Mississippi – Exemption for Utilities Used in Manufacturing and Food Production

SALT Report 2439 – Mississippi Governor Phil Bryant has signed a Bill that provides sales tax exemptions for sales of electricity, current, power, steam, coal, natural gas, liquefied petroleum gas, or other fuel to qualified manufacturers and producers or processors of poultry, livestock, fish, milk, and other food products. This exemption eliminates the 1.5% tax rate that applies to sales of utilities and fuel.

Manufacturing

The manufacturing exemption applies to the above utilities and fuels when sold to a manufacturer, custom processor, technology-intensive enterprise, or public service company for industrial purposes. The exemption also applies to utilities used to generate electricity, to operate an electrical distribution or transmission system, to operate pipeline compressor or pumping stations, or to operate railroad locomotives.

Producing or Processing Poultry, Livestock, Milk, Fish, Other Food Products

This exemption applies to the above utilities and fuel when sold to a producer or processor for use directly in the production of poultry and poultry products, the production of livestock and livestock products, the production of domesticated fish and domesticated fish products, the production of marine aquaculture products, the production of plants and food by commercial horticulturists, the processing of milk and milk products, the processing of poultry and livestock feed, and the irrigation of farm crops.

The exemptions in this Bill are effective July 1, 2014.

For Further Information

Mississippi State Legislature – House Bill 844, Laws 2013m