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To be in compliance with the Streamlined Sales and Use Tax (SST) Agreement, the Mississippi sales and use tax rule on telecommunications services has been updated to conform to Senate Bill 2810, Laws 2007. Bill 2810 enacted provisions, definitions, and sourcing rules regarding telecommunications services needed to be in conformity with the SST Agreement. (Rule 35.IV.06.02 (old Rule 2), Mississippi State Tax Commission


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)



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