Mississippi – City of Brandon Food and Beverage Tax Enacted

SALT Report 2885 – The Mississippi Department of Revenue issued a notice regarding a new special tax that will be imposed in the city of Brandon effective September 1, 2013. On that day, the City will begin levying a 2% tax on the gross proceeds from sales of prepared food and beverages sold in restaurants and bars.  This tax is in addition to all other taxes currently imposed in the City.

Restaurants and bars should begin collecting the 2% tax on September 1, 2013.  Paper filers should report the tax on the new Sales and Special Tax Return, which the Department will begin mailing out on October 7, 2013.  Online filers may report the tax on the Sales and Special Tax Return beginning October 7, 2013 using the Taxpayer Access Point (TAP) filing system.

For purposes of the tax, a “restaurant” is defined as a place where prepared food and beverages are sold for consumption, whether the food is consumed on or off the premises. However, the term does not include a school, hospital, convalescent or nursing home, or a restaurant-like facility operated by or in connection with a school, hospital, medical clinic, convalescent, or nursing home that provides food for students, patients, visitors, or their families.  Neither does it include convenience stores or service stations where the sale of prepared food constitutes less than 50% of gross sales.

A “bar” is defined as any bar, tavern, or lounge where alcoholic beverages are sold for consumption on the premises.

For Further Information

Mississippi Department of Revenue – Notice 72-13-008