Proposed Regulations

Withdrawing System Number 25882. This rule was amended to clarify the tax treatment of computer software sales and services when delivered through cloud computing. Relevant definitions were added. The definition of “computer program” was deleted and included as part of “computer software”. Paragraph 101(2)(c) was added from Miss. Code Ann. Section 27-65-101(ii). The last sentence in new paragraph 301 was deleted. Other minor changes were made.

This rule was amended to clarify the tax treatment of computer software sales and services when delivered through cloud computing. Relevant definitions were added. The definition of “computer program” was deleted and included as part of “computer software”. Paragraph 101(2)(c) was added from Miss. Code Ann. Section 27-65-101(ii). The last sentence in new paragraph 301 was deleted. Other minor changes were made.

This rule was amended to include a sentence in paragraph to address the tax treatment of damages in cases of nonphysical injury. Old paragraph 105 was removed because it was based on IRC Section 120 that was repealed in 2014. Other minor changes were made.

Title 35.II.2.25 Alcohol Delivery is amended to clarify that the Division will no longer approve scanning software used on a recipient’s identification to confirm that a recipient is over the age of 21.

This rule was amended to include a sentence in paragraph to address the tax treatment of damages in cases of nonphysical injury. Old paragraph 105 was removed because it was based on IRC Section 120 that was repealed in 2014. Other minor changes were made.

Title 35.II.2.25 Alcohol Delivery is amended to clarify that the Division will no longer approve scanning software used on a recipient’s identification to confirm that a recipient is over the age of 21.

This regulation was amended to add new section 107 that addresses the sale of aircraft made or facilitated by a person regularly engaged in the sale or facilitation of aircraft. Certain aircraft exemptions were added under section 200 per the statute. Other minor changes were made.

This regulation was amended to combine the definition of “retail sales” in old sections 204 through 206 in new section 103. New section 202 clarifies the tax treatment of sales by a tire wholesaler to a used car dealer. Other minor changes were made.

This regulation was amended to include “specified digital products” in sections 101 and 201. Other minor changes were made.

This regulation was amended to combine the definition of “retail sales” in old sections 204 through 206 in new section 103. New section 202 clarifies the tax treatment of sales by a tire wholesaler to a used car dealer. Other minor changes were made.

This regulation was amended to add new section 107 that addresses the sale of aircraft made or facilitated by a person regularly engaged in the sale or facilitation of aircraft. Certain aircraft exemptions were added under section 200 per the statute. Other minor changes were made.

This regulation was amended to include “specified digital products” in sections 101 and 201. Other minor changes were made.

Title 35.II.3.16 Calculation of Permit Fees is a new regulation that clarifies the requirements for determining applicable privilege license tax.

Paragraph 108 was amended to clarify that permitted sales may include orders and payment through the telephone or electronically with curbside pickup for customers in the parking lot. Paragraph 111 was amended to include small craft breweries and microbreweries to the list of businesses that may be issued on-premises permits. This statutory change can be found in HB 1091 in the 2021 Regular Session. Other minor changes were made.

Title 35.II.4.11 Retail Pickup from Distilleries and Native Wineries is a new regulation that clarifies the requirements for retail permittees picking up native wines and spirits sold by the Department of Revenue found in Miss. Code Ann Section 67-1-41(10).

Paragraph 100 was amended to reflect statutory changes in HB 1091 in the 2021 Regular Session. Both the definitions of “alcoholic beverage” and “On-premise retailer permittee” were amended in the reg. Other minor changes were made.

Paragraph 103 was amended to clarify that governing authorities within resort areas may set hours for sale by ordinance if authorized to do so under Miss. Code Ann. Section 67-1-5(o)(iii). Other minor changes were made.

Title 35.II.2.25 Alcohol Delivery is a new regulation that addresses HB 1135 passed in the 2021 Regular Session that allows retailers issued certain types of alcohol permits to offer home delivery under certain conditions.

