A .25% tax is imposed on all retail sales and services in Tupelo which are subject to the general rate of state sales tax. This levy is in addition to all other taxes now imposed. Effective February 1, 1989, and shall stand repealed upon certification to the Department of Revenue by the trustee of the special fund that certain criteria have been met as required, and the tax shall stand repealed effective on the first day of the month immediately following such certification.

Effective May 1, 2026, retail sales of groceries subject to the reduced five percent (5%) rate of sales tax that occur within the City of Tupelo are also subject to the Tupelo Water Procurement Facility Tax. House Bill 4112 of the 2026 Regular Session amended the one quarter of one percent (.25%) Tupelo Water Procurement Facility Tax to include groceries taxed at the five percent (5%) rate of sales.

Beginning May 1, 2026, the Tupelo Water Procurement Facility Tax is due on all retail sales and services in Tupelo which are subject to the general seven percent (7%) rate of state sales tax, as well as all retail sales of food and drink for human consumption taxed at the five percent (5%) rate of state sales tax.