reglab/statecodes huggingface dataset:
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-208

Current through June 25, 2024
A ten percent (10%) penalty is due on all deficiencies.
					 Deficiencies include failure to post a bond or prepay the tax in full on all
					 contracts requiring the posting of a bond or prepayment of tax before work has
					 begun. This penalty is based on the total amount of tax due on the total
					 contract price. A ten percent (10%) penalty is also due on the tax applicable
					 to monthly compensation not reported timely on subsequent
					 returns.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-209

Current through June 25, 2024
There will not be a 10% penalty on the same deficiency
					 more than once. Any portion of tax related to compensation that was penalized
					 as a failure to post a bond or prepay the tax in full on contracts before the
					 work was begun will not also be subject to a 10% penalty on the late remittance
					 of monthly returns. Any portion of tax related to the late remittance of
					 monthly returns that was penalized will not also be subject to a 10% penalty
					 for failure to post a bond or prepay the tax of a contract.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-210

Current through June 25, 2024
In the instance a contractor or subcontractor incorrectly
					 uses an MPC number to purchase non-component materials or services, and it is
					 determined by the Commissioner that there is intentional disregard of the law
					 or done with intent to defraud, there will be a fifty percent (50%) penalty
					 assessed. This penalty will be used when the contractor or subcontractor
					 misuses an MPC number or when an audit of taxpayer records reveals an attempt
					 to disguise or hide the misuse of an MPC number. This penalty will not be
					 assessed if the taxpayer can prove reasonable cause for failure to
					 comply.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-301

Current through June 25, 2024
A tax of 31/2% is levied on the total contract amount or
					 compensation received from all contracts, except contracts for residential
					 construction, that exceed $10,000 when the work to be performed is
					 constructing, building, erecting, repairing, grading, excavating, drilling,
					 exploring, testing or adding to any of the following:
1. Air conditioning system
2. Bridge
3. Building
4. Culvert
5. Dam
6. Dock
7. Drainage or dredging system
8. Electrical system
9. Heating system
10. Highway
11. Irrigation or water system
12. Levee or levee system
13. Oil or gas well
14. Pipeline
15. Power plant
16. Railway
17. Reservoir
18. Sewer
19. Sidewalk
20. Storage tank
21. Street
22. Tower
23. Transmission line
24. Water well
25. Wharf
26. Wiring for communication or information
				  systems
27. Any other improvement
				  or structure or any part thereof (fences, etc.)
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-302

Current through June 25, 2024
The tax is levied on contracts with the United States
					 Government, the State of Mississippi and its political subdivisions and any
					 other exempt agency, without any deduction for amounts paid to subcontractors,
					 architects, engineers, landscapers or for any other costs or expenses
					 (including the 31/2% contractor's tax) incurred by the contractor. Liquidated
					 damages that are withheld by the owner are not to be included in taxable
					 contract receipts.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-303

Current through June 25, 2024
The portion of the total contract price attributable to
					 design or engineering services is excluded from the contractor's tax if the
					 total contract price for the project exceeds $100,000,000; or if the
					 engineering services are performed by a professional engineer, as defined in
					 the Miss. Code Ann. Section
					 73-13-3,
					 who is the general or prime contractor.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-304

Current through June 25, 2024
A person taxable under Miss. Code Ann. Section
					 27-65-23
					 who performs any of the activities listed in section 301 as a prime contractor
					 for compensation in excess of $10,000 shall qualify and pay tax as a contractor
					 in lieu of the tax levied by Miss. Code Ann. Section
					 27-65-23.
					 Activities so taxed under Miss Code Ann. Section
					 27-65-23
					 are:
1. Air conditioning installation
				  or repairs;
2. Electrical work,
				  wiring, and all repairs or installations of electrical equipment;
3. Elevator or escalator installation or
				  repairs;
4. Grading, excavating,
				  ditching, dredging or landscaping;
5. Insulating services or repairs;
6. Plumbing or pipe fitting;
7. Tin and sheet metal work;
8. Welding, etc.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-305