Paragraph 103 was amended to clarify that governing authorities within resort areas may set hours for sale by ordinance if authorized to do so under Miss. Code Ann. Section 67-1-5(o)(iii). Other minor changes were made.

Paragraph 100 was amended to reflect statutory changes in HB 1091 in the 2021 Regular Session. Both the definitions of “alcoholic beverage” and “On-premise retailer permittee” were amended in the reg. Other minor changes were made.

Title 35.II.2.25 Alcohol Delivery is a new regulation that addresses HB 1135 passed in the 2021 Regular Session that allows retailers issued certain types of alcohol permits to offer home delivery under certain conditions.

Title 35.II.3.16 Calculation of Permit Fees is a new regulation that clarifies the requirements for determining applicable privilege license tax.

Paragraph 108 was amended to clarify that permitted sales may include orders and payment through the telephone or electronically with curbside pickup for customers in the parking lot. Paragraph 111 was amended to include small craft breweries and microbreweries to the list of businesses that may be issued on-premises permits. This statutory change can be found in HB 1091 in the 2021 Regular Session. Other minor changes were made.

Title 35.II.4.11 Retail Pickup from Distilleries and Native Wineries is a new regulation that clarifies the requirements for retail permittees picking up native wines and spirits sold by the Department of Revenue found in Miss. Code Ann Section 67-1-41(10).

This rule was amended for Miss. Code Ann. Section 57-89-3(a) that includes certain approved entities as production partners for a film project wanting to claim non-resident payroll as part of base investment. The rule was amended for SB 2971 passed in the 2021 Regular Session that grants the option of having a movie rebate submission audited by a qualified CPA. The rule was also amended to update current practices of the Department of Revenue in auditing movie rebate submissions. Other minor changes were made throughout.

Paragraph 104.02 was amended to remove the agency structure. New paragraph 109 was added per Senate Bill 2971 of the 2021 Regular Session to provide the email address where qualified accountants must send a third-party audit. Other minor changes were made throughout.

This rule was amended for Miss. Code Ann. Section 57-89-3(a) that includes certain approved entities as production partners for a film project wanting to claim non-resident payroll as part of base investment. The rule was amended for SB 2971 passed in the 2021 Regular Session that grants the option of having a movie rebate submission audited by a qualified CPA. The rule was also amended to update current practices of the Department of Revenue in auditing movie rebate submissions. Other minor changes were made throughout.

Paragraph 104.02 was amended to remove the agency structure. New paragraph 109 was added per Senate Bill 2971 of the 2021 Regular Session to provide the email address where qualified accountants must send a third-party audit. Other minor changes were made throughout.

Paragraphs 102 and 103 were amended to clarify the circumstances in which a permittee may be held accountable for criminal, regulatory or non-regulatory employee misconduct and the result of such misconduct. Paragraph 104 explains that if a permittee or a permittee’s clerk, agent or employee is convicted of selling alcoholic beverages to a minor, the subject permit shall be suspended or revoked based on the schedule of disciplinary actions under Miss. Code Section 67-1-81(1)(b). Other minor changes were made.

The title of the regulation was amended to include the phrase, “Shipping of Wine from Wineries to Package Retailers for Sale”. New section 109 was added to clarify that a retailer would not be acting illegally by accepting wine from a winery.

Paragraphs 102 and 103 were amended to clarify the circumstances in which a permittee may be held accountable for criminal, regulatory or non-regulatory employee misconduct and the result of such misconduct. Paragraph 104 explains that if a permittee or a permittee’s clerk, agent or employee is convicted of selling alcoholic beverages to a minor, the subject permit shall be suspended or revoked based on the schedule of disciplinary actions under Miss. Code Section 67-1-81(1)(b). Other minor changes were made.

The title of the regulation was amended to include the phrase, “Shipping of Wine from Wineries to Package Retailers for Sale”. New section 109 was added to clarify that a retailer would not be acting illegally by accepting wine from a winery.

