The following is intended to provide general information concerning a frequently asked question about taxes administered by the Mississippi Department of Revenue (DOR.) It is an informal interpretation of the tax law and is not intended to serve as a rule, regulation, declaratory opinion, or letter ruling. Legislation, regulations, court decisions, notices and announcements could affect the accuracy of this information. Please refer to the Mississippi Code Annotated and the Mississippi Administrative Code for the most current version of the law and administrative procedures.
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Sales Tax General
Yes, Mississippi imposes a tax on the sale of tangible personal property and various services. The general tax rate is 7%; however, there are reduced rates for certain sales and there are exemptions provided by law. The tax rate is applied against either the gross proceeds of sales or the gross income of the business, depending on the type of sale or service provided. It is the responsibility of the seller to collect the sales tax from the ultimate consumer or purchaser.
Use tax is a tax on goods purchased for use, storage or other consumption in Mississippi. Use tax applies if sales tax is not applicable and the sales tax was not paid at the time of purchase. If you purchase an item from an out-of-state vendor for use in Mississippi and the vendor does not collect the Mississippi sales tax, you must pay use tax directly to the Department of Revenue.
Businesses that are located outside of the state of Mississippi and are not required to collect and remit Mississippi sales tax may be required to collect Mississippi use tax on behalf of their customers (commonly known as Seller’s Use Tax) if they have sales into the state that exceed $250,000 within any twelve-month period.
Real property is land, including all buildings and improvements on the land. Tangible personal property is property that may be seen, touched or is in any manner perceptible to the senses. Tangible personal property includes electricity, water, gas, steam, pre-written software, and digital and electronic goods. Tangible personal property does not include real estate, bank accounts, stocks, bonds, mortgages, insurance certificates or policies.
The sales tax rate is applied against either the gross proceeds of sales or the gross income of the business, depending on the type of sale or service provided. “Gross proceeds of sales” is the full sales price of tangible personal property including, but not limited to, installation charges and delivery charges. Gross income is the total receipts or total income of the business before any deductions.
Wholesale sales are sales of tangible personal property to licensed retail merchants, jobbers, dealers, or other wholesalers for resale. It does not include sales to users or consumers that are not for resale. The seller must maintain the sales tax number or exemption letter for these customers along with a description of the items sold and the sales amount of the items.
A person who engages exclusively in the business of making wholesale sales is not required to register for a sales tax permit and file a return. A person who makes taxable sales to users, consumers, or non-registered merchants must collect sales tax and file returns.
Businesses engaged exclusively in making wholesale sales that wish to receive a permit in order to exempt wholesale purchases must register for either a Mississippi sales tax (if located in state) or seller’s use tax (if located out of state) permit. Businesses that are registered with Mississippi are required to file returns, even if they have no taxable sales.
No, you must file a return for every tax period, even if no tax is due.
Nexus means a business has established a presence in the state. Having nexus requires a seller to collect and remit certain taxes, including sales and use tax. Nexus is created for sales and use tax when a business either owns business property located in Mississippi or when the business is represented in this state by employees or agents of the business who service customers in Mississippi or solicit or accept orders for merchandise.
Effective July 1, 2018, businesses located out of the state that have sales into the state of Mississippi that exceed $250,000 over any twelve month period are considered to have substantial economic presence in the state and are required to register with the Mississippi Department of Revenue in order to collect and remit tax.
Direct pay taxpayers self-accrue and report use tax on their business purchases. Direct pay permits are generally issued to manufacturers, utility companies, companies receiving bond financing, telecommunications companies, and other taxpayers in those instances where the Commissioner determines that a direct pay permit will help facilitate the collection of tax at the proper rates.
Equipment used directly in the manufacturing process is subject to a reduced 1.5% rate of sales tax. Manufacturers are generally required to obtain a direct pay permit from the Department of Revenue to use in making purchases of equipment and other items exempt from sales tax. The manufacturer is then responsible for remitting the correct rate of tax directly to the Department of Revenue on the manufacturer’s use tax return.
A place of amusement includes all forms of entertainment including sports, recreation, shows, exhibitions, contests, displays and games, or other similar events. Admission charges are subject to sales tax.
Yes, the sales tax rate is reduced to 3% on the gross income from admissions charges to publicly owned enclosed coliseum or auditorium and livestock, agriculture and other facilities owned and operated by cities and counties.
The law provides exemption from the tax for a number of organizations or events. Please review the law and regulations for a complete listing and the qualifications for those exemptions. Examples of exemptions include:
• Admissions charges at a place of amusement operated by religious, charitable or educational organizations or by nonprofit civic clubs or fraternal organizations
• Admissions charges for high school or grade school athletic games
• Admissions charges to county, state or community fairs
• Admissions charges or fees charged by any county or municipally owned and operated swimming pools, golf courses and tennis courts
Mississippi has two local tax levies at the city level, and none at the county level. The City of Tupelo levies an additional .25% on all retail sales made from taxpayers within the corporate limits and services provided within the corporate limits. The City of Jackson levies an additional 1% on certain retail sales made from taxpayers within the corporate limits and services provided within the corporate limits. Please review the Notice 72-14-2 for those sales excluded from the 1% Infrastructure tax.
There are numerous Tourism and Economic Development Taxes levied in many cities and counties typically imposed on hotels, motels, restaurants and bars. Please review the listing on the Department of Revenue website to determine if your business is subject to any of these taxes.
Many counties and municipalities have enacted additional taxes on food, beverages and accommodations. A listing of all tourism or economic development taxes is included on the Department of Revenue website for your review.
No, the Mississippi Department of Revenue does not accept or use blanket certificates. A customer should always provide a valid letter of exemption issued by the Mississippi Department of Revenue such as, a Sales Tax or Seller’s Use Tax Permit, a Material Purchase Certificate, a Direct Pay Permit or a Letter Ruling.
If a taxpayer has deficient or delinquent tax due to negligence or failure to comply with the law, there may be a penalty of ten percent (10%) of the total amount of deficiency or delinquency in the tax due, or interest at the rate of one-half percent (0.5%) per month, or both, from the date the tax was due until paid.
Filing a Sales Tax Return
Sales tax returns are due the 20th day of the month following the reporting period. If a due date falls on a weekend or holiday, the due date becomes the next business day.
No. The Commissioner of Revenue is authorized to provide an extension of time to file the return for good cause, as example when a natural disaster creates a hardship for filing the return on time. In these cases, the tax remains due and interest may apply for late payment.
Yes, online filing for sales and use tax is available. You may register for TAP on the Department of Revenue website.
Online filing is free of charge. All that is needed to file your return is a computer, internet access, and your bank account information.
Yes, a discount is allowed if the tax is paid by the 20th day of the month in which the tax is due. The sales tax discount is 2% of tax due, not to exceed $50.
Yes, a return is considered to have been filed with and received by the Department of Revenue on the date shown by the post office cancellation mark on the envelope.
Yes, a tax return must be filed for each reporting period even though no tax is due. If you have no sales, enter a zero on the total tax due line. Please don’t forget to sign and date the return.
Every sales tax permittee must file returns with the Department of Revenue on a timely basis, according to your filing frequency, even if sales tax was not collected for that month, quarter, or year.
Failing to file returns on time can result in penalties, interest and eventually could result in liens against your property.
If you discover that you have made an error on a sales tax return previously filed with the Department of Revenue, you should file an amended return.
If you are unable to refund the tax directly to the customer that paid the tax, Mississippi law requires that any over-collection of sales tax by a retailer from the customer must be paid to the State.
Records should be retained for a minimum 4-year period, although it is recommended that you keep the records longer. You must keep adequate records of business transactions to enable you and the Department of Revenue to determine the correct tax due. The required records include, at a minimum, records of beginning and ending inventories, purchases, sales, canceled checks, receipts, invoices, bills of lading, and all other documents and books pertaining to the business. The seller has the burden of proving that a sale of tangible personal property or a taxable service is exempt. Records must be kept to substantiate any claimed exemptions or reduced tax rates authorized by law. Minimum information should include the name and address of the person to whom the sale was made, the date of sale, the article sold, and the amount of exemption or reduced rate. If you are making sales out-of-state, your records should clearly show that the item was delivered out-of-state. If you do not keep these records, you will be subject to the 7% tax, interest, and penalty charges on those sales. If you are engaged in some other non-taxable business, occupation, or profession, you must keep records to separately show the transactions of that other business. If separate records are not kept, sales tax may be imposed upon the total receipts from all of your business operations.
Registration / Permit
You may apply online through TAP.
If you or other owners, partners, officers, members or trustees have a history of filing or paying sales tax late, you must pay the outstanding liabilities and/or post a bond before receiving a new sales tax license.
The length of time to process your application depends on the completeness of the information included on the application, and whether or not there are any existing tax liabilities owed by the applicant. Once all information has been received and your application has been reviewed and approved, you should receive your permit in the mail within 2 weeks.
You must close the proprietorship or partnership sales tax account and register for a new permit.
Yes, individuals can be held personally liable for the sales tax debts of a corporation. Those individuals, corporate officers and/or shareholders having control or supervision of, or charged with the responsibility of filing returns, making payments, or executing the corporation's fiscal responsibilities can be assessed for the outstanding tax debts of the corporation. The dissolution, termination or bankruptcy of a corporation or business will not discharge a responsible officer, employee's or trustee's liability.
No, there is no fee to obtain a sales tax permit. The sales tax number represents a permit issued to the applicant for the privilege of operating a business in Mississippi. The privilege is conditioned upon the permit holder collecting and remitting sales tax to the state.
Depending upon the nature of the business, or past history of the applicant, a bond may be required to be posted before a permit is issued.
No, the law requires that a person have a sales tax permit before beginning or operating a business subject to collecting sales tax.
