-65-15, 27-65-19(3) and 27-65-21, on business activities within a municipal corporation shall be allocated for distribution to the municipality and paid to the municipal corporation. On or before August 15, 1993, and each succeeding month thereafter, eighteen and one-half percent (18-1/2%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Sections 27-65-15, 27-65-19(3) and 27-65-21, on business activities within a municipal corporation shall be allocated for distribution to the municipality and paid to the municipal corporation. 

A municipal corporation, for the purpose of distributing the tax under this subsection, shall mean and include all incorporated cities, towns and villages. 

Monies allocated for distribution and credited to a municipal corporation under this subsection may be pledged as security for a loan if the distribution received by the municipal corporation is otherwise authorized or required by law to be pledged as security for such a loan. 

In any county having a county seat that is not an incorporated municipality, the distribution provided under this subsection shall be made as though the county seat was an incorporated municipality; however, the distribution to the municipality shall be paid to the county treasury in which the municipality is located, and those funds shall be used for road, bridge and street construction or maintenance in the county. 

(b) On or before August 15, 2006, and each succeeding month thereafter, eighteen and one-half percent (18-1/2%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Sections 27-65-15, 27-65-19(3) and 27-65-21, on business activities on the campus of a state institution of higher learning or community or junior college whose campus is not located within the corporate limits of a municipality, shall be allocated for distribution to the state institution of higher learning or community or junior college and paid to the state institution of higher learning or community or junior college. 

(2) On or before September 15, 1987, and each succeeding month thereafter, from the revenue collected under this chapter during the preceding month, One Million One Hundred Twenty-five Thousand Dollars ($1,125,000.00) shall be allocated for distribution to municipal corporations as defined under subsection (1) of this section in the proportion that the number of gallons of gasoline and diesel fuel sold by distributors to consumers and retailers in each such municipality during the preceding fiscal year bears to the total gallons of gasoline and diesel fuel sold by distributors to consumers and retailers in municipalities statewide during the preceding fiscal year. The State Tax Commission shall require all distributors of gasoline and diesel fuel to report to the commission monthly the total number of gallons of gasoline and diesel fuel sold by them to consumers and retailers in each municipality during the preceding month. The State Tax Commission shall have the authority to promulgate such rules and regulations as is necessary to determine the number of gallons of gasoline and diesel fuel sold by distributors to consumers and retailers in each municipality. In determining the percentage allocation of funds under this subsection for the fiscal year beginning July 1, 1987, and ending June 30, 1988, the State Tax Commission may consider gallons of gasoline and diesel fuel sold for a period of less than one (1) fiscal year. For the purposes of this subsection, the term "fiscal year" means the fiscal year beginning July 1 of a year. 

(3) On or before September 15, 1987, and on or before the fifteenth day of each succeeding month, until the date specified in Section 65-39-35, the proceeds derived from contractors' taxes levied under Section 27-65-21 on contracts for the construction or reconstruction of highways designated under the highway program created under Section 65-3-97 shall, except as otherwise provided in Section 31-17-127, be deposited into the State Treasury to the credit of the State Highway Fund to be used to fund that highway program. The Mississippi Department of Transportation shall provide to the State Tax Commission such information as is necessary to determine the amount of proceeds to be distributed under this subsection. 

(4) On or before August 15, 1994, and on or before the fifteenth day of each succeeding month through July 15, 1999, from the proceeds of gasoline, diesel fuel or kerosene taxes as provided in Section 27-5-101(a)(ii)1, Four Million Dollars ($4,000,000.00) shall be deposited in the State Treasury to the credit of a special fund designated as the "State Aid Road Fund," created by Section 65-9-17. On or before August 15, 1999, and on or before the fifteenth day of each succeeding month, from the total amount of the proceeds of gasoline, diesel fuel or kerosene taxes apportioned by Section 27-5-101(a)(ii)1, Four Million Dollars ($4,000,000.00) or an amount equal to twenty-three and one-fourth percent (23-1/4%) of those funds, whichever is the greater amount, shall be deposited in the State Treasury to the credit of the "State Aid Road Fund," created by Section 65-9-17. Those funds shall be pledged to pay the principal of and interest on state aid road bonds heretofore issued under Sections 19-9-51 through 19-9-77, in lieu of and in substitution for the funds previously allocated to counties under this section. Those funds may not be pledged for the payment of any state aid road bonds issued after April 1, 1981; however, this prohibition against the pledging of any such funds for the payment of bonds shall not apply to any bonds for which intent to issue those bonds has been published, for the first time, as provided by law before March 29, 1981. From the amount of taxes paid into the special fund under this subsection and subsection (9) of this section, there shall be first deducted and paid the amount necessary to pay the expenses of the Office of State Aid Road Construction, as authorized by the Legislature for all other general and special fund agencies. The remainder of the fund shall be allocated monthly to the several counties in accordance with the following formula: 

(a) One-third (1/3) shall be allocated to all counties in equal shares; 

(b) One-third (1/3) shall be allocated to counties based on the proportion that the total number of rural road miles in a county bears to the total number of rural road miles in all counties of the state; and 

(c) One-third (1/3) shall be allocated to counties based on the proportion that the rural population of the county bears to the total rural population in all counties of the state, according to the latest federal decennial census. 

For the purposes of this subsection, the term "gasoline, diesel fuel or kerosene taxes" means such taxes as defined in paragraph (f) of Section 27-5-101. 

The amount of funds allocated to any county under this subsection for any fiscal year after fiscal year 1994 shall not be less than the amount allocated to the county for fiscal year 1994. 

Any reference in the general laws of this state or the Mississippi Code of 1972 to Section 27-5-105 shall mean and be construed to refer and apply to subsection (4) of Section 27-65-75. 

(5) One Million Six Hundred Sixty-six Thousand Six Hundred Sixty-six Dollars ($1,666,666.00) each month shall be paid into the special fund known as the "State Public School Building Fund" created and existing under the provisions of Sections 37-47-1 through 37-47-67. Those payments into that fund are to be made on the last day of each succeeding month hereafter. 

(6) An amount each month beginning August 15, 1983, through November 15, 1986, as specified in Section 6 of Chapter 542, Laws of 1983, shall be paid into the special fund known as the Correctional Facilities Construction Fund created in Section 6 of Chapter 542, Laws of 1983. 

(7) On or before August 15, 1992, and each succeeding month thereafter through July 15, 2000, two and two hundred sixty-six one-thousandths percent (2.266%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Section 27-65-17(2), shall be deposited by the commission into the School Ad Valorem Tax Reduction Fund created under Section 37-61-35. On or before August 15, 2000, and each succeeding month thereafter, two and two hundred sixty-six one-thousandths percent (2.266%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Section 27-65-17(2), shall be deposited into the School Ad Valorem Tax Reduction Fund created under Section 37-61-35 until such time that the total amount deposited into the fund during a fiscal year equals Forty-two Million Dollars ($42,000,000.00). Thereafter, the amounts diverted under this subsection (7) during the fiscal year in excess of Forty-two Million Dollars ($42,000,000.00) shall be deposited into the Education Enhancement Fund created under Section 37-61-33 for appropriation by the Legislature as other education needs and shall not be subject to the percentage appropriation requirements set forth in Section 37-61-33. 

(8) On or before August 15, 1992, and each succeeding month thereafter, nine and seventy-three one-thousandths percent (9.073%) of the total sales tax revenue collected during the preceding month under the provisions of this chapter, except that collected under the provisions of Section 27-65-17(2), shall be deposited into the Education Enhancement Fund created under Section 37-61-33. 

(9) On or before August 15, 1994, and each succeeding month thereafter, from the revenue collected under this chapter during the preceding month, Two Hundred Fifty Thousand Dollars ($250,000.00) shall be paid into the State Aid Road Fund. 

(10) On or before August 15, 1994, and each succeeding month thereafter through August 15, 1995, from the revenue collected under this chapter during the preceding month, Two Million Dollars ($2,000,000.00) shall be deposited into the Motor Vehicle Ad Valorem Tax Reduction Fund established in Section 27-51-105. 

(11) Notwithstanding any other provision of this section to the contrary, on or before February 15, 1995, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of Section 27-65-17(2) and the corresponding levy in Section 27-65-23 on the rental or lease of private carriers of passengers and light carriers of property as defined in Section 27-51-101 shall be deposited, without diversion, into the Motor Vehicle Ad Valorem Tax Reduction Fund established in Section 27-51-105. 

(12) Notwithstanding any other provision of this section to the contrary, on or before August 15, 1995, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of Section 27-65-17(1) on retail sales of private carriers of passengers and light carriers of property, as defined in Section 27-51-101 and the corresponding levy in Section 27-65-23 on the rental or lease of these vehicles, shall be deposited, after diversion, into the Motor Vehicle Ad Valorem Tax Reduction Fund established in Section 27-51-105. 

(13) On or before July 15, 1994, and on or before the fifteenth day of each succeeding month thereafter, that portion of the avails of the tax imposed in Section 27-65-22 that is derived from activities held on the Mississippi State Fairgrounds Complex, shall be paid into a special fund that is created in the State Treasury and shall be expended upon legislative appropriation solely to defray the costs of repairs and renovation at the Trade Mart and Coliseum. 

(14) On or before August 15, 1998, and each succeeding month thereafter through July 15, 2005, that portion of the avails of the tax imposed in Section 27-65-23 that is derived from sales by cotton compresses or cotton warehouses and that would otherwise be paid into the General Fund, shall be deposited in an amount not to exceed Two Million Dollars ($2,000,000.00) into the special fund created under Section 69-37-39. On or before August 15, 2007, and each succeeding month thereafter, that portion of the avails of the tax imposed in Section 27-65-23 that is derived from sales by cotton compresses or cotton warehouses and that would otherwise be paid into the General Fund, shall be deposited in an amount not to exceed Two Million Dollars ($2,000,000.00) into the special fund created under Section 69-37-39 until all debts or other obligations incurred by the Certified Cotton Growers Organization under the Mississippi Boll Weevil Management Act before January 1, 2007, are satisfied in full. 

(15) Notwithstanding any other provision of this section to the contrary, on or before September 15, 2000, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of Section 27-65-19(1)(f) and (g)(i)2, shall be deposited, without diversion, into the Telecommunications Ad Valorem Tax Reduction Fund established in Section 27-38-7. 

(16) (a) On or before August 15, 2000, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of this chapter on the gross proceeds of sales of a project as defined in Section 57-30-1 shall be deposited, after all diversions except the diversion provided for in subsection (1) of this section, into the Sales Tax Incentive Fund created in Section 57-30-3. 

(b) On or before August 15, 2007, and each succeeding month thereafter, eighty percent (80%) of the sales tax revenue collected during the preceding month under the provisions of this chapter from the operation of a tourism project under the provisions of Sections 57-26-1 through 57-26-5, shall be deposited, after the diversions required in subsections (7) and (8) of this section, into the Tourism Project Sales Tax Incentive Fund created in Section 57-26-3. 

(17) Notwithstanding any other provision of this section to the contrary, on or before April 15, 2002, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under Section 27-65-23 on sales of parking services of parking garages and lots at airports shall be deposited, without diversion, into the special fund created under Section 27-5-101(d). 

