Sales tax; exempt certain sales of tangible personal property and services to churches.

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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representatives Eubanks, Remak

HOUSE BILL NO. 1544

AN ACT TO AMEND SECTION 27-65-111, MISSISSIPPI CODE OF 1972, 1
TO EXEMPT FROM SALES TAXATION SALES OF TANGIBLE PERSONAL PROPERTY 2
OR SERVICES TO A CHURCH THAT IS EXEMPT FROM FEDERAL INCOME 3
TAXATION UNDER THE UNITED STATES INTERNAL REVENUE CODE FOR USE 4
SOLELY IN THE PROPAGATION OF ITS CREED OR CARRYING ON ITS 5
CUSTOMARY NONPROFIT RELIGIOUS ACTIVITIES; AND FOR RELATED 6
PURPOSES. 7
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 8
SECTION 1. Section 27-65-111, Mississippi Code of 1972, is 9
amended as follows: 10
27-65-111. The exemptions from the provisions of this 11
chapter which are not industrial, agricultural or governmental, or 12
which do not relate to utilities or taxes, or which are not 13
properly classified as one (1) of the exemption classifications of 14
this chapter, shall be confined to persons or property exempted by 15
this section or by the Constitution of the United States or the 16
State of Mississippi. No exemptions as now provided by any other 17
section, except the classified exemption sections of this chapter 18
set forth herein, shall be valid as against the tax herein levied. 19
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Any subsequent exemption from the tax levied hereunder, except as 20
indicated above, shall be provided by amendments to this section. 21
No exemption provided in this section shall apply to taxes 22
levied by Section 27-65-15 or 27-65-21. 23
The tax levied by this chapter shall not apply to the 24
following: 25
(a) Sales of tangible personal property and services to 26
hospitals or infirmaries owned and operated by a corporation or 27
association in which no part of the net earnings inures to the 28
benefit of any private shareholder, group or individual, and which 29
are subject to and governed by Sections 41-7-123 through 41-7-127. 30
Only sales of tangible personal property or services which 31
are ordinary and necessary to the operation of such hospitals and 32
infirmaries are exempted from tax. 33
(b) Sales of daily or weekly newspapers, and 34
periodicals or publications of scientific, literary or educational 35
organizations exempt from federal income taxation under Section 36
501(c)(3) of the Internal Revenue Code of 1954, as it exists as of 37
March 31, 1975, and subscription sales of all magazines. 38
(c) Sales of coffins, caskets and other materials used 39
in the preparation of human bodies for burial. 40
(d) Sales of tangible personal property for immediate 41
export to a foreign country. 42
(e) Sales of tangible personal property to an 43
orphanage, old men's or ladies' home, supported wholly or in part 44
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by a religious denomination, fraternal nonprofit organization or 45
other nonprofit organization. 46
(f) Sales of tangible personal property, labor or 47
services taxable under Sections 27-65-17, 27-65-19 and 27-65-23, 48
to a YMCA, YWCA, a Boys' or Girls' Club owned and operated by a 49
corporation or association in which no part of the net earnings 50
inures to the benefit of any private shareholder, group or 51
individual. 52
(g) Sales to elementary and secondary grade schools, 53
junior and senior colleges owned and operated by a corporation or 54
association in which no part of the net earnings inures to the 55
benefit of any private shareholder, group or individual, and which 56
are exempt from state income taxation, provided that this 57
exemption does not apply to sales of property or services which 58
are not to be used in the ordinary operation of the school, or 59
which are to be resold to the students or the public. 60
(h) The gross proceeds of retail sales and the use or 61
consumption in this state of drugs and medicines: 62
(i) Prescribed for the treatment of a human being 63
by a person authorized to prescribe the medicines, and dispensed 64
or prescription filled by a registered pharmacist in accordance 65
with law; or 66
(ii) Furnished by a licensed physician, surgeon, 67
dentist or podiatrist to his own patient for treatment of the 68
patient; or 69
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(iii) Furnished by a hospital for treatment of any 70
person pursuant to the order of a licensed physician, surgeon, 71
dentist or podiatrist; or 72
(iv) Sold to a licensed physician, surgeon, 73
