Sales tax exemptions in Mississippi are generally granted for specific purposes or types of entities, such as for resale, manufacturing equipment, agricultural supplies, or certain non-profit organizations and government entities. 

1. Determine your eligibility

  • Resale: If you’re a business purchasing goods for resale, you’ll generally use your seller’s permit as a resale certificate to exempt those purchases from sales tax.
  • Non-Profit or Governmental: Non-profit organizations and government entities may be exempt from sales tax on purchases made for their official purposes.
  • Other Exemptions: Mississippi law provides specific exemptions for items like prescription medications, certain agricultural products, and construction materials for tax-exempt projects. 

2. Obtain necessary documentation

  • Resale Certificate (Seller’s Permit): If purchasing for resale, your valid Mississippi seller’s permit serves as your resale certificate.
  • Supporting Documentation: Be prepared to provide additional documentation to support your claim, such as your IRS 501(c)(19) determination letter (for non-profits). 

3. Applying for the exemption

  • Online Registration (Seller’s Permit): You can register for a Mississippi seller’s permit online through the Mississippi Department of Revenue (DOR) website .
  • Mail Application (Specific Exemptions): Some exemption applications may need to be mailed to the MDOR. For example, the Church Utility Exemption Affidavit (Form 72-15-09) and the Utility Exemption Affidavit (Form 72-622) are listed as forms to be mailed in.
  • Consult the MDOR Website: The Mississippi Department of Revenue website is the best resource for detailed information and the specific forms required for your exemption. You can also contact the Sales and Use Tax Bureau at 601-923-7300 for assistance, according to the Mississippi Department of Revenue. 

4. Understanding your responsibilities

  • Maintain Records: Keep accurate records and documentation to support all tax-exempt transactions.
  • Compliance: Ensure your business adheres to all Mississippi tax laws and regulations, including any nexus requirements.
  • Timely Filing: File accurate and timely tax returns to avoid penalties or interest charges.
  • Updates: Stay informed about changes to Mississippi tax laws and regulations, including any updates to exemption qualifications or processes