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SALES & USE TAX EXEMPTIONS
BOND FINANCE PROGRAM
TRANSFER OF NATIONAL OR REGIONAL HEADQUARTERS
A sales and use tax exemption equal to one-half of the
total tax liability is available to qualified businesses (manufacturing
and processing) on purchases of component building materials to be used
in the construction or expansion of a building. A sales and use tax exemption
equal to one-half of the total tax liability is also available to qualified
businesses on purchases of machinery and equipment to be used within the
new or expanded building. Other exemptions to sales taxes for manufacturers
are as follows:
- No sales tax on purchases of raw materials, processing
chemicals, or packaging materials.
- Manufacturers pay 1.5% sales tax on machinery and
equipment used directly in manufacturing and port operations, industrial
electricity, natural gas, and fuels.
- Manufacturers pay 3.5% contractor's fee for all
costs (exceeding $10,000) including 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 pay a 3% sales tax
for purchases of building construction materials and new machinery or
equipment not used directly in the manufacturing process, and a 0.75%
sales tax on purchases of all machinery and equipment that is used directly
in the manufacturing process, provided that the purchases are made directly
from a supplier and not through a contractor.
BOND FINANCE PROGRAM
A full sales and use tax exemption is available
to any qualified business financing component building materials, machinery,
and equipment with bond proceeds. This exemption is effective through the
end of the construction period, provided that these purchases are made directly
from the supplier. The exemption does not apply to the 3.5% contractor's
tax.
TRANSFER OF NATIONAL OR REGIONAL
HEADQUARTERS
A full sales and use tax exemption is available at any qualified
business transferring their national or regional headquarters to Mississippi
and creating a minimum of thirty-five jobs. The exemption is available to
any qualified business on purchases of component materials used in the construction
or expansion of a building. A full sales and use tax exemption is also available
for any machinery and equipment to be used within the building. The exemption
is effective from the time the application is approved until ninety days
after the designated start-up time, provided that these purchases are made
directly from the supplier.
BOND
FINANCE PROGRAM
TRANSFER OF NATIONAL OR REGIONAL HEADQUARTERS
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ECONOMIC DEVELOPMENT 
