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How To Register For A Mississippi Sales Tax Permit

How To Register For A Mississippi Sales Tax Permit

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How To Register For A Mississippi Sales Tax Permit

Most businesses starting in Mississippi that sell a product or offer certain services will need to register for a Mississippi sales tax permit. This permit is sometimes referred to as a seller’s permit, sales tax license, sales tax number, or sales tax registration.   

Related: Guide to starting a business in Mississippi

How to register for a sales tax permit in Mississippi

A sales tax permit can be obtained by registering through the Department of Revenue’s Taxpayer Access Point.

Information needed to register includes:

Remote sellers who don’t have a permanent location in the state will be required to post either a sales tax bond or an approved surety tax cash bond.

Sales tax reporting

How is sales tax collected?

When a business sells a taxable product or service, it charges the customer the appropriate sales tax rate. The business collects this tax, which it then sends to the Mississippi Department of Revenue.

How much is sales tax in Mississippi?

If the purchase is made at a store or in a mobile location, the sales tax rate varies depending on where the sale took place in Mississippi. n addition to the statewide tax, there are additional sales taxes that may be added by cities and municipalities. When shipping in-state, the sales tax is based on the purchaser’s address.

To find sales tax rates throughout the state of Mississippi, see the sales tax rates from the Mississippi Department of Revenue.

When are Mississippi sales tax returns due?

The Mississippi Department of Revenue will determine a filing frequency based on the expected volume of sales, which will be monthly, quarterly, or annually.  Generally, a business collecting over $300 each month in sales taxes will file monthly. 

Filings are due on the 20th day of the month following the reporting period unless the 20th falls on a weekend or federal holiday, in which case it would move to the next business day.

Even if the business had no sales during the reporting period, a filing is still required indicating no sales occurred.

Mississippi Sales Tax Permit FAQs

Who needs a sales tax permit in Mississippi?

A business must register for a sales tax permit in Mississippi when:

– A business has sales tax nexus. Nexus means having a physical presence in the state, such as having a physical location like a retail store or office or using a warehouse or fulfillment center to store inventory.
– Selling products and taxable services in Mississippi (includes occasionally selling items at craft shows, fairs, seminars, conventions, etc.)
Hiring employees who work in Mississippi (including remote employees, sales representatives or agents)
– An online business located in Mississippi is selling taxable products to Mississippi residents
– An out-of-state business generating total annual sales of tangible personal property to Mississippi residents over $250,000; and “systematic exploitation of the market in the state,” which basically means purposely advertising to Mississippi residents through TV, radio, telemarketing, emails, banner ads, newspapers, etc.

What products and services are taxable in Mississippi?

Physical Products: There are a few exceptions, but almost all physical products are taxable when sold at retail in Mississippi.  Common examples include:

– General merchandise like furniture, appliances, and clothing
– Titled or registered items like vehicles

Certain manufacturing and agriculture products and equipment are tax-exempt, as are some medical equipment, prescriptions, and student textbooks. See the full list of tax-exempt items in Mississippi.

Digital Products: Digital products are taxable in Mississippi.

Services: Most services aren’t taxable in Mississippi, however, there are a few exceptions, some of which include:

– Repairs of tangible personal property
– Rental or lease of personal property like vehicles or equipment
– Charges for admission to an amusement, sport, or recreation
– Providing taxable services like pest control services, plumbing, electrical work, dry cleaning, etc
– Rental of accommodations in hotels, motels, and campgrounds
– Contracting

See the full list of taxable services.

How much does a Mississippi sales tax permit cost?

There is no cost for a sales tax permit in Mississippi.

How long does it take to get a Mississippi sales tax permit?

Expect up to 2 weeks to receive your Mississippi sales tax permit and sales tax number.

Do you have to renew a Mississippi sales tax permit?

The sales tax permit is a one-time registration, and no renewals are needed.  Be mindful that if any information about the business changes, such as the mailing address, additional locations, or change in ownership, needs to be updated by the Mississippi Department of Revenue.

How do I get a wholesale license in Mississippi?

A business can purchase items to resell without paying state sales tax. The tax liability is passed from the wholesaler or distributor to the retailer, who will then charge sales tax to the end-user of the item. 

Wholesalers and distributors will require a sales tax number (also referred to as a wholesale license or reseller’s permit) and, in some cases, require the reseller to submit a Mississippi Resale Certificate to document that the items being purchased are for resale. 

Is a business license the same thing as a sales tax permit?

No – A business license and a sales tax permit serve distinct purposes.

A business license authorizes the operation of a business within a particular jurisdiction, ensuring compliance with local laws and regulations. On the other hand, a sales tax permit enables a business to legally collect sales tax from customers, which is then remitted to the state government. Typically, businesses require both a license and a permit to operate fully within the law.

Related: What business licenses are needed in Mississippi

If you have questions about the sales tax permit, the Mississippi Department of Revenue has a Sales and Use Tax FAQ or they can be contacted by calling (601)923-7700. 

Alternatively, a local district office can be contacted:

JACKSON DISTRICT
500 Clinton Center Drive Clinton, MS 39056
(601)923-7300

Serves the Central Mississippi Counties: Hinds, Madison, Rankin, Warren, Yazoo, Sharkey and Issaquena

GREENWOOD DISTRICT
Mailing Address:
200 E. Washington St., Suite 125
Greenwood, MS 38930
(662)453-1742

Serves the Delta and North Central Mississippi Counties: Attala, Bolivar, Carroll, Choctaw, Grenada, Holmes, Humphreys, Leflore, Montgomery, Sunflower, Tallahatchie, Washington, Webster, and Yazoo

GULF COAST DISTRICT
1141 Bayview Ave., Ste. 400
Biloxi, MS 39530-1601
(228)436-0554

Serves the Coastal Counties: Hancock, Harrison, and Jackson

HATTIESBURG DISTRICT
17 JM Tatum Industrial Dr, Ste. 2
Hattiesburg, MS 39401
(601)545-1261

Serves the Pine Belt Counties: Covington, Forrest, George, Greene, Jones, Lamar, Marion, Pearl River, Perry, and Stone

HERNANDO DISTRICT
2631 McIngvale Road, Suite 116
Hernando, MS 38632
(662) 449-5150

Serves the North West Mississippi Counties: Benton, Coahoma, Desoto, Lafayette, Marshall, Panola, Quitman, Tate, Tunica, Yalobusha

MERIDIAN DISTRICT
900A Highway 19
South Meridian, MS 39301
(601)483-2273

Serves the East Central Mississippi Counties: Clarke, Jasper, Kemper, Lauderdale, Leake, Neshoba, Newton, Noxubee, Scott, Smith, Wayne and Winston

TUPELO DISTRICT
1935 McCullough Blvd.
Tupelo, MS 38801
(662)842-4316

Serves the North East Mississippi Counties: Alcorn, Calhoun, Chickasaw, Clay, Itawamba, Lee, Lowndes, Monroe, Oktibbeha, Pontotoc, Prentiss, Tippah, Tishomingo, and Union

Author

  • Greg Bouhl

    With over two decades as an entrepreneur, educator, and business advisor, Greg Bouhl has worked with over 2,000 entrepreneurs to help them start and grow their businesses. Fed up with clients finding and acting on inaccurate and outdated information online, Greg launched StartUp101.com to be a trusted resource for people starting a business.

How To Register For A Mississippi Sales Tax Permit

How To Register For A Mississippi Sales Tax Permit

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