Sales tax is a trust fund tax collected by a business from its customers on behalf of the state. Corporate officers may be held liable for payment of the tax in the event the business fails to properly remit the tax to the state.
Yes, individuals can be held personally liable for the sales tax debts of a corporation. Those individuals, corporate officers and/or shareholders having control or supervision of, or charged with the responsibility of filing returns, making payments, or executing the corporation's fiscal responsibilities can be assessed for the outstanding tax debts of the corporation. The dissolution, termination or bankruptcy of a corporation or business will not discharge a responsible officer, employee's or trustee's liability.
Sales tax permits are location specific and you may need to get a new permit. Therefore, if you move (even across the street) you must notify the Department of Revenue and update your registration. You should notify the Department of Revenue if your mailing address or any other contact information changes. You may provide that information by completing an amended application.
If the sales tax permittee is a corporation or partnership and there are any changes in the membership, you should file an updated application with the Department of Revenue.
Your sales tax permit may be revoked if you fail to file sales tax returns or you fail to pay the tax when due. If your permit is revoked, continuing in business is a violation of law that may result in criminal charges.
Yes, you must collect sales tax if you are selling retail to the public. Any person or company that is selling goods to a final consumer is required to collect and remit Mississippi sales tax.
Yes. All sales of tangible personal property are subject to sales tax unless the law has provided a specific exemption from the tax.
The operator or promoter of a flea market, antique mall or similar type event is considered the seller and is responsible for collecting and remitting the sales tax collected by persons selling at these events. Any vendor who holds a retail sales tax permit should not report tax from an event under his/her number, but instead report their individual sales to the promoter or operator. All taxes collected from these events must be reported by the promoter or operator.
The Department of Revenue annually reviews the tax liabilities of all active accounts. Filing frequencies are adjusted as necessary. Taxpayers are notified of the change in status. Generally, every retailer with average liability of $300 or more per month must file a monthly tax return. Retailers with smaller tax liabilities may file quarterly.
No, you must file a return for every tax period, even if no tax is due.
You must close the proprietorship or partnership sales tax account and register for a new permit.
No, a sales tax permit is issued to a specific person or entity and it may not be transferred to another person or entity.
A single legal entity may only be issued one sales tax account number. However, each separate location of a single business must be registered for its own sales tax permit.
Yes. Any company doing taxable work in Mississippi must register with the Mississippi Department of Revenue before the work begins. You may register online through TAP.
Contractors who perform work on a project over $10,000 may be subject to the 3.5% Contractor’s Tax imposed on the gross receipts of the contract. The contractor is required to qualify the contract with the Department of Revenue prior to beginning work on the project.
Effective July 1, 2018, businesses located out of the state that have sales into the state of Mississippi that exceed $250,000 over any twelve month period are considered to have substantial economic presence in the state and are required to register with the Mississippi Department of Revenue in order to collect and remit tax.
Tax Contractor
Sales Tax Law levies a 3.5% contractor’s tax on all construction, renovation or repair of non-residential, real property when the total contract price or compensation received exceeds $10,000. If the contract exceeds $75,000 in scope or if the contractor is from another state, the contractor’s tax must be paid before work begins. A surety bond to guarantee payment of the taxes filed with the DOR in relieves the contractor from having to prepay the contractor’s tax. Contractor’s tax may be reported monthly on the contractor’s Mississippi sales tax returns for contracts that are either bonded or not required to be prepaid. Please refer to our Guide for Construction Contractors for more information regarding contractor’s tax.
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A Material Purchase Certificate (MPC) is issued by the Department of Revenue after a contractor has qualified a project. This certificate allows the prime or general contractor and his sub-contractors to purchase component building materials and component services exempt from sales or use tax.
The tax is imposed on the contractor and not on the contractor’s customer, regardless of who is the real property owner. Contractors are required to qualify jobs and pay the resulting contractor’s tax on all jobs meeting the requirements for the contractor’s tax regardless of whether the contractor’s customer is an exempt entity.
All commercial, non-residential construction projects for the construction, renovation or repair of real property that exceed $10,000.00 are subject to contractor’s tax.
No. The project owner cannot pay the contractor’s tax. Suppliers that sell to owners who are building their own structures must charge sales tax on materials, supplies, and equipment sold or rented to property owners. Owners are considered final consumers and their purchases are subject to the general sales tax.
No. A direct pay permittee cannot accrue contractor’s tax; payment must be made by the prime or general contractor.
Apartments and condominiums are not treated as residential property for purposes of the contractor’s tax. Contracts for the construction, renovation or repair of apartments and condominiums are subject to the 3.5% contractor’s tax unless the job is $10,000 or less. Contractors performing contracts on residential homes pay the regular 7% rate on materials and taxable services.
A job bond does not have a posted amount of money. A job bond is designed to cover all taxes that the contractor would incur related to performing the contract.
Blanket bonds have a stated amount that may be used to cover the contractor’s tax for multiple jobs. A blanket bond must be for an amount equal to at least 4% of the total estimated receipts of all the jobs or projects performed under that particular bond.
All general or prime contractors and subcontractors improving real property in the state of Mississippi are required to obtain a Sales and Use Tax Certificate of Registration for the remittance of any sales and use taxes that may be due, regardless of the number of jobs they are performing.
Contractors that perform services in this state are subject to use tax on the value of equipment brought into this state. If the property has been used in another state, the retail use tax is due on the fair market or net book value of the property at the time it’s brought into Mississippi. Automobiles and trucks (under 10,000 pounds) without special-mounted equipment are subject to 5% use tax. Trucks over 10,000 pounds are taxable at the 3% rate. (Net book value is computed by using straight-line depreciation only and cannot be less than 20% of the original cost.)
Except for automobiles and trucks first used in this state, credit for sales or use tax paid to another state in which the property was acquired or used may be taken in computing the amount of use tax due. Credit must be computed by applying the rate of sale or use tax paid to another state (excluding any city, county or parish taxes) to the value of the property at the time it enters Mississippi.
Taxable
Unless specifically exempt or excluded, all sales of tangible personal property are subject to the sales or use tax. Here are some examples of sales or services subject to sales tax (this list is not all-inclusive):
- Repairs of tangible personal property
- Rental or lease of personal property like motor vehicles or equipment
- Charges for admission to an amusement, sport, or recreation
- Providing taxable services such as pest control services, plumbing, electrical work, heating and air conditioning work, computer software services, dry cleaning and parking lots
- Rental of accommodations in hotels, motels and campgrounds
- Contracting
If you are unsure whether your business is required to register to collect sales tax, please contact the Department of Revenue.
Certain types of labor performed in connection with the sale and installation of tangible personal property are taxable. Other miscellaneous services are taxable (see Miss. Code Ann. 27-65-23.)
Some of the more common items which are exempt from sales tax include:
• Prescription drugs
• Gasoline
• Insecticides and fungicides when used for agricultural purposes
• Feed for livestock and poultry, seeds and fertilizer
• Sales made directly to the federal government, the state of Mississippi and counties and cities within Mississippi (this exemption does not include other states or foreign countries)
• Sales made directly to non-profit and public schools (not daycares) in Mississippi
• Sales made to some non-profit agencies that are specifically exempt from tax by the Legislature. Examples include the American Red Cross, Salvation Army, and Boy Scouts & Girl Scouts of America.
• Qualifying purchases of food paid for with food stamps
• Wholesale Sales (sales for resale, with the exception of beer and alcohol)
A business can purchase merchandise for resale free from sales tax by giving their supplier the business’ sales tax permit information.
No, churches must pay sales tax. However, churches may be exempt on the purchase of utilities if they qualify for a federal income tax exemption under 26 USCS Section 501(c)(3) if the utilities are used on a property that is primarily used for religions or educational purposes. In order to obtain the sales tax exemption, the church should complete an Affidavit of Church Utility Exemption. The completed affidavit should be provided to the utility provider. Also, churches are exempt from use tax on the use, storage or consumption of literature, video tapes and photographic slides used by religious institutions for the propagation of their creed or for carrying on their customary nonprofit religious activities, and on the use of any tangible personal property purchased and first used in another state by religious institutions.
Unless the organization is specifically exempt by Mississippi law, nonprofit organizations are subject to Mississippi sales and use tax. Please contact the Sales Tax Bureau to determine those organizations that qualify for exemption.
Mississippi does not issue sales tax exemption certificates. Religious organizations are not exempt from sales or use tax and not all charitable organizations are exempt. The Department of Revenue does provide an organization that is specifically exempt under Mississippi law with a letter (upon their request) to provide to vendors verifying the organization’s tax exempt status. Vendors making sales to exempt organizations should request a copy of that document and keep it on file.
Yes. The tax is required to be paid by the donor on the cost of the donated item.
Persons operating a place of business in this State are liable for sales tax on all non-exempt sales delivered into Mississippi by the out-of-state business. Persons who do not maintain a place of business in Mississippi but own business property located in Mississippi, or who are represented in this state by employees or agents of the business who service customers in Mississippi or solicit or accept orders for merchandise that is subsequently delivered into this state, are liable for collection of Mississippi Use Tax.
Effective July 1, 2018, businesses located out of the state that have sales into the state of Mississippi that exceed $250,000 over any twelve month period are considered to have substantial economic presence in the state and are required to register with the Mississippi Department of Revenue in order to collect and remit tax.
Sales of property, labor or services sold to, billed directly to, and payment is made directly by the United States Government, the state of Mississippi and its departments, institutions, counties and municipalities or departments or school districts of its counties and municipalities are exempt from sales tax. Sales to government employees are taxable regardless of the fact that the employees may be reimbursed by the government for the expenses incurred.