(18) [Repealed] 

(19) (a) On or before August 15, 2005, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of this chapter on the gross proceeds of sales of a business enterprise located within a redevelopment project area under the provisions of Sections 57-91-1 through 57-91-11, and the revenue collected on the gross proceeds of sales from sales made to a business enterprise located in a redevelopment project area under the provisions of Sections 57-91-1 through 57-91-11 (provided that such sales made to a business enterprise are made on the premises of the business enterprise), shall, except as otherwise provided in this subsection (19), be deposited, after all diversions, into the Redevelopment Project Incentive Fund as created in Section 57-91-9. 

(b) For a municipality participating in the Economic Redevelopment Act created in Sections 57-91-1 through 57-91-11, the diversion provided for in subsection (1) of this section attributable to the gross proceeds of sales of a business enterprise located within a redevelopment project area under the provisions of Sections 57-91-1 through 57-91-11, and attributable to the gross proceeds of sales from sales made to a business enterprise located in a redevelopment project area under the provisions of Sections 57-91-1 through 57-91-11 (provided that such sales made to a business enterprise are made on the premises of the business enterprise), shall be deposited into the Redevelopment Project Incentive Fund as created in Section 57-91-9, as follows: 

(i) For the first six (6) years in which payments are made to a developer from the Redevelopment Project Incentive Fund, one hundred percent (100%) of the diversion shall be deposited into the fund; 

(ii) For the seventh year in which such payments are made to a developer from the Redevelopment Project Incentive Fund, eighty percent (80%) of the diversion shall be deposited into the fund; 

(iii) For the eighth year in which such payments are made to a developer from the Redevelopment Project Incentive Fund, seventy percent (70%) of the diversion shall be deposited into the fund; 

(iv) For the ninth year in which such payments are made to a developer from the Redevelopment Project Incentive Fund, sixty percent (60%) of the diversion shall be deposited into the fund; and 

(v) For the tenth year in which such payments are made to a developer from the Redevelopment Project Incentive Fund, fifty percent (50%) of the funds shall be deposited into the fund. 

(20) On or before January 15, 2007, and each succeeding month thereafter, eighty percent (80%) of the sales tax revenue collected during the preceding month under the provisions of this chapter from the operation of a tourism project under the provisions of Sections 57-28-1 through 57-28-5, shall be deposited, after the diversions required in subsections (7) and (8) of this section, into the Tourism Sales Tax Incentive Fund created in Section 57-28-3. 

(21) On or before April 15, 2007, and each succeeding month thereafter, One Hundred Fifty Thousand Dollars ($150,000.00) of the sales tax revenue collected during the preceding month under the provisions of this chapter shall be deposited into the MMEIA Tax Incentive Fund created in Section 57-101-3. 

(22) Notwithstanding any other provision of this section to the contrary, on or before August 15, 2009, and each succeeding month thereafter, the sales tax revenue collected during the preceding month under the provisions of Section 27-65-201 shall be deposited, without diversion, into the Motor Vehicle Ad Valorem Tax Reduction Fund established in Section 27-51-105. 

(23) The remainder of the amounts collected under the provisions of this chapter shall be paid into the State Treasury to the credit of the General Fund. 

(24) It shall be the duty of the municipal officials of any municipality that expands its limits, or of any community that incorporates as a municipality, to notify the commissioner of that action thirty (30) days before the effective date. Failure to so notify the commissioner shall cause the municipality to forfeit the revenue that it would have been entitled to receive during this period of time when the commissioner had no knowledge of the action. If any funds have been erroneously disbursed to any municipality or any overpayment of tax is recovered by the taxpayer, the commissioner may make correction and adjust the error or overpayment with the municipality by withholding the necessary funds from any later payment to be made to the municipality. 
 

Sources: Codes, 1942, § 10127; Laws,  1932, ch. 90; Laws, 1934, ch. 119; Laws, 1936, ch. 158; Laws, 1950, ch. 391; Laws, 1952, ch. 289; Laws, 1955, Ex Sess, ch. 107; Laws, 1960, ch. 366; Laws, 1962, ch. 599, § 3; Laws, 1966, ch. 652, § 1; Laws, 1968, ch. 588, § 11; Laws, 1972, ch. 535, § 1; Laws, 1974, ch. 509, § 1; Laws, 1978, ch. 503, § 1; Laws, 1979, chs. 302, § 10, 453, § 1; Laws, 1981, ch. 464, § 20; Laws, 1983, ch. 542, § 1; Laws, 1984, ch. 488, § 178; Laws, 1985, ch. 537, § 1; Laws, 1987, ch. 322, § 28; Laws, 1987, ch. 527, § 1; Laws, 1988, ch. 353; Laws 1992, ch. 419, § 8; Laws 1992, ch. 565, § 1; Laws 1993, ch. 473, § 2; Laws 1994, ch. 557, § 12; Laws 1994, ch. 563, § 8; Laws 1994, ch. 570, § 20; Laws 1994, ch. 565, § 1; Laws 1995, ch. 521, § 5; Laws 1995, ch. 563, § 22; Laws 1997, ch. 566, § 1; Laws 1997, ch. 612, § 26; Laws 1998, ch. 584, § 2; Laws, 1999, ch. 535, § 1; Laws, 1999, ch. 575, § 7; Laws, 2000, ch. 303, § 7; Laws, 2000, ch. 616, § 3; Laws, 2000, ch. 617, § 1; Laws, 2002, ch. 434, § 1; Laws, 2002, ch. 520, § 4; Laws, 2002, ch. 582, § 7; Laws, 2003, ch. 540, § 1; Laws, 2004, ch. 595, § 9; Laws, 2005, ch. 369, § 1; Laws, 2005, ch. 468, § 10; Laws, 2005, 2nd Ex Sess, ch. 2, § 4; Laws, 2005, 5th Ex Sess, ch. 12, § 5; Laws, 2006, ch. 365, § 1; Laws, 2006, 1st Ex Sess, ch. 2, § 7; Laws, 2007, ch. 303, § 26; Laws, 2007, ch. 493, § 1; Laws, 2007, ch. 562, § 1; Laws, 2007, ch. 574, § 4; Laws, 2007, 1st Ex Sess, ch. 1, § 16; Laws, 2009, ch. 562, § 4, eff from and after July 1, 2009.
 

27-65-76 - Repealed.

§ 27-65-76. Repealed.
 

Repealed by Laws, 1987, ch 322, § 31, eff from and after September 1, 1987 (See Editor's Note below). 
 

[En Laws, 1985, ch 537, § 2] 
 

27-65-77 - Repealed.

§ 27-65-77. Repealed.
 

Repealed by Laws, 1985, ch. 455, § 14, eff from and after March 29, 1985. 
 

[Codes, 1942, § 10128; Laws, 1932, ch. 90; 1934, ch. 119; 1936, ch. 158] 
 

27-65-79 - Records; preserved.

§ 27-65-79. Records; preserved.
 

The commissioner shall keep full and accurate records of all moneys received by him, and how disbursed. He shall preserve all returns or a reproduction of such returns filed with him under Sections 27-65-31 and 27-65-33 of this chapter for a period of three (3) years. 
 

Sources: Codes, 1942, § 10129; Laws,  1932, ch. 90; Laws, 1934, ch. 119; Laws, 1936, ch. 158; Laws, 1984, ch. 458, § 4, eff from and after July 1, 1984.
 

27-65-81 - Returns confidential.

§ 27-65-81. Returns confidential.
 

(1)  Applications, returns and information contained therein filed or furnished under this chapter shall be confidential, and except in accordance with proper judicial order or as otherwise authorized by this section, it shall be unlawful for members of the State Tax Commission or members of the Central Data Processing Authority, any deputy, agent, clerk or other officer or employee thereof, or any former employee thereof to divulge or make known in any manner the amount of income or any particulars set forth or disclosed on any application, report or return required. 
 

The term "proper judicial order" as used in this section shall not include subpoenas or subpoenas duces tecum but shall include only those orders entered by a court of record in this state after furnishing notice and a hearing to the taxpayer and the State Tax Commission. The court shall not authorize the furnishing of such information unless it is satisfied that the information is needed to pursue pending litigation wherein the return itself is in issue, or the judge is satisfied that the need for furnishing the information outweighs the rights of the taxpayer to have such information secreted. 

(2)  Such information contained on the application, returns or reports may be furnished to: (a) members and employees of the State Tax Commission and the income tax department thereof, for the purpose of checking, comparing and correcting returns; (b) the Attorney General, or any other attorney representing the state in any action in respect to the amount of tax under the provisions of this chapter; or (c) the revenue department of other states or the federal government when said states or federal government grants a like comity to Mississippi. 

(3)  The State Auditor and the employees of his office shall have the right to examine only such tax returns as are necessary for auditing the State Tax Commission, and the same prohibitions against disclosure which apply to the State Tax Commission shall apply to the State Auditor and his office. 

(4)  Nothing in this section shall prohibit the chairman of the commission from making available information necessary to recover taxes owing the state pursuant to the authority granted in Section 27-75-16, Mississippi Code of 1972. 
 

Sources: Codes, 1942, §§ 10130, 10131; Laws,  1932, ch. 90; Laws, 1934, ch. 119; Laws, 1952, ch. 403, § 10; Laws, 1975, ch. 516, § 4; Laws, 1984, ch. 458, § 5: 1988, ch. 349, § 5, eff from and after passage (approved April 15, 1988).
 

27-65-83 - Repealed.

§ 27-65-83. Repealed.
 

Repealed by Laws, 2001, ch. 429, § 3, eff from and after passage (approved March 13, 2001). 
 

[Codes, 1942, § 10132; Laws,  1932, ch. 90; Laws, 1934, ch. 119; Laws, 1936, ch. 158; Laws, 1952, ch. 403, § 11, eff May 1, 1952.] 
 

27-65-85 - Penalties for failure to comply with the chapter.

§ 27-65-85. Penalties for failure to comply with the chapter.
 

(1)  It shall be unlawful for: 

(a) Any person to engage or continue in any business for which a tax is imposed by this chapter without procuring a license as required by Section 27-65-27 of this chapter, or after such license has been revoked, or who shall fail or refuse to make the return provided to be made in Section 27-65-33 of this chapter; 

(b) Any person to make any false or fraudulent return or false statement in any return, with intent to defraud the state or to evade the payment of the tax imposed by this chapter, or any part thereof; 

(c) Any person to aid or abet another in any attempt to evade the payment of the tax imposed by this chapter, or any part thereof; 

(d) The president, vice president, secretary or treasurer of any company to make or permit to be made for any company or association any false return, or any false statement in any return required by this chapter with the intent to evade the payment of the tax due; 

(e) Any person to represent to any retailer that purchases of merchandise are for resale, causing the retailer to not collect the tax imposed by this chapter, when in fact the purchase is being made for the use of the person; 

(f) Any person to use another person's permit to engage in business issued under Section 27-65-27 for the purpose of avoiding the payment of taxes imposed by this chapter; 

(g) Any person to use an exemption authorized under this chapter for the purpose of avoiding the payment of tax he is required to pay under this chapter; 

(h) Any person to fail or refuse to permit the examination of any book, paper, account, record or other data by the commissioner, or his duly appointed agent, as required by this chapter, including the records of any common carrier, bank, wholesale or retail dealer in any kind of merchandise whether in regard to his own or another's return; 

(i) To fail or refuse to permit the inspection or appraisal of any property by the commissioner or his duly appointed agent; 

(j) To refuse to offer testimony or produce any record as required by this chapter; 

(k) Any person using the public roads and highways of this state for the transportation of merchandise for sale, whether such person be a contract carrier or operating a private vehicle, other than a common carrier operating under the Interstate Commerce Commission or the Mississippi Public Service Commission, and having a permanent office in this state where proper records of merchandise transported are kept and available for inspection by the commissioner or his agents, to fail to have in his or her possession at all times while such merchandise is being transported, and allow inspection of, the invoices or sales tickets correctly disclosing the nature and quantity of such merchandise and the consignor and consignee of each article being transported. However, the records of a common carrier shall be open for inspection at any time for the purpose of obtaining any information bearing upon the administration of this chapter. In the case of any vehicle engaged in the transportation of merchandise for sale, neither belonging to nor operated by a regulated common carrier and not keeping complete records in this state, the commissioner or his authorized agents may examine any invoices or sales tickets carried by the person in charge of the vehicle, and may compare them with the character and quantity of merchandise being transported and the consignee thereof, for the purpose of ascertaining whether or not the provisions of law are being complied with. The absence of such invoices or delivery or sales tickets indicating to whom said merchandise belongs, or is to be delivered, in the hands of such person so engaged in transporting the merchandise, shall be prima facie evidence that such person is transporting such merchandise in violation of this chapter and liable for all penalties imposed under this section. 