podiatrist, dentist or hospital for the treatment of a human 74
being; or 75
(v) Sold to this state or any political 76
subdivision or municipal corporation thereof, for use in the 77
treatment of a human being or furnished for the treatment of a 78
human being by a medical facility or clinic maintained by this 79
state or any political subdivision or municipal corporation 80
thereof. 81
"Medicines," as used in this paragraph (h), shall mean and 82
include any substance or preparation intended for use by external 83
or internal application to the human body in the diagnosis, cure, 84
mitigation, treatment or prevention of disease and which is 85
commonly recognized as a substance or preparation intended for 86
such use; "medicines" do not include any auditory, prosthetic, 87
ophthalmic or ocular device or appliance, any dentures or parts 88
thereof or any artificial limbs or their replacement parts, 89
articles which are in the nature of splints, bandages, pads, 90
compresses, supports, dressings, instruments, apparatus, 91
contrivances, appliances, devices or other mechanical, electronic, 92
optical or physical equipment or article or the component parts 93
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and accessories thereof, or any alcoholic beverage or any other 94
drug or medicine not commonly referred to as a prescription drug. 95
Notwithstanding the preceding sentence of this paragraph (h), 96
"medicines" as used in this paragraph (h), shall mean and include 97
sutures, whether or not permanently implanted, bone screws, bone 98
pins, pacemakers and other articles permanently implanted in the 99
human body to assist the functioning of any natural organ, artery, 100
vein or limb and which remain or dissolve in the body. 101
The exemption provided in this paragraph (h) shall not apply 102
to medical cannabis sold in accordance with the provisions of the 103
Mississippi Medical Cannabis Act and in compliance with rules and 104
regulations adopted thereunder. 105
"Hospital," as used in this paragraph (h), shall have the 106
meaning ascribed to it in Section 41-9-3. 107
Insulin furnished by a registered pharmacist to a person for 108
treatment of diabetes as directed by a physician shall be deemed 109
to be dispensed on prescription within the meaning of this 110
paragraph (h). 111
(i) Retail sales of automobiles, trucks and 112
truck-tractors if exported from this state within forty-eight (48) 113
hours and registered and first used in another state. 114
(j) Sales of tangible personal property or services to 115
the Salvation Army and the Muscular Dystrophy Association, Inc. 116
(k) From July 1, 1985, through December 31, 1992, 117
retail sales of "alcohol-blended fuel" as such term is defined in 118
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Section 75-55-5. The gasoline-alcohol blend or the straight 119
alcohol eligible for this exemption shall not contain alcohol 120
distilled outside the State of Mississippi. 121
(l) Sales of tangible personal property or services to 122
the Institute for Technology Development. 123
(m) The gross proceeds of retail sales of food and 124
drink for human consumption made through vending machines serviced 125
by full-line vendors from and not connected with other taxable 126
businesses. 127
(n) The gross proceeds of sales of motor fuel. 128
(o) Retail sales of food for human consumption 129
purchased with food stamps issued by the United States Department 130
of Agriculture, or other federal agency, from and after October 1, 131
1987, or from and after the expiration of any waiver granted 132
pursuant to federal law, the effect of which waiver is to permit 133
the collection by the state of tax on such retail sales of food 134
for human consumption purchased with food stamps. 135
(p) Sales of cookies for human consumption by the Girl 136
Scouts of America if no part of the net earnings from those sales 137
inures to the benefit of any private group or individual. 138
(q) Gifts or sales of tangible personal property or 139
services to public or private nonprofit museums of art. 140
(r) Sales of tangible personal property or services to 141
alumni associations of state-supported colleges or universities. 142
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(s) Sales of tangible personal property or services to 143
National Association of Junior Auxiliaries, Inc., and chapters of 144
the National Association of Junior Auxiliaries, Inc. 145
(t) Sales of tangible personal property or services to 146
