Motor Vehicle Rental, Tire Disposal, City Utility Taxes

Motor Vehicle Rental Tax

This tax is levied upon every person engaging or continuing in this state in the business of renting motor vehicles under rental agreements with a term of not more than 30 continuous days each. The tax rate is of 6% of the gross proceeds of such business derived from the rental of motor vehicles

"Motor vehicle" is defined as any self-propelled, wheeled conveyance that does not run on rails. Motor vehicles with a gross vehicle weight exceeding 10,000 pounds are excluded from the tax. This tax is in addition to the 5% Sales Tax on rental of such vehicles provided by Miss Code Ann. Section 27-65-23. (Miss. Code Ann. Section 27-65-231)

Tire Disposal Fee

A waste tire fee is imposed on each new motor vehicle tire sold at wholesale. The waste tire fee is $1.00 per tire with a rim diameter of less than 24 inches, and a $2.00 fee per tire with a rim diameter 24 inches or larger.

These fees will apply to farm tractor tires, farm trailer tires and other tires for farm equipment. The wholesaler is liable for collecting the fees imposed on the wholesale sale of tires and remitting to the Department of Revenue. In addition, a retailer who purchases tires from a wholesaler or manufacturer outside this state upon which the waste disposal fee is not imposed is responsible for remitting the waste tire fee directly to the Department in lieu of payment of the tax to the wholesaler or manufacturer.

Retailers are prohibited from imposing a disposal fee on customers in excess of the actual per tire disposal cost incurred, nor can they waive the tire disposal fee. If a retailer is required to remit the waste tire fee directly to the Department, the fee is considered an actual part of his disposal costs. (Miss. Code Ann. Section 17-17-423)

City Utility Tax

This tax is collected from all telephone or communication utilities regulated under Section 77-3-1, Mississippi Code of 1972. The tax rate is 2% of the gross amount of revenue made and collected on local business from customers within the corporate limits of any municipality of this state, which qualifies as provided by the City Utility Tax Law.

Such tax is added to the sales price of the utility service and is collected from the consumer. (Miss. Code Ann. Sections 21-33-201 through 21-33-211)​​