Proposed Regulations

Below you will find Proposed Rules and Amendments followed by Finalized Rules and Amendments.

 

Proposed: Rules and Amendments​

Title 35.IV.3.01 - Wholesale Sales

Title 35.IV.3.01 - Wholesale Sales is amended to remove the wholesale sales tax on alcoholic beverages and beer per Miss. Code Ann. Section 27-65-17 and Senate Bill 2018 of the 2023 Legislative Session. Other minor changes were made. [APA Filing Notice, Submit Date: 10-3-2023]


Title 35.II.2.23  Sale of Soft Drinks, Ice, Juices, Mixers, and Other Items by Package Retailers

Title 35.II.2.23 - Sale of Soft Drinks, Ice, Juices, Mixers, and Other Items by Package Retailers is amended to include certain edibles as alcoholic beverages. Other minor changes were made. [APA Filing Notice, Submit Date: 9-11-2023]


Title 35.II.2.03  Permitted Premises Where Alcoholic Beverages Are Sold

Title 35.II.2.03 - Permitted Premises Where Alcoholic Beverages Are Sold is amended to clarify requirements to request a waiver or an off-site storage exception. Other minor changes were made. [APA Filing Notice, Submit Date: 9-11-2023]


Title 35.II.2.02 – Advertising and Promotions

Title 35.II.2.02 Advertising and Promotions is amended to clarify that a retailer and its employees may not participate in any contest or sweepstakes. Other minor changes were made. [APA Filing Notice, Submit Date: 5-2-2022]


Title 35.II.2.12 – Tied House, Gifts, Gratuities, and Inducements

Title 35.II.2.12 Tied House, Gifts, Gratuities, and Inducements is amended to clarify that a holder or its promotional representative may furnish to off-premises retailers rebates or coupons that are redeemable either via mail or online by the holder. Other minor changes were made. [APA Filing Notice, Submit Date: 5-2-2022]


Title 35.II.2.05 – Purchase and Sale of Distilled Alcoholic Beverages by On-Premises Permittees

Title 35.II.2.05 Purchase and Sale of Distilled Alcoholic Beverages by On-Premises Permittees is amended to clarify what is required for an on-premises permittee to request a temporary increase or decrease in the area designated in its floorplan as its licensed premises. Other minor changes were made. [APA Filing Notice, Submit Date: 12-06-2021]


Title 35.III.3.03 – Employee Benefits

This rule was amended to include a sentence in paragraph to address the tax treatment of damages in cases of nonphysical injury. Old paragraph 105 was removed because it was based on IRC Section 120 that was repealed in 2014. Other minor changes were made.   [APA Filing Notice, Submit Date: 08-09-2021]​​


Title 35.IV.4.04  Photographers and Film Developers

This regulation was amended to include “specified digital products” in sections 101 and 201. Other minor changes were made.  [APA Filing Notice, Submit Date: 07-20-2021]​​


Title 35.IV.11.03  Aircraft

This regulation was amended to add new section 107 that addresses the sale of aircraft made or facilitated by a person regularly engaged in the sale or facilitation of aircraft. Certain aircraft exemptions were added under section 200 per the statute. Other minor changes were made.  [APA Filing Notice, Submit Date: 07-20-2021]​​


Title 35.IV.13.04 Disposal of Waste Tires

This regulation was amended to combine the definition of “retail sales” in old sections 204 through 206 in new section 103. New section 202 clarifies the tax treatment of sales by a tire wholesaler to a used car dealer. Other minor changes were made.  [APA Filing Notice, Submit Date: 07-20-2021]​​


Title 35.II.2.03  Permitted Premises Where Alcoholic Beverages Are Sold

Paragraph 108 was amended to clarify that permitted sales may include orders and payment through the telephone or electronically with curbside pickup for customers in the parking lot. Paragraph 111 was amended to include small craft breweries and microbreweries to the list of businesses that may be issued on-premises permits. This statutory change can be found in HB 1091 in the 2021 Regular Session. Other minor changes were made.  [APA Filing Notice, Submit Date: 05-28-2021]​​