domestic violence shelters which qualify for state funding under 147
Sections 93-21-101 through 93-21-113. 148
(u) Sales of tangible personal property or services to 149
the National Multiple Sclerosis Society, Mississippi Chapter. 150
(v) Retail sales of food for human consumption 151
purchased with food instruments issued the Mississippi Band of 152
Choctaw Indians under the Women, Infants and Children Program 153
(WIC) funded by the United States Department of Agriculture. 154
(w) Sales of tangible personal property or services to 155
a private company, as defined in Section 57-61-5, which is making 156
such purchases with proceeds of bonds issued under Section 57-61-1 157
et seq., the Mississippi Business Investment Act. 158
(x) The gross collections from the operation of 159
self-service, coin-operated car washing equipment and sales of the 160
service of washing motor vehicles with portable high-pressure 161
washing equipment on the premises of the customer. 162
(y) Sales of tangible personal property or services to 163
the Mississippi Technology Alliance. 164
(z) Sales of tangible personal property to nonprofit 165
organizations that provide foster care, adoption services and 166
temporary housing for unwed mothers and their children if the 167
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organization is exempt from federal income taxation under Section 168
501(c)(3) of the Internal Revenue Code. 169
(aa) Sales of tangible personal property to nonprofit 170
organizations that provide residential rehabilitation for persons 171
with alcohol and drug dependencies if the organization is exempt 172
from federal income taxation under Section 501(c)(3) of the 173
Internal Revenue Code. 174
(ab) (i) Retail sales of an article of clothing or 175
footwear designed to be worn on or about the human body and retail 176
sales of school supplies if the sales price of the article of 177
clothing or footwear or school supply is less than One Hundred 178
Dollars ($100.00) and the sale takes place during a period 179
beginning at 12:01 a.m. on the second Friday in July and ending at 180
12:00 midnight the following Sunday. This paragraph (ab) shall 181
not apply to: 182
1. Accessories including jewelry, handbags, 183
luggage, umbrellas, wallets, watches, briefcases, garment bags and 184
similar items carried on or about the human body, without regard 185
to whether worn on the body in a manner characteristic of 186
clothing; 187
2. The rental of clothing or footwear; and 188
3. Skis, swim fins, roller blades, skates and 189
similar items worn on the foot. 190
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(ii) For purposes of this paragraph (ab), "school 191
supplies" means items that are commonly used by a student in a 192
course of study. The following is an all-inclusive list: 193
1. Backpacks; 194
2. Binder pockets; 195
3. Binders; 196
4. Blackboard chalk; 197
5. Book bags; 198
6. Calculators; 199
7. Cellophane tape; 200
8. Clays and glazes; 201
9. Compasses; 202
10. Composition books; 203
11. Crayons; 204
12. Dictionaries and thesauruses; 205
13. Dividers; 206
14. Erasers; 207
15. Folders: expandable, pocket, plastic and 208
manila; 209
16. Glue, paste and paste sticks; 210
17. Highlighters; 211
18. Index card boxes; 212
19. Index cards; 213
20. Legal pads; 214
21. Lunch boxes; 215
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22. Markers; 216
23. Notebooks; 217
24. Paintbrushes for artwork; 218
25. Paints: acrylic, tempera and oil; 219
26. Paper: loose-leaf ruled notebook paper, 220
copy paper, graph paper, tracing paper, manila paper, colored 221
paper, poster board and construction paper; 222
27. Pencil boxes and other school supply 223
boxes; 224
28. Pencil sharpeners; 225
29. Pencils; 226
30. Pens; 227
31. Protractors; 228
32. Reference books; 229
33. Reference maps and globes; 230
34. Rulers; 231
35. Scissors; 232
36. Sheet music; 233
37. Sketch and drawing pads; 234
38. Textbooks; 235
39. Watercolors; 236
40. Workbooks; and 237
41. Writing tablets. 238
(iii) From and after January 1, 2010, the 239
governing authorities of a municipality, for retail sales 240
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occurring within the corporate limits of the municipality, may 241
suspend the application of the exemption provided for in this 242
paragraph (ab) by adoption of a resolution to that effect stating 243
the date upon which the suspension shall take effect. A certified 244
copy of the resolution shall be furnished to the Department of 245
