Use Tax

Personal property acquired in any manner for use, storage or consumption within this State on which sales or use tax has not been paid to another state at a rate equal to or greater than the applicable Mississippi rate is subject to Use Tax.

Rate of Tax

(Miss Code Ann 27-67-5)

Use tax rates are the same as those applicable under the Sales Tax Law.

Basis of Tax

(Miss Code Ann 27-67-5, 27-67-7)

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 the rate of sales or use tax paid to another state with the following exceptions:

1. Persons using business property in Mississippi that has been used by them in other states is entitled to a credit for sales and/or use tax paid to other states equal to the aggregate of all such state rates multiplied by the value of the property at the time of importation into Mississippi. The value of the property in this case is its cost less straight-line depreciation not to go below 20% of the cost.

2. Persons using business property in Mississippi that was acquired from another person who used it in other states is entitled to a credit equal to the applicable rate in the state of last prior use multiplied by the value of the property at the time of importation into Mississippi.

3. No credit is allowed for use tax paid to another state for tangible personal property that has been only stored or warehoused in the other sate and the first use of the property occurs in Mississippi.

4. No credit is allowed for sales or use tax paid to another state on the purchase price or value of automobiles, motor homes, trucks, truck-tractors and semi-trailers, trailers, boats, travel trailers, motorcycles and all-terrain cycles imported and first used in Mississippi.

You must keep invoices clearly and correctly showing the amount of the tax as a separate item when claiming credit for sales or use tax paid to another state.

Exemptions

(Miss Code Ann 27-67-7)

Exemptions are set out in Section 27-67-7 of the Use Tax Law and in general are the same as those applicable under the Sales Tax Law both of which can be found at Mississippi Code at Lexis Publishing.

Vendor Discount

(Miss Code Ann 27-67-17, 27-67-31, 27-65-3)

For collecting, complying fully with the applicable statutes, filing and paying all taxes when due, certain taxpayers are allowed a 2% discount of the tax liability. The discount is limited to $50.00 per calendar reporting period not to exceed $600.00 per calendar year.

Registration

(Miss Code Ann 27-67-9)

Register online using TAP.

Returns and Payment Due

(Miss Code Ann 27-67-17)

The filing frequencies of Sales and Use Tax Returns depend on your annual amount of taxes (for the preceding twelve months ended June) remitted to the Mississippi Department of Revenue. If the annual remittance is less than $600.00, annual returns will be filed; if the annual remittance is between $600.00 and $3,599.00, quarterly returns will be filed; if the annual remittance is more than $3,599.00, monthly returns will be filed.

Sales and use tax returns are filed online through the secure online filing website. Taxpayers not filing online receive a supply of returns each year before the returns are due. Paper returns and online filing information should be examined for correct number, name, and address. If errors are detected, please contact the Sales and Use Tax Bureau at 601-923-7015, or P. O. Box 1033, Jackson MS 39215. Please do not use a form that is incorrect.