The exemption from sales tax does not apply to sales of tangible personal property, labor or services purchased by contractors in the performance of contracts with the United States, the state of Mississippi, counties and municipalities.
Sales of tangible personal property and services used exclusively for educational purposes by private colleges and universities in this state are exempt from sales tax. The item must be sold to, billed directly to, and payment made directly by the institution. Sales to booster clubs, alumni associations or student groups are not exempt. This exemption does not apply to items that are not used in the ordinary operation of the school nor does it apply to items that are resold to students.
Sales of tangible personal property and services to a Mississippi public school are not subject to sales and use tax. The item must be sold to, billed directly to, and payment made directly by the institution. This exemption does not apply to items that are not used in the ordinary operation of the school nor does it apply to items that are resold to students. Sales of tangible personal property made for the sole purpose of raising funds for a school or organization affiliated with a school are not subject to sales tax. An organization affiliated with a school or “affiliated organization”, may include but is not limited to parent teacher organizations or booster clubs. This exemption does not include sales to day cares or nurseries. Proper documentation must be retained in order to substantiate the exemption. Sales of merchandise are taxable when the vendor sells to and receives payment directly from the individual students.
Yes, sales to non-profit elementary and secondary grade schools, junior and senior colleges are exempt from sales tax IF the school is owned and operated by a corporation or association where no part of the net earnings inures to the benefit of any private shareholder, group or individual and the organization is exempt from state income taxation. This exemption does not apply to sales of property or services that are not used in the ordinary operation of the school or is resold to the students or the public.
Hospitals operated by the Federal Government or the State of Mississippi or any of Mississippi’s political subdivisions including counties and cities are exempt from Mississippi sales tax. Non-profit hospitals are also exempt from Mississippi sales tax. Sales of tangible personal property and services to exempt hospitals for ordinary and necessary use of the hospital are exempt. Any department or division of an exempt hospital that performs services that are ordinary and necessary to the operation of the hospital, including but not limited to, home health care, hospice, outpatient cancer treatments, and surgery are exempt from sales tax.
Any department or division of an exempt entity, regardless of where it is located, which is not ordinary and necessary to the operation of the exempt entity, is not exempt and is subject to the tax on its purchases. This includes, but is not limited to, wellness centers, physician’s offices, and clinics.
Sales of automobiles, trucks, truck-tractors, semi-trailers, trailers, boats, travel trailers, motorcycles, all-terrain cycles, and rotary-wing aircraft that are exported from this state within 48 hours, registered, and first used in another state are exempt from sales tax. A properly executed Certificate of Interstate Sale (Form 72-315) must be maintained to substantiate sales of boats, all-terrain cycles, or other equipment not required to be registered for highway use. Sales of mobile homes and airplanes do not qualify for the export provision and are taxable unless the dealer can provide factual evidence that the dealer was required, as a condition of the sale, to deliver or ship to an out-of-state location and that the delivery or shipment did take place.
Persons who purchase vehicles that will be registered and used in this state from dealers located in other states (and these dealers are not registered with the Mississippi Department of Revenue) are liable for the payment of use tax at the same rate and on the same basis as sales tax. The Mississippi Use Tax is payable to the county Tax Collector if not previously paid to an authorized out-of-state dealer at the time of purchase. No credit is allowed for sales tax paid to the dealer in the other state against Mississippi Use Tax on purchases of automobiles, motor homes, trucks, truck-tractors and semi-trailers, trailers, boats, travel trailers, motorcycles and all-terrain cycles when the first use of the vehicle occurs in Mississippi. First use of the vehicle is considered to occur where the vehicle is first tagged or registered (does not include temporary tags.)
Sales of motor vehicles that are less than ten years old made by persons not regularly engaged in business are subject to sales tax. The tax is collected by the county Tax Collector when the new owner of a vehicle titles and tags the vehicle. The sales tax due is calculated by a pre-determined value for that kind of car. The purchase price is not used to determine the value of the vehicle.
Installation labor is taxable when sold in connection with tangible personal property.
Yes, repairs of tangible personal property are taxable.
Yes, tangible personal property is subject to sales tax on the gross proceeds of the sale including, but not limited to, charges for shipping, handling and delivery.
Yes, a charge to play golf is a taxable activity.
Yes, program installation, maintenance of software, upgrades and training services are taxable when the purchase of these services is included with the purchase of the software. (Canned software is mass-produced pre-written software.)
Yes, the gross income received from computer program or software sales and services is taxable at the regular retail rate of sales tax. Computer program license fees and/or maintenance contract income are taxable. Taxable services include the design and creation of a web page.
Yes, the total gross proceeds of rental agreements are taxable.
An itemized charge for a meeting room is generally not subject to sales tax. However, if the charge is bundled together with other taxable items, the tax would apply to the total invoice amount.
Sales tax is computed on the full sales price before the manufacturer’s coupon is deducted. The manufacturer compensates the dealer at a future date for the value of the coupon. The compensation received by the retailer from the manufacturer is part of the taxable gross proceeds of the sale.
A retail dealer's coupon is considered a price adjustment that occurs at the time of sale. Because the retailer is reducing the selling price of the item and is not reimbursed by a third party for the value of the coupon, the coupon is deducted before sales tax is calculated.
Yes, tangible personal property purchased over the Internet and delivered to a Mississippi address by a vendor based in Mississippi is subject to Mississippi sales tax. Tangible personal property purchased over the Internet and delivered to a Mississippi address by a non-Mississippi based vendor is subject to Mississippi use tax.
Repair parts for manufacturing machinery are subject to the same reduced 1.5% rate of tax as the machinery itself. Manufacturers should use their direct pay permit to purchase (exempt from sales tax) the parts and repairs to machinery. The manufacturer will then remit the correct rate of tax for the parts or repairs directly to the Department of Revenue on their use tax return.
If the permittee sells meals or provides discounts to his employees, the sale is taxable at the price charged. If the permittee gives the meal to his employees, the sale is exempt from sales tax.
Gratuities or tips specifically added to the cost of the meal and tips or gratuities paid directly to the employee are not subject to Mississippi sales tax.
The sales tax rate is 5% and is based on the net purchase price of your vehicle (price after dealer’s discounts and trade-ins.) The 5% rate applies to cars, vans, buses and other private carriers of passengers and truck with a gross vehicle weight of 10,000 pounds or less. Carriers of property and trucks with a vehicle weight exceeding 10,000 pounds are taxed at 3%.
If you bought your vehicle out-of-state and paid sales taxes on the vehicle to that state, that tax will NOT be credited toward the amount of tax due in Mississippi. If the vehicle was titled in your name and first used in another state, no Mississippi sales tax is charged.
The rental or lease of a motor vehicle is taxable at the same rate of tax as a sale. There is an additional 6% rental tax on rentals of cars and light trucks for periods of 30 days or less.
Yes and no. Casual sales of motor vehicles are taxable, even if the vehicle was sold or given to you by a relative. However, if the sale or transfer of the vehicle was between persons married to each other, or who are parent and child, or a grandparent and grandchild, the sale is not subject to the casual sales tax. Sales or transfers between siblings, cousins, aunts, uncles or in-laws are taxable.
Effective July 1, 2019, sales of motor vehicles between siblings are not subject to the casual sales tax.
Export sales are sales made to customers located outside the state of Mississippi. They are not subject to Mississippi sales tax if the seller is required, as a condition of the sale, to ship or deliver the property to a location outside this state. If the goods are picked up or otherwise received by the customer in Mississippi, the sale is subject to Mississippi sales tax.
Phone cards are taxable at the location where the phone card is purchased.
The non-reusable items of tangible personal property in hotels and motels furnished to guests in their rooms without charge are subject to sales tax when the hotel/motel purchases them. Non-reusable items include (but are not limited to) soap, shampoo, tissue, other toiletries, food, or confectionery items provided in the guest rooms.
Prescription drugs that may only be legally dispensed by a licensed pharmacist upon written authority from a practitioner licensed to administer the prescription are exempt from sales tax. All over-the-counter medications are taxable regardless if a physician provided a prescription for the medications.
Examples of other exemptions include sales of insulin, sutures (whether or not permanently implanted,) bone screws, bone pins, pacemakers and other articles permanently implanted in the human body to assist the functioning of any natural organ, artery, vein or limb and which remain or dissolve in the body.
Sales of medical grade oxygen are exempt from Mississippi sales tax.
Farm machinery and equipment are not exempt; however, the law provides for a reduced 1.5% rate of tax on the purchase of farm tractors and farm implements by a farmer.
Raw materials used in the manufacturing process are exempt. The law provides for a reduced 1.5% rate of tax on the purchase of certain manufacturing machinery used directly in the manufacturing process.
The sale of livestock is exempt. Sales of animals or poultry for breeding or feeding purposes, as part of a business enterprise, are not subject to tax. The sale of domestic animals is subject to tax when sold by persons regularly engaged in the business of selling domestic animals and other related products, as example, pet stores.
A farmer selling produce along the roadside that he grew in Mississippi is not subject to sales tax. Sales of produce at established places of business are subject to sales tax including all sales made at established farmer’s markets and flea markets. Sales of food products and honey that are grown, made or processed in Mississippi and sold from farmers’ markets that have been certified by the Mississippi Department of Agriculture and Commerce are exempt.
Items that were purchased at wholesale but are withdrawn from inventory for use of the business are subject to sales tax. This includes any items that are purchased tax free for resale, but are withdrawn from inventory and used by the owner/employees instead of being sold.
Landscaping services are subject to Sales Tax. Landscaping services include, but are not limited to, planting flowers, shrubs and trees, laying sod, establishing lawns and any earth moving performed during landscaping activities.
Mowing grass, trimming of shrubs, bushes and trees and weeding are not taxable services.
