Sales Tax Articles
Sales Tax State Activity Update - May 2007
Mississippi Cements the Taxability of Concrete and Asphalt
The Mississippi State Tax Commission issued Final Rules Title 35, Part IV, Subpart 04, Chapter 08, "Sales and Installations of Personal Property" and Title 35, Part IV, Subpart 10, Chapter 01, "Construction Contractors" clarifying the treatment of Concrete and Asphalt Sales. These Rules are provided, in pertinent part, as follows:
Title 35, Part IV, Subpart 04, Chapter 08, "Sales and Installations of Personal Property"
500 - All sales of concrete and asphalt are taxable at the regular retail rate of tax unless the purchaser presents a valid exemption. A valid exemption means that the purchaser is an entity exempt from sale tax under Sections 27-65-101 through 27-65-111, Mississippi Code of 1972; or that the purchaser holds an MPC number or direct pay permit issued under Section 27-65-21 or 27-65-93, Mississippi Code of 1972, respectively. Additional information on the treatment of concrete and asphalt sales may be found in Title 35, Mississippi Administrative Code, Part IV, Subpart 10, Chapter 01.
Title 35, Part IV, Subpart 10, Chapter 01, "Construction Contractors"
801 - All sales of concrete and asphalt for residential use are taxable at the regular retail rate of sales tax at the time such materials are purchased from the vendor unless the purchaser is an exempt entity or provides the seller with a direct pay permit. An exempt entity is one who is exempt from sale tax as provided for in Sections 27-65-101 through 27-65-111, Mississippi Code of 1972. Direct pay permits are issued to taxpayers under the provisions of 27-65-93, Mississippi Code of 1972. A direct pay permit relieves the seller of the responsibility for collecting tax and requires the holder to remit any taxes due on the purchase directly to the state.
802 - A person with a valid sales tax number who is purchasing concrete to use in the performance of a taxable service is considered the consumer of the concrete and must pay tax to the vendor at the time of purchase. Contractors who use concrete or asphalt in the performance of a job and who manufacture or produce the materials owe sales tax on the value of the concrete or asphalt. Any person purchasing concrete or asphalt from a vendor out of state for delivery and use in this state will be liable for remitting use tax on the purchase price of products. Any person who manufactures or produces concrete or asphalt out of state for delivery and use in this state will be liable for remitting use tax on the value of the concrete or asphalt.
803 - The term "vendor" means the person who is manufacturing or producing the concrete or asphalt from raw materials either at a fixed plant site location, a portable plant or through ready-mix trucks.
The full text can be viewed on the Mississippi State Tax Commission website.
(Mississippi State Tax Commission Final Rule, 04/16/2007)
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