(2)  Any person violating any of the provisions of this chapter shall be guilty of a misdemeanor and, on conviction thereof, shall be fined not more than Five Hundred Dollars ($500.00), or imprisoned not exceeding six (6) months in the county jail, or punished by both such fine and imprisonment, at the discretion of the court. In addition to the foregoing penalties, any person who shall knowingly swear to or verify any false or fraudulent return or statement shall be guilty of the offense of perjury and, on conviction thereof, shall be punished in the manner provided by law. 

(3)  The commissioner may require the attendance of any person and take his testimony with respect to any matter pertaining to any taxpayer's liability for taxes under this chapter, with power to administer oaths to such person or persons. If any person summoned as a witness shall fail to obey any summons to appear before the commissioner or his authorized agent, or shall refuse to testify or answer any material question or to produce any book, record, paper or other data when required to do so, the failure or refusal shall be reported to the Attorney General, the district attorney or county attorney, who shall thereupon institute proceedings in the circuit court of the county where such witness resides to compel obedience to any summons of the commissioner, or his authorized agent. The proceedings shall be by petition for citation to the person refusing to obey such summons, to show cause why the person should not be required to obey such summons. The circuit judge of the district may hear such petition in termtime or vacation upon two (2) days' notice to the person sought to be cited; and the circuit judge may enter such order as he may deem proper, and punish any failure to comply with the order as for any other contempt of the court. Officers who serve summonses or subpoenas, and witnesses attending, shall receive like compensation as officers and witnesses in the justice courts; and such compensation shall be paid from the proper appropriation for the administration of this chapter. 
 

Sources: Codes, 1942, § 10133; Laws,  1932, ch. 90; Laws, 1934, ch. 119; Laws, 1938, ch. 113; Laws, 1952, ch. 403, § 12, eff May 1, 1952; Laws, 2007, ch. 384, § 1, eff from and after July 1, 2007.
 

27-65-87 - Administration of the chapter vested in the chairman.

§ 27-65-87. Administration of the chapter vested in the chairman.
 

[Until July 1, 2010, this section will read:]
 

The administration of this chapter is vested in and shall be exercised by the chairman of the State Tax Commission, except as otherwise herein provided, and the enforcement of any of the provisions of this chapter in any of the courts of the state shall be under the exclusive jurisdiction of the chairman of the State Tax Commission who may require the assistance of an act through the attorney general, prosecuting attorney of any county, or any district attorney, or any attorney for the State Tax Commission, and may with the assent of the Governor, employ special counsel in any county to aid the prosecuting attorney, the compensation of whom shall be fixed by and paid only upon the approval of the Governor; but the Attorney General, district attorney or prosecuting attorney of any county shall receive no fees or compensation for services rendered in enforcing this chapter in addition to the salary paid to such officer. 
 

In case of violation of the provisions of this chapter, the commissioner may decline to prosecute for the first offense, if in his judgment such violation is not wilful or flagrant. 
 

[From and after July 1, 2010, this section will read:]
 

The administration of this chapter is vested in and shall be exercised by the Commissioner of Revenue of the Department of Revenue, except as otherwise herein provided, and the enforcement of any of the provisions of this chapter in any of the courts of the state shall be under the exclusive jurisdiction of the Commissioner of Revenue of the Department of Revenue who may require the assistance of an act through the Attorney General, prosecuting attorney of any county, or any district attorney, or any attorney for the Department of Revenue, and may with the assent of the Governor, employ special counsel in any county to aid the prosecuting attorney, the compensation of whom shall be fixed by and paid only upon the approval of the Governor; but the Attorney General, district attorney or prosecuting attorney of any county shall receive no fees or compensation for services rendered in enforcing this chapter in addition to the salary paid to such officer. 
 

In case of violation of the provisions of this chapter, the commissioner may decline to prosecute for the first offense, if in his judgment such violation is not willful or flagrant. 
 

Sources: Codes, 1942, § 10134; Laws,  1932, ch. 90; Laws, 1934, ch. 119; Laws, 1938, ch. 113; Laws, 1952, ch. 403, § 13, eff May 1, 1952; Laws, 2009, ch. 492, § 105, eff from and after July 1, 2010.
 

27-65-89 - Employees appointed by commissioner.

§ 27-65-89. Employees appointed by commissioner.
 

[Until July 1, 2010, this section will read:]
 

The chairman of the State Tax Commission shall appoint, as needed, such deputies, agents, clerks and stenographers as authorized by law, who shall serve under him, and shall perform such duties as may be required by the commissioner, including the signing of notices, warrants and such other documents as may be specifically designated by the commissioner, not inconsistent with this chapter, and they are hereby authorized to act for the commissioner, as he may prescribe and as provided herein. All of such agents, clerks and stenographers may be removed by the chairman of the state tax commission for cause of which the commissioner shall be the final judge. 
 

[From and after July 1, 2010, this section will read:]
 

The Commissioner of Revenue of the Department of Revenue shall appoint, as needed, such deputies, agents, clerks and stenographers as authorized by law, who shall serve under him, and shall perform such duties as may be required by the commissioner, including the signing of notices, warrants and such other documents as may be specifically designated by the commissioner, not inconsistent with this chapter, and they are hereby authorized to act for the commissioner, as he may prescribe and as provided herein. All of such agents, clerks and stenographers may be removed by the Commissioner of Revenue of the Department of Revenue for cause of which the commissioner shall be the final judge. 
 

Sources: Codes, 1942, § 10135; Laws,  1932, ch. 90; Laws, 1934, ch. 119; Laws, 1938, ch. 113; Laws, 1942, ch. 122; Laws, 1952, ch. 403, § 14; Laws, 1966, ch. 651, § 3; Laws, 2009, ch. 492, § 106, eff from and after July 1, 2010.
 

27-65-91 - Special agents designated by commissioner; authority.

§ 27-65-91. Special agents designated by commissioner; authority.
 

The commissioner shall designate certain special agents appointed hereunder and evidenced by a written certificate of appointment under the seal of the tax commission, of which judicial notice shall be taken by all courts of this state. Such agents, when in possession of a warrant issued under authority of this chapter, shall have all the powers and duties of the sheriff in enforcing the provisions of the chapter relating to the warrant thus issued, and in making arrests of persons obstructing or seeking to obstruct the execution of such warrant, or in serving any writ, notice or order connected with the enrolled judgment for which the warrant is issued by whatever officer or authority of court issued. 
 

Sources: Codes, 1942, § 10136; Laws,  1932, ch. 90; Laws, 1934, ch. 119; Laws, 1938, ch. 113; Laws, 1942, ch. 122; Laws, 1952, ch. 403, § 14; Laws, 1966, ch. 651, § 3, eff from and after July 1, 1966.
 

27-65-93 - Commissioner to make regulations.

§ 27-65-93. Commissioner to make regulations.
 

(1)  The commissioner shall, from time to time, promulgate rules and regulations, not inconsistent with the provisions of the sales tax law, for making returns and for the ascertainment, assessment and collection of the tax imposed by the sales tax law as he may deem necessary to enforce its provisions; and, upon request, he shall furnish any taxpayer with a copy of the rules and regulations. 

(2)  All forms, necessary for the enforcement of the sales tax law, shall be prescribed, printed and furnished by the commissioner. 

(3)  The commissioner may adopt rules and regulations providing for the issuance of permits to manufacturers, utilities, construction contractors, companies receiving bond financing through the Mississippi Business Finance Corporation or the Mississippi Development Authority, and other taxpayers as determined by the commissioner to purchase tangible personal property taxed under Section 27-65-17, items taxed under Section 27-65-18, items taxed under Section 27-65-19, services taxed under Section 27-65-23 and items taxed under Section 27-65-26 without the payment to the vendor of the tax imposed by the sales and use tax laws, and providing for persons to report and pay the tax directly to the commissioner in instances where the commissioner determines that these provisions will facilitate and expedite the collection of the tax at the proper rates which may be due on purchases by the permittee. Under the provisions of this chapter, the vendor is relieved of collecting and remitting the taxes specified hereunder and the person holding the permit shall become liable for such taxes instead of the seller. The full enforcement provisions of the sales tax law shall apply in the collection of the tax from the permittee. 
 

Sources: Codes, 1942, § 10137; Laws,  1932, ch. 90; Laws, 1934, ch. 119; Laws, 1948, ch. 446, § 2; Laws, 1950, ch. 531; Laws, 1952, ch. 403, § 15; Laws, 1966, ch. 653, § 1; Laws, 1995, ch. 508, § 4; Laws, 1996, ch. 383, § 1; Laws, 2004, ch. 351, § 2; Laws, 2005, ch. 420, § 1; Laws, 2009, ch. 332, § 5, eff from and after July 1, 2009.
 

27-65-95 - Prior rights or actions not affected by this chapter.

§ 27-65-95. Prior rights or actions not affected by this chapter.
 

Nothing in this chapter shall affect or defeat any distribution, claim, assessment, appeal, suit, right or cause of action for taxes, due or accrued under Sections 27-65-1 through 27-65-95, Mississippi Code of 1972, prior to July 1, 1974, whether such distribution, assessment, appeal, suit, claim or action shall have been begun before July 1, 1974, or shall thereafter be begun; and the provisions of Sections 27-65-1 through 27-65-95, Mississippi Code of 1972, are expressly continued in full force, effect and operation for the purpose of the assessment, collection and distribution of any taxes due or accrued under said Sections 27-65-1 through 27-65-95, Mississippi Code of 1972, and amendments thereto, prior to July 1, 1974, and for the imposition of any penalties, forfeitures or claims for a failure to comply therewith. 
 