Current through June 25, 2024
Persons performing any services taxed under Miss. Code
					 Ann. Section
					 27-65-23
					 for contracts of $10,000 or less owe the regular retail rate of sales tax on
					 gross income. Persons performing contracts of $10,000 or less that do not
					 include services taxed under Miss. Code Ann. Section
					 27-65-23
					 owe no tax on gross income but are required to pay the regular retail rate of
					 sales or use tax on all taxable purchases.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-306

Current through June 25, 2024
Continuous contracts on projects embracing activities
					 taxable under Miss. Code Ann. Section
					 27-65-21, which
					 are to be carried on for a definite period of time and a definite amount, will
					 be qualified and taxed at 31/2%. Otherwise, the determination of whether a
					 contract is subject to tax under Miss. Code Ann. Section
					 27-65-21 will be
					 made from purchase orders, work orders or invoices. Purchase orders, work
					 orders or invoices that are a continuation of prior purchase orders, work
					 orders or invoices will be considered part of one project. Generally, work on a
					 project takes place in the same, adjacent or adjoining area. Transmission lines
					 (gas, water, sewage, power, telephone, etc.) are considered a project. Amounts
					 included in the contract for non-taxable activities (grass cutting, tree
					 trimming, etc.) may be excluded from the taxable amount of the
					 contract.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-307

Current through June 25, 2024
Individual contracts for the construction of several
					 buildings, streets, etc., or parts thereof, may together be qualifiable as a
					 prime contract despite the fact that the compensation for each separate part of
					 the project is less than $10,000. In order to determine whether such contracts
					 are qualifiable, consideration must be given to the types of activities
					 involved.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-308

Current through June 25, 2024
Contracts for the performance of work upon personal
					 property, such as shipbuilding or ship repairing, or activities that consist of
					 demolishing or razing old property or clearing land, are not subject to the
					 provisions of Miss. Code Ann. Section
					 27-65-21.
					 However, where land clearing or building razing activities are incidental to
					 the primary purpose of the contract, such as highway or building construction,
					 the total contract is taxable. No separation of incidental activity will be
					 allowed even though it may be subcontracted.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-309 - Reserved

Current through June 25, 2024
Contractor's tax does not apply to the contract price or
					 compensation received to restore, repair, or replace a utility distribution or
					 transmission system (electric, gas, water, sewage, telephone, etc.) damaged by
					 an ice storm, hurricane, flood, tornado, wind, earthquake or other natural
					 disaster if the entity performing the restoration, repair or replacement is
					 reimbursed for its cost only.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-310

Current through June 25, 2024
The portion of the contract price or compensation received
					 from the sale and installation of manufacturing or processing machinery that
					 loses its identity as tangible personal property to a manufacturer or a
					 customer processor is to be taxed at the special sales tax rate of 1
					 1/2%.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-401

Current through June 25, 2024
A 31/2% tax is levied on the gross proceeds or gross
					 receipts from the sale of any tangible personal property that becomes a
					 component part of any floating structure, or on the performance of any
					 construction activity upon any floating structure (not limited to casinos).
					 These floating structures are located within the waters of the State of
					 Mississippi and are normally moored and not normally engaged in the business of
					 transporting people or property. This tax does not apply to tangible personal
					 property that does not become a component part of the structure. If one
					 contractor is doing both land-based and floating structure construction, this
					 tax may be paid by the contractor; otherwise, the owner of floating structure
					 is responsible for the tax. The owner of a floating structure subject to the
					 31/2% tax will be issued a Casino Construction Project Certificate. The owner
					 will provide the CCPC number to the prime contractors and sub-contractors
					 performing work on the structure. This will allow the component materials and
					 parts used in the construction activities to be purchased exempt from sales
					 tax.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-402

Current through June 25, 2024
The owner of a floating structure will also be issued a
					 direct pay number. With the use of the CCPC number and this direct pay number,
					 tax is accrued on the owner's use tax return and not paid to
					 vendors.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-403