Title 35.II.4.11  Retail Pickup from Distilleries and Native Wineries

Title 35.II.4.11 Retail Pickup from Distilleries and Native Wineries is a new regulation that clarifies the requirements for retail permittees picking up native wines and spirits sold by the Department of Revenue found in Miss. Code Ann Section 67-1-41(10).  [APA Filing Notice, Submit Date: 05-28-2021]​


Title 35.II.3.16  Calculation of Permit Fees

Title 35.II.3.16 Calculation of Permit Fees is a new regulation that clarifies the requirements for determining applicable privilege license tax.  [APA Filing Notice, Submit Date: 05-28-2021]


Title 35.II.2.25  Alcohol Delivery

Title 35.II.2.25 Alcohol Delivery is a new regulation that addresses HB 1135 passed in the 2021 Regular Session that allows retailers issued certain types of alcohol permits to offer home delivery under certain conditions.  [APA Filing Notice, Submit Date: 05-28-2021]​


Title 35.II.2.04  Hours and Days During Which Alcoholic Beverages May Be Sold by On-Premises Permittees, Package Stores and Caterers

Paragraph 103 was amended to clarify that governing authorities within resort areas may set hours for sale by ordinance if authorized to do so under Miss. Code Ann. Section 67-1-5(o)(iii). Other minor changes were made.  [APA Filing Notice, Submit Date: 05-28-2021]


Title 35.II.1.01  Definitions

Paragraph 100 was amended to reflect statutory changes in HB 1091 in the 2021 Regular Session. Both the definitions of “alcoholic beverage” and “On-premise retailer permittee” were amended in the reg. Other minor changes were made.  [APA Filing Notice, Submit Date: 05-28-2021]​​


Title 35.I.01  Administrative Practices and Procedures for the Department of Revenue

Paragraph 104.02 was amended to remove the agency structure. New paragraph 109 was added per Senate Bill 2971 of the 2021 Regular Session to provide the email address where qualified accountants must send a third-party audit. Other minor changes were made throughout.  [APA Filing Notice, Submit Date: 4-23-2021]​


Title 35.X.09  Motion Picture Production Incentive

This rule was amended for Miss. Code Ann. Section 57-89-3(a) that includes certain approved entities as production partners for a film project wanting to claim non-resident payroll as part of base investment. The rule was amended for SB 2971 passed in the 2021 Regular Session that grants the option of having a movie rebate submission audited by a qualified CPA. The rule was also amended to update current practices of the Department of Revenue in auditing movie rebate submissions. Other minor changes were made throughout.  [APA Filing Notice, Submit Date: 4-23-2021]​


Title 35.II.2.07  Prohibited Conduct and Activities

Paragraphs 102 and 103 were amended to clarify the circumstances in which a permittee may be held accountable for criminal, regulatory or non-regulatory employee misconduct and the result of such misconduct. Paragraph 104 explains that if a permittee or a permittee’s clerk, agent or employee is convicted of selling alcoholic beverages to a minor, the subject permit shall be suspended or revoked based on the schedule of disciplinary actions under Miss. Code Section 67-1-81(1)(b). Other minor changes were made.  [APA Filing Notice, Submit Date: 12-22-2020]​


Title 35.II.2.20  Sales of Alcoholic Beverages by Approved Package Retailers to Other Retailers

The title of the regulation was amended to include the phrase, “Shipping of Wine from Wineries to Package Retailers for Sale”. New section 109 was added to clarify that a retailer would not be acting illegally by accepting wine from a winery. [APA Filing Notice, Submit Date: 12-22-2020]​​​​


Title 35.V  Gaming

Due to the extensive amendments, we are striking through the entire Part and replacing it with a new version. Part V was amended to update the “Mississippi State Tax Commission” to the “Mississippi Department of Revenue” and “Chairman” to “Commissioner” throughout. Any language that was duplicated in the Mississippi Gaming Commission regulations was deleted. This includes the “definitions” section. Title 35.V.3.06 - Rights of Licensee to Request a Hearing was deleted as the contents are addressed in Title 35.I.01 - Administrative Practices and Procedures of the Department of Revenue. Other minor changes were made. [APA Filing Notice, Submit Date: 10-09-2020]​​