Sources: Codes, 1942, §§ 10111.5, 10138; Laws,  1932, ch. 90; Laws, 1934, ch. 119; Laws, 1950, ch. 516, §§ 1-4; Laws, 1952, ch. 367 (subsection 1); Laws, 1955, Ex Sess. ch. 106, § 5; ch. 109, § 19; Laws, 1956, ch. 419, § 5; ch. 420, § 2; ch. 421, § 2; ch. 425, § 2; Laws, 1957, Ex Sess. ch. 20, § 2; Laws, 1958, chs. 575, § 3, 574, § 15; Laws, 1962, chs. 596, §§ 2, 4, 597, §§ 2, 4, 601, §§ 2, 4, 602, §§ 2, 4, 598, §§ 2, 4, and 599, § 4; Laws, 1964, chs. 530, § 3, 531, § 5, 532, § 6, 533, § 2; Laws, 1965, Ex. Sess. ch. 22, § 6; Laws, 1966, chs. 651, § 4, 654, § 1; Laws, 1968, ch. 588, §§ 15, 17; Laws, 1970, ch. 547, § 2; Laws, 1974, ch. 509, § 2, eff from and after July 1, 1974.
 

27-65-97 - Erroneous diversion of collected sales tax monies to municipality with population of 500 or less.

§ 27-65-97. Erroneous diversion of collected sales tax monies to municipality with population of 500 or less.
 

Any payment made erroneously by the State Tax Commission, as a diversion from sales tax monies collected, to a municipality with a total population of five hundred (500) or less according to the most recent federal census shall not be charged back to such municipality by the State Tax Commission. 
 

Sources: Laws,  1986, ch. 451, § 7, eff from and after May 1, 1986.
 

27-65-101 - Exemptions; industrial.

§ 27-65-101. Exemptions; industrial.
 

(1)  The exemptions from the provisions of this chapter which are of an industrial nature or which are more properly classified as industrial exemptions than any other exemption classification of this chapter shall be confined to those persons or property exempted by this section or by the provisions of the Constitution of the United States or the State of Mississippi. No industrial exemption as now provided by any other section except Section 57-3-33 shall be valid as against the tax herein levied. Any subsequent industrial exemption from the tax levied hereunder shall be provided by amendment to this section. No exemption provided in this section shall apply to taxes levied by Section 27-65-15 or 27-65-21. 
 

The tax levied by this chapter shall not apply to the following: 

(a) Sales of boxes, crates, cartons, cans, bottles and other packaging materials to manufacturers and wholesalers for use as containers or shipping materials to accompany goods sold by said manufacturers or wholesalers where possession thereof will pass to the customer at the time of sale of the goods contained therein and sales to anyone of containers or shipping materials for use in ships engaged in international commerce. 

(b) Sales of raw materials, catalysts, processing chemicals, welding gases or other industrial processing gases (except natural gas) to a manufacturer for use directly in manufacturing or processing a product for sale or rental or repairing or reconditioning vessels or barges of fifty (50) tons load displacement and over. For the purposes of this exemption, electricity used directly in the electrolysis process in the production of sodium chlorate shall be considered a raw material. This exemption shall not apply to any property used as fuel except to the extent that such fuel comprises by-products which have no market value. 

(c) The gross proceeds of sales of dry docks, offshore drilling equipment for use in oil exploitation or production, vessels or barges of fifty (50) tons load displacement and over, when sold by the manufacturer or builder thereof. 

(d) Sales to commercial fishermen of commercial fishing boats of over five (5) tons load displacement and not more than fifty (50) tons load displacement as registered with the United States Coast Guard and licensed by the Mississippi Commission on Marine Resources. 

(e) The gross income from repairs to vessels and barges engaged in foreign trade or interstate transportation. 

(f) Sales of petroleum products to vessels or barges for consumption in marine international commerce or interstate transportation businesses. 

(g) Sales and rentals of rail rolling stock (and component parts thereof) for ultimate use in interstate commerce and gross income from services with respect to manufacturing, repairing, cleaning, altering, reconditioning or improving such rail rolling stock (and component parts thereof). 

(h) Sales of raw materials, catalysts, processing chemicals, welding gases or other industrial processing gases (except natural gas) used or consumed directly in manufacturing, repairing, cleaning, altering, reconditioning or improving such rail rolling stock (and component parts thereof). This exemption shall not apply to any property used as fuel. 

(i) Sales of machinery or tools or repair parts therefor or replacements thereof, fuel or supplies used directly in manufacturing, converting or repairing ships, vessels or barges of three thousand (3,000) tons load displacement and over, but not to include office and plant supplies or other equipment not directly used on the ship, vessel or barge being built, converted or repaired. For purposes of this exemption, "ships, vessels or barges" shall not include floating structures described in Section 27-65-18. 

(j) Sales of tangible personal property to persons operating ships in international commerce for use or consumption on board such ships. This exemption shall be limited to cases in which procedures satisfactory to the commissioner, ensuring against use in this state other than on such ships, are established. 

(k) Sales of materials used in the construction of a building, or any addition or improvement thereon, and sales of any machinery and equipment not later than three (3) months after the completion of construction of the building, or any addition thereon, to be used therein, to qualified businesses, as defined in Section 57-51-5, which are located in a county or portion thereof designated as an enterprise zone pursuant to Sections 57-51-1 through 57-51-15. 

(l) Sales of materials used in the construction of a building, or any addition or improvement thereon, and sales of any machinery and equipment not later than three (3) months after the completion of construction of the building, or any addition thereon, to be used therein, to qualified businesses, as defined in Section 57-54-5. 

(m) Income from storage and handling of perishable goods by a public storage warehouse. 

(n) The value of natural gas lawfully injected into the earth for cycling, repressuring or lifting of oil, or lawfully vented or flared in connection with the production of oil; however, if any gas so injected into the earth is sold for such purposes, then the gas so sold shall not be exempt. 

(o) The gross collections from self-service commercial laundering, drying, cleaning and pressing equipment. 

(p) Sales of materials used in the construction of a building, or any addition or improvement thereon, and sales of any machinery and equipment not later than three (3) months after the completion of construction of the building, or any addition thereon, to be used therein, to qualified companies, certified as such by the Mississippi Development Authority under Section 57-53-1. 

(q) Sales of component materials used in the construction of a building, or any addition or improvement thereon, sales of machinery and equipment to be used therein, and sales of manufacturing or processing machinery and equipment which is permanently attached to the ground or to a permanent foundation and which is not by its nature intended to be housed within a building structure, not later than three (3) months after the initial start-up date, to permanent business enterprises engaging in manufacturing or processing in Tier Three areas (as such term is defined in Section 57-73-21), which businesses are certified by the State Tax Commission as being eligible for the exemption granted in this paragraph (q). 

(r) Sales of component materials used in the construction of a building, or any addition or improvement thereon, and sales of any machinery and equipment not later than three (3) months after the completion of the building, addition or improvement thereon, to be used therein, for any company establishing or transferring its national or regional headquarters from within or outside the State of Mississippi and creating a minimum of thirty-five (35) jobs at the new headquarters in this state. The Tax Commission shall establish criteria and prescribe procedures to determine if a company qualifies as a national or regional headquarters for the purpose of receiving the exemption provided in this paragraph. 

(s) The gross proceeds from the sale of semitrailers, trailers, boats, travel trailers, motorcycles and all-terrain cycles if exported from this state within forty-eight (48) hours and registered and first used in another state. 

(t) Gross income from the storage and handling of natural gas in underground salt domes and in other underground reservoirs, caverns, structures and formations suitable for such storage. 

(u) Sales of machinery and equipment to nonprofit organizations if the organization: 

(i) Is tax exempt pursuant to Section 501(c) (4) of the Internal Revenue Code of 1986, as amended; 

(ii) Assists in the implementation of the national contingency plan or area contingency plan, and which is created in response to the requirements of Title IV, Subtitle B of the Oil Pollution Act of 1990, Public Law 101-380; and 

(iii) Engages primarily in programs to contain, cleanup and otherwise mitigate spills of oil or other substances occurring in the United States coastal and tidal waters. 

For purposes of this exemption, "machinery and equipment" means any ocean-going vessels, barges, booms, skimmers and other capital equipment used primarily in the operations of nonprofit organizations referred to herein. 

(v) Sales or leases of materials and equipment to approved business enterprises as provided under the Growth and Prosperity Act. 

(w) From and after July 1, 2001, sales of pollution control equipment to manufacturers or custom processors for industrial use. For the purposes of this exemption, "pollution control equipment" means equipment, devices, machinery or systems used or acquired to prevent, control, monitor or reduce air, water or groundwater pollution, or solid or hazardous waste as required by federal or state law or regulation. 

(x) Sales or leases to a manufacturer of motor vehicles or powertrain components operating a project that has been certified by the Mississippi Major Economic Impact Authority as a project as defined in Section 57-75-5(f)(iv)1, Section 57-75-5(f)(xxi) or Section 57-75-5(f)(xxii) of machinery and equipment; special tooling such as dies, molds, jigs and similar items treated as special tooling for federal income tax purposes; or repair parts therefor or replacements thereof; repair services thereon; fuel, supplies, electricity, coal and natural gas used directly in the manufacture of motor vehicles or motor vehicle parts or used to provide climate control for manufacturing areas. 

(y) Sales or leases of component materials, machinery and equipment used in the construction of a building, or any addition or improvement thereon to an enterprise operating a project that has been certified by the Mississippi Major Economic Impact Authority as a project as defined in Section 57-75-5(f)(iv)1, Section 57-75-5(f)(xxi) or Section 57-75-5(f)(xxii) and any other sales or leases required to establish or operate such project. 

(z) Sales of component materials and equipment to a business enterprise as provided under Section 57-64-33. 

(aa) The gross income from the stripping and painting of commercial aircraft engaged in foreign or interstate transportation business. 

(bb) Sales of production items used in the production of motion pictures such as film; videotape; component building materials used in the construction of a set; makeup; fabric used as or in the making of costumes; clothing, including, shoes, accessories and jewelry used as wardrobes; materials used as set dressing; materials used as props on a set or by an actor; materials used in the creation of special effects; and expendable items purchased for limited use by grip, electric and camera departments such as tape, fasteners and compressed air. For the purposes of this paragraph (bb), the term "motion picture" means a nationally distributed feature-length film, video, television series or commercial made in Mississippi, in whole or in part, for theatrical or television viewing or as a television pilot. The term "motion picture" shall not include the production of television coverage of news and athletic events, or a film, video, television series or commercial that contains any material or performance defined in Section 97-29-103. 

(cc) Sales or leases to an enterprise owning or operating a project that has been designated by the Mississippi Major Economic Impact Authority as a project as defined in Section 57-75-5(f)(xviii) of machinery and equipment; special tooling such as dies, molds, jigs and similar items treated as special tooling for federal income tax purposes; or repair parts therefor or replacements thereof; repair services thereon; fuel, supplies, electricity, coal and natural gas used directly in the manufacturing/production operations of the project or used to provide climate control for manufacturing/production areas. 

(dd) Sales or leases of component materials, machinery and equipment used in the construction of a building, or any addition or improvement thereon to an enterprise owning or operating a project that has been designated by the Mississippi Major Economic Impact Authority as a project as defined in Section 57-75-5(f)(xviii) and any other sales or leases required to establish or operate such project. 

(ee) Sales of parts used in the repair and servicing of aircraft not registered in Mississippi engaged exclusively in the business of foreign or interstate transportation to businesses engaged in aircraft repair and maintenance. 