Current through June 25, 2024
The contractor will be allowed to qualify those contracts
					 involving both land-based and water-based structures that cannot be easily
					 separated, as long as the land-based portion of the contract is in excess of
					 $10,000.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-501

Current through June 25, 2024
A Material Purchase Certificate is a certificate issued by
					 the Department upon application by a construction contractor with a qualifying
					 contract. Each MPC is assigned an identifying number which relates to a
					 specific contract. Application to the Commissioner for an MPC number is
					 required before work is begun to cover all qualifying commercial,
					 non-residential construction. The MPC number allows the contractor and his
					 subcontractors to make tax-free purchases of materials and services that become
					 a component part of the structure covered by the qualified contract. The MPC
					 number is not applicable to other contracts and expires upon completion of the
					 contract.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-502

Current through June 25, 2024
The contractor and his subcontractors shall provide their
					 vendors with the MPC number when purchasing component materials. The vendors
					 shall list the MPC number on each sales invoice as a prerequisite to claiming
					 the exemption. Contractors and subcontractors incorrectly using an MPC number
					 to purchase non-component materials or services will be held liable for the
					 applicable sales tax due on their purchases. See Mississippi Department of
					 Revenue vs Hotel and Restaurant Supply 192 So.3d 942. Vendors who incorrectly
					 accept an MPC number to exempt the sale of consumables or services such as
					 rental of construction and related equipment will be liable for the applicable
					 sales tax due.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-503

Current through June 25, 2024
Component materials are all materials that become an
					 integral part of the structure being erected. Certain taxable services provided
					 under Miss. Code Ann. Section
					 27-65-23
					 are also considered to be component to the structure. Component materials may
					 include built-in furniture, fixtures, appliances and similar personal property.
					 For personal property to become real property, it must be permanently attached
					 to real property. To be considered permanently attached, the property must lose
					 its identity as personal property and one or more of the following criteria
					 must be met:
1. The property or
				  equipment must be attached to building walls, floors, and/or ceilings in such
				  way as to require design or structural alterations to the real property to
				  which it is being attached; or
2.
				  The property cannot be removed intact or its removal would result in the
				  alteration or destruction of the structure or property; or
3. The property must become an independent
				  structure, itself (real property).
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-504

Current through June 25, 2024
Non-component material is property that retains its
					 identity as tangible personal property. Free -standing furniture, fixtures,
					 appliances and similar personal property are non-component materials.
					 Non-component property may be excluded from the measure of the contractor's
					 tax.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-505

Current through June 25, 2024
Items that are considered to be non-component materials
					 include, but are not limited to, the following:
1. Awnings
2. Building signage (channel letters, etch)
3. Cellular telephone tower
				  addition (antennas, radio equipment, platforms, etc.)
4. Conveyor system, non-integrated
5. Digital billboard screens
6. Fuel dispensers
7. Generators
8. Gutters
9. Irrigation systems, above the ground
10. Motors
11. Movable bleachers or stadium seating
12. Playground equipment
13. Removable/replaceable pumps
14. Solar panels
15. Walk-in cooler/freezer
16. Water treatment clarifiers, descales and
				  water conditioning/filtration equipment, etc.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-506

Current through June 25, 2024
The purchase price or sales price of non-component
					 materials is taxed as a withdrawal of stock at the regular seven percent (7%)
					 retail rate and any applicable special tax levy when these items are purchased
					 exempt with an MPC. The sales tax on purchases of non-component materials
					 should be reported on the contractor's or subcontractor's Sales Tax return. Any
					 special tax levy should be reported by the contractor or subcontractor on their
					 sales tax return at the applicable rate.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-507

Current through June 25, 2024
Free - standing personal property sold under a contract
					 with the United States Government, the State of Mississippi and its political
					 subdivisions or any other exempt agency that has been qualified can be
					 purchased tax free. The contractor must apply to the Department for a letter
					 granting the authority to purchase freestanding personal property exempt from
					 tax.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-508

