Please review the Mississippi Code and Mississippi Administrative Code when analyzing your tax responsibilities and requirements
ABC
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HB 1284 renames the “Mississippi Native Spirit Law” to the “Mississippi Native Spirit and Craft Spirits Law;” revises and defines specific terms; legalizes the manufacturing and sale of craft spirits; establishes that craft spirits are to be regulated in the same manner as native wine and native spirits; authorizes native distilleries and craft distilleries to have one permanent satellite tasting room sales location in any other location in the state that otherwise allows the sale of alcoholic beverages; and other related items. SB 2143 revises the definition of “qualified resort area” under the Local Option ABC Law and modifies the boundaries of a couple of existing resort areas and adds several others. This includes an area near Mississippi State University, but outside Starkville; Philadelphia County Club; Pontotoc Country Club; a plot of land in the southwest corner of Rankin County; the City of Poplarville; the Town of Mathison; and The Tabb House, a historical landmark being restored as an event center in the City of Houston. This bill also amends code to provide that a felony conviction, other than a crime of violence or a violation of state or federal controlled substance laws, does not automatically disqualify a person from being approved for an ABC permit. SB 2145 authorizes in-state and out-of-state wine manufacturers to sell and ship wine directly to consumers and fulfillment providers in Mississippi, if the winery obtains a direct wine shipper’s permit from DOR. SB 2555 authorizes any native winery to make sales to DOR or to consumers at one satellite location in the county of the native winery’s original location. SB 2851 amends that, where an on-premises retailer’s permit is issued to an establishment located in a qualified resort area, persons in the permitted premises are allowed to bring alcoholic beverages into the premises and allowed to possess, store, and consume those beverages in the premises; amends distance restrictions prohibiting the sale or storage of alcoholic beverages; eliminates the wine fulfillment provider’s permit provided for in SB 2145; and changes the penalty for violation of the direct wine shipment law from a misdemeanor to a civil penalty. |
Administrative Services |
HB 958 amends code to clarify that the provisions of this section shall not apply to any acquisitions made before 6/30/2024, by the DOR or Department of Health with regards to implementing, administering and enforcing the provisions of the Mississippi Medical Cannabis Act. Additionally, if all bids for a contract regarding information technology are rejected, then the authority may negotiate a contract with the lowest bidder (removes best bidder), as long as the cost does not exceed the lowest bid received. HB 1338 amends code to allow the use of specified, unmarked vehicles when identifying marks would hinder official investigations by a sworn law enforcement officer. Additionally, any authorization of unmarked vehicles under this code section, notwithstanding any other provision of law, shall only apply to vehicles used by sworn officers in the performance of their official duties. This bill also amends code to add felony penalties for impersonating a law enforcement officer. |
Business Tax |
HB 1 This bill revises various sections of law relating to income tax, sales tax, use tax, fuel excise taxes, and the Public Employees’ Retirement System (PERS). Sales & Use Tax the bill amends code to reduce the grocery tax to 5% from and after 7/1/2025 and to revise various sales tax diversion percentages for revenue collected from the sales of groceries. It also revises the distribution of use tax revenue due to the grocery tax reduction. Fuel Taxes the bill is an amendment to increase the excise tax on gasoline (previously 18¢ per gallon) as follows:
This bill also amends code to make the same excise tax rate revisions for special fuels such as diesel fuel and kerosine, and the bill specifies adjustments that should be made beginning 7/1/2029. This bill further amends code to provide for the apportionment of the revenue from the portion of the excise tax on gasoline and special fuels that exceeds 18¢ per gallon as follows:
HB 916 requires the DOR to establish directories for purposes related to regulating the sale of cigarettes and Electronic Nicotine Delivery Systems (ENDS) products. Beginning 9/1/2025, and on September 1st of each year thereafter, each cigarette manufacturer whose cigarettes are sold in MS must execute and deliver a certification to DOR certifying compliance with the provisions of this bill. Prior to 9/1/2025, and annually thereafter, every manufacturer of an ENDS product that is sold for retail sale or for sale to a consumer in MS must execute and deliver a certification to DOR certifying compliance with the provisions of this bill. Beginning 10/1/2025, DOR will publish and maintain the directories on DOR’s external website. HB 970 amends code to extend the date of the repealer to July 1, 2028, on the sales tax exemptions for sales of tangible personal property and services to the Mississippi’s Toughest Kids Foundation for use in the construction, furnishing and equipping of buildings and related facilities and infrastructure