(ff) Sales of component materials used in the construction of a facility, or any addition or improvement thereon, and sales or leases of machinery and equipment not later than three (3) months after the completion of construction of the facility, or any addition or improvement thereto, to be used in the building or any addition or improvement thereto, to a permanent business enterprise operating a data/information enterprise in Tier Three areas (as such areas are designated in accordance with Section 57-73-21), meeting minimum criteria established by the Mississippi Development Authority. 

(gg) Sales of component materials used in the construction of a facility, or any addition or improvement thereto, and sales of machinery and equipment not later than three (3) months after the completion of construction of the facility, or any addition or improvement thereto, to be used in the facility or any addition or improvement thereto, to technology intensive enterprises for industrial purposes in Tier Three areas (as such areas are designated in accordance with Section 57-73-21), as certified by the State Tax Commission. For purposes of this paragraph, an enterprise must meet the criteria provided for in Section 27-65-17(1)(f) in order to be considered a technology intensive enterprise. 

(hh) Sales of component materials used in the replacement, reconstruction or repair of a building or facility that has been destroyed or sustained extensive damage as a result of a disaster declared by the Governor, sales of machinery and equipment to be used therein to replace machinery or equipment damaged or destroyed as a result of such disaster, including, but not limited to, manufacturing or processing machinery and equipment which is permanently attached to the ground or to a permanent foundation and which is not by its nature intended to be housed within a building structure, to enterprises or companies that were eligible for the exemptions authorized in paragraph (q), (r), (ff) or (gg) of this subsection during initial construction of the building that was destroyed or damaged, which enterprises or companies are certified by the State Tax Commission as being eligible for the exemption granted in this paragraph. 

(ii) Sales of software or software services transmitted by the Internet to a destination outside the State of Mississippi where the first use of such software or software services by the purchaser occurs outside the State of Mississippi. 

(jj) Gross income of public storage warehouses derived from the temporary storage of raw materials that are to be used in an eligible facility as defined in Section 27-7-22.35. 

(2)  Sales of component materials used in the construction of a building, or any addition or improvement thereon, sales of machinery and equipment to be used therein, and sales of manufacturing or processing machinery and equipment which is permanently attached to the ground or to a permanent foundation and which is not by its nature intended to be housed within a building structure, not later than three (3) months after the initial start-up date, to permanent business enterprises engaging in manufacturing or processing in Tier Two areas and Tier One areas (as such areas are designated in accordance with Section 57-73-21), which businesses are certified by the State Tax Commission as being eligible for the exemption granted in this subsection, shall be exempt from one-half (1/2) of the taxes imposed on such transactions under this chapter. 

(3)  Sales of component materials used in the construction of a facility, or any addition or improvement thereon, and sales or leases of machinery and equipment not later than three (3) months after the completion of construction of the facility, or any addition or improvement thereto, to be used in the building or any addition or improvement thereto, to a permanent business enterprise operating a data/information enterprise in Tier Two areas and Tier One areas (as such areas are designated in accordance with Section 57-73-21), which businesses meet minimum criteria established by the Mississippi Development Authority, shall be exempt from one-half (1/2) of the taxes imposed on such transaction under this chapter. 

(4)  Sales of component materials used in the construction of a facility, or any addition or improvement thereto, and sales of machinery and equipment not later than three (3) months after the completion of construction of the facility, or any addition or improvement thereto, to be used in the building or any addition or improvement thereto, to technology intensive enterprises for industrial purposes in Tier Two areas and Tier One areas (as such areas are designated in accordance with Section 57-73-21), which businesses are certified by the State Tax Commission as being eligible for the exemption granted in this subsection, shall be exempt from one-half (1/2) of the taxes imposed on such transactions under this chapter. For purposes of this subsection, an enterprise must meet the criteria provided for in Section 27-65-17(1)(f) in order to be considered a technology intensive enterprise. 

(5) (a)  For purposes of this subsection: 

(i) "Telecommunications enterprises" shall have the meaning ascribed to such term in Section 57-73-21; 

(ii) "Tier One areas" mean counties designated as Tier One areas pursuant to Section 57-73-21; 

(iii) "Tier Two areas" mean counties designated as Tier Two areas pursuant to Section 57-73-21; 

(iv) "Tier Three areas" mean counties designated as Tier Three areas pursuant to Section 57-73-21; and 

(v) "Equipment used in the deployment of broadband technologies" means any equipment capable of being used for or in connection with the transmission of information at a rate, prior to taking into account the effects of any signal degradation, that is not less than three hundred eighty-four (384) kilobits per second in at least one (1) direction, including, but not limited to, asynchronous transfer mode switches, digital subscriber line access multiplexers, routers, servers, multiplexers, fiber optics and related equipment. 

(b) Sales of equipment to telecommunications enterprises after June 30, 2003, and before July 1, 2013, that is installed in Tier One areas and used in the deployment of broadband technologies shall be exempt from one-half (1/2) of the taxes imposed on such transactions under this chapter. 

(c) Sales of equipment to telecommunications enterprises after June 30, 2003, and before July 1, 2013, that is installed in Tier Two and Tier Three areas and used in the deployment of broadband technologies shall be exempt from the taxes imposed on such transactions under this chapter. 

(6)  Sales of component materials used in the replacement, reconstruction or repair of a building that has been destroyed or sustained extensive damage as a result of a disaster declared by the Governor, sales of machinery and equipment to be used therein to replace machinery or equipment damaged or destroyed as a result of such disaster, including, but not limited to, manufacturing or processing machinery and equipment which is permanently attached to the ground or to a permanent foundation and which is not by its nature intended to be housed within a building structure, to enterprises that were eligible for the partial exemptions provided for in subsections (2), (3) and (4) of this section during initial construction of the building that was destroyed or damaged, which enterprises are certified by the State Tax Commission as being eligible for the partial exemption granted in this subsection, shall be exempt from one-half (1/2) of the taxes imposed on such transactions under this chapter. 
 

Sources: Laws,  1978, ch. 347, § 3; Laws, 1980, ch. 500, § 1; Laws, 1982, 1st Ex Sess, ch. 17, § 41; Laws, 1983, ch. 475, § 10, ch. 491, § 10, ch. 546, § 3; Laws, 1984, ch. 381, § 7; Laws, 1984, ch. 458, § 6; Laws, 1985, ch. 516, § 3; Laws, 1986, ch. 410, § 3; Laws, 1987, ch. 454, § 1; Laws, 1989, ch. 524, § 20; Laws, 1990, ch. 525, § 1; Laws, 1992, ch. 462, § 2; Laws, 1992, ch. 548 § 2; Laws, 1994, ch. 510, § 1; Laws, 1998, ch. 526, § 1; Laws, 1999, ch. 450, § 2; Laws, 2000, ch. 516, § 5; Laws, 2000, 2nd Ex Sess, ch. 1, § 51; Laws, 2000, 3rd Ex Sess, ch. 1, § 14; Laws, 2002, ch. 464, § 8; Laws, 2003, ch. 464, § 1; Laws, 2003, ch. 520, § 5; Laws, 2004, ch. 469, § 2; Laws, 2004, ch. 528, § 6; Laws, 2005, ch. 315, § 4; Laws, 2005, ch. 486, § 2; Laws, 2005, 3rd Ex Sess, ch. 1 § 65; Laws, 2007, ch. 303, § 15; Laws, 2007, ch. 503, § 1; Laws, 2007, 1st Ex Sess, ch. 1, § 12; Laws, 2008, ch. 439, § 1; Laws, 2009, ch. 512, § 2, eff from and after passage (approved Apr. 7, 2009.)
 

27-65-103 - Exemptions; agricultural.

§ 27-65-103. Exemptions; agricultural.
 

The exemptions from the provisions of this chapter which are of an agricultural nature or which are more properly classified as agricultural exemptions than any other exemption classification of this chapter shall be confined to those persons or property exempted by this section or by provisions of the Constitution of the United States or the State of Mississippi. No agricultural exemption as now provided by any other section shall be valid as against the tax herein levied. Any subsequent agricultural exemption from the tax levied hereunder shall be provided by amendment to this section. 
 

No exemption provided in this section shall apply to taxes levied by Section 27-65-15 or 27-65-21, Mississippi Code of 1972. 
 

The tax levied by this chapter shall not apply to the following: 
 

(a) The gross proceeds of sales of lint cotton, seed cotton, baled cotton, whether compressed or not, and cottonseed and soybeans in their original condition. Retail sales of seeds, livestock feed, poultry feed, fish feed and fertilizers. Sales of defoliants, insecticides, fungicides, herbicides and baby chicks used in growing agricultural products for market. Bagging and ties for baling cotton, hay baling wire and twine, boxes, bags and cans used in growing or preparing agricultural products for market when possession thereof will pass to the customer at the time of sale of the product contained therein. Sales of ice to commercial fishermen purchased for use in the preservation of seafood or to producers for use in the refrigeration of vegetables for market. 

(b) The sales by producers of livestock, poultry, fish or other products of farm, grove or garden when such products are sold in the original state or condition of preparation for sale before such products are subjected to any other process within a class of business or sold by a producer through an established store, as defined in the Privilege Tax Law. Provided, however, that this exemption shall not apply to ornamental plants which bear no fruit of commercial value. All sales by agricultural cooperative associations organized under Article 9 of Chapter 7 of Title 69, or under Chapters 17 or 19 of Title 79, Mississippi Code of 1972, of agricultural products produced by members for market before such products are subjected to any manufacturing process. 

(c) The gross proceeds of retail sales of mules, horses and other livestock. 

(d) Income from grading, excavating, ditching, dredging or landscaping activities performed for a farmer on a farm for agricultural or soil erosion purposes. 

(e) The gross proceeds of sales of all antibiotics, hormones and hormone preparations, drugs, medicines and other medications including serums and vaccines, vitamins, minerals or other nutrients for use in the production and growing of fish, livestock and poultry by whomever sold. Such exemption shall be in addition to the exemption provided in this section for feed for fish, livestock and poultry. 
 

Sources: Laws,  1978, ch. 347, § 4; Laws, 1987, ch. 454, § 2; Laws, 1992, ch. 466, § 1; Laws, 1998, ch. 446, § 1, eff from and after July 1, 1998.
 

27-65-105 - Exemptions; governmental.

§ 27-65-105. Exemptions; governmental.
 

The exemption from the provisions of this chapter which are of a governmental nature or which are more properly classified as governmental exemptions than any other exemption classification of this chapter shall be confined to those persons or property exempted by this section or by provisions of the Constitutions of the United States or the State of Mississippi. No governmental exemption as now provided by any other section shall be valid as against the tax herein levied. Any subsequent governmental exemption from the tax levied hereunder shall be provided by amendment to this section. 
 

No exemption provided in this section shall apply to taxes levied by Section 27-65-15 or 27-65-21, Mississippi Code of 1972, except as provided by subsection (f) of this section. 
 

The tax levied by this chapter shall not apply to the following: 
 

(a) Sales of property, labor, services or products taxable under Sections 27-65-17, 27-65-19, 27-65-23 and 27-19-26, when sold to and billed directly to and payment therefor is made directly by the United States government, the State of Mississippi and its departments, institutions, counties and municipalities or departments or school districts of said counties and municipalities. 

The exemption from the tax imposed under this chapter shall not apply to sales of tangible personal property or specified digital products, labor or services to contractors purchasing in the performance of contracts with the United States, the State of Mississippi, counties and municipalities. 

