Stay up to date with sales tax: Join our mailing list!

Recently, Mississippi defined the term “hotel” for sales tax purposes to mean any entity or individual engaged in the business of furnishing or providing one or more rooms intended or designed for dwelling, lodging, or sleeping purposes to accommodate transient guests. This includes any building that is used, maintained, or advertised as a place for temporary guests to use as a sleeping accommodation. (H.B. 1248, Laws 2007, effective April 18, 2007)


The Mississippi sales and use tax regulation concerning construction contractors has been amended to reflect that any individual with a valid sales tax number who is buying concrete or asphalt to use in the performance of a taxable service is considered the consumer and must pay tax to the vendor at the time of purchase. Additionally, any individual purchasing or producing concrete or asphalt outside the state of Mississippi for delivery and use in the state is required to remit use tax on the purchase price of the products. (Sales Tax Regulation 41, Mississippi State Tax Commission, effective June 1, 2007)


Effective July 1, 2007, individuals involved in contracting to construct, repair or improvement apartment buildings or condominiums will be subject to contractors’ tax. Prior to this modification, the statute had considered apartment buildings and condominiums as residences, thus construction contracts involving residences were not subject to Mississippi contractors’ tax because they were excluded from the statute. However, effective with this statute change, apartment buildings and condominiums are not considered residences and as a result will be subjected to the contractors’ tax. (S.B. 2387, Laws 2007)


Mississippi amended its procedure to provide for a uniform tax assessment appeal process. The new procedure allows a taxpayer to contest such items as tax assessments or denied refund claims within 30 days with the newly-created board of review. Should the Board rule against the taxpayer’s position, the taxpayer may appeal and request a hearing with the State Tax Commission within 30 days. Similarly, if the Commission rules against the taxpayer, he may, within 30 days, make a final appeal with the chancery court. (2005 MS 2742)


A Mississippi sales tax regulation has been explained to indicate that a rebate given by a seller is considered to be a discount from the selling price when shown on the invoice and, therefore, exempt for sales tax purposes. Rebates made directly by a manufacturer, however, to the purchaser or to the seller are taxable as they are still considered part of the selling price. Buy-down payments are offered as either a sales-based or purchase-based programs. A sales-based buy down is received by a retailer from a manufacturer and is based on the number of sales of a particular product. These incentives are passed on to the consumer in the form of reduced sales prices and are a taxable component of the sale. On the other hand, a purchased-based buy-down is based on the particular product or the number of particular products the retailer holds in its inventory. These payments are considered a reduction in purchase price of the retailer and are not taxable (Mississippi Regulation, Rule 24, June 23, 2005).



Scroll to Top