at Camp Kamassa in Copiah County, Mississippi. HB 1341 extends the repeal date of the exemption for sales of materials used in the construction of, or addition or improvements to, a health care industry facility and certain sales of machinery and equipment to be used in the facility. HB 1644 revises the definition of “equipment used in the deployment of broadband technologies” for purposes of the industrial sales tax exemption for sales of such equipment. Sales of the equipment must be made before 7/1/2030 for the sales tax exemptions to apply. HB 1896 imposes an excise tax on each person or dealer of kratom products upon the sale, use, consumption, handling or distribution in the State of Mississippi, at the rate of 25% of the manufacturer’s list price. SB 2266 requires that DOR publish a list of items eligible for sales tax exemptions or reduced sales tax rates for holders of a commercial farmer permit. DOR shall publish the list by 8/1/2025. SB 2805 amends code to provide that when a tax is levied and collected under the authority of a local and private law on the gross proceeds or gross income from room rentals of hotels or motels, the gross proceeds or gross income of persons facilitating the rental of rooms by hotels, as defined in Miss. Code Section 41-49-3(b), by listing or advertising the availability of such rooms and, either directly or indirectly through agreements or arrangements with third parties, collecting payment from the customer and transferring that payment to the hotel, will also be subject to tax under the local and private law. This bill further revises the definition of “hotel” in Miss. Code Section 41-49-3, for sales tax purposes. SB 2835 creates the Mississippi Emergency Communications Authority (MECA and/or authority) to work in cooperation with DOR and other state and local governments to create a technical and operational framework for implementing and operating an interoperable and interconnected NG911 public safety network. |
Human Resources |
HB 1 revises various sections of law relating to income tax, sales tax, use tax, fuels excise taxes, and the Public Employees’ Retirement System (PERS). Public Employees’ Retirement System (PERS) the bill creates a new tier in PERS for employees hired on or after 3/1/2026, which will have a defined benefit plan component and a defined contribution plan component meeting the requirements of Section 401(a) of the Internal Revenue Code. HB 565 amends code to allow that any agency wherein a full or part-time certified law enforcement officer resigns or is terminated, then, at that time, the agency shall notify the Board on Law Enforcement Officer Standards and Training in writing or email within 72 hours of such resignation or termination. HB 1063 this bill is known as the Mississippi State Employees Paid Parental Leave Act. Eligible state employees who are the primary caregivers of a child will be provided six weeks/240 hours of paid parental leave at 100% of the employee’s regular salary, to be used to care for the child after the birth or adoption of the child. This is in addition to other leave benefits available to the employee and shall not be counted against accrued personal leave or major medical leave. Eligible Employee – a person who has been a state employee for a minimum of 12 consecutive months and is the primary caregiver of a child. |
Information Technology |
HB 1491 establishes the Cloud Center of Excellence Act (CCOE) with the Mississippi Department of Information Technology Services (ITS) to serve as the centralized body within ITS, providing strategic guidance, best practices, governance frameworks and technical support for cloud adoption and management across state agencies. The CCOE is designed to facilitate the adoption and management of cloud computing across state agencies and governing authorities, aiming to enhance security, scalability and cost efficiency in statewide cloud operations. SB 2267 creates the MS Statewide Data Exchange Act, which requires the ITS to conduct a comprehensive study on the implementation of a statewide data exchange initiative. ITS will coordinate with state agencies to assess data-sharing needs, operational requirements and policy considerations. ITS shall also develop the data exchange and then phase in implementation to ensure a secure, cloud-based statewide data exchange platform that allows for interagency data sharing, while also complying with privacy and security standards. This bill also creates the Chief Information Officer Council to oversee, coordinate and provide strategic guidance for the data exchange initiative. |
Income Tax |
HB 1 revises various sections of law relating to income tax, sales tax, use tax, fuels excise taxes, and the Public Employees’ Retirement System (PERS). Income Tax the bill reduces income tax on individuals for taxable income in excess of $10,000 as follows:
This bill also provides a method for determining whether the income tax imposed on individuals for income in excess of $10,000 will be reduced below 3%. For the calendar year 2031 and any year thereafter, if the Working Cash-Stabilization Reserve Fund is fully funded, the income tax imposed on all taxable income in excess of $10,000 will be reduced by a percentage as indicated below, depending on the percentage by which the Adjusted General Fund Revenue Collections for a fiscal year (beginning with fiscal year 2029) exceed the Appropriations for the following fiscal year (beginning with fiscal year 2030):