Due to the extensive amendments, we are striking through the entire Part and replacing it with a new version. Part V was amended to update the “Mississippi State Tax Commission” to the “Mississippi Department of Revenue” and “Chairman” to “Commissioner” throughout. Any language that was duplicated in the Mississippi Gaming Commission regulations was deleted. This includes the “definitions” section. Title 35.V.3.06 - Rights of Licensee to Request a Hearing was deleted as the contents are addressed in Title 35.I.01 - Administrative Practices and Procedures of the Department of Revenue. Other minor changes were made.

Due to the extensive amendments, we are striking through the entire Part and replacing it with a new version. Part V was amended to update the “Mississippi State Tax Commission” to the “Mississippi Department of Revenue” and “Chairman” to “Commissioner” throughout. Any language that was duplicated in the Mississippi Gaming Commission regulations was deleted. This includes the “definitions” section. Title 35.V.3.06 - Rights of Licensee to Request a Hearing was deleted as the contents are addressed in Title 35.I.01 - Administrative Practices and Procedures of the Department of Revenue. Other minor changes were made.

In section 100, a sentence was added clarifying that a holder is prohibited from charging a fee for cashing a check. A citation to the Mississippi Check Cashers Act was deleted. Other minor changes were made.

In section 100, the second sentence was deleted. In section 101, the first sentence was amended to clarify that a person may own interest in a package retailer’s permit and own interest in one or more on-premises retailer’s permit. The second sentence in 101 is being deleted. Section 103 was amended to include that the chapter shall not be construed to prohibit rendering professional services for more than one package retailer so long as such professional services do not constitute an ownership interest based on the fee being collected. Other minor changes were made.

A second sentence was added to section 100 to state that a permit cannot be transferred if there is an ongoing administrative disciplinary action, including an action under appeal. A second sentence was added to section 103 to clarify that if a funeral home or church refuses to sign a new waiver, a transfer may not be initiated.

The title was changed to reflect the change in order of the two types of resort areas in the rule. The temporary resort area language from section 100 was moved to new section 101 with some minor changes. The phrase “outside the limits of an incorporated municipality” was removed from the first sentence in section 101(1)(a). In 101(1)(b), the last sentence was added clarifying that GPS coordinates should be used to determine boundary lines. In 101(1)(c), the phrase, “and the reasons such steps will result in the attraction of tourists, transients and/or vacationers” was added. In section 100(3), a phrase was added to include that if the President of the Board of Supervisors or the Mayor votes against recommending an area be designated a resort, an application can still be submitted by not less than 100 adult citizens. Some additional criteria were added to the list of information to be included in the application. Other minor changes were made.

In section 100, the citation to Miss. Code Ann Sections 27-65-15, Mining or Producing, was removed because the Mining or Producing law was repealed. The citation to Miss. Code Ann. Section 27-65-19, Public Utilities, was removed because a direct pay permit may be used to relieve a public utilities vendor of the liability for the tax, excluding the taxes levied against telecommunications services. The exemption from Miss. Code Ann Section 27-65-107(f) was added in Section 101 along with a citation to the section of the rule that explains the Affidavit for Utility Exemption. Other minor changes were made.

In new section 100, the rule was amended to add a definition for “dairy producer” from Miss. Code Ann. Section 27-65-17(1)(m). In new paragraph 104, a sentence was added that provides a special rate of tax of 3.5% on certain purchases made by a dairy producer. This language is from Miss. Code Ann. Section 27-65-17(1)(m). In new paragraph 103, mechanical milking machines were added to milk tanks and coolers and were identified as farm implements taxable at the 1.5% special rate of tax. In new paragraph 105, a citation was added directing taxpayers to the Affidavit for Utility Exemption. The DOR added a citation to Miss. Code Ann. Section 27-65-23 in Paragraph 100 and a citation to Miss. Code Ann. Section 27-65-103(a) in Paragraph 103. Examples of pest control services, exempt purchases and tools and/or equipment were added to Paragraphs 101, 104, and 105. Other minor changes were made.

