Rate

• All sales retail sales in Mississippi are taxed at 7 percent unless the transaction is subject to a specific exemption.
  
  

Registration

• Before transacted any business in Mississippi, a merchant must register and obtain a license or permit from the State Tax Commissioner. Each business location must have a license. So long as the business continues at the same location, the permit remains in force.
  
  

Tax Number

• Registered businesses must obtain a sales tax number from the State Tax Commission as well. The application process does not impose a fee.
  
  

Exemptions

• Mississippi sales tax law exempts several transactions from the 7 percent sales tax. These transactions include prescription drugs, gasoline, insecticides when used for agricultural purposes, livestock feed, seeds and fertilizer. In addition, the state and federal government does not pay Mississippi sales tax on direct purchases. Nonprofit organizations and public schools also enjoy the exemption. Organizations, including the American Red Cross, Boy Scouts & Girl Scouts of America and Salvation Army, do not pay Mississippi sales tax. Finally, with the exception of alcohol sales, wholesale transactions are exempt from the tax.
  
  

Revocation

• If a business owner fails to file a sales tax return or fails to pay owed taxes, the State Tax Commissioner may revoke her permit. When a business permit is revoked, if the business owner continues to do business, it is a violation of the law and could be subject to criminal prosecution.
  
  

Disclaimer

• This article is for educational purposes only, to give a basic overview of Mississippi sales tax laws, which are subject to claim. It is not intended to give legal advice. To determine how the facts of your situation apply to Mississippi law, consult a qualified attorney licensed to practice law in the State of Mississippi.