Mississippi – Certain Activities by Scrap Metal Recyclers are Considered Manufacturing

SALT Report 2468 – The Mississippi Legislature amended Section 27-65-11 of the Tax Code to revise the definitions of “to manufacture” and “manufacturing” to include certain activities by scrap metal recyclers. The definition now states that scrap metal recyclers who “primarily convert material into a more useful product, such as a specification-grade commodity, by processing the metal into separate types, removing waste material, and/or cutting, chipping, sorting, sizing, or shaping the material into a usable product for sale, are included in the definition of to manufacture and manufacturing.”

However, the terms to manufacture and manufacturing do not include any activities that involve the gathering of recycled material or flattening, sorting, bundling, or other similar function that is performed solely to allow ease of transportation or storage and not to produce specification-grade commodities or to remove parts for resale.

These provisions are effective July 1, 2013.

For Further Information

Mississippi State Legislature – House Bill 1680, Laws 2013