Effective July 1, 2026, Mississippi has enacted legislation that extends the sunset date of the state’s sales tax exemption for health care industry facilities from July 1, 2026 to July 1, 2028.
Specifically, the sales tax exemption applies to sales of materials used in the construction of a health care industry facility, or any addition or improvement thereon, and sales of any machinery and equipment not later than three months after the completion of construction of the facility, or any addition thereon, to be used therein, to qualified businesses.
The legislation also amends the requirements for certification of a health care industry zone. Per the updated requirements, the health care facility must be located within an eight-mile radius of a hospital with at least twenty-five acute-care beds and/or a qualifying university or college. Additionally, the zoning of the local government unit must allow the construction or operation of the health care industry facility in the proposed health care industry zone. (S.B. 2825, Laws 2026, effective July 1, 2026)