(b) Sales to schools, when such schools are supported wholly or in part by funds provided by the State of Mississippi, provided that this exemption does not apply to sales of property which is not to be used in the ordinary operation of the school, or which is to be resold to the students or the public. 

(c) Amounts received from the sale of school textbooks to students. 

(d) Sales to the Mississippi Band of Choctaw Indians, but not to Indians individually. 

(e) Sales of fire fighting equipment to governmental fire departments or volunteer fire departments for their use. 

(f) Sales of any gas from any project, as defined in the Municipal Gas Authority of Mississippi Law, to any municipality shall not be subject to sales, use or other tax. 

(g) Sales of home medical equipment and home medical supplies listed as eligible for payment under Title XVIII of the Social Security Act or under the state plan for medical assistance under Title XIX of the Social Security Act, prosthetics, orthotics, hearing aids, hearing devices, prescription eyeglasses, oxygen and oxygen equipment, when ordered or prescribed by a licensed physician for medical purposes of a patient, and when payment for such equipment or supplies, or both, is made in part or in whole under the provisions of the Medicare or Medicaid program, then the entire sale shall be exempt from the taxes imposed by this chapter. 

(h) Sales to regional educational service agencies established under Section 37-7-345. 
 

Sources: Laws,  1978, ch. 347, § 5; Laws, 1979, chs. 355, 461, § 1; Laws, 1988, ch. 515, § 37; Laws, 1999, ch. 462, § 1; Laws, 2005, ch. 540, § 10; Laws, 2009, ch. 332, § 6; Laws, 2009, ch. 457, § 1, eff from and after July 1, 2009.
 

27-65-107 - Exemptions; utility.

§ 27-65-107. Exemptions; utility.
 

The exemptions from the provisions of this chapter which relate to utilities or which are more properly classified as utility exemptions than any other exemption classification of this chapter shall be confined to those persons or property exempted by this section or by provisions of the Constitutions of the United States or the State of Mississippi. No utility exemption as now provided by any other section shall be valid as against the tax herein levied. Any subsequent utility exemption from the tax levied hereunder shall be provided by amendment to this section. 
 

No exemption provided in this section shall apply to taxes levied by Section 27-65-15 or 27-65-21, Mississippi Code of 1972. 
 

The tax levied by this chapter shall not apply to the following: 
 

(a) Sales and rentals of locomotives, rail rolling stock and materials for their repair, locomotive water, when made to a railroad whose rates are fixed by the Interstate Commerce Commission or the Mississippi Public Service Commission. 

(b) Rentals of manufacturing machinery to a manufacturer or custom processor where such manufacturer or custom processor is engaged in, and such machinery is used in, the manufacture of containers made from timber or wood for sale. The tax, likewise, shall not apply to replacement or repair parts of such machinery used in such manufacture. 

(c) Sales of tangible personal property and services to nonprofit water associations or corporations in which no part of the net earnings inures to the benefit of any private shareholder, group or individual. Only sales of property or services which are ordinary and necessary to the operation of such organizations are exempt from tax. 

(d) Wholesale sales of tangible personal property for resale under Section 27-65-19. 

(e) From and after July 1, 2003, sales of fuel used to produce electric power by a company primarily engaged in the business of producing, generating or distributing electric power for sale. 
 

Sources: Laws,  1978, ch. 347, § 6; Laws, 1979, ch. 302, § 8; Laws, 1988, ch. 515, § 38; Laws, 1995, ch. 508, § 5; Laws, 1997, ch. 536, § 3, eff from and after July 1, 1997.
 

27-65-109 - Exemptions; taxes.

§ 27-65-109. Exemptions; taxes.
 

The exemptions from the provisions of this chapter which relate to taxes or which are more properly classified as tax exemptions than any other exemption classification of this chapter shall be confined to those persons or property exempted by this section or by provisions of the constitutions of the United States or the State of Mississippi. No tax exemption as now provided by any other section shall be valid as against the tax herein levied. Any subsequent tax exemption from the tax levied hereunder shall be provided by amendment to this section. 
 

No exemption provided in this section shall apply to taxes levied by Sections 27-65-15 or 27-65-21, Mississippi Code of 1972. 
 

The tax levied by this chapter shall not apply to the following: 
 

(a) Federal retailers excise taxes, federal tax levied on income from transportation, telegraphic dispatches, telephone conversations and electric energy. 

(b) The State of Mississippi gasoline tax on gasoline sold by a distributor for nonhighway use which is refunded by the motor vehicle comptroller. 
 

Sources: Laws,  1978, ch. 347, § 7, eff from and after July 1, 1978.
 

27-65-111 - Exemptions; others.

§ 27-65-111. Exemptions; others.
 

The exemptions from the provisions of this chapter which are not industrial, agricultural or governmental, or which do not relate to utilities or taxes, or which are not properly classified as one of the exemption classifications of this chapter, shall be confined to persons or property exempted by this section or by the Constitution of the United States or the State of Mississippi. No exemptions as now provided by any other section, except the classified exemption sections of this chapter set forth herein, shall be valid as against the tax herein levied. Any subsequent exemption from the tax levied hereunder, except as indicated above, shall be provided by amendments to this section. 
 

No exemption provided in this section shall apply to taxes levied by Section 27-65-15 or 27-65-21, Mississippi Code of 1972. 
 

The tax levied by this chapter shall not apply to the following: 
 

(a) Sales of tangible personal property and services to hospitals or infirmaries owned and operated by a corporation or association in which no part of the net earnings inures to the benefit of any private shareholder, group or individual, and which are subject to and governed by Sections 41-7-123 through 41-7-127. 

Only sales of tangible personal property or services which are ordinary and necessary to the operation of such hospitals and infirmaries are exempted from tax. 

(b) Sales of daily or weekly newspapers, and periodicals or publications of scientific, literary or educational organizations exempt from federal income taxation under Section 501(c) (3) of the Internal Revenue Code of 1954, as it exists as of March 31, 1975, and subscription sales of all magazines. 

(c) Sales of coffins, caskets and other materials used in the preparation of human bodies for burial. 

(d) Sales of tangible personal property for immediate export to a foreign country. 

(e) Sales of tangible personal property to an orphanage, old men's or ladies' home, supported wholly or in part by a religious denomination, fraternal nonprofit organization or other nonprofit organization. 

(f) Sales of tangible personal property, labor or services taxable under Sections 27-65-17, 27-65-19 and 27-65-23, to a YMCA, YWCA, a Boys' or Girls' Club owned and operated by a corporation or association in which no part of the net earnings inures to the benefit of any private shareholder, group or individual. 

(g) Sales to elementary and secondary grade schools, junior and senior colleges owned and operated by a corporation or association in which no part of the net earnings inures to the benefit of any private shareholder, group or individual, and which are exempt from state income taxation, provided that this exemption does not apply to sales of property or services which are not to be used in the ordinary operation of the school, or which are to be resold to the students or the public. 

(h) The gross proceeds of retail sales and the use or consumption in this state of drugs and medicines: 

(i) Prescribed for the treatment of a human being by a person authorized to prescribe the medicines, and dispensed or prescription filled by a registered pharmacist in accordance with law; or 

(ii) Furnished by a licensed physician, surgeon, dentist or podiatrist to his own patient for treatment of the patient; or 

(iii) Furnished by a hospital for treatment of any person pursuant to the order of a licensed physician, surgeon, dentist or podiatrist; or 

(iv) Sold to a licensed physician, surgeon, podiatrist, dentist or hospital for the treatment of a human being; or 

(v) Sold to this state or any political subdivision or municipal corporation thereof, for use in the treatment of a human being or furnished for the treatment of a human being by a medical facility or clinic maintained by this state or any political subdivision or municipal corporation thereof. 

"Medicines," as used in this paragraph (h), shall mean and include any substance or preparation intended for use by external or internal application to the human body in the diagnosis, cure, mitigation, treatment or prevention of disease and which is commonly recognized as a substance or preparation intended for such use; provided that "medicines" do not include any auditory, prosthetic, ophthalmic or ocular device or appliance, any dentures or parts thereof or any artificial limbs or their replacement parts, articles which are in the nature of splints, bandages, pads, compresses, supports, dressings, instruments, apparatus, contrivances, appliances, devices or other mechanical, electronic, optical or physical equipment or article or the component parts and accessories thereof, or any alcoholic beverage or any other drug or medicine not commonly referred to as a prescription drug. 

Notwithstanding the preceding sentence of this paragraph (h), "medicines" as used in this paragraph (h), shall mean and include sutures, whether or not permanently implanted, bone screws, bone pins, pacemakers and other articles permanently implanted in the human body to assist the functioning of any natural organ, artery, vein or limb and which remain or dissolve in the body. 

"Hospital," as used in this paragraph (h), shall have the meaning ascribed to it in Section 41-9-3, Mississippi Code of 1972. 

Insulin furnished by a registered pharmacist to a person for treatment of diabetes as directed by a physician shall be deemed to be dispensed on prescription within the meaning of this paragraph (h). 

(i) Retail sales of automobiles, trucks and truck-tractors if exported from this state within forty-eight (48) hours and registered and first used in another state. 

(j) Sales of tangible personal property or services to the Salvation Army and the Muscular Dystrophy Association, Inc. 

(k) From July 1, 1985, through December 31, 1992, retail sales of "alcohol blended fuel" as such term is defined in Section 75-55-5. The gasoline-alcohol blend or the straight alcohol eligible for this exemption shall not contain alcohol distilled outside the State of Mississippi. 

(l) Sales of tangible personal property or services to the Institute for Technology Development. 

(m) The gross proceeds of retail sales of food and drink for human consumption made through vending machines serviced by full line vendors from and not connected with other taxable businesses. 

(n) The gross proceeds of sales of motor fuel. 

(o) Retail sales of food for human consumption purchased with food stamps issued by the United States Department of Agriculture, or other federal agency, from and after October 1, 1987, or from and after the expiration of any waiver granted pursuant to federal law, the effect of which waiver is to permit the collection by the state of tax on such retail sales of food for human consumption purchased with food stamps. 

(p) Sales of cookies for human consumption by the Girl Scouts of America no part of the net earnings from which sales inures to the benefit of any private group or individual. 

(q) Gifts or sales of tangible personal property or services to public or private nonprofit museums of art. 

(r) Sales of tangible personal property or services to alumni associations of state-supported colleges or universities. 

(s) Sales of tangible personal property or services to chapters of the National Association of Junior Auxiliaries, Inc. 

(t) Sales of tangible personal property or services to domestic violence shelters which qualify for state funding under Sections 93-21-101 through 93-21-113. 

(u) Sales of tangible personal property or services to the National Multiple Sclerosis Society, Mississippi Chapter. 

(v) Retail sales of food for human consumption purchased with food instruments issued the Mississippi Band of Choctaw Indians under the Women, Infants and Children Program (WIC) funded by the United States Department of Agriculture. 

(w) Sales of tangible personal property or services to a private company, as defined in Section 57-61-5, which is making such purchases with proceeds of bonds issued under Section 57-61-1 et seq., the Mississippi Business Investment Act. 

(x) The gross collections from the operation of self-service, coin-operated car washing equipment and sales of the service of washing motor vehicles with portable high-pressure washing equipment on the premises of the customer. 

(y) Sales of tangible personal property or services to the Mississippi Technology Alliance. 