Title 35.II.2.23  Sale of Soft Drinks, Ice, Juices, Mixers and Other Items by Package Retailers

New section 101 was moved from old section 105 to reflect the order of the items listed in section 100. The first sentence in new section 103 was removed as there is no longer a definition for “soft drinks” in Miss. Code Ann. Section 27-65-3(1). Other minor changes were made as well. [APA Filing Notice, Submit Date: 08-26-2020]​


Title 35.II.2.24  Check Cashing

In section 100, a sentence was added clarifying that a holder is prohibited from charging a fee for cashing a check. A citation to the Mississippi Check Cashers Act was deleted. Other minor changes were made. [APA Filing Notice, Submit Date: 08-26-2020]​


Title 35.11.3.02  Permit Limit

In section 101, the first sentence was amended to clarify that a person may own interest in a package retailer’s permit and own interest in one or more on-premises retailer’s permit. The second sentence in 101 is being deleted. Section 103 was amended to include that the chapter shall not be construed to prohibit rendering professional services for more than one package retailer so long as such professional services do not constitute an ownership interest based on the fee being collected. Other minor changes were made. [APA Filing Notice, Submit Date: 08-26-2020]​ 


Title 35.IV.8.01  Florists and Nurserymen

New section 104 addresses certain products grown in Mississippi that are exempt when sold from the place of production in the original state or condition of preparation of sale. This exemption is from Miss. Code Ann. Section 27-65-103(b). Section 106 explains the exemption on potting soil, mulch and other soil amendments used in growing certain plants. This exemption is from Miss. Code Ann. Section 27-65-111(m). Other minor changes were made. [APA Filing Notice, Submit Date: 08-26-2020]


Title 35.IV.9.04  Milk Products

In new section 100, the rule was amended to add a definition for “dairy producer” from Miss. Code Ann. Section 27-65-17(1)(m). In new paragraph 104, a sentence was added that provides a special rate of tax of 3.5% on certain purchases made by a dairy producer. This language is from Miss. Code Ann. Section 27-65-17(1)(m). In new paragraph 103, mechanical milking machines were added to milk tanks and coolers and were identified as farm implements taxable at the 1.5% special rate of tax. In new paragraph 105, a citation was added directing taxpayers to the Affidavit for Utility Exemption.  The DOR added a citation to Miss. Code Ann. Section 27-65-23 in Paragraph 100 and a citation to Miss. Code Ann. Section 27-65-103(a) in Paragraph 103. Examples of pest control services, exempt purchases and tools and/or equipment were added to Paragraphs 101, 104, and 105. Other minor changes were made. [APA Filing Notice, Submit Date: 08-26-2020]


Title 35.IV.11.01  Railroad Companies

In section 100, the citation to Miss. Code Ann Sections 27-65-15, Mining or Producing, was removed because the Mining or Producing law was repealed. The citation to Miss. Code Ann. Section 27-65-19, Public Utilities, was removed because a direct pay permit may be used to relieve a public utilities vendor of the liability for the tax, excluding the taxes levied against telecommunications services. The exemption from Miss. Code Ann Section 27-65-107(f) was added in Section 101 along with a citation to the section of the rule that explains the Affidavit for Utility Exemption. Other minor changes were made. [APA Filing Notice, Submit Date: 08-26-2020​]​​


Title 35.II.3.05  Permit Transfer

A second sentence was added to section 100 to state that a permit cannot be transferred if there is an ongoing administrative disciplinary action, including an action under appeal. A second sentence was added to section 103 to clarify that if a funeral home or church refuses to sign a new waiver, a transfer may not be initiated. [APA Filing Notice, Submit Date: 08-26-2020​]​​


Title 35.II.3.07  Temporary and Qualified Resort Areas

The title was changed to reflect the change in order of the two types of resort areas in the rule. The temporary resort area language from section 100 was moved to new section 101 with some minor changes. The phrase "outside the limits of an incorporated municipality" was removed from the first sentence in section 101(1)(a). In 101(1)(b), the last sentence was added clarifying that GPS coordinates should be used to determine boundary lines. In 101(1)(c), the phrase, "and the reasons such steps will result in the attraction of tourists, transients and/or vacationers" was added. In section 100(3), a phrase was added to include that if the President of the Board of Supervisors or the Mayor votes against recommending an area be designated a resort, an application can still be submitted by not less than 100 adult citizens. Some additional criteria were added to the list of information to be included in the application. Other minor changes were made. [APA Filing Notice, Submit Date: 08-26-2020​]


