All sales of tangible personal property in the State of Mississippi are subject to the regular retail rate of sales tax (7%) unless the law exempts the item or provides a reduced rate of tax for an item. The tax is based on gross proceeds of sales or gross income, depending on the type of business.
Before engaging in any business in Mississippi subject to sales tax, a permit or registration license is required from the Department of Revenue. (Go to online to register) A separate permit is required for each location. The permit does not expire and does not require renewal as long as the holder continues in the same business at the same location.
Taxpayers are requested to file returns electronically. For those taxpayers who are unable to file electronically, pre-addressed sales tax forms are mailed annually. Returns are due on or before the 20th day following the end of the reporting period. Returns must be filed and tax paid by the due date to the Department of Revenue, P. O. Box 960, Jackson, MS 39205. When the due date falls on a weekend or holiday, returns and payments must be filed online or postmarked by the first working day following the due date to be considered timely filed.
Use tax applies to personal property acquired in any manner for use, storage, or consumption within this state for which sales or use tax has not been paid to another state at a rate equal to the applicable Mississippi rate.
Use tax rates are the same as those applicable to Sales Tax. The basis for computation of the tax is the purchase price or value of the property at the time imported into Mississippi, including any additional charges for deferred payment, installation, service charges, and freight to the point of use within the state. Credit is allowed for sales or use tax paid to another state except for automobiles, motor homes, trucks, truck-tractors and semi-trailers, trailers, boats, travel trailers, motorcycles and all-terrain cycles imported and first used in Mississippi.
Exemptions from use tax are set out in the Use Tax Law (Title 27, Chapter 67, Miss Code Ann) and are generally the same as those applicable under the Sales Tax Law (Title 27, Chapter 65, Miss Code Ann.)
Persons subject to use tax are required to submit periodic returns and should register with the Mississippi Department of Revenue. Due dates of Use Tax Returns are the same as for sales tax returns.