Mississippi Authorizes Direct Pay Permits for Utilities

Direct pay permits may now be issued to public utilities by the chairman of the State Tax Commission. The permits will allow public utility companies to relieve their vendors from their obligation to collect and remit sales tax on the utility’s taxable purchases. By issuing a direct pay permit, the public utility company will be responsible for use tax remittance. Currently, only taxpayers selling tangible personal property or performing certain construction activities are eligible for the permits. The law change will be effective July 1, 2005. (MS SB 2706 Laws 2005)

Posted on April 5, 2005