The bill further provides definitions for “appropriations” and “cost of a 1% cut” for purposes of determining future income tax rate reductions. HB 961 reenacts code that provides an income tax credit for taxpayers that use port facilities at state, county and municipal ports for the export of cargo and extends the repealer to 7/1/2028. It also reenacts code that provides an income tax credit for certain taxpayers that use the airport facilities at public airports for certain charges paid by the taxpayer on the export or import of cargo and extends the repeal date to 7/1/2028. HB 972 amends code to extend the repeal date to 1/1/2029, for the income job tax credit for an enterprise primarily engaged in providing inland water transportation of cargo on lakes, rivers, and intracoastal waterways for each full-time employee of the enterprise in a MS full-time position. HB 1201 requires the DOR to work in conjunction with the Secretary of State’s office (SOS) to establish a program to provide tax incentives for taxpayers who develop blighted property in MS for the purpose of placing the property into use either as an owner-occupied dwelling or commercial building. HB 1644 revises the definition of “equipment used in the deployment of broadband technologies” for purposes of the income tax credit and corporation franchise tax credit available to telecommunications enterprises for investments made in such equipment before 7/1/2030, and for purposes of the ad valorem tax exemption for such equipment placed in service. |
Local
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The following local levies have had an extension of the repeal date to July 1, 2029:
HB 1777 authorizes the City of Ridgeland to levy a tax in the amount of 1% on the gross proceeds of all sales from restaurants, and a 2% tax on the gross proceeds of all sales from hotels and motels. The City of Ridgeland is required to hold an election as to whether or not such tax may be levied. HB 1961 authorizes the City of Verona to levy a tax of 3% upon the gross proceeds of sales of restaurants. The City of Verona is required to hold an election on the question of whether such tax may be levied. This bill shall stand repealed on 7/1/2029. HB 1997 extends the repealer date to 7/1/2029, for the City of Vicksburg to levy an additional sales tax on the gross sales of hotels and motels derived from room rentals and upon the gross proceeds of sales of restaurants. This bill also revises the definition of restaurant to exempt local nonprofit veteran organizations. SB 3059 extends the repealer date to 7/1/2030, for the City of Hattiesburg. SB 3060 extends the repealer date to 9/30/2030, for the City of Greenwood. SB 3265 authorizes the City of Water Valley to levy a tax of 1% upon the gross proceeds of all sales from restaurants. The City of Water Valley is required to hold an election on the question of whether such tax may be levied. This bill shall stand repealed on 7/1/2029. SB 3272 extends the repealer date to 10/1/2029, for Lauderdale County. |
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Medical
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HB 958 amends code to clarify that the provisions of this section shall not apply to any acquisitions made before 6/30/2024, by the DOR or Department of Health with regards to implementing, administering and enforcing the provisions of the Mississippi Medical Cannabis Act. Additionally, if all bids for a contract regarding information technology are rejected, then the authority may negotiate a contract with the lowest bidder (removes best bidder), as long as the cost does not exceed the lowest bid received. SB 2748 revises the definition of Mississippi Medical Cannabis Equivalency Unit (MMCEU) to provide that one unit of MMCEU is considered equal to one gram of total THC in a medical cannabis concentrate or one gram of total THC in an infused product. The bill also authorizes a health care practitioner to issue a written certification of a patient’s debilitating medical condition after a telemedicine evaluation for patients who are homebound or bedbound as certified by a practitioner with whom the patient has a bona fide practitioner—patient relationship within his or her scope of practice and is someone other than the practitioner making the written certification. The bill further prohibits an applicant for a medical cannabis establishment license from applying to a county or municipality for any action regarding zoning or permitting of a medical cannabis establishment until after the applicant has received a medical cannabis establishment license from the State Department of Health or the DOR as applicable. |
Motor Vehicle
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HB 920 allows the issuance of distinctive motor vehicle license tags for supporters of the following: The Declaration of Independence Center for the Study of American Freedom at the University of Mississippi; Mississippi Land Bank; Louisiana-Mississippi-West Tennessee District of Kiwanis International; National Guard Association of Mississippi; Mississippi College School of Law; and Magnolia Honeybee Education Exchange. This bill further authorizes the issuance of distinctive motor vehicle license tags to the following for an additional $30.00 fee.