Current through June 25, 2024
When records and invoices are not kept to substantiate the
					 exemption, sales made to the contractor or subcontractor will be considered
					 retail sales, taxable at the regular retail rate. Contractors with contracts
					 taxable under Miss. Code Ann. Section
					 27-65-21 who
					 have paid retail sales tax on purchases of materials and services in the state
					 that become a component part of a structure being erected or repaired may take
					 a credit against their sales tax liabilities for the sales tax paid on these
					 purchase after obtaining the MPC for the related project.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-509

Current through June 25, 2024
A valid MPC number or direct pay permit is required to
					 make an exempt purchase of concrete or asphalt for use in any commercial
					 construction job that is required to be qualified under Miss. Code Ann. Section
					 27-65-21. All
					 purchases of asphalt or concrete for commercial construction jobs less than
					 $10,000 are taxable at the regular retail rate of tax at the time of purchase,
					 unless the purchaser is an exempt entity or provides the seller with a direct
					 pay permit. An exempt entity is one that is exempt from sales tax as provided
					 in Miss. Code Ann. Sections
					 27-65-101
					 through
					 27-65-111.
					 Direct pay permits are issued to taxpayers under the provisions of Miss. Code
					 Ann. Section
					 27-65-93.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-510

Current through June 25, 2024
A person with a valid sales tax number who is purchasing
					 concrete to use in the performance of a taxable service is considered the
					 consumer of the concrete and must pay tax to the vendor at the time of
					 purchase. Contractors who mix concrete or asphalt for use in the performance of
					 a job owe sales tax on the value of the concrete or asphalt. Any person
					 purchasing concrete or asphalt from an out-of-state vendor for delivery and use
					 in this state will be liable for remitting use tax on the purchase price of the
					 concrete or asphalt. Any person who mixes concrete or asphalt out of state for
					 delivery and use in this state will be liable for remitting use tax on the
					 value of the concrete or asphalt. The term "vendor", as used in this section,
					 means the person who is manufacturing or producing the concrete or asphalt from
					 raw materials either at a fixed plant site location, a portable plant or
					 through ready-mix trucks. Materials used to form concrete are not considered
					 component materials and may not be covered by the use of an MPC
					 number.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-601

Current through June 25, 2024
A bond must be filed on taxable contracts exceeding
					 $75,000 that are performed in this State, unless the tax is prepaid. Persons or
					 firms without a permanent place of business within Mississippi must file a bond
					 on any taxable contract in excess of $10,000, unless the tax is
					 prepaid.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-602

Current through June 25, 2024
Such bonds shall be either (a) job bonds which guarantee
					 the payment of taxes resulting from the performance of a specified job or
					 activity regardless of date of completion; or (b) blanket bonds which guarantee
					 the payment of taxes resulting from the performance of all jobs or activities
					 taxable under Miss. Code Ann. Section
					 27-65-21 that
					 are begun during a specified period, regardless of the date of completion. The
					 bond must be sufficient to cover the liability for sales, use, income,
					 withholding and motor fuel taxes and must be approved by the
					 Commissioner.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-603

Current through June 25, 2024
In lieu of a job or blanket bond, a tax rider, with a copy
					 of a performance and/or payment bond, may be accepted. In order for the tax
					 rider to be accepted, a copy of the performance and/or payment bond for which
					 the tax rider is executed must be on file with the
					 Department.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-604

Current through June 25, 2024
It is in the discretion of the Department to require that
					 a job bond be filed when making application to the Commissioner for an MPC for
					 continuous and/or maintenance projects. This request must be updated annually
					 along with the submission of proof of continued bonding
					 coverage.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-605 - Reserved

Current through June 25, 2024
Where a contractor prepaid the sales tax, but a use,
					 income, withholding or motor fuel tax bond is still required, the contractor
					 will be notified of the bond requirement after an application for a Material
					 Purchase Certificate has been received.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-606

