Mississippi Issues Economic Nexus Rule

Effective December 1, 2017, Mississippi has adopted a rule stating that sellers who lack physical presence nexus in Mississippi but who are purposefully or systematically exploiting the Mississippi market have a substantial economic presence for use tax purposes if their sales into the state exceed $250,000 for the prior twelve months. These sellers are required to register with the Department of Revenue in order to collect and remit use tax. The tax must be stated separately from the sales price on invoices and accounted for separately on the seller’s records.  
Purposefully or systematically exploiting the Mississippi market includes the following:
  • Television or radio advertising on a Mississippi station;
  • Telemarketing to Mississippi customers;
  • Advertising on billboards, wallscapes, bus benches, interiors and exteriors of buses, or other signage located in Mississippi;
  • Advertising in Mississippi newspapers, magazines, or other print media;
  • Emails, texts, tweets and any form of messaging directed to a Mississippi customer;
  • Online banner, text, or pop up advertising directed toward Mississippi customers;
  • Advertising to Mississippi customers through applications (“apps” ) or other electronic means on customer’s phones or other devices; or
  • Direct mail marketing to Mississippi customers.
Any seller who has collected and not remitted Mississippi tax on sales made before December 1, 2017 would still be liable for any tax collected. (Rule 35.IV.3.09, Mississippi Department of Revenue)
Posted on November 20, 2017