Revenue at least ninety (90) days prior to the date upon which the 246
municipality desires such suspension to take effect. 247
(ac) The gross proceeds of sales of tangible personal 248
property made for the sole purpose of raising funds for a school 249
or an organization affiliated with a school. 250
As used in this paragraph (ac), "school" means any public or 251
private school that teaches courses of instruction to students in 252
any grade from kindergarten through Grade 12. 253
(ad) Sales of durable medical equipment and home 254
medical supplies when ordered or prescribed by a licensed 255
physician for medical purposes of a patient. As used in this 256
paragraph (ad), "durable medical equipment" and "home medical 257
supplies" mean equipment, including repair and replacement parts 258
for the equipment or supplies listed under Title XVIII of the 259
Social Security Act or under the state plan for medical assistance 260
under Title XIX of the Social Security Act, prosthetics, 261
orthotics, hearing aids, hearing devices, prescription eyeglasses, 262
oxygen and oxygen equipment. Payment does not have to be made, in 263
whole or in part, by any particular person to be eligible for this 264
exemption. Purchases of home medical equipment and supplies by a 265
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provider of home health services or a provider of hospice services 266
are eligible for this exemption if the purchases otherwise meet 267
the requirements of this paragraph. 268
(ae) Sales of tangible personal property or services to 269
Mississippi Blood Services. 270
(af) (i) Subject to the provisions of this paragraph 271
(af), retail sales of firearms, ammunition and hunting supplies if 272
sold during the annual Mississippi Second Amendment Weekend 273
holiday beginning at 12:01 a.m. on the last Friday in August and 274
ending at 12:00 midnight the following Sunday. For the purposes 275
of this paragraph (af), "hunting supplies" means tangible personal 276
property used for hunting, including, and limited to, archery 277
equipment, firearm and archery cases, firearm and archery 278
accessories, hearing protection, holsters, belts and slings. 279
Hunting supplies does not include animals used for hunting. 280
(ii) This paragraph (af) shall apply only if one 281
or more of the following occur: 282
1. Title to and/or possession of an eligible 283
item is transferred from a seller to a purchaser; and/or 284
2. A purchaser orders and pays for an 285
eligible item and the seller accepts the order for immediate 286
shipment, even if delivery is made after the time period provided 287
in subparagraph (i) of this paragraph (af), provided that the 288
purchaser has not requested or caused the delay in shipment. 289
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(ag) Sales of nonperishable food items to charitable 290
organizations that are exempt from federal income taxation under 291
Section 501(c)(3) of the Internal Revenue Code and operate a food 292
bank or food pantry or food lines. 293
(ah) Sales of tangible personal property or services to 294
the United Way of the Pine Belt Region, Inc. 295
(ai) Sales of tangible personal property or services to 296
the Mississippi Children's Museum or any subsidiary or affiliate 297
thereof operating a satellite or branch museum within this state. 298
(aj) Sales of tangible personal property or services to 299
the Jackson Zoological Park. 300
(ak) Sales of tangible personal property or services to 301
the Hattiesburg Zoo. 302
(al) Gross proceeds from sales of food, merchandise or 303
other concessions at an event held solely for religious or 304
charitable purposes at livestock facilities, agriculture 305
facilities or other facilities constructed, renovated or expanded 306
with funds for the grant program authorized under Section 18, 307
Chapter 530, Laws of 1995. 308
(am) Sales of tangible personal property and services 309
to the Diabetes Foundation of Mississippi and the Mississippi 310
Chapter of the Juvenile Diabetes Research Foundation. 311
(an) Sales of potting soil, mulch, or other soil 312
amendments used in growing ornamental plants which bear no fruit 313
of commercial value when sold to commercial plant nurseries that 314
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operate exclusively at wholesale and where no retail sales can be 315
made. 316
(ao) Sales of tangible personal property or services to 317
the University of Mississippi Medical Center Research Development 318
Foundation. 319