Current through June 25, 2024
When a contractor defaults on the execution of his
					 contract and the bonding company acting as surety for the performance of the
					 contract assumes completion of the contract, the bonding company becomes
					 primarily liable for the payment of the sales, use, income, withholding and
					 motor fuel taxes accruing as a result of its activities. The contractor's MPC
					 number becomes void at the time of default. The surety company shall make
					 application to the Commissioner for an MPC covering the remaining/unfinished
					 portion of the contract. The application must include proper bonding and/or
					 prepayment of tax.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-701

Current through June 25, 2024
A person constructing buildings on property he owns is not
					 a contractor and is liable for the retail sales or use tax on all materials or
					 services purchased even though the person may enter into a contract to sell the
					 building and lot (real property) before construction is
					 completed.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-801

Current through June 25, 2024
The contract price or compensation received for
					 constructing, building, erecting, repairing, or adding to any building,
					 electrical system, heating system or any other improvement or structure that is
					 used for or primarily in connection with a residence or dwelling place for
					 human beings is excluded from the 31/2% contractor's tax provided by Miss. Code
					 Ann. Section
					 27-65-21.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-802

Current through June 25, 2024
Sales of materials and services for use in residential
					 construction activities are taxed at the regular retail rate of tax provided by
					 Miss. Code Ann. Sections
					 27-65-17,
					 27-65-23
					 and
					 27-67-5. Such
					 residences shall include homes, mobile homes, summer cottages, fishing and
					 hunting camp buildings and similar buildings, but shall not include hotels,
					 motels, hospitals, apartments, condominiums, nursing or retirement homes,
					 tourist cottages, military barracks, school dormitories, sorority and
					 fraternity houses, churches or other commercial establishments. An "apartment"
					 is a collection of four or more dwellings on continuous land with kitchen
					 facilities and common ownership that are rented to tenants rather than
					 transient guests. Groups of single family homes do not constitute apartments. A
					 "nursing home", as the term is used in this section, is any complex that
					 provides any type of assisted living. The caregivers can be either medical or
					 non-medical personnel.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-804

Current through June 25, 2024
All purchases of concrete and asphalt for residential use
					 are taxable at the regular retail rate of sales tax at the time such materials
					 are purchased from the vendor, unless the purchaser is an exempt entity or
					 provides the seller with a direct pay permit. An exempt entity is one that is
					 exempt from sales tax as provided in Miss. Code Ann. Sections
					 27-65-101
					 through
					 27-65-111.
					 Direct pay permits are issued to taxpayers under the provisions of Miss. Code
					 Ann. Section
					 27-65-93.
					 A direct pay permit relieves the seller of the responsibility for collecting
					 tax and requires the holder to remit any taxes due on the purchase directly to
					 the state.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-805 - Reserved

Current through June 25, 2024
A person with a valid sales tax number who is purchasing
					 concrete to use in the performance of a taxable service is considered the
					 consumer of the concrete and must pay tax to the vendor at the time of
					 purchase. Contractors who mix concrete or asphalt for use in the performance of
					 a job owe sales tax on the value of the concrete or asphalt. Any person
					 purchasing concrete or asphalt from an out-of-state vendor for delivery and use
					 in this state will be liable for remitting use tax on the purchase price of the
					 concrete or asphalt. Any person who mixes concrete or asphalt out of state for
					 delivery and use in this state will be liable for remitting use tax on the
					 value of the concrete or asphalt. The term "vendor", as used in this section,
					 means a person who is mixing concrete or asphalt from raw materials either at a
					 fixed plant site location, a portable plant or through ready-mix
					 trucks.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-901

Current through June 25, 2024
Purchases by contractors and subcontractors of work
					 equipment, tools, building forms, repair parts for work equipment and similar
					 items of tangible personal property that do not become component parts of the
					 structure being erected are taxed at the regular retail rate of sales or use
					 tax and any applicable special tax. When property of this type has been
					 previously used in another state and is imported into this State for use, the
					 use tax is due on the fair market value of the property at the time of
					 importation. At no time shall the value be less than 20% of original cost.
					 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 this
					 State. The credit must be computed by applying the rate of sales or use tax
					 paid to another state to the value of the property at the time it enters
					 Mississippi.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 01 - Construction Contractors › Section 35-4-10-01-1001

