Are Manufacturing and Machinery subject to sales tax?
While Mississippi's sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of manufacturing and machinery in Mississippi, including machinery, raw materials and utilities & fuel. To learn more, see a full list of taxable and tax-exempt items in Mississippi.
In the state of Mississippi, they are taxed at a reduced rate. It must be noted that a special rate has been created for any sort of manufacturing machinery which has been used at refinery.
Sales of raw materials are exempt from the sales tax in Mississippi.
Utilities & Fuel
In the state of Mississippi, the reduced rate applies to any and all electricity, current, power, steam, coal, natural gas, liquefied petroleum gas, or other fuel which has been sold to or utilized by a qualified technology intensive enterprise. Any fuel, electricity, and natural gas which is used directly in the manufacturing is considered to be exempt. Any electricity which is used directly in the electrolysis process in sodium chlorate production is also considered to be exempt. The exemption is also allowed in the case of any electricity, current, power, steam, coal, natural gas, liquefied petroleum gas, or other fuel which has been sold to certain manufacturers; poultry, livestock, fish, milk, other food producers or processors; and commercial fishermen.
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