Title 35.I.01  Administrative Practices and Procedures of the Department of Revenue

Section 106.02(4)(a) was amended to delete the first sentence concerning mandatory public participation during the public comment period. The DOR will follow Miss. Code Ann. Section 25-43-3.104 as written. In section 106.02(4)(c), the phrase, "at his discretion" was added to the first sentence to more accurately reflect the language in​ Miss. Code Ann. Section 25-43-3.104(2)(a). "Hearing", was replaced with "oral proceeding" for clarification. [APA Filing Notice, Submit Date: 06-30-2020]​​


Title 35.II.2.23  Sale of Soft Drinks, Ice, Juices, Mixers and Other Items by Package Retailers

New section 101 was moved from old section 105 to reflect the order of the items listed in section 100. The first sentence in new section 103 was removed as there is no longer a definition for “soft drinks” in Miss. Code Ann. Section 27-65-3(1). Other minor changes were made as well. [APA Filing Notice, Submit Date: 02-18-2020]​


Title 35.II.2.24  Check Cashing

In section 100, a sentence was added clarifying that a holder is prohibited from charging a fee for cashing a check. A citation to the Mississippi Check Cashers Act was deleted. Other minor changes were made. [APA Filing Notice, Submit Date: 02-18-2020]​


Title 35.11.3.02  Permit Limit

In section 101, the first sentence was amended to clarify that a person may own interest in a package retailer’s permit and own interest in one or more on-premises retailer’s permit. The second sentence in 101 is being deleted. Section 103 was amended to include that the chapter shall not be construed to prohibit rendering professional services for more than one package retailer so long as such professional services do not constitute an ownership interest based on the fee being collected. Other minor changes were made. [APA Filing Notice, Submit Date: 02-18-2020]​ 


Title 35.IV.8.01  Florists and Nurserymen

New section 104 addresses certain products grown in Mississippi that are exempt when sold from the place of production in the original state or condition of preparation of sale. This exemption is from Miss. Code Ann. Section 27-65-103(b). Section 106 explains the exemption on potting soil, mulch and other soil amendments used in growing certain plants. This exemption is from Miss. Code Ann. Section 27-65-111(m). Other minor changes were made. [APA Filing Notice, Submit Date: 02-18-2020]


Title 35.IV.9.04  Milk Products

In new section 100, the rule was amended to add a definition for “dairy producer” from Miss. Code Ann. Section 27-65-17(1)(m). In new paragraph 104, a sentence was added that provides a special rate of tax of 3.5% on certain purchases made by a dairy producer. This language is from Miss. Code Ann. Section 27-65-17(1)(m). In new paragraph 103, mechanical milking machines were added to milk tanks and coolers and were identified as farm implements taxable at the 1.5% special rate of tax. In new paragraph 105, a citation was added directing taxpayers to the Affidavit for Utility Exemption.  The DOR added a citation to Miss. Code Ann. Section 27-65-23 in Paragraph 100 and a citation to Miss. Code Ann. Section 27-65-103(a) in Paragraph 103. Examples of pest control services, exempt purchases and tools and/or equipment were added to Paragraphs 101, 104, and 105. Other minor changes were made. [APA Filing Notice, Submit Date: 02-18-2020]


Title 35.IV.11.01  Railroad Companies

In section 100, the citation to Miss. Code Ann Sections 27-65-15, Mining or Producing, was removed because the Mining or Producing law was repealed. The citation to Miss. Code Ann. Section 27-65-19, Public Utilities, was removed because a direct pay permit may be used to relieve a public utilities vendor of the liability for the tax, excluding the taxes levied against telecommunications services. The exemption from Miss. Code Ann Section 27-65-107(f) was added in Section 101 along with a citation to the section of the rule that explains the Affidavit for Utility Exemption. Other minor changes were made. [APA Filing Notice, Submit Date: 02-18-2020]