Current through June 25, 2024
Persons or firms domiciled outside Mississippi who perform
					 contracts in Mississippi are construed to be doing business within the State
					 and are subject to the various provisions of the Sales and Use Tax Laws, the
					 Income and Withholding Tax Laws, the Franchise Tax Laws and the Motor Fuel Tax
					 Laws in the same manner as are resident taxpayers.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 02 - Drilling Contractors (Oil and Gas Wells) › Definitions › Section 35-4-10-02-100 - Definitions

Current through June 25, 2024
Certain words, terms and phrases used in this regulation
						have meanings ascribed to them as follows:
1. Interest Well. When the driller owns a portion of the
						lease and one or more other persons own the remaining portion upon which a well
						is drilled, such a joint leasehold is known as an "interest well".
2. Ownership Well. When a drilling contractor owns 100%
						of a lease and drills a well on it, he has no taxable income.
3. Operator. One who holds all or a fraction of the
						working or operating rights in an oil or gas lease, and is obligated for the
						costs of production either as a fee owner or under a lease or any other form of
						contract creating working or operating rights.
4. Bottom-Hole Contribution. Money or property given to
						an operator for his use in the drilling of a well on property in which the
						payor has no interest. The contribution is payable whether the well is
						productive or nonproductive.
5. Dry-Hole Contribution. Money or property given to an
						operator for his use in the drilling of a well on property in which the payor
						has no interest. Such contribution is payable only in the event the well is
						found to be nonproductive.
6. Total Contract Price or Compensation Received. Amounts
						received as compensation for performing a drilling contract, including
						assignments of dry-hole or bottom-hole contributions and anything else of
						value. When the kind and amount of compensation received by the contractor is
						contingent upon production, the compensation received shall be the total
						compensation receivable in the event the well is a dry-hole.
7.
a. Taxable Compensation. In determining "taxable
						compensation", certain items are deductible from the "compensation received"
						when the regular retail tax or, if applicable, the contractor's tax (road
						construction, site preparation, etc.) has been paid by the contractor to the
						person making the sale or rendering the service and as enumerated below:
i. Additives
ii. Casing
iii. Cement
iv. Coring
v. Directional Drilling
vi. Fishing tool rentals
vii. Logging
viii. Mud
ix. Perforation
x. Road Construction
xi. Site preparation
xii. Testing
xiii. Water
b. No other expenses or cost incurred by the driller in
						the drilling operation is excludable in determining "taxable
						compensation".
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 02 - Drilling Contractors (Oil and Gas Wells) › Qualifications and Payment of Tax › Section 35-4-10-02-200 - Qualifications and Payment of Tax

Current through June 25, 2024
A drilling contractor taxable under Section
						27-65-21 on a
						specified contract exceeding $10,000 shall qualify with the State Tax
						Commission to identify the specific contract before work is
						begun.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 02 - Drilling Contractors (Oil and Gas Wells) › Qualifications and Payment of Tax › Section 35-4-10-02-201

Current through June 25, 2024
The contractor's tax together with any use tax due must
						be paid before work is begun on contracts exceeding $75,000 unless a surety
						bond is filed with the State Tax Commission for these taxes (Section
						27-65-21). (See
						"Bond Requirement".)
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 02 - Drilling Contractors (Oil and Gas Wells) › Qualifications and Payment of Tax › Section 35-4-10-02-202

Current through June 25, 2024
On taxable contracts of $75,000 or less, or when a bond
						is filed, the tax due under Section
						27-65-21 must be
						paid on a monthly basis as compensation is received. Any use tax on equipment
						shall be payable on or before the twentieth (20th) day of the month following
						the month in which the property is brought into Mississippi.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 02 - Drilling Contractors (Oil and Gas Wells) › Qualifications and Payment of Tax › Section 35-4-10-02-203