This bill also extends the date within which the following organizations must satisfy the requirements for the issuance of a distinctive license tag to 7/1/2028.
HB 953 extends the repeal date on the provisions of law that provide for the maximum weight of harvest permit vehicles and to require certain harvest permit holders to get prior approval for their routes. Date is extended to 7/1/2028. SB 2052 allows a legal resident of MS who is rated as having 100% permanent service-connected disability by the Veteran’s Administration or United States Department of Veterans Affairs the ability to purchase a privileged tag under this section, to have the label “100% Disabled Veteran” or “Disabled Veteran” listed on the tag. SB 2803 requires an owner of an all-terrain vehicle, manufactured, assembled or first sold for use after 7/1/2025, to apply to the DOR for a certificate of title. This will include any dealer, acting for himself or another, who sells, trades or otherwise transfers any new or used all-terrain vehicles. The bill amends the definition of “motor vehicle” to include “all-terrain vehicle” which includes utility task vehicles, also known as side-by-sides, for purposes of the Mississippi Motor Vehicle and Manufactured House Title Law. The bill amends code to exclude all-terrain vehicles without odometers from the requirements of the odometer disclosure. |
Property Tax |
HB 812 amends code that beginning 1/1/2026 a qualified homeowner that is the unremarried surviving spouse of an American Veteran who has been honorably discharged and has reached 90 years of age, shall be allowed an exemption for all ad valorem taxes on the assessed value of the homestead property. The bill further allows that any unremarried surviving spouse of homeowners classified as totally disabled under the federal Social Security Act, Railroad Retirement Act, or any other federal act approved by the DOR, shall also be allowed an exemption for all ad valorem taxes on the assessed value of the homestead property. HB 1341 extends the repeal date that authorizes county boards of supervisors and municipal governing authorities to grant an ad valorem tax exemption to health care industry facilities. It also extends the repeal date that county boards of supervisors and municipal governing authorities grant a fee-in-lieu of ad valorem taxes to qualified businesses as defined in the Mississippi Health Care Industry Zone Act which meet minimum criteria established by the Mississippi Development Authority (MDA). HB 1644 relates to equipment used in the deployment of fixed and/or mobile broadband technologies by a telecommunications enterprise that is placed in service after 6/30/2025, and before 7/1/2030, and capable of transmission at specific speeds based on the technology will be exempt from ad valorem taxation for a period of time after the date the equipment is placed in service. HB 1878 determines the true value of rural structures for ad valorem taxes and defines “rural structures” as any rural secondary building covered in Chapter V of the DOR appraisal manual, as revised December 2020. This does not include rural dwellings. However, this does include, but is not limited to silos, grain storage bins, barns, and poultry houses. HB 1897 authorizes that the Boards of Supervisors of Tate, Panola, Lafayette and Yalobusha Counties may levy a special ad valorem tax annually in an amount not to exceed 2 mills on all taxable property within their county. A tax levied pursuant to this bill will be in addition to all other tax levies provided by law and may be levied only for specific purposes and must cease to be levied when the debt is eliminated for the specific purpose for which it was levied. SB 2469 creates a committee to study the problem of unmerchantable and uninsurable titles resulting from sales of land for nonpayment of taxes, blight created because of the current tax sales process, and other inconsistencies within the current sales process, and to recommend solutions for such problems and inconsistencies. SB 3166 directs the DOR when promulgating its annual table of inflation factors for industrial property, to include commercial solar and wind facilities as a separate category of industrial property. The bill also requires the DOR to set such inflation factor at 1.000, if Marshall Swift Valuation Service has not provided an inflation factor for commercial solar and wind facilities for a particular year.
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