(z) Sales of tangible personal property to nonprofit organizations that provide foster care, adoption services and temporary housing for unwed mothers and their children if the organization is exempt from federal income taxation under Section 501(c) (3) of the Internal Revenue Code. 

(aa) Sales of tangible personal property to nonprofit organizations that provide residential rehabilitation for persons with alcohol and drug dependencies if the organization is exempt from federal income taxation under Section 501(c) (3) of the Internal Revenue Code. 

(bb) Retail sales of an article of clothing or footwear designed to be worn on or about the human body if the sales price of the article is less than One Hundred Dollars ($100.00) and the sale takes place during a period beginning at 12:01 a.m. on the last Friday in July and ending at 12:00 midnight the following Saturday. This paragraph (bb) shall not apply to: 

(i) Accessories including jewelry, handbags, luggage, umbrellas, wallets, watches, backpacks, briefcases, garment bags and similar items carried on or about the human body, without regard to whether worn on the body in a manner characteristic of clothing; 

(ii) The rental of clothing or footwear; and 

(iii) Skis, swim fins, roller blades, skates and similar items worn on the foot. 

From and after January 1, 2010, the governing authorities of a municipality, for retail sales occurring within the corporate limits of the municipality, may suspend the application of the exemption provided for in this paragraph (bb) by adoption of a resolution to that effect stating the date upon which the suspension shall take effect. A certified copy of the resolution shall be furnished to the State Tax Commission at least ninety (90) days prior to the date upon which the municipality desires such suspension to take effect. 
 

Sources: Laws,  1978, ch. 347, § 8; Laws, 1979, ch. 302, § 9; Laws, 1980, ch. 536, § 1; Laws, 1984, ch. 452, § 1; Laws, 1985, ch. 439; Laws, 1985, ch. 516, § 4; Laws, 1987, ch. 322, § 27; Laws, 1987, ch. 454, § 3; Laws, 1993, ch. 548, § 13; Laws, 1995, ch. 542, § 1; Laws, 2004, ch. 494, § 2; Laws, 2006, ch. 536, § 1; Laws, 2009, ch. 480, § 1, eff from and after passage (approved Mar. 31, 2009.)
 

27-65-201 - Tax upon sale or use of motor vehicles.

§ 27-65-201. Tax upon sale or use of motor vehicles.
 

(1)  For the purposes of this section, unless the context otherwise requires, the term "motor vehicle" means a motor vehicle required to be registered or licensed by the county tax collectors pursuant to Section 27-19-43. 

(2)  Upon every person, firm or corporation purchasing other than at wholesale within this state any motor vehicle required to be registered or licensed with the tax collector of any county in this state from any person, firm or corporation which is not a licensed dealer engaged in selling motor vehicles, there shall be levied and collected a sales tax at the rate of five percent (5%) of the true value of the motor vehicle as calculated by using the most current official motor vehicle assessment schedule supplied by the State Tax Commission. 

(3)  Upon every person, firm or corporation purchasing other than at wholesale outside the state any motor vehicle required to be registered or licensed with the tax collector of any county in this state from any person, firm or corporation which is not a licensed dealer engaged in selling motor vehicles, for use, storage or other consumption within this state there is levied a use tax at the rate of five percent (5%) of the true value of the motor vehicle as calculated by using the most current official motor vehicle assessment schedule supplied by the State Tax Commission. 

(4)  Where any motor vehicle is taken in trade as a credit or part payment on the sale of a motor vehicle taxable under this section, the tax levied by this section shall be paid on the net difference, that is, the true value of the motor vehicle sold less the credit for the motor vehicle taken in trade. 

(5)  The tax levied by this section shall be collected by the tax collector at the time of, and as a prerequisite to, the registration of or licensing of any such motor vehicle. The tax collector shall give to the person registering the vehicle a receipt in a form prescribed and furnished by the State Tax Commission for the amount of tax collected. 

(6)  County tax collectors shall be liable for the tax they are required to collect, and taxes which are in fact collected, under this section and failure to properly collect or maintain proper records shall not relieve them of liability for payment to the State Tax Commission. Deficiencies in collection or payment shall be assessed against the tax collector, or his successor, in the same manner and subject to the same penalties and provisions for appeal as are deficiencies assessed against taxpayers under Chapter 65, Title 27, Mississippi Code of 1972. 
 

Each tax collector of the several counties shall, on or before the twentieth day of each month, file a report with and pay to the State Tax Commission all funds collected under the provisions of this section, less a commission of three percent (3%) which shall be retained by the tax collector as a commission for collecting such tax, and such commission shall be deposited in the county general fund. The report required to be filed shall cover all collections made during the calendar month next preceding the date on which the report is due and filed.  
 

Any error in the report and remittance to the State Tax Commission may be adjusted on a subsequent report. If the error was in the collection by the tax collector, it shall be adjusted through the tax collector with the taxpayer before credit is allowed by the State Tax Commission. 
 

All information relating to the collection of this tax by tax collectors and such records as the State Tax Commission may require shall be preserved in the tax collector's office for a period of three (3) years for audit by the State Tax Commission. 

(7)  The tax levied by this section shall not apply to the following: 

(a) Transfers of legal ownership of motor vehicles currently registered or licensed in the transferor's name between husband and wife, parent and child, or grandparents and grandchildren, unless the transferor is a licensed dealer of motor vehicles and the transfer of the motor vehicle is made in the regular course of business. 

(b) Transfers of legal ownership of motor vehicles pursuant to a will or pursuant to any law providing for the distribution of the property of one dying intestate. 

(c) Transfers of legal ownership of motor vehicles ten (10) or more years after the date of the manufacture of such vehicle. 
 

Sources: Laws,  1985, ch. 351, § 27; Laws, 1986, ch. 318; Laws, 2005, ch. 487, § 1; Laws, 2009, ch. 562, § 5, eff from and after July 1, 2009.
 

27-65-211 - Definitions.

§ 27-65-211. Definitions.
 

As used in Sections 27-65-211 through 27-65-221, the following terms shall have the following meanings, unless the context clearly indicates a different meaning: 
 

(a) "Reservation lands" mean those defined as Indian country under the provisions of 18 U.S.C. 1151(a) or (b). 

(b) "Tribal tax" means any tax imposed by the Mississippi Band of Choctaw Indians on persons subject to the band's taxing powers. 
 

Sources: Laws,  1986, ch. 322, § 1, eff from and after passage (approved March 13, 1986).
 

27-65-213 - Legislative findings.

§ 27-65-213. Legislative findings.
 

The Legislature finds that the public interest of both Indians and non-Indians is best served by close cooperation between the state government and the Mississippi Band of Choctaw Indians. The Legislature finds this cooperation to be especially important in the area of taxation. Accordingly, the Legislature hereby authorizes the State Tax Commission to enter into tax collection agreements with the Mississippi Band of Choctaw Indians. 
 

Sources: Laws,  1986, ch. 322, § 2, eff from and after passage (approved March 13, 1986).
 

27-65-215 - Exemption from sales or gross receipts tax.

§ 27-65-215. Exemption from sales or gross receipts tax.
 

The State of Mississippi hereby relinquishes any jurisdiction it may have to levy and collect within reservation lands the sales or gross receipts tax imposed by Chapter 65 of Title 27, Mississippi Code of 1972, as it applies to sales by merchants on reservation lands of the Mississippi Band of Choctaw Indians when such merchants are authorized to do business on the reservation lands and are paying tribal sales taxes to the Mississippi Band of Choctaw Indians. 
 

Sources: Laws,  1986, ch. 322, § 3, eff from and after passage (approved March 13, 1986).
 

27-65-217 - Entry into tax collection agreements.

§ 27-65-217. Entry into tax collection agreements.
 

The State Tax Commission may enter into tax collection agreements with the Mississippi Band of Choctaw Indians. These agreements may provide for the collection by the State Tax Commission for the Indian tribe of any tribal sales or gross receipts tax from reservation lands which are hereby authorized to be imposed subject to the provisions of Sections 27-65-211 through 27-65-221. 
 

Sources: Laws,  1986, ch. 322, § 4, eff from and after passage (approved March 13, 1986).
 

27-65-219 - Approval of tax collection agreements.

§ 27-65-219. Approval of tax collection agreements.
 

Any tax collection agreement entered into pursuant to Sections 27-65-211 through 27-65-221 shall be binding and effective only upon approval of the Tribal Chief of the Mississippi Band of Choctaw Indians, the Governor and the Attorney General of the State of Mississippi. 
 

Sources: Laws,  1986, ch. 322, § 5, eff from and after passage (approved March 13, 1986).
 

27-65-221 - Duration and renewal of tax collection agreements.

§ 27-65-221. Duration and renewal of tax collection agreements.
 

Any tax collection agreements between the State Tax Commission and the Mississippi Band of Choctaw Indians shall be for a term not to exceed ten (10) years; however, such agreements shall be renewable upon expiration by the mutual consent of the parties. 
 

Sources: Laws,  1986, ch. 322, § 6, eff from and after passage (approved March 13, 1986).
 

27-65-231 - Additional tax on persons engaging in business of renting motor vehicles.

§ 27-65-231. Additional tax on persons engaging in business of renting motor vehicles.
 

(1)  In addition to the sales tax imposed in Section 27-65-23, Mississippi Code of 1972, there is hereby levied upon every person engaging or continuing in this state in the business of renting motor vehicles under rental agreements with a term of not more than thirty (30) continuous days each, a tax at the rate of six percent (6%) of the gross proceeds of such business derived from the rental of motor vehicles, except that motor vehicles with a gross vehicle weight exceeding ten thousand (10,000) pounds shall be excluded from the measure of this tax. 

(2)  All administrative provisions of the Mississippi Sales Tax Law, including those which fix damages, penalties and interest for nonpayment of taxes, failure to file returns, and for other noncompliance with the provisions of said chapter, and all other requirements and duties imposed upon taxpayers, shall apply to all persons liable for taxes under the provisions of this section, and the commission shall exercise all the power and authority and perform all the duties with respect to taxpayers under this section as are provided in said Sales Tax Law, except that in cases of conflict, then the provisions of this section shall control. 

(3)  On or before February 15 of each year, the proceeds of the tax imposed by this section on business rental activities shall be paid by the State Tax Commission to the county in which such proceeds were collected. Within seven (7) days after receipt of the tax proceeds, the county shall apportion and pay such tax proceeds as follows: The situs of the rental transactions from which tax proceeds were derived shall first be determined, and then the tax proceeds collected at a situs shall be distributed among the county, municipality and school district of the situs, as appropriate, in the same proportion and in the same manner that motor vehicle ad valorem taxes would be distributed among such taxing districts (based on their respective millage rates) if collected at the same time as the receipt of such proceeds and paid by a motor vehicle owner located at the same address as the situs of the rental transaction. 

(4)  The governing authorities of the counties, municipalities and school districts may expend the proceeds of such tax for any lawful purposes. 

(5)  The revenues received by counties and municipalities under subsection (3) of this section shall be deposited in the general fund of the counties and municipalities, and the revenues received by the school districts shall be deposited in any fund designated by the school district. 

(6)  The revenues received by counties, municipalities and school districts under subsection (3) of this section shall be included and considered as proceeds of ad valorem taxes for the purposes of the growth limitation on ad valorem taxes under Sections 27-39-321 and 27-39-305. 

(7)  The tax authorized herein shall be in addition to any other tax authorized by law to be levied on the business activities described in this section. 
 