Current through June 25, 2024
The 2% vendor's discount does not apply to the tax
						levied under Section
						27-65-21.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 02 - Drilling Contractors (Oil and Gas Wells) › Tax Rates and Activities Taxed › Section 35-4-10-02-300 - Tax Rates and Activities Taxed

Current through June 25, 2024
A tax of 31/2% is levied on the "taxable compensation"
						received when the contract price exceeds $10,000 for drilling, redrilling,
						directional drilling or working over a gas well, oil well or salt water
						disposal well. This tax applies also to interest well contracts on the "taxable
						compensation" received from the other owners. Drilling, redrilling, directional
						drilling or working over a gas well, oil well or salt water disposal well
						performed as sub work for a prime contractor is not subject to tax when the
						prime contractor has paid the 31/2% tax on the total "taxable
						compensation".
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 02 - Drilling Contractors (Oil and Gas Wells) › Tax Rates and Activities Taxed › Section 35-4-10-02-301

Current through June 25, 2024
Contracts of $10,000 or less and oil field services
						involving activities other than those listed in the preceding paragraph are
						taxed at the regular retail rate of tax on the gross income of the business as
						provided by Section
						27-65-23
						of the Sales Tax Law.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 02 - Drilling Contractors (Oil and Gas Wells) › Bond Requirement › Section 35-4-10-02-400 - Bond Requirement

Current through June 25, 2024
A surety bond must be filed on taxable contracts
						exceeding $75,000 performed in this state unless the tax is prepaid. Such bonds
						shall be either (a) "job bonds" which guarantee payment when due of the
						aforesaid taxes resulting from performance of a specified job or activity
						regardless of date of completion; or (b) "blanket bonds" which guarantee
						payment when due of the aforesaid taxes resulting from performance of all jobs
						or activities taxable under Section
						27-65-21 begun
						during the period specified therein, regardless of the date of completion. The
						bond must be sufficient to cover the liability for sales, use, income and
						withholding taxes and must be approved by the Commissioner.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 02 - Drilling Contractors (Oil and Gas Wells) › Sales or Use Tax on Purchases › Section 35-4-10-02-500 - Sales or Use Tax on Purchases

Current through June 25, 2024
Drilling contractors and operators are required to pay
						retail sales or use tax on the purchase of all equipment, materials or
						supplies. Material Purchase Certificates are not issued to drilling
						contractors.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 02 - Drilling Contractors (Oil and Gas Wells) › Sales or Use Tax on Purchases › Section 35-4-10-02-501

Current through June 25, 2024
Directional drilling is subject to the regular retail
						rate of tax unless it is performed by the drilling contractor. If the
						directional drilling is performed by the drilling contractor, it is subject to
						the contractor's tax as a part of the drilling contract.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 02 - Drilling Contractors (Oil and Gas Wells) › Sales or Use Tax on Purchases › Section 35-4-10-02-502

Current through June 25, 2024
A truck (chassis, motor, etc.) used to haul specialized
						equipment is taxed at the special 3% rate of sales or use tax and the
						specialized equipment mounted thereon is taxed at the regular retail rate of
						tax (example: drilling or workover rigs).
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 02 - Drilling Contractors (Oil and Gas Wells) › Sales or Use Tax on Purchases › Section 35-4-10-02-503

Current through June 25, 2024
When property has not been use in another state and is
						imported into this State for use, the taxable basis is the value of the
						property at the time of importation. 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 this State, but such credit must be
						computed by applying the rate of sales or use tax paid to another state of the
						value of the property at the time it enters Mississippi.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 02 - Drilling Contractors (Oil and Gas Wells) › Sales or Use Tax on Purchases › Section 35-4-10-02-504

Current through June 25, 2024
Owners or other persons receiving benefit from use of
						tangible personal property in this State are liable for use tax on such
						property.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 02 - Drilling Contractors (Oil and Gas Wells) › Rentals › Section 35-4-10-02-600 - Rentals