The sales of equipment and supplies to doctor and dentist offices are taxable. These items are consumed by them in the performance of their professional service.
Extended warranties, maintenance agreements, and service contracts sold in connection with the sale of tangible personal property are taxable as part of the gross proceeds of the sale even when the agreement is separately stated.
Extended warranties, maintenance agreements, and service contracts unrelated to the purchase of the property covered by the agreement are not subject to sales tax if the agreement only provides service when the customer requests service. Agreements that provide a pre-determined maintenance schedule are considered the pre-payment of a taxable service and taxed at the time of sale of the agreement.
Extended warranties sold in connection with the sale of motor vehicles (cars and trucks) are not taxed at the time of the sale, and any resulting repair work is subject to tax on the cost of providing the repair.
There is no sales tax due when the seller is required, as a condition of the sale, to ship or deliver the product directly out-of-state or out of the country. A copy of the sales slip and shipping invoice will need to be retained showing that sale was shipped directly out-of-state or out of the country.
Use Tax
Use tax is a tax on goods purchased for use, storage or other consumption in Mississippi. Use tax applies to purchases of items that are shipped or delivered into Mississippi from an out-of-state location. Use tax also applies to items purchased inside the state if sales tax was not paid at the time of purchase. If you purchase an item from an out-of-state vendor for use in Mississippi and the vendor does not collect the Mississippi sales or use tax, you must pay the use tax directly to the Mississippi Department of Revenue.
Use tax protects Mississippi vendors from unfair competition from out-of-state sellers, since the Mississippi merchant is required to collect sales tax when selling to a resident or business. All states that have a sales tax have a use tax.
Inventory purchased for resale may be purchased tax-free. Use tax is due on the cost of inventory that is withdrawn from stock and used for personal or business purposes.
The use tax is calculated at the same rate as the sales tax would be if the item is subject to sales tax.
All purchases of tangible personal property from outside the state, which would be subject to the sales tax if purchased in Mississippi, are subject to use tax. Some examples include, but are not limited to, computers, electronic equipment, clothing, jewelry, software, sporting goods, appliances, and furniture whether these items were purchased by mail order, catalog, shopping networks, or over the internet.
Yes. The retail sale of goods made over the Internet that are delivered into Mississippi from an out-of-state seller are treated the same as the retail sale of tangible personal property made through more traditional means.
No, ITFA prohibits new taxes imposed on internet access fees. Mississippi does not tax internet access fees.
If the retailer is located out-of-state and does not have a physical location or other type of physical presence in the state, the state cannot require the retailer to collect Mississippi's tax. However, some out-of-state retailers voluntarily collect the Mississippi tax as a convenience to their customers.
Effective July 1, 2018, businesses located out of the state that have sales into the state of Mississippi that exceed $250,000 over any twelve month period are considered to have substantial economic presence in the state and are required to register with the Mississippi Department of Revenue in order to collect and remit tax.
Items of tangible personal property purchased in another state for use, storage or consumption in Mississippi are subject to Mississippi use tax. Credit is allowed for sales tax paid to another state if you took possession of the property in the other state prior to bringing that item into Mississippi. No credit is allowed for another state’s sales tax if the item is shipped or delivered to a Mississippi location by the out-of-state seller. No credit is allowed for sales or use taxes paid on the purchase of automobiles, trucks, trailers, boats, motorcycles and all terrain cycles brought into Mississippi for first use in Mississippi. (First use is when the vehicle is first tagged or registered.)
You may not claim a credit for tax paid to another country.
All shipping and handling, transportation, and delivery charges that are connected with the sale of tangible personal property are subject to use tax.
Use tax returns are due the 20th day of the month following the reporting period. If a due date falls on a weekend or legal holiday, the due date becomes the next business day.
Yes, online filing for sales and use tax is available. You may register to file online through TAP on the Mississippi Department of Revenue website. Payments of tax are made electronically by ACH Debit.
Online filing is free of charge. All that is needed to file your return is a computer, internet access and your bank account information.
The Mississippi Department of Revenue annually reviews the tax liabilities of all active accounts. Filing frequencies are adjusted as necessary. Taxpayers are notified of the change in status. If the annual total payment is less than $3,600.00, quarterly returns can be filed. If the annual remittance is more than $3,600.00, monthly returns are required.
Yes. Every business registered for use tax is required to file a return even though no sales/purchases were made during the period covered by the return.
Every business registered for use tax must file returns with the Mississippi Department of Revenue each reporting period even if you had no use tax liability for that period.
Yes, a return is considered to have been filed with the Mississippi Department of Revenue on the date shown by the Post Office cancellation mark stamped on the envelope.
Accelerated payments are required to be filed each June by taxpayers whose total average use tax liability exceeds $20,000 per month for the preceding calendar year. Accelerated payments must be received by the Mississippi Department of Revenue no later than June 25 in order to be considered timely made.
No, you may report use tax for all locations in the state through one account.
Individuals who are not registered to regularly report use tax may pay on taxable purchases at the county Tax Collector’s offices or at any of the Mississippi Department of Revenue District offices. Alternatively, individuals who owe use tax may report purchases subject to Mississippi use tax on their Mississippi individual income tax returns and pay the use tax with their income taxes.
Persons who purchase vehicles, which will be first registered and used in this state, from dealers located in other states (and these dealers are not registered with the Mississippi Department of Revenue) are liable for the payment of use tax at the same rate and on the same basis as sales tax. The Mississippi Use Tax is payable to the county Tax Collector if not previously paid to an authorized out-of-state dealer at the time of purchase. Credit for another state’s sales tax paid to a dealer in another state is not allowed against Mississippi Use Tax due on automobiles, motor homes, trucks, truck-tractors and semi-trailers, trailers, boats, travel trailers, motorcycles and all-terrain cycles.
Persons who purchase boats or airplanes from dealers in other states for use in Mississippi are required to pay Mississippi Use Tax on the purchase. (The rate is 7% for boats and 3% for airplanes.) The use tax may be paid at your county Tax Collector’s office or at one of the Mississippi Department of Revenue District offices. Individuals purchasing boats or planes from a non-dealer in another state are not subject to Mississippi sale or use tax. Businesses purchasing boats or planes from a non-dealer in another state are subject to Mississippi use tax on the purchase. Businesses are entitled to a tax credit equal to the applicable rate in the state of last use multiplied by the value of the property at the time it is brought into this state.
Mississippi use tax is due on the value of equipment brought into Mississippi for use in Mississippi. The use tax is at the same rate as sales tax and is computed on the fair market or net book value of the property at the time it is brought into the state.
Except for automobiles, motor homes, trucks, truck-tractors and semi-trailers, trailers, boats, travel trailers, motorcycles and all-terrain cycles first used in this state, credit for sales, use and local sales or use tax levied under the authority of another state in which the property was acquired or used may be computed by applying the rate of sales, use and local sales or use tax paid to another state to the value of the property at the time it enters Mississippi.
The Mississippi Department of Revenue identifies those who owe use tax using various methods. These include routine audits, complaints, and by obtaining lists of out-of-state purchases through the cooperation of vendors and taxing authorities in other states.
Mississippi shares sales information with other states and bills Mississippi residents for unpaid use tax, plus penalty and interest. Mississippi encourages out-of-state businesses to register and collect the tax voluntarily as a convenience to their customers. The Mississippi Department of Revenue has authority to assess customers directly for any use tax due if the seller is not registered to collect Mississippi tax.
Effective July 1, 2018, businesses located out of the state that have sales into the state of Mississippi that exceed $250,000 over any twelve month period are considered to have substantial economic presence in the state and are required to register with the Mississippi Department of Revenue in order to collect and remit tax.
Corporate Income and Franchise Tax
All corporations, associations, or entities doing business, earning income, or existing in Mississippi are required to file a corporate income and franchise tax return. Every corporation, domesticated or qualified to do business in Mississippi must file a return even if the corporation is inactive or not engaged in business.
A franchise tax is imposed on corporations for the privilege of doing business in the State of Mississippi. Franchise tax is due annually as long as the corporation remains incorporated, domesticated, or continues to do business in Mississippi.
The minimum franchise tax due is $25.00.
Franchise tax is not based on whether or not a corporation is a franchise; it is a business tax imposed on every corporation for the privilege of doing business in Mississippi.
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For tax years beginning on or after January 1, 2022, but before January 1, 2023, Franchise tax is computed at $1.50 per $1,000 (or fraction thereof ) of the value of the capital employed, in excess of $100,000 or the assessed property values in this state, whichever is greater. In no case shall the franchise tax computed be less than $25.
For tax years beginning on or after January 1, 2023, but before January 1, 2024, Franchise tax is computed at $1.25 per $1,000 (or fraction thereof ) of the value of the capital employed, in excess of $100,000 or the assessed property values in this state, whichever is greater. In no case shall the franchise tax computed be less than $25.
For tax years beginning on or after January 1, 2024, but before January 1, 2025, Franchise tax is computed at $1.00 per $1,000 (or fraction thereof ) of the value of the capital employed, in excess of $100,000 or the assessed property values in this state, whichever is greater. In no case shall the franchise tax computed be less than $25.
The corporation must use the ending year balance sheet to compute franchise taxes as of the accounting year end for the corporation.
Mississippi has a graduated income tax rate and is computed as follows:
0% on the first $5,000 of taxable income.
4% on the next $5,000 of taxable income.
5% on all taxable income over $10,000.
No, Mississippi does not have a minimum corporate income tax.
Yes, every corporation and pass-through-entity (PTE) with an annual income tax liability in excess of $200.00 is required to make estimated tax payments. Payments should be made separately for each entity.
Yes, estimated payments can be submitted through Taxpayer Access Point "TAP".