The title was changed to reflect the change in order of the two types of resort areas in the rule. The temporary resort area language from section 100 was moved to new section 101 with some minor changes. The phrase “outside the limits of an incorporated municipality” was removed from the first sentence in section 101(1)(a). In 101(1)(b), the last sentence was added clarifying that GPS coordinates should be used to determine boundary lines. In 101(1)(c), the phrase, “and the reasons such steps will result in the attraction of tourists, transients and/or vacationers” was added. In section 100(3), a phrase was added to include that if the President of the Board of Supervisors or the Mayor votes against recommending an area be designated a resort, an application can still be submitted by not less than 100 adult citizens. Some additional criteria were added to the list of information to be included in the application. Other minor changes were made.

In section 100, the citation to Miss. Code Ann Sections 27-65-15, Mining or Producing, was removed because the Mining or Producing law was repealed. The citation to Miss. Code Ann. Section 27-65-19, Public Utilities, was removed because a direct pay permit may be used to relieve a public utilities vendor of the liability for the tax, excluding the taxes levied against telecommunications services. The exemption from Miss. Code Ann Section 27-65-107(f) was added in Section 101 along with a citation to the section of the rule that explains the Affidavit for Utility Exemption. Other minor changes were made.

In new section 100, the rule was amended to add a definition for “dairy producer” from Miss. Code Ann. Section 27-65-17(1)(m). In new paragraph 104, a sentence was added that provides a special rate of tax of 3.5% on certain purchases made by a dairy producer. This language is from Miss. Code Ann. Section 27-65-17(1)(m). In new paragraph 103, mechanical milking machines were added to milk tanks and coolers and were identified as farm implements taxable at the 1.5% special rate of tax. In new paragraph 105, a citation was added directing taxpayers to the Affidavit for Utility Exemption. The DOR added a citation to Miss. Code Ann. Section 27-65-23 in Paragraph 100 and a citation to Miss. Code Ann. Section 27-65-103(a) in Paragraph 103. Examples of pest control services, exempt purchases and tools and/or equipment were added to Paragraphs 101, 104, and 105. Other minor changes were made.

In section 100, the second sentence was deleted. In section 101, the first sentence was amended to clarify that a person may own interest in a package retailer’s permit and own interest in one or more on-premises retailer’s permit. The second sentence in 101 is being deleted. Section 103 was amended to include that the chapter shall not be construed to prohibit rendering professional services for more than one package retailer so long as such professional services do not constitute an ownership interest based on the fee being collected. Other minor changes were made.

A second sentence was added to section 100 to state that a permit cannot be transferred if there is an ongoing administrative disciplinary action, including an action under appeal. A second sentence was added to section 103 to clarify that if a funeral home or church refuses to sign a new waiver, a transfer may not be initiated.

In section 100, a sentence was added clarifying that a holder is prohibited from charging a fee for cashing a check. A citation to the Mississippi Check Cashers Act was deleted. Other minor changes were made.

Section 106.02(4)(a) was amended to delete the first sentence concerning mandatory public participation during the public comment period. The DOR will follow Miss Code Ann. Section 25-43-3.104 as written. In Section 106.02(4)(c), the phrase, “at his discretion” was added to the first sentence to more accurately reflect the language in Miss. Code Ann. Section 25-43-3.104(2)(a). “Hearing”, was replaced with “oral proceeding” for clarification.

Section 106.02(4)(a) was amended to delete the first sentence concerning mandatory public participation during the public comment period. The DOR will follow Miss Code Ann. Section 25-43-3.104 as written. In Section 106.02(4)(c), the phrase, “at his discretion” was added to the first sentence to more accurately reflect the language in Miss. Code Ann. Section 25-43-3.104(2)(a). “Hearing”, was replaced with “oral proceeding” for clarification.