Current through June 25, 2024
Rental or lease of equipment and other tangible personal
						property is taxed at the same rates as sales of the same property. The lessor
						is primarily liable for this tax but is required to add tax to his invoice and
						to collect the amount of tax due from the lessee.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 03 - Construction Equipment - Dealers › Tax Rates › Section 35-4-10-03-100 - Tax Rates

Current through June 25, 2024
Sales of all construction equipment, attachments, parts,
						labor and services are taxable at the regular retail rate of sales
						tax.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 03 - Construction Equipment - Dealers › Tax Rates › Section 35-4-10-03-101

Current through June 25, 2024
Sales under a warranty agreement with the manufacturer
						are not taxable on that part charged to the factory. Any part of the charge
						made to the customer is taxable at the regular retail rate.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 03 - Construction Equipment - Dealers › Tax Rates › Section 35-4-10-03-102

Current through June 25, 2024
Internal sales of parts and labor that are necessary to
						repair construction equipment in inventory of the dealers are not taxable
						because the tax will apply on the sale of the repaired
						equipment.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 03 - Construction Equipment - Dealers › Tax Rates › Section 35-4-10-03-103 - "Sales price" or "purchase price"

Current through June 25, 2024
"Sales price" or "purchase price" means the full amount
						received from the sale of property, including carrying charges when a dealer
						carries his own paper, delivery charges, manufacturers excise tax and any other
						additions to the selling price. No distinction is made between sales of new,
						used or trade-in equipment for tax purposes, all being taxed on the differences
						in the sales price and the amount allowed for a trade-in.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 03 - Construction Equipment - Dealers › Repossessions › Section 35-4-10-03-200 - Repossessions

Current through June 25, 2024
Repossessions shall be treated as returned merchandise
						and credit will be allowed only for the uncollected part of the selling price
						previously reported. The subsequent sale of the repossessed item will be
						taxable on the same basis as the sale of new merchandise.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 03 - Construction Equipment - Dealers › Rentals › Section 35-4-10-03-300 - Rentals

Current through June 25, 2024
Income from renting or leasing tangible personal
						property is taxed at the same rates as sales of the same
						property.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 03 - Construction Equipment - Dealers › Rentals › Section 35-4-10-03-301

Current through June 25, 2024
Licensed dealers owe no tax on the cost of property
						withdrawn from inventory for lease or rental. Subsequent sales of property that
						has been rented or leased are taxed on the full sales price with no deduction
						allowed as a result of tax paid on rental or lease income.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 03 - Construction Equipment - Dealers › Out of State Sales › Section 35-4-10-03-400 - Out-of-state-sales

Current through June 25, 2024
All sales of equipment by Mississippi dealers are
						presumed to have been made in this State unless the dealer can provide factual
						evidence that the equipment was delivered to the customer outside of this State
						for first use in another state.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 03 - Construction Equipment - Dealers › Use Tax › Section 35-4-10-03-500 - Use Tax

Current through June 25, 2024
Persons who buy equipment in other states are liable for
						the payment of a use tax at the same rate and on the same basis as the sales
						tax, with proper credit allowed for another state's tax.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 4 - Sales and Use Tax › Subpart 10 - Construction and Oil Field › Chapter 04 - Oil Field Services › Levy › Section 35-4-10-04-100

Current through June 25, 2024
Every person engaging in the business of performing
						services in connection with geophysical surveying, exploring, developing,
						drilling, producing, distributing or testing of oil, gas, water and other
						mineral resources is liable for the regular retail rate of tax on gross income
						received except as otherwise provided. This includes persons acting as
						operators or performing management services for a fee in connection with
						developing, producing or distributing mineral resources. Consultants,
						supervisors and engineers whose presence is required at the well site or inside
						the oil field on a permanent or continuing basis are considered to be engaged
						in an oil field service and are liable for sales tax. Where the operator owns
						an interest in a well under his management, he is liable for tax on
						compensation received from the other owners.