​​Finalized: Rules and Amendments​​​​​​

Title 35.II.2.03  Permitted Premises Where Alcoholic Beverages Are Sold

Title 35.II.2.03 - Permitted Premises Where Alcoholic Beverages Are Sold is amended to clarify requirements to request a waiver or an off-site storage exception. Other minor changes were made. [APA Filing Notice, Effective Date: 11-15-2023]

Title 35.II.2.23  Sale of Soft Drinks, Ice, Juices, Mixers, and Other Items by Package Retailers

Title 35.II.2.23 - Sale of Soft Drinks, Ice, Juices, Mixers, and Other Items by Package Retailers is amended to include certain edibles as alcoholic beverages. Other minor changes were made. [APA Filing Notice, Effective Date: 11-15-2023]

Title 35.XI.07 - Approval for Transfer of Licensed Premises Location

This rule replaces most of old Title 35, Part XI, Chapter 7 Application for Transfer of Location of Licensed Premises, and provides for additional guidance in securing an approval for the transfer of a licensed premises location (dispensary). [APA Filing Notice, Effective Date: 3-27-2023]


Title 35.XI.21 – Sales Limits

This amendment replaces old Title 35, Part XI, Chapter 21 Sales Limits, paragraph 100, with language to provide for a rolling seven-day period when calculating the 6 MMCEU limit per cardholder. “Rolling” shall be calculated by reviewing the previous six days. [APA Filing Notice, Effective Date: 3-27-2023]


Title 35.II.2.02 – Advertising and Promotions

Title 35.II.2.02 Advertising and Promotions is amended to clarify that a retailer and its employees may not participate in any contest or sweepstakes. Other minor changes were made. [APA Filing Notice, Effective Date: 6-2-2022]


Title 35.II.2.12 – Tied House, Gifts, Gratuities, and Inducements

Title 35.II.2.12 Tied House, Gifts, Gratuities, and Inducements is amended to clarify that a holder or its promotional representative may furnish to off-premises retailers rebates or coupons that are redeemable either via mail or online by the holder. Other minor changes were made. [APA Filing Notice, Effective Date: 6-2-2022]


Title 35.II.2.05 – Purchase and Sale of Distilled Alcoholic Beverages by On-Premises Permittees

Title 35.II.2.05 Purchase and Sale of Distilled Alcoholic Beverages by On-Premises Permittees is amended to clarify what is required for an on-premises permittee to request a temporary increase or decrease in the area designated in its floorplan as its licensed premises. Other minor changes were made. [APA Filing Notice, Effective Date: 2-12-2021]


Title 35.III.3.03 – Employee Benefits

This rule was amended to include a sentence in paragraph to address the tax treatment of damages in cases of nonphysical injury. Old paragraph 105 was removed because it was based on IRC Section 120 that was repealed in 2014. Other minor changes were made. [APA Filing Notice, Effective Date: 10-12-2021]


Title 35.II.2.25 - Alcohol Delivery

Title 35.II.2.25 is amended to clarify that the Division will no longer approve scanning software used on a recipient's identification to confirm that a recipient is over the age of 21. [APA Filing Notice, Effective Date: 10-16-2021]


Title 35.III.3.09 - Gaming Winnings and Gaming Income

This rule was amended to include the Mississippi Gaming Control Act. In new paragraph 101, the definition of “Mississippi Gaming Establishment” or “Gaming Establishment” was amended to include any establishment required to be licensed under the Mississippi Gaming Control Act, or which would be licensed under the Mississippi Gaming Control but for Federal preemption and the Mississippi Lottery Corporation. Other minor changes were made. [APA Filing Notice, Effective Date: 10-4-2021]


Title 35.III.11.22 – Withholding on Gambling Winnings

This rule was amended to include the Mississippi Gaming Control Act. This rule was amended to move and update the definitions for “gaming establishment” and “gaming winnings” from paragraph 107 to new paragraphs 101 and 102. Paragraph 201 was amended to add a citation. Paragraph 202 expands on the sentence that was deleted in paragraph 201. Paragraph 208 was amended to include that the constructive receipt doctrine does not apply to lottery winnings. Paragraph 109 was deleted and moved to paragraph 209. Paragraphs 108 was moved and reorganized into paragraphs 301 to 304. Other minor changes were made.   [APA Filing Notice, Effective Date: 10-4-2021]