Late Payment: Interest and penalty are charged on taxes paid late even if an extension of time to file is granted. The interest is assessed from the due date until paid and is computed at the rate of ½% per month. The penalty imposed for failure to pay the tax when due is ½% per month not to exceed 25% in the aggregate.
Late or Non-Filer: Penalties are also imposed for failure to file a return when due on the total amount of the tax deficiency or delinquency. The penalty is 5% per month not to exceed 25% in the aggregate. Such failure to file a return penalty shall not be less than $100 for income tax.
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You can register online through TAP or call 601-923-7700 to request a paper application.
The Department of Revenue assigns account numbers to all tax accounts. When registering for a tax account, you will be asked to provide your federal employment identification number (“FEIN”) as identifying information.
Yes, returns and payments may be submitted electronically through an e-file software provider or preparer. Return, billing, audit and estimate payments can be made online through TAP as well.
The Mississippi Department of Revenue accepts the following types of payments :
- You can make estimate payments, or payments for tax returns, billings or audits through your TAP account. There are no fees. You may make estimate payments without creating a TAP account. Go to TAP and select "Make an Estimate Payment" found under the "I want to..." section from the TAP homepage.
- Pay by credit card or e-check. Go to www.ms.gov/dor/quickpay. There is an additional convenience fee charged by NIC Mississippi
The C Corporation income and franchise tax return is due on or before the 15th day of the 4th month following the close of the taxable year. PTE returns are due on or before the 15th day of the 3rd month following the close of the taxable year. Mississippi will follow federal return filing and extended filing due dates.
Taxpayers requesting an extension of time must remit the tax due with the proper Mississippi Application for Extension on or before the due date of the return to receive an automatic extension of time to file their tax returns. The authorized extension of time to file does not extend the time for payment of the income or franchise tax due. The federal extension will be accepted in lieu of the Mississippi extension if no tax liability exists on the due date of the return.
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General tax questions that do not address confidential tax information filed with the Mississippi Department of Revenue may be discussed with anyone. However, confidential tax information such as payments received, returns, adjustments, and extensions filed, can only be discussed with an officer of the company, the preparer, or a person who has a Mississippi Power of Attorney on file with the Department.
For information contact the Mississippi Secretary of State at 601-359-1633 or visit www.sos.ms.gov.
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If the corporation is registered with the Mississippi Secretary of State, then the taxpayer should withdraw or dissolve the corporation through the Secretary of State. To complete the withdrawal process, a final return must be filed with the Mississippi Department of Revenue. The taxpayer must ensure that the corporation does not have any Mississippi assets in order for the final return to be valid.
A complete amended return must be filed using the same forms as originally filed. The amended return check box must be checked on the form. Also, any documentation supporting the adjustments must be included with the amended return.
A taxpayer may amend a return filed at any time within three (3) years from the due date, or if an extension of time to file was granted, three (3) years from the extended due date.
To obtain a Certificate of Good Standing, you would need to contact the Secretary of State’s office at (601) 359-1633. The Department of Revenue does not issue letters of good standing.
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Yes, every corporation domesticated or qualified to do business in Mississippi must file a return even though the corporation is inactive or does not have any Mississippi assets. A corporation remains subject to the filing requirements until such time as the corporation is officially dissolved or withdrawn through the Secretary of State.
Yes,a final return must be filed with the Mississippi Department of Revenue.
The “Final Return” check box must be checked on the face of the corporate return filed.
For Mississippi income tax purposes, nexus is defined as the operation of any enterprise or activity in Mississippi for financial profit or economic gain. For a list of examples of what constitutes nexus, see Mississippi Income Tax Regulation Title 35 Part III Subpart 08 Chapter 06. The Department has a nexus questionnaire that may be requested to determine nexus in the state.
Yes, having an employee in Mississippi creates nexus.
A Mississippi combined income tax return includes two (2) or more members of an affiliated group of corporations that are taxable in Mississippi and where one or more member(s) of the combined group is taxable in another state. While each member will compute its Mississippi taxable income (or loss) on a separate basis, the net business income (or loss) so computed for each member shall be combined to determine the net business income (or loss) of the affiliated group of corporations.
No, Mississippi law does not authorize combined reporting for franchise tax; therefore, separate returns are required of all subsidiary corporations qualified to do business in Mississippi or which are, in fact, doing business in Mississippi. The reporting corporation must file a return that includes its franchise tax and the combined group income (or loss). However, the reporting company in a combined group can make a payment toward the members’ franchise tax liability using the Mississippi Application for Extension Form 83-180. When making electronic payments through TAP, the payment must be made separately for each company.
Yes, if a state does not require a corporation to file an income tax return then those sales generated in that state's jurisdiction must be included in the Mississippi numerator of the sales factor.
If a return was filed, send a copy of the return and if tax paid, a copy of the front and back of the cancelled check along with and a copy of the failure to file notice to P.O. Box 1033, Jackson, MS 39215-1033. If a return was not filed, then submit return and payment (if applicable) to P.O. Box 23191, Jackson, MS 39225-3191.
The annual report is filed with the Mississippi Secretary of State’s office and is due by April 15th. Payments can be received electronically or mailed to: Mississippi Secretary of State; Business Service; 125 S. Congress Street, Jackson Ms 39201. For more information, please contact the Mississippi Secretary of State’s office at (601) 359-1633.
In order for a company to be reinstated, all corporate tax returns, outstanding tax liabilities, penalties, and interest must be filed and paid for all tax types with the Mississippi Department of Revenue. A tax clearance letter must also be requested and submitted to the Secretary of State in order to be reinstated. A tax clearance letter can be requested through TAP or through mail by an officer or authorized representative.
Mississippi law requires the Department of Revenue to notify the Secretary of State when a taxable entity fails to pay and/or file any Franchise Tax return.
A domestic or foreign limited liability company (“LLC”) is classified as an entity for purposes of Mississippi income tax laws in the same manner as the entity is classified for federal income tax purposes. If an LLC is treated as a partnership for federal income tax purposes, it will file as a pass-through entity for Mississippi purposes. If an LLC is treated as a corporation for federal income tax purposes, it will file as a corporation for Mississippi income and franchise tax purposes.
S Corporations file as a pass-through entity (PTE) for Mississippi purposes. The income tax is filed and paid by the shareholder on their Mississippi individual income tax return. However, a non-resident with no other interest in Mississippi may elect to file a PTE composite return; as a result, the income will be taxed and paid at the entity level. Once the election to file a composite return is made, the taxpayer must continue to file in this manner. All S Corporations are subject to franchise tax which is taxed and paid at the entity level.
In making a claim for a NOL deduction, the taxpayer must file with its amended tax return a concise statement setting forth all material and pertinent facts related to the amended return; including Form 83-155 – Mississippi Corporate NOL and Capital Loss Worksheet. If more than one NOL is being utilized, the worksheet must be submitted for each loss year individually.
For non-business income, Form 83-150 must be attached to the Mississippi return stating the nature and/or source of the non-business income or loss. A statement must be included to outline the reasons that the income, loss, expenses, or deductions is being allocated. Wholly passive investment income from outside of Mississippi will be considered only with an attached detailed explanation.
If you are filing an amended return due to an IRS audit, the Revenue Agent Report (RAR) must be included with the Mississippi amended return. There is no penalty charged on the additional balance of tax due if the amended return is filed within 30 days of closing with the IRS. If you are amending your state return as a result of an amended federal return, the amended federal 1120-X must be filed with the Mississippi amended return. If the taxpayer files consolidated for federal purposes, a proforma amended federal return should be filed, as well as, the amended consolidated federal return. Furthermore, a complete amended return must be filed using the same forms as originally filed. Any other documentation supporting the adjustments must also be included with the amended return.
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No, Mississippi did not adopt the IRS’s claim or right doctrine.
A federal election to be treated as a QSSS is considered an election for Mississippi purposes, and as such, the QSSS will be treated the same for state income and franchise tax purposes. The reporting company must file a corporate tax return on behalf of the QSSS.
For tax years beginning after December 31, 2022, expenditures for business assets that are qualified property or qualified improvement property shall be eligible for one hundred percent (100%) bonus depreciation and may be deducted as an expense incurred by the taxpayer during the tax year in which the property was placed in service. For more information, please see the Depreciation Notice.
No, on Mississippi Form 83-155, the taxpayer is required to carryback the Mississippi net operating loss (NOL) two (2) years regardless of the federal election; however, a state election can be made to forego the carryback and to carryforward the NOL for state purposes. Once this election is made it cannot be revoked.
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Mississippi has its own provision for NOLs and will not follow the federal provisions. For further information on the TCJA, see the Tax Effects From The Tax Cuts and Jobs Act Notice 80-19-001 dated January 28,2019 on the website.
Yes, Mississippi will follow the IRS electronic paid preparer signature requirements.
Yes, the state return filing period must be the same as the return period filed for federal purposes.
Interest on the obligations of the United States, its instrumentalities, its possessions or upon securities issued under authority of an act of Congress is wholly exempt from tax. The term "obligations of the United States" means any United States Government obligation used to finance the national debt, e. g. U.S. Treasury Securities such as notes, bonds or certificates, U.S. Treasury bills or other instruments acknowledged by the U.S. Secretary of Treasury as an obligation of the United States.
The following types of taxes must be added back to federal taxable income for Mississippi purposes: federal and state (excluding Mississippi) income taxes; any taxes based on or measured by net income; estate and inheritance taxes; gift taxes; and cigar and cigarette taxes, gasoline taxes, and sales and use taxes if not included in business gross income, or if not incurred as an item of expense in a trade or business.
No, Mississippi has not adopted UDIPTA.
