Mississippi Basic Business Taxes 2011
Mississippi's economic development, finance and tax organizations provide a range of incentive programs to initiate new business and commercial investment. Specific programs include sales tax credits and exemptions.
Area Development Research Desk (March 2011)
Sales tax credits and exemptions:
The general retail sales tax rate in Mississippi is 7 percent. There is no sales tax on purchases of raw materials, processing chemicals, or packaging materials.
Manufacturers pay a 1.5 percent sales tax on machinery and parts used directly in manufacturing.
Manufacturers pay a 3.5 percent contractor's fee for all costs (exceeding $10,000) included in a contractor's construction contract, including the costs of construction labor and the purchases of construction component materials made by the contractor on behalf of the manufacturer.
New or expanding manufacturers located in Tier Three counties pay no sales taxes for building-construction materials or purchases of machinery or equipment associated with a location or expansion if the building materials or equipment are purchased directly from a supplier. (Purchases of construction materials made through a contractor incur the 3.5 percent contractor's fee.)
New or expanding manufacturers located in either Tier One or Tier Two counties pay a 3.5 percent sales tax for purchases of building-construction materials and new machinery or equipment not used directly in the manufacturing process. They also pay 0.75 percent sales tax on purchases of all machinery and equipment used directly in the manufacturing process.
Companies that transfer regional or national headquarters to Mississippi are exempted from sales taxes on purchases of construction materials, machinery, and equipment related to that headquarters facility, provided the transfer created at least 35 new jobs in support of the headquarters' function and that these purchases are made directly from the supplier.
Certain individual revenue bond-financed properties are fully exempt from sales taxes on purchased construction materials and machinery and equipment, provided that these purchases are made directly from the supplier.
Mississippi State Contact:
Mississippi Development Authority
P.O. Box 849
Jackson, MS 39205-0849
Incentive and tax information is provided to Area Development by each state's economic development or commerce agency for information purposes only and is subject to revision at any time by the state government. Please contact the state agency directly for full requirements and offerings.