Title 35.II.2.03 Permitted Premises Where Alcoholic Beverages Are Sold 

Paragraph 108 was amended to clarify that permitted sales may include orders and payment through the telephone or electronically with curbside pickup for customers in the parking lot. Paragraph 111 was amended to include small craft breweries and microbreweries to the list of businesses that may be issued on-premises permits. This statutory change can be found in HB 1091 in the 2021 Regular Session. Other minor changes were made. [APA Filing Notice,  Effective Date:  07-28-2021]​


Title 35.II.4.11  Retail Pickup from Distilleries and Native Wineries

Title 35.II.4.11 Retail Pickup from Distilleries and Native Wineries is a new regulation that clarifies the requirements for retail permittees picking up native wines and spirits sold by the Department of Revenue found in Miss. Code Ann Section 67-1-41(10). [APA Filing Notice,  Effective Date:  07-28-2021]​


Title 35.II.3.16  Calculation of Permit Fees

Title 35.II.3.16 Calculation of Permit Fees is a new regulation that clarifies the requirements for determining applicable privilege license tax. [APA Filing Notice,  Effective Date:  08-02-2021]​​


Title 35.II.2.25 Alcohol Delivery

Title 35.II.2.25 Alcohol Delivery is a new regulation that addresses HB 1135 passed in the 2021 Regular Session that allows retailers issued certain types of alcohol permits to offer home delivery under certain conditions. [APA Filing Notice,  Effective Date:  07-28-2021]​


Title 35.II.2.04  Hours and Days During Which Alcoholic Beverages May Be Sold by On-Premises Permittees, Package Stores and Caterers

Paragraph 103 was amended to clarify that governing authorities within resort areas may set hours for sale by ordinance if authorized to do so under Miss. Code Ann. Section 67-1-5(o)(iii). Other minor changes were made. [APA Filing Notice,  Effective Date:  07-28-2021]​


Title 35.II.1.01 Definitions

Paragraph 100 was amended to reflect statutory changes in HB 1091 in the 2021 Regular Session. Both the definitions of “alcoholic beverage” and “On-premise retailer permittee” were amended in the reg. Other minor changes were made. [APA Filing Notice,  Effective Date:  07-28-2021]


Title 35.I.01 Administrative Practices and Procedures for the Department of Revenue

Paragraph 104.02 was amended to remove the agency structure. New paragraph 109 was added per Senate Bill 2971 of the 2021 Regular Session to provide the email address where qualified accountants must send a third-party audit. Other minor changes were made throughout. [APA Filing Notice,  Effective Date:  06-24-2021]


Title 35.X.09 Motion Picture Production Incentive

This rule was amended for Miss. Code Ann. Section 57-89-3(a) that includes certain approved entities as production partners for a film project wanting to claim non-resident payroll as part of base investment. The rule was amended for SB 2971 passed in the 2021 Regular Session that grants the option of having a movie rebate submission audited by a qualified CPA. The rule was also amended to update current practices of the Department of Revenue in auditing movie rebate submissions. Other minor changes were made throughout. [APA Filing Notice,  Effective Date:  06-24-2021]


Title 35.II.2.07 Prohibited Conduct and Activities

Paragraphs 102 and 103 were amended to clarify the circumstances in which a permittee may be held accountable for criminal, regulatory or non-regulatory employee misconduct and the result of such misconduct. Paragraph 104 explains that if a permittee or a permittee’s clerk, agent or employee is convicted of selling alcoholic beverages to a minor, the subject permit shall be suspended or revoked based on the schedule of disciplinary actions under Miss. Code Section 67-1-81(1)(b). Other minor changes were made. [APA Filing Notice,  Effective Date:  3-08-2021]


Title 35.II.2.20 Sales of Alcoholic Beverages by Approved Package Retailers to Other Retailers

The title of the regulation was amended to include the phrase, “Shipping of Wine from Wineries to Package Retailers for Sale”. New section 109 was added to clarify that a retailer would not be acting illegally by accepting wine from a winery. Other minor changes were made. [APA Filing Notice,  Effective Date:  3-08-2021]​​