No, although Mississippi is an associate member of the Multistate Tax Commission, Mississippi did not enact the Multistate Tax Compact into our State laws.
For more information on available incentives and credits, see the Mississippi Tax Incentives, Exemptions and Credits Booklet which can be found under the “Publications” tab and by clicking on the “Tax Incentives” link.
No, Mississippi does not allow federal income tax as a business expense deduction.
Every partnership, domestic or foreign, deriving income from property owned within the state of Mississippi, or business, trade, profession or occupation, carried on within the state shall make a return for each taxable year. The individual partners are subject to tax upon their distributive share of the partnership net income (loss). The partnership net income (loss) shall be computed in the same manner and on the same basis as the net income (loss) of an individual. Deductions for contributions or gifts are allowed to the partners on their individual return.
Tax exempt status, i.e. 501 (c) (3), is obtained through the IRS.
Withholding Tax
Each employee must provide you with a completed and signed Form 89-350. Mississippi Employee's Withholding Exemption Certificate. You should use these forms along with the tax tables to determine how much Income Tax should be withheld from each employee’s paycheck.
Employees may change their Mississippi and Federal withholding tax rates by completing a new Mississippi Form 89-350 and Federal Form W-4.
Contact the Withholding Tax Division at (601) 923-7088 or your local district office. You will need to provide the employer’s name, address, phone number and number of employees.
You must withhold as if the employee is single with no exemptions.
No, however, if you believe that the amount of allowances claimed by an employee is greater than the amount to which the employee is entitled, you should advise the Department of Revenue. If the employee claims more than 10 allowances or claims “exempt” for withholding and the wages normally exceed $200 per week, you must submit a copy of the employee’s withholding certificate to the Department of Revenue.
Yes, a resident of Mississippi is subject to Mississippi income tax on all of his/her wages whether he/she works in Mississippi or in another state. If the other state has an income tax, the Mississippi resident will have to file a non-resident return in the other state and pay income tax to that other state. The employer should withhold taxes for the other state’s income tax not Mississippi. When the employee files their Mississippi resident Individual Income Tax Return, a credit for the taxes paid to the other state can be taken.
In order to take the credit, a copy of the income tax return filed with the other state must be attached to your Mississippi income tax return. The tax credit allowed is not a dollar for dollar credit. The withholding amounts shown on your W-2 forms are not the same as the actual tax paid to the other state. As a result, copies of your withholding statements are not sufficient to establish the credit. For additional information, you may refer to Income Tax Instructions, Form 80-100.
Yes, a non-resident employee is subject to Mississippi income tax on his/her salary for work performed in this state. Employers must withhold Mississippi income tax from all wages earned by non-resident employees for services performed in Mississippi unless their Mississippi earnings for the year will be less than their standard deduction amount for their filing status. Non-resident employees with wages greater than their standard deduction amount are required to file a Mississippi Non-Resident Individual Income Tax Return.
No, you must contact your employer who issued the W-2 for a duplicate copy.
You should reimburse your employee for the taxes withheld in error and file an amended return(s) for each month/quarter affected. Once the amended return(s) are processed, the overpayment may be used as a credit against the tax due on your next return or you may apply for a refund.
You should provide each employee with a statement showing the amount of wages and state income tax withheld. This is usually provided on the Federal Wage and Tax Statement W-2. A copy of the W-2 should also be sent to the Department of Revenue. Information on how to submit W-2s to the Department can be found on our Withholding Tax webpage.
The difference between an employee and an independent contractor is based on the degree of control and independence the worker has on the services being provided. The Department of Revenue relies on federal rules to determine if the person providing the services is an employee or an independent contractor. This information can be found on the IRS website.
In most situations yes; however, under federal law, a Native American living and working on an Indian Reservation in Mississippi is exempted from Mississippi Income Tax on the income earned on the reservation. As a result, no withholding is required. The employer must have the Mississippi Affidavit for Reservation Indian Income Exclusion From Mississippi State Income Taxes, Form 80-340 to be completed by the employee and must maintain the form to support the exempt status of the employee.
No, retirement income, pensions, annuities are not subject to Mississippi Income Tax.
No, domestic help in the home is exempt from the Withholding Tax requirements.
No, Section 125 Cafeteria Plans are considered pre-tax and thus not subject to withholding.
Corporation officers are considered employees of the corporation. Payments for services performed for the corporation are subject to withholding (whether S corporation or C corporation). True dividends, usually paid no more than once a year, are not subject to withholding.
Yes, severance pay is taxable to the recipient.
If supplemental wages such as commissions, bonuses, or overtime pay are paid at the same time as the employee's regular wage, the amount of tax withheld should be based on the total of the regular and supplemental wages.
All tips are subject to Income Tax. Tips paid by the customer to the employee are not subject to Withholding Tax. Tips paid by the customer to the employer who then distributes them to the employees are subject to withholding.
Yes, wages paid for work performed by family members are subject to withholding. This includes your spouse, parent, siblings, and children under the age of 18.
Filing Returns
A Federal Form W2-C must be filed to amend an originally filed W-2. A copy of the W-2C must be filed with the Department of Revenue.
Yes, Mississippi requires a copy of the Form W2-C if there is a change in the Mississippi wages and/or withholding. W-2Cs must be submitted in the same format that the original W-2s were submitted in.
Withholding returns are due the 15th day of the month following the period. If a due date falls on a Saturday, Sunday, or legal holiday, the due date will fall on the next business day.
Withholding Tax returns are filed monthly or quarterly depending on the average amount of tax you withhold each month. You will be notified of your filing status. Generally, every employer with average liability of $300 or more per month must file a monthly tax return. Employers with smaller tax liabilities may file quarterly returns.
All W2s filed electronically are due on or before January 31.
All 1099s filed electronically and paper forms with the Annual Information Return Form 89-140 are due on or before February 28th. The Annual Information Form should only be filed with paper 1099 forms.
No, Mississippi does not grant extensions for filing W-2s.
There is a 10% penalty for the late payment of the tax due plus interest at the rate of 1/2% per month from the date the tax was due.
Mississippi uses the Federal forms which you can get from the Internal Revenue Service.
Yes, you will need to file a zero return in order to avoid receiving a delinquent notice for failure to file. You should file a zero return and submit the return on or before the due date.
To correct an error, you can amend your return in TAP by selecting the period in question and then choose “ File or amend a return” under “I want To”. Complete the form the way it should have been filed. The amended return will replace the original that was filed.
No, tax withheld must be paid directly to the Department of Revenue when it is due.
No, you should contact the employer who issued the W-2 for a duplicate copy.
TAP is available to file W-2s.
Employers that issue 10 or more W-2s are required to submit those electronically to the DOR. The taxpayer may be subject to penalties if they issue more than 10 W-2s and do not file as required. You can manually enter or upload your W-2s on TAP. Log into TAP, under “I want To” select the “More” tab and under “Other” select “Submit W2/W2-C Returns”. All employers, regardless of the number of returns, are encouraged to utilize the system to electronically enter and submit return information. Additional information can be found here.
Withholding information (W-2s) must be submitted using the Social Security Administration EFW2 format. For more information on how to create a file using QuickBooks, see the FAQs in Publication 89-145,Procedures and Specifications for Filing Wage and Tax Information Electronically.
You are required to report any income that that exceeds $3,000 annually for salaries, fees, commissions, prizes, bonuses and other income from personal services, or where payments exceed $600 annually in dividends, interest, rents, royalties, annuities, pensions premiums, corporate liquidations and other fixed income.
Employers that issue 10 or more 1099s are required to electronically submit those through TAP. The taxpayer may be subject to penalties if they issue more than 10 1099s and do not file as required. Logon to TAP, under “I Want To” select the “More” tab and under “Other” select “Submit 1099 Returns” and follow instructions to manually key or attach a 1099 file. All employers, regardless of the number of returns, are encouraged to utilize the system to electronically enter and submit return information. A copy of Federal Form 1099 MISC is used for reporting Mississippi miscellaneous income for employers that issue less than 25 forms.
You must keep a complete copy of all records pertaining to your business for a minimum of three (3) years. The required records include but are not limited to:
- All payroll and withholding information
- A listing of who is employed by the month, week or day
- Salaries paid
- Employees' social security numbers and home addresses
Your records must be kept in a place and manner that is easily accessible for review by the Department of Revenue.
Registration and Updating Account Information
Every employer engaged in business, licensed to do business, or transacts business in Mississippi or who pays wages to a Mississippi resident (regardless of where the services are performed), or pays wages to a non-resident (persons domiciled outside of Mississippi ) for services performed in Mississippi must register for a Withholding Tax account. Register online through the Taxpayer Access Point. Go to TAP and select "Register Now."
Please allow up to 10 business days for the completion of the Withholding account registration.
You will receive a letter including information about Withholding Tax, due dates and filing requirements.
No, Mississippi issues a unique eight-digit number to identify each tax account. Your FEIN is used in the registration process to identify the taxpayer entity.
FEINs are issued by the Internal Revenue Service (IRS). Information on how to apply for a FEIN can be found on the IRS website at www.irs.gov.
All taxpayers are encouraged to file and pay electronically through TAP. Withholding taxpayers with a liability of $20,000 or more for any reporting period are required to file and pay electronically. A tax return must be filed for each reporting period even if no tax is due.
Bulk filing through the Federal/State Employment Taxes (FSET) program is also available. If you use a software package, it is likely that your software has the capability to transmit returns and payment information to the Department of Revenue in bulk through the FSET program. If you file using FSET, you will not need to use TAP to file and pay. Contact your software provider to see if bulk filing through FSET is available.
If your Federal identification number changes, you need to apply for a new State Withholding Tax account by filing the registration application.