Sources: Laws,  1991, ch. 510, § 1; Laws, 1993, ch. 410, § 1, eff from and after July 1, 1993.
 

27-65-241 - Certain municipalities authorized to impose special sales tax on persons engaging in business in municipality; exemptions; voter approval required before levying tax; authorized use of tax

§ 27-65-241. Certain municipalities authorized to impose special sales tax on persons engaging in business in municipality; exemptions; voter approval required before levying tax; authorized use of tax proceeds; establishment of commission; commission approval of expenditure of special tax revenue required [Repealed effective July 1, 2014].
 

(1)  As used in this section, the following terms shall have the meanings ascribed to them in this section unless otherwise clearly indicated by the context in which they are used:  

(a) "Hotel" or "motel" means and includes a place of lodging that at any one time will accommodate transient guests on a daily or weekly basis and that is known to the trade as such. Such terms shall not include a place of lodging with ten (10) or less rental units. 

(b) "Municipality" means any municipality in the State of Mississippi with a population of one hundred fifty thousand (150,000) or more according to the most recent federal decennial census. 

(c) "Restaurant" means and includes all places where prepared food is sold and whose annual gross proceeds of sales or gross income for the preceding calendar year equals or exceeds One Hundred Thousand Dollars ($100,000.00). The term "restaurant" shall not include any nonprofit organization that is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code. For the purpose of calculating gross proceeds of sales or gross income, the sales or income of all establishments owned, operated or controlled by the same person, persons or corporation shall be aggregated. 

(2) (a)  Subject to the provisions of this section, the governing authorities of a municipality may impose upon all persons as a privilege for engaging or continuing in business or doing business within such municipality, a special sales tax at the rate of not more than one percent (1%) of the gross proceeds of sales or gross income of the business, as the case may be, derived from any of the activities taxed at the rate of seven percent (7%) or more under the Mississippi Sales Tax Law, Section 27-65-1 et seq. 

(b) The tax levied under this section shall apply to every person making sales, delivery or installations of tangible personal property or services within the municipality but shall not apply to: 

(i) Sales exempted by Sections 27-65-19, 27-65-101, 27-65-103, 27-65-105, 27-65-107, 27-65-109 and 27-65-111 of the Mississippi Sales Tax Law; 

(ii) Gross proceeds of sales or gross income of restaurants derived from the sale of food and beverages; 

(iii) Gross proceeds of sales or gross income of hotels and motels derived from the sale of hotel rooms and motel rooms for lodging purposes; 

(iv) Retail sales of food for human consumption not purchased with food stamps issued by the United States Department of Agriculture, or other federal agency, but which would be exempt under Section 27-65-111(o) from the taxes imposed by this chapter if the food items were purchased with food stamps; and 

(v) Gross income of businesses engaging or continuing in the business of TV cable systems, subscription TV services, and other similar activities, including, but not limited to, cable Internet services. 

(3)  Before any tax authorized under this section may be imposed, the governing authorities of the municipality shall adopt a resolution declaring its intention to levy the tax, setting forth the amount of the tax to be imposed, the purposes for which the revenue collected pursuant to the tax levy may be used and expended, the date upon which the tax shall become effective and calling for an election to be held on the question. The date of the election shall be set in the resolution. Notice of the election shall be published once each week for at least three (3) consecutive weeks in a newspaper published or having a general circulation in the municipality, with the first publication of the notice to be made not less than twenty-one (21) days before the date fixed in the resolution for the election and the last publication to be made not more than seven (7) days before the election. At the election, all qualified electors of the municipality may vote. The ballots used at the election shall have printed thereon a brief description of the sales tax, the amount of the sales tax levy, a description of the purposes for which the tax revenue may be used and expended and the words "FOR THE LOCAL SALES TAX" and "AGAINST THE LOCAL SALES TAX" and the voter shall vote by placing a cross (X) or check mark () opposite his choice on the proposition. When the results of the election have been canvassed by the election commissioners of the municipality and certified by them to the governing authorities, it shall be the duty of such governing authorities to determine and adjudicate whether at least three-fifths (3/5) of the qualified electors who voted in the election voted in favor of the tax. If at least three-fifths (3/5) of the qualified electors who voted in the election voted in favor of the tax, the governing authorities shall adopt a resolution declaring the levy and collection of the tax provided in this section and shall set the first day of the second month following the date of such adoption as the effective date of the tax levy. A certified copy of this resolution, together with the result of the election, shall be furnished to the State Tax Commission not less than thirty (30) days before the effective date of the levy. 

(4)  Upon approval of the expenditure by the commission established pursuant to subsection (7) of this section, the revenue collected pursuant to the tax levy imposed under this section may be expended for the following purposes: 

(a) To enhance police and fire protection services; 

(b) To pay for emergency road and street repairs and emergency water system and sewage system projects; and 

(c) To pay the cost of road and street repair, reconstruction and resurfacing projects based on traffic patterns, need and usage. 

(5) (a)  The special sales tax authorized by this section shall be collected by the State Tax Commission, shall be accounted for separately from the amount of sales tax collected for the state in the municipality and shall be paid to the municipality. The State Tax Commission may retain three percent (3%) of the proceeds of such tax for the purpose of defraying the costs incurred by the commission in the collection of the tax. Payments to the municipality shall be made by the State Tax Commission on or before the fifteenth day of the month following the month in which the tax was collected. 

(b) Thirty percent (30%) of the proceeds of the special sales tax shall be placed into a special municipal fund apart from the municipal general fund and any other funds of the municipality, and shall be expended by the municipality solely for the purposes authorized in subsection (4)(a) and (b) of this section. The remainder of the proceeds of the special sales tax shall be placed into a special municipal fund apart from the municipal general fund and any other funds of the municipality, and shall be expended by the municipality solely for the purposes authorized in subsection (4)(c) of this section. The records reflecting the receipts and expenditures of the revenue from the special sales tax shall be audited annually by an independent certified public accountant. The accountant shall make a report of his findings to the governing authorities of the municipality and file a copy of his report with the Secretary of the Senate and the Clerk of the House of Representatives. The audit shall be made and completed as soon as practical after the close of the fiscal year of the municipality, and expenses of the audit shall be paid from the funds derived by the municipality pursuant to this section. 

(c) All provisions of the Mississippi Sales Tax Law applicable to filing of returns, discounts to the taxpayer, remittances to the State Tax Commission, enforced collection, rights of taxpayers, recovery of improper taxes, refunds of overpaid taxes or other provisions of law providing for imposition and collection of the state sales tax shall apply to the special sales tax authorized by this section, except where there is a conflict, in which case the provisions of this section shall control. Any damages, penalties or interest collected for the nonpayment of taxes imposed under this section, or for noncompliance with the provisions of this section, shall be paid to the municipality on the same basis and in the same manner as the tax proceeds. Any overpayment of tax for any reason that has been disbursed to a municipality or any payment of the tax to a municipality in error may be adjusted by the State Tax Commission on any subsequent payment to the municipality pursuant to the provisions of the Mississippi Sales Tax Law. The State Tax Commission may, from time to time, make such rules and regulations not inconsistent with this section as may be deemed necessary to carry out the provisions of this section, and such rules and regulations shall have the full force and effect of law. 

(6)  If a municipality expands its corporate boundaries, the governing authorities of the municipality may not impose the special sales tax in the annexed area unless the tax is approved at an election conducted, as far as is practicable, in the manner provided in subsection (3) of this section, except that only qualified electors in the annexed area may vote in the election. 

(7) (a)  Any municipality that levies the special sales tax authorized under this section shall establish a commission as provided for in this section. No expenditure of revenue from the special sales tax authorized by this section may be made without the prior approval of the expenditure by the commission. 

(b) The commission shall be composed of nine (9) voting members and one (1) nonvoting member who shall be known as commissioners appointed as follows: 

(i) Four (4) members representing the business community in the municipality appointed by the mayor of the municipality, from a list of eight (8) nominees submitted by the local chamber of commerce for initial terms of one (1), two (2), four (4) and five (5) years respectively. The members appointed pursuant to this paragraph shall be persons who represent businesses located within the city limits of the municipality. 

(ii) Three (3) members shall be appointed at large by the mayor of the municipality, with the advice and consent of the legislative body of the municipality, for initial terms of two (2), three (3) and four (4) years respectively. All appointments made by the mayor pursuant to this paragraph shall be residents of the municipality. 

(iii) One (1) member shall be appointed at large by the Governor for an initial term of four (4) years. All appointments made by the Governor pursuant to this paragraph shall be residents of the municipality. 

(iv) One (1) member shall be appointed at large by the Lieutenant Governor for an initial term of four (4) years. All appointments made by the Lieutenant Governor pursuant to this paragraph shall be residents of the municipality. 

(c) The Speaker of the House of Representatives shall appoint one (1) at-large member who shall serve as a nonvoting advisory member for a term of four (4) years. 

(d) The terms of all appointments made subsequent to the initial appointment shall be made for five (5) years. Any vacancy which may occur shall be filled in the same manner as the original appointment and shall be made for the unexpired term. Each member of the commission shall serve until his successor is appointed and qualified. 

(e) The mayor of the municipality shall designate a chairman of the commission from among the membership of the commission. The vice chairman and secretary shall be elected by the commission from among the membership of the commission for a term of two (2) years. The vice chairman and secretary may be reelected, and the chairman may be reappointed. 

(f) The commissioners shall serve without compensation. 

(g) Any commissioner shall be disqualified and shall be removed from office for either of the following reasons: 

(i) Conviction of a felony in any state court or in federal court; or 

(ii) Failure to attend three (3) consecutive meetings without just cause. 
 

If a commissioner is removed for any of the above reasons, the vacancy shall be filled in the manner prescribed in this section and shall be made for the unexpired term. 

(h) Before assuming the duties of office, each commissioner shall take the oath prescribed by law and shall enter into and give bond, to be approved by the Secretary of State of the State of Mississippi, in the sum of Twenty-five Thousand Dollars ($25,000.00), conditioned upon the faithful performance of his duties. Such bond shall be payable to the State of Mississippi, and, in the event of a breach thereof, suit may be brought by the State of Mississippi for the benefit of the commission. The premiums on such bonds shall be paid from the funds received by the commission under the provisions of this section. 

(i) A quorum shall consist of five (5) voting members of the commission. The commission shall adopt such rules and regulations as may govern the time and place for holding meetings, regular and special. 

(j) No expenditure of the revenue from the tax authorized to be imposed pursuant to this section shall be made without the prior approval of the commission. 

(8)  This section shall stand repealed from and after July 1, 2014. 
 

Sources: Laws, 2009, ch. 328, § 1, eff August 7, 2009 (the date the United States Attorney General interposed no objection under Section 5 of the Voting Rights Act of 1965, to the addition of this section.)
 

27-65-243 - Exemption of certain businesses from tax imposed in § 27-65-241.

§ 27-65-243. Exemption of certain businesses from tax imposed in § 27-65-241.
 

The gross income of businesses engaging or continuing in the business of providing telecommunications services and other similar services, including, but not limited to, Internet services, Internet protocol television (IPTV) services, satellite television services and Mobile TV broadcasting services, shall be exempt from the special sales tax imposed in Section 27-65-241. 
 

Sources: Laws, 2009, ch. 332, § 14, eff from and after July 1, 2009.
 

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