Title 35.V Gaming

Due to the extensive amendments, we are striking through the entire Part and replacing it with a new version. Part V was amended to update the “Mississippi State Tax Commission” to the “Mississippi Department of Revenue” and “Chairman” to “Commissioner” throughout. Any language that was duplicated in the Mississippi Gaming Commission regulations was deleted. This includes the “definitions” section. Title 35.V.3.06 - Rights of Licensee to Request a Hearing was deleted as the contents are addressed in Title 35.I.01 - Administrative Practices and Procedures of the Department of Revenue. Other minor changes were made.[APA Filing Notice,  Effective Date:  1-01-2021]


Title 35.II.2.23 Sale of Soft Drinks, Ice, Juices, Mixers, and Other Items by Package Retailers

New section 101 was moved from old section 105 to reflect the order of the items listed in section 100. The first sentence in new section 103 was removed as there is no longer a definition for “soft drinks” in Miss. Code Ann. Section 27-65-3(1). Other minor changes were made. [APA Filing Notice, Effective Date: 12-01-2020]


Title 35.II.2.24 Check Cashing

In section 100, a sentence was added clarifying that a holder is prohibited from charging a fee for cashing a check. A citation to the Mississippi Check Cashers Act was deleted. Other minor changes were made. [APA Filing Notice, Effective Date: 12-01-2020]


Title 35.II.3.02 Permit Limit

In section 100, the second sentence was deleted. In section 101, the first sentence was amended to clarify that a person may own interest in a package retailer’s permit and own interest in one or more on-premises retailer’s permit. The second sentence in 101 is being deleted. Section 103 was amended to include that the chapter shall not be construed to prohibit rendering professional services for more than one package retailer so long as such professional services do not constitute an ownership interest based on the fee being collected. Other minor changes were made. [APA Filing Notice, Effective Date: 12-01-2020]


Title 35.II.3.05 Permit Transfer

A second sentence was added to section 100 to state that a permit cannot be transferred if there is an ongoing administrative disciplinary action, including an action under appeal. A second sentence was added to section 103 to clarify that if a funeral home or church refuses to sign a new waiver, a transfer may not be initiated. [APA Filing Notice, Effective Date: 12-01-2020]


Title 35.II.3.07 Temporary and Qualified Resort Areas

The title was changed to reflect the change in order of the two types of resort areas in the rule. The temporary resort area language from section 100 was moved to new section 101 with some minor changes. The phrase “outside the limits of an incorporated municipality” was removed from the first sentence in section 101(1)(a). In 101(1)(b), the last sentence was added clarifying that GPS coordinates should be used to determine boundary lines. In 101(1)(c), the phrase, “and the reasons such steps will result in the attraction of tourists, transients and/or vacationers” was added. In section 100(3), a phrase was added to include that if the President of the Board of Supervisors or the Mayor votes against recommending an area be designated a resort, an application can still be submitted by not less than 100 adult citizens. Some additional criteria were added to the list of information to be included in the application. Other minor changes were made. [APA Filing Notice, Effective Date: 12-01-2020]


Title 35.IV.8.01 Florists and Nurserymen

New section 104 addresses certain products grown in Mississippi that are exempt when sold from the place of production in the original state or condition of preparation of sale. This exemption is from Miss. Code Ann. Section 27-65-103(b). Section 106 explains the exemption on potting soil, mulch and other soil amendments used in growing certain plants. This exemption is from Miss. Code Ann. Section 27-65-111(m). Other minor changes were made. [APA Filing Notice, Effective Date: 12-01-2020]