(ap) Sales of tangible personal property or services to 320
Keep Mississippi Beautiful, Inc., and all affiliates of Keep 321
Mississippi Beautiful, Inc. 322
(aq) Sales of tangible personal property or services to 323
the Friends of Children's Hospital. 324
(ar) Sales of tangible personal property or services to 325
the Pinecrest Weekend Snackpacks for Kids located in Corinth, 326
Mississippi. 327
(as) Sales of hearing aids when ordered or prescribed 328
by a licensed physician, audiologist or hearing aid specialist for 329
the medical purposes of a patient. 330
(at) Sales exempt under the Facilitating Business Rapid 331
Response to State Declared Disasters Act of 2015 (Sections 332
27-113-1 through 27-113-9). 333
(au) Sales of tangible personal property or services to 334
the Junior League of Jackson. 335
(av) Sales of tangible personal property or services to 336
the Mississippi's Toughest Kids Foundation for use in the 337
construction, furnishing and equipping of buildings and related 338
facilities and infrastructure at Camp Kamassa in Copiah County, 339
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Mississippi. This paragraph (av) shall stand repealed on July 1, 340
2028. 341
(aw) Sales of tangible personal property or services to 342
MS Gulf Coast Buddy Sports, Inc. 343
(ax) Sales of tangible personal property or services to 344
Biloxi Lions, Inc. 345
(ay) Sales of tangible personal property or services to 346
Lions Sight Foundation of Mississippi, Inc. 347
(az) Sales of tangible personal property and services 348
to the Goldring/Woldenberg Institute of Southern Jewish Life 349
(ISJL). 350
(ba) Sales of coins, currency, and bullion. For the 351
purposes of this paragraph (ba), the following words and phrases 352
shall have the meanings ascribed in this paragraph (ba) unless the 353
context clearly indicates otherwise: 354
(i) "Bullion" means a bar, ingot, or coin: 355
1. Manufactured, in whole or in part, of 356
gold, silver, platinum, or palladium; 357
2. That was or is used solely as a medium of 358
exchange, security, or commodity by any state, the United States 359
Government, or a foreign nation; and 360
3. Sold based on the intrinsic value of the 361
bar, ingot, or coin as a precious metal or collectible item rather 362
than its form or representative value as a medium of exchange. 363
(ii) "Coin or currency" means a coin or currency: 364
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1. Manufactured, in whole or in part, of 365
gold, silver, other metal, or paper; 366
2. That was or is used solely as a medium of 367
exchange, security, or commodity by any state, the United States 368
Government, or a foreign nation; and 369
3. Sold based on the intrinsic value of the 370
coin or currency as a precious metal or collectible item rather 371
than its form or representative value as a medium of exchange. 372
"Coin or currency" does not include a coin or currency that has 373
been incorporated into jewelry. 374
(bb) Sales of tangible personal property or services to 375
a church that is exempt from federal income taxation under 26 USCS 376
Section 501(c)(3) for use solely in the propagation of its creed 377
or carrying on its customary nonprofit religious activities, 378
provided that payment in whole therefor is made by use of a credit 379
card, debit card or similar card issued in the name of the church 380
and/or a check or other instrument drawn on a bank account in the 381
name of the church. 382
SECTION 2. Nothing in this act shall affect or defeat any 383
claim, assessment, appeal, suit, right or cause of action for 384
taxes due or accrued under the sales tax laws before the date on 385
which this act becomes effective, whether such claims, 386
assessments, appeals, suits or actions have been begun before the 387
date on which this act becomes effective or are begun thereafter; 388
and the provisions of the sales tax laws are expressly continued 389
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ST: Sales tax; exempt certain sales of tangible
personal property and services to churches.
in full force, effect and operation for the purpose of the 390
assessment, collection and enrollment of liens for any taxes due 391
or accrued and the execution of any warrant under such laws before 392
the date on which this act becomes effective, and for the 393
imposition of any penalties, forfeitures or claims for failure to 394
comply with such laws. 395
SECTION 3. This act shall take effect and be in force from 396
and after July 1, 2026. 397