State Sales Tax Nexus and General Overview

Need to Understand a State's Sales Tax Situation? Here it is...

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Mississippi (MS)

MS Sales Tax - Name of Tax and General Application:

Mississippi imposes a tax on the privilege of doing business in the state. This tax is referred to as a "sales tax" or "privilege tax". It is different from standard sales tax in that it is not levied on sales of tangible personal property at retail, but from the standpoint of the merchant it closely resembles a standard sales tax.

MS Nexus - General Requirements:

The word "nexus" means a link or connection. If you are determined to have nexus to a U.S. state then you are subject to that state's sales and use tax rules and must collect and remit sales tax to the state. This is known as a "filing obligation."

Each state has a different definition of nexus. However, if the answer to any of the following questions is yes, it is likely that a company has nexus as legally defined in most U.S. States.

Does the company own property in the state? Does the company have employees living in the state? Does the company regularly send employees in the state to perform services? Does the company have an agent acting on behalf of the company in the state?

Mississippi requires persons "doing business" in the state to pay sales and use tax. Doing business in Mississippi includes owning or installing personal property in the state, having salespeople or agents taking orders within the state, or maintaining an office or other place of business in the state.

MS Local Tax - Do Localities Impose Tax?

No, Mississippi does not impose local sales tax (except for the city of Tupelo).

MS Resale Certificate Renewal Agreements:

There are no resale certificates in Mississippi. Instead, the state requires the resellers that are registered to collect and remit sales tax give purchasers the "reseller's Mississippi resale sales tax number" which is located on the Permit To Engage In Business.

MS Resale Certificate Renewal Periods

Mississippi does not use resale certificates.

MS Statute of Limitations

Three years from the date the return was filed.