Title 35.IV.9.04 Milk Products

In new section 100, the rule was amended to add a definition for “dairy producer” from Miss. Code Ann. Section 27-65-17(1)(m). In new paragraph 104, a sentence was added that provides a special rate of tax of 3.5% on certain purchases made by a dairy producer. This language is from Miss. Code Ann. Section 27-65-17(1)(m). In new paragraph 103, mechanical milking machines were added to milk tanks and coolers and were identified as farm implements taxable at the 1.5% special rate of tax. In new paragraph 105, a citation was added directing taxpayers to the Affidavit for Utility Exemption. The DOR added a citation to Miss. Code Ann. Section 27-65-23 in Paragraph 100 and a citation to Miss. Code Ann. Section 27-65-103(a) in Paragraph 103. Examples of pest control services, exempt purchases and tools and/or equipment were added to Paragraphs 101, 104, and 105. Other minor changes were made. [APA Filing Notice, Effective Date: 12-01-2020]


Title 35.IV.11.01 Railroad Companies

In section 100, the citation to Miss. Code Ann Sections 27-65-15, Mining or Producing, was removed because the Mining or Producing law was repealed. The citation to Miss. Code Ann. Section 27-65-19, Public Utilities, was removed because a direct pay permit may be used to relieve a public utilities vendor of the liability for the tax, excluding the taxes levied against telecommunications services. The exemption from Miss. Code Ann Section 27-65-107(f) was added in Section 101 along with a citation to the section of the rule that explains the Affidavit for Utility Exemption. Other minor changes were made. [APA Filing Notice, Effective Date: 12-01-2020]


Title 35.I.01 Administrative Practices and Procedures of the Department of Revenue

Section 106.02(4)(a) was amended to delete the first sentence concerning mandatory public participation during the public comment period. The DOR will follow Miss. Code Ann. Section 25-43-3.104 as written. In section 106.02(4)(c), the phrase, "at his discretion" was added to the first sentence to more accurately reflect the language in​ Miss. Code Ann. Section 25-43-3.104(2)(a). "Hearing", was replaced with "oral proceeding" for clarification. [APA Filing Notice, Effective Date: 08-24-2020]


Title 35.IV.4.06 Paper Products and Paper Dealers

This rule amendment adds a definition for “paper products” and references Appendix 1 of Title 35.IV. Other minor changes were made. [APA Filing Notice, Effective Date: 03-01-20]


Title ​35.IV Appendix 1 - Taxability of Paper Products Sold by Paper Dealers

This rule consists of a table that provides guidance for dealers in paper products to use in determining the correct tax treatment when sold. [APA Filing Notice, Effective Date: 03-01-20]


Title 35.III.2.03 Gains Derived from Dealings in Property

This rule was amended to change the name to "Gains or Loss on Disposition of Property". The rule was reworded throughout for clarity. Paragraph 100 was amended to include office equipment and patents as examples of tangible and intangible items. A sentence was added to new paragraph 101 to address the sale of parts of a larger piece of property. The examples were deleted in new paragraph 102 as these same examples are sufficiently covered in Miss. Code Ann. Section 27-7-9. In new paragraph 104, number 2 was added. New paragraph 105 replaced old paragraph 104 addressing an exchange of property consisting of both property that qualifies as a tax-free exchange and other property. Other minor changes were made. [APA Filing Notice, Effective Date: 01-01-20]


Title 35.III.2.09 Prizes Awards Stipends

This rule was amended to change the name to "Prizes, Awards, Stipends, Scholarships and Fellowship Grants" as information concerning scholarships and fellowship grants were added to the rule in paragraph 103. Examples of qualifying and non-qualifying expenses were included in Paragraph 103. Old paragraph 104 was removed because it cites a rule that has been deleted. Other minor changes were made. [APA Filing Notice, Effective Date: 01-01-20]


Title 35.III.2.11 State and Local Income Taxes Paid

This rule was amended to change the name to "Individual Non-Business Deductions" as this is more representative of what is contained in the rule. Paragraph 100, number 1, was reworded for clarity. A citation was added to number 3. Paragraph 102 and 103 explains when a taxpayer can itemize deductions given certain circumstances. Other minor changes were made. [APA Filing Notice, Effective Date: 01-01-20]


Title 35.III.3.06 Gifts, Bequests, Devises, Prizes, Awards, Scholarships and Fellowship Grants

This rule was deleted as prizes, awards, scholarships and fellowship grants are included in Title 35.111.2.09 Prizes, Awards, Stipends, Scholarships and Fellowship Grants. Other minor changes were made. [APA Filing Notice, Effective Date: 01-01-20]​