No, you must register for a new withholding account. It is your responsibility to notify the Department of Revenue of any changes related to your business including changes in your address, changes in corporate officers, or changes in ownership.
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Yes, you must register for a new withholding account. It is your responsibility to notify the Department of Revenue of any changes related to your business including changes in your address, changes in corporate officers, or changes in ownership.
No. However, you should advise the DOR in writing of the details and the date the changes were made.
Yes, non-profit organizations, such as charitable, religious and governmental organizations, are required to withhold Mississippi Income Tax.
A final return must be filed in order to close your withholding account. You must also submit an account closure request by logging on to TAP and selecting "Close This Account" under "I Want To" and then select the "More" tab. If you are not able to submit a request online, you may fax a signed written request to the Withholding Division at (601) 923-7188. If sending a fax, the account closure request must include the following:
- The name, FEIN and reason for closing the account
- If the account is being closed due to the company being sold, you must include the new owner’s name, address and FEIN (if applicable)
- The specific date that the last wages were paid to employees in Mississippi
- Your contact information in the event that there is a problem closing the account
If you are not closing your business but no longer have employees, you may continue to file zero returns or request that your account be closed. However, you would need to file W-2s for any wages paid during the year.
You can change your address or other information by logging in to TAP and follow the instructions for updating your account information. If you are not able to update your information online, you may fax a request on your letterhead showing the name, FEIN, current address and new address to the Withholding Division at (601) 923-7188.
Withholding - Other
For questions concerning unemployment tax, please contact the Mississippi Department of Employment Security at (601) 321-6000 or toll free at 1-888-844-3577. Information can also be found on their website at www.mdes.ms.gov.
For questions concerning workers' compensation, please contact the Mississippi Workers’ Compensation Commission at (601) 987-4200. Information can also be found on their website at www.mwcc.ms.gov.
For information on social security taxes, please contact the Social Security Administration at 1 (800) 772-1213 or online at www.ssa.gov.
Gasoline and Petroleum Tax
Automotive Gasoline is taxed at the rates as follows:
- 18 cents through June 30, 2025
- 21 cents from July 1, 2025 through June 30, 2026
- 24 cents from July 1, 2026 through June 30, 2027
- 27 cents from July 1, 2027 forward
- Beginning July 1, 2029, and July 1 of every other year thereafter, the tax rate on gasoline, aviation, undyed diesel, dyed diesel, kerosene, fuel oil and jet fuel excise tax shall be adjusted by the percentage change in the yearly average National Highway Construction Cost Index (NHCCI) issued by the U.S. Federal Highway Administration (FHWA) for the most recent twelve-month published period ending December 31, compared to the base year average (12 month period ending December 31, 2025). The adjustment is rounded to the nearest whole cent with a maximum of one cent (1 cent) per net gallon. DOR shall notify licensed distributors of the tax rate adjustment before March 1 of each year.
Yes. An Environmental Protection Fee of four tenths (4/10th) of one cent per gallon is imposed on gasoline, aviation gasoline, diesel fuel, jet fuel and fuel oil.
Dyed diesel is taxable at a rate of five and three fourths (5 3/4th) cents per gallon.
Undyed diesel is taxed at the rates as follows:
- 18 cents through June 30, 2025
- 21 cents from July 1, 2025 through June 30, 2026
- 24 cents from July 1, 2026 through June 30, 2027
- 27 cents from July 1, 2027 forward
- Beginning July 1, 2029, and July 1 of every other year thereafter, the tax rate on gasoline, aviation, undyed diesel, dyed diesel, kerosene, fuel oil and jet fuel excise tax shall be adjusted by the percentage change in the yearly average National Highway Construction Cost Index (NHCCI) issued by the U.S. Federal Highway Administration (FHWA) for the most recent twelve-month published period ending December 31, compared to the base year average (12 month period ending December 31, 2025). The adjustment is rounded to the nearest whole cent with a maximum of one cent (1 cent) per net gallon. DOR shall notify licensed distributors of the tax rate adjustment before March 1 of each year.
Dyed diesel is diesel fuel that is dyed in accordance with U. S. Environmental Protection Agency or Internal Revenue Service rules.
Persons using dyed diesel in a motor vehicle are subject to a penalty of one thousand dollars ($1,000.00) and may be assessed the applicable tax.
The Mississippi Petroleum Tax Laws do not provide for refunds or credits of taxes paid on highway use diesel fuel that is subsequently converted to non-highway use.
Yes, on gasoline only. Hancock County, Harrison County and Jackson County levies 3 cents per gallon tax which is known as the "Seawall Tax" on the gasoline sold in those counties.
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No, motor fuels are exempt from sales tax in Mississippi.
All diesel fuel used in performing a contract for construction, reconstruction, maintenance or repairs with the State of Mississippi, any county, municipality or agency, department or political subdivision is taxable at the rates as follows:
- 18 cents through June 30, 2025
- 21 cents from July 1, 2025 through June 30, 2026
- 24 cents from July 1, 2026 through June 30, 2027
- 27 cents from July 1, 2027 forward
- Beginning July 1, 2029, and July 1 of every other year thereafter, the tax rate on gasoline, aviation, undyed diesel, dyed diesel, kerosene, fuel oil and jet fuel excise tax shall be adjusted by the percentage change in the yearly average National Highway Construction Cost Index (NHCCI) issued by the U.S. Federal Highway Administration (FHWA) for the most recent twelve-month published period ending December 31, compared to the base year average (12 month period ending December 31, 2025). The adjustment is rounded to the nearest whole cent with a maximum of one cent (1 cent) per net gallon. DOR shall notify licensed distributors of the tax rate adjustment before March 1 of each year.
Any person producing, using, storing or selling bio-diesel or bio-fuel in Mississippi is subject to the provisions of the Mississippi Special Fuel Tax law and is required to obtain a Special Fuel Distributors Permit, file monthly Special Fuel Tax and Environmental Protection Fee returns and pay the applicable taxes due. This applies to persons producing bio-diesel or bio-fuel for their own use.
The tax rate on biodiesel is the same as petroleum diesel for biodiesel that does not meet the dyeing requirements prescribed by United States Environmental Protection Agency or Internal Revenue Service Regulations. The rate is 5.75 cents per gallon on biodiesel that is dyed in accordance with United States Environmental Protection Agency or Internal Revenue Service Regulations.
No.
Yes, the Mississippi levies a tax on all gasoline and “blend stock” stored, sold, distributed, manufactured, refined, distilled, blended or compounded in this state or received in this state for sale, use on the highways, storage, distribution or for any purpose.
Ethanol is taxed at the rates as follows:
- 18 cents through June 30, 2025
- 21 cents from July 1, 2025 through June 30, 2026
- 24 cents from July 1, 2026 through June 30, 2027
- 27 cents from July 1, 2027 forward
- Beginning July 1, 2029, and July 1 of every other year thereafter, the tax rate on gasoline, aviation, undyed diesel, dyed diesel, kerosene, fuel oil and jet fuel excise tax shall be adjusted by the percentage change in the yearly average National Highway Construction Cost Index (NHCCI) issued by the U.S. Federal Highway Administration (FHWA) for the most recent twelve-month published period ending December 31, compared to the base year average (12 month period ending December 31, 2025). The adjustment is rounded to the nearest whole cent with a maximum of one cent (1 cent) per net gallon. DOR shall notify licensed distributors of the tax rate adjustment before March 1 of each year.
Gasohol is a gasoline fuel that is blended with denatured ethanol. Typically gasohol is a blend of 10% denatured ethanol and 90% gasoline, but the blended amounts may differ.
- Gasohol is taxed at the rates as follows:
- 18 cents through June 30, 2025
- 21 cents from July 1, 2025 through June 30, 2026
- 24 cents from July 1, 2026 through June 30, 2027
- 27 cents from July 1, 2027 forward
- Beginning July 1, 2029, and July 1 of every other year thereafter, the tax rate on gasoline, aviation, undyed diesel, dyed diesel, kerosene, fuel oil and jet fuel excise tax shall be adjusted by the percentage change in the yearly average National Highway Construction Cost Index (NHCCI) issued by the U.S. Federal Highway Administration (FHWA) for the most recent twelve-month published period ending December 31, compared to the base year average (12 month period ending December 31, 2025). The adjustment is rounded to the nearest whole cent with a maximum of one cent (1 cent) per net gallon. DOR shall notify licensed distributors of the tax rate adjustment before March 1 of each year.
Mississippi’s fuel taxes are excise taxed levied upon a licensed distributor or anyone acting as such for the privilege of engaging in business as a distributor. All licensed distributors are required to file monthly tax returns and pay any taxes due.
Petroleum taxes are primarily for the support of Mississippi highway programs.
Failure to obtain a Mississippi Gasoline/Special Fuel Distributor License as required, subjects the distributor to seizure, confiscation, and possible forfeiture of the fuel.
Fuel tax evasion is the willful intent to evade or defeat the taxes imposed on petroleum products by the State of Mississippi.
It is taxable at a rate of five and three fourths (5 3/4th ) cents per gallon unless sold or used as a fuel in a motor vehicle.
Un-dyed kerosene used as fuel in a motor vehicle is taxable at the rates as follows:
- 18 cents through June 30, 2025
- 21 cents from July 1, 2025 through June 30, 2026
- 24 cents from July 1, 2026 through June 30, 2027
- 27 cents from July 1, 2027 forward
- Beginning July 1, 2029, and July 1 of every other year thereafter, the tax rate on gasoline, aviation, undyed diesel, dyed diesel, kerosene, fuel oil and jet fuel excise tax shall be adjusted by the percentage change in the yearly average National Highway Construction Cost Index (NHCCI) issued by the U.S. Federal Highway Administration (FHWA) for the most recent twelve-month published period ending December 31, compared to the base year average (12 month period ending December 31, 2025). The adjustment is rounded to the nearest whole cent with a maximum of one cent (1 cent) per net gallon. DOR shall notify licensed distributors of the tax rate adjustment before March 1 of each year.
Mississippi’s Petroleum Tax laws define racing gasoline as gasoline manufactured exclusively for use in racing and gasoline containing lead or having an octane of 105 or higher that is not suitable for use on the highways. It is not taxable under Mississippi’s Petroleum Tax laws.
Jet fuel is subject to an excise tax on five and one fourth (5 1/4th) cents per gallon under the provisions of the Mississippi Special Fuel Tax Law.
Yes, if you
• intend to receive, import, purchase, sell, blend, refine or distribute gasoline, diesel fuel, kerosene, fuel oil, jet fuel, compressed gas or lubricating oil in this State
• will be acquiring gasoline, diesel fuel, kerosene, fuel oil, jet fuel, compressed gas or lubricating oil in this State and using your own transport truck(s) to export it to another state. If you operate, in this State, a marine terminal or pipeline terminal where gasoline, diesel fuel, kerosene, fuel oil, or jet fuel are stored
• operate in this State an underground storage facility for compressed gas.
• produce bio-diesel (B-100) in this state or blend B-100 with petroleum diesel fuel.
No, if your sole activity in this State is the trading or exchange of product that is in transit through the interstate common carrier pipeline system. This includes products that are in temporarily stored at the Collins, Mississippi breakout storage facility.
Go to TAP to apply online.
Compliance
The Department of Revenue uses systematic methods and electronic data to evaluate and determine those taxpayers who are at potential risk for underreporting and/or underpaying sales, use, corporate, withholding taxes and all other taxes collected by the Mississippi Department of Revenue.
A Department of Revenue auditor contacts businesses/persons either by phone and/or by letter. Once initial contact has been established, discussions will follow regarding audit periods, accounting records, sampling the accounting records, and where the audit will be conducted. These discussions may be by phone or during a face-to-face meeting.
The Office of Audit and Compliance recognizes that many companies maintain their accounting records in electronic format. If any of the records can be provided electronically, the audit time at your business location may be substantially reduced. Furthermore, providing records in electronic format also reduces the risks associated with sampling and increases the accuracy of the audit.
It is not necessary for your accountant or attorney to be present during an audit. In order for the auditor to discuss the audit with a third party, the Department of Revenue requires you to authorize your representative by signing a power of attorney form. The form may be found on the Department of Revenue website or just click the link.
The length of time an auditor will be at your business depends on several factors, such as the complexity of the records. Department of Revenue audits are normally conducted at your business site, although other options are available. An audit can be conducted at the Department of Revenue office using electronic data provided by you or at your accountant’s office.
The Department of Revenue recommends that records be retained for a minimum of 4 years or as long as necessary to prove that a liability does not exist for periods under audit.
Yes, in some cases. Audit sampling generally benefits both the taxpayer and the Department of Revenue by reducing the time necessary to complete the audit and reducing your time and effort in retrieving documents for the audit.
Some factors that will affect the Department of Revenue’s ability to perform a sample of your records include the number of invoices and access to records.
An auditor will examine your federal income tax return to compare the information on the federal return with the state’s income and sales tax returns, and the sales recorded in your records. The depreciation schedule is also examined to determine if there were sales and purchases of fixed assets during the audit period.
The first step is to thoroughly discuss the audit findings with the auditor. We encourage you to ask the auditor questions concerning anything that is not clear to you. If you cannot come to an agreement, request a meeting with the auditor’s supervisor where you will be given the opportunity to explain your position, ask questions, and provide any additional documentation to support your position. If you still cannot agree with the audit results, you may appeal by requesting a hearing before the Review Board. You can find more information on this subject by reviewing the "Information Concerning Audit Procedures and Appeal Process" found on the Department of Revenue website.
If you are in agreement with the determined tax liability and desire to pay the agreed-upon amount, make a check payable to the Mississippi Department of Revenue and mail the check to the address indicated on your audit related correspondence.
If you agree with the determined tax liability, but are unable to pay, you may request an installment agreement. Our standard agreement for audit payment plans is one third down, and the remaining amount due in equal installments for a six month period.
If you do not agree with the determined tax liability, you may choose to not pay the audit or pay the audit under protest. If you choose not to pay, assessment notices will be mailed to your business address. You will be provided 30 days to pay or appeal the assessment. The 30-day time frame is initiated with the date of the assessment notice.
If you choose to pay the audit under protest, the interest will stop accruing on the date of your payment. If the Review Board, Commission, or a court of law rules in your favor, you will receive a refund of the amount paid. Paying the liability under protest has the advantage of stopping the accrual of interest if a decision favorable to the state is determined.
Yes, Mississippi has a voluntary disclosure program. You or your representative may contact the Office of Tax Administration for additional information.
Voluntary disclosure may help individuals, partnerships, and corporations that have not filed their required tax returns.
A taxpayer may request voluntary disclosure treatment by submitting a written request to:
The Office of Tax Administration
P.O. Box 1033
Jackson, MS 39215
Attn: Voluntary Disclosure
The request must include the following:
- the name, address and FEIN of the taxpayer;
- the types of tax involved and the date the taxpayer began business; a detailed description of the taxpayer’s activities in MS and the description of the product or service provided by the taxpayer;
- a detailed description of the taxpayer’s activities in MS and the description of the product or service provided by the taxpayer;
- an explanation of the taxpayer’s failure to file and pay taxes due; and
- a statement from the taxpayer that they have not been contacted by nor under investigation by the Department of Revenue concerning the tax liability.
The Department of Revenue may enter into an agreement with the taxpayer to limit the statute of limitations, waive penalties, and possibly reduce the number of returns that must be filed.
The Department of Revenue can go back as many years as the taxpayer had taxable business transactions or income. A number of factors are used to determine how many years to include in the Voluntary Disclosure. Such as what type of tax it is, has the taxpayer been collecting and not remitting, how long has the taxpayer been in MS, what type of activity has the taxpayer had in MS, etc. In the case of collecting and not remitting Sales Tax or Withholding Tax (Trust Fund taxes), the Department of Revenue will go back as far as when the taxpayer began collecting the tax.
A taxpayer must file all returns agreed upon within ninety days, pay all tax, late filing fees, and interest according to the agreement, file the current and any subsequent returns in a timely manner according to the agreement, and make books and records available to the Department of Revenue, upon request.
The Department of Revenue reserves the right to audit the facts given as part of the agreement, audit any returns filed, void the agreement if factual misrepresentations have been made by or on behalf of the taxpayer, and/or if the taxpayer fails to comply with any term(s) of the agreement.
If you believe someone is violating Mississippi tax laws, you may contact the Office of Audit and Compliance at 601-923-7301, or P. O. Box 1033, Jackson MS 39211. You may also send information from contact page on the Department of Revenue website.
Please provide as much detailed information as is possible. You must provide the name of the person or business you are reporting. You may include your name or you may remain anonymous. Following is a list of the types of information to provide us if you know it:
Current address of the person or business.
A detailed description of what you suspect (for example, not filing returns, receiving cash payments).
How you became aware of this problem.
Social security number of the person.
Type of tax not being paid (such as sales tax, income tax, withholding tax).
Name of the person's employer.
Because of the provisions contained in our disclosure laws, we are not allowed to divulge any information regarding our investigations to informants or anyone else not authorized to receive the information. We can assure you that we will review the information you provide and proceed with whatever action is warranted, either by pursuing a criminal investigation into the matter or by referring it for possible audit.
Mississippi law requires that all tax, financial and application information received by the Department of Revenue remain confidential and only used for official purposes. Any current or former Commission employee who makes or participates in an unauthorized disclosure of confidential tax information is subject to criminal penalties.
A tax lien is a legal claim the Department of Revenue records against your property to secure the payment of taxes that you owe. A lien is filed only after the liability has become finally determined. The lien is filed in the circuit clerk’s office of the county or counties where you have property. Once the lien is recorded, the Department of Revenue may issue a warrant to seize your wages, bank accounts and other assets.
Before a tax debt becomes finally determined, you are notified of the assessment and given an opportunity to appeal the assessment. Law requires that the Department of Revenue send notification of the assessment to the last known address of the person or business.
Yes if the liability has been finally determined and a tax lien has been recorded, the Department of Revenue can require your employer to garnish your salary until the liability is paid in full.
Yes. Individuals can be held personally liable for the tax debts of a corporation. Those individuals, corporate officers and/or shareholders, having control or supervision of, or charged with the responsibility of filing returns, making payments, or executing the corporation's fiscal responsibilities can be personally assessed for the outstanding tax debts of the corporation. The dissolution, termination or bankruptcy of a corporation or business will not discharge a responsible officer, employee's or trustee's liability.
Tobacco
The minimum age to legally purchase cigarettes or other tobacco products is 21 years.
There is not a law or regulation specifying an age limit for selling cigarettes or tobacco products.
The tax rate is 68 cents per pack of 20, or 85 cents per pack of 25 cigarettes.
Other tobacco products include cigars, smokeless tobacco, smoking tobacco, other forms of tobacco products, or products made with a tobacco substitute.
Other tobacco products are taxed at a rate of 15% of the manufacturer's list price.
Yes, you would be required to report your purchases to the Department of Revenue and pay applicable cigarette or other tobacco product tax and state and local sales/use taxes. Untaxed tobacco is considered contraband and subject to seizure and other penalties.
Yes, sales tax is due on the price of the cigarettes that includes the excise tax. Sales tax is due on the retail price of other tobacco products.
Yes, a permit is required to sell tobacco. You may apply for a permit online through TAP.