Sales tax; exempt certain retail sales of electronic devices/educational software and sales of feminine hygiene products.

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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Scott

HOUSE BILL NO. 168

AN ACT TO AMEND SECTION 27-65-111, MISSISSIPPI CODE OF 1972, 1
TO EXEMPT FROM SALES TAXATION THE RETAIL SALES OF CERTAIN 2
ELECTRONIC DEVICES AND EDUCATIONAL SOFTWARE DURING THE LAST 3
WEEKEND IN JULY; TO EXEMPT FROM SALES TAXATION RETAIL SALES OF 4
FEMININE HYGIENE PRODUCTS; AND FOR RELATED PURPOSES. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 6
SECTION 1. Section 27-65-111, Mississippi Code of 1972, is 7
amended as follows: 8
27-65-111. The exemptions from the provisions of this 9
chapter which are not industrial, agricultural or governmental, or 10
which do not relate to utilities or taxes, or which are not 11
properly classified as one (1) of the exemption classifications of 12
this chapter, shall be confined to persons or property exempted by 13
this section or by the Constitution of the United States or the 14
State of Mississippi. No exemptions as now provided by any other 15
section, except the classified exemption sections of this chapter 16
set forth herein, shall be valid as against the tax herein levied. 17
Any subsequent exemption from the tax levied hereunder, except as 18
indicated above, shall be provided by amendments to this section. 19
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No exemption provided in this section shall apply to taxes 20
levied by Section 27-65-15 or 27-65-21. 21
The tax levied by this chapter shall not apply to the 22
following: 23
(a) Sales of tangible personal property and services to 24
hospitals or infirmaries owned and operated by a corporation or 25
association in which no part of the net earnings inures to the 26
benefit of any private shareholder, group or individual, and which 27
are subject to and governed by Sections 41-7-123 through 41-7-127. 28
Only sales of tangible personal property or services which 29
are ordinary and necessary to the operation of such hospitals and 30
infirmaries are exempted from tax. 31
(b) Sales of daily or weekly newspapers, and 32
periodicals or publications of scientific, literary or educational 33
organizations exempt from federal income taxation under Section 34
501(c)(3) of the Internal Revenue Code of 1954, as it exists as of 35
March 31, 1975, and subscription sales of all magazines. 36
(c) Sales of coffins, caskets and other materials used 37
in the preparation of human bodies for burial. 38
(d) Sales of tangible personal property for immediate 39
export to a foreign country. 40
(e) Sales of tangible personal property to an 41
orphanage, old men's or ladies' home, supported wholly or in part 42
by a religious denomination, fraternal nonprofit organization or 43
other nonprofit organization. 44
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(f) Sales of tangible personal property, labor or 45
services taxable under Sections 27-65-17, 27-65-19 and 27-65-23, 46
to a YMCA, YWCA, a Boys' or Girls' Club owned and operated by a 47
corporation or association in which no part of the net earnings 48
inures to the benefit of any private shareholder, group or 49
individual. 50
(g) Sales to elementary and secondary grade schools, 51
junior and senior colleges owned and operated by a corporation or 52
association in which no part of the net earnings inures to the 53
benefit of any private shareholder, group or individual, and which 54
are exempt from state income taxation, provided that this 55
exemption does not apply to sales of property or services which 56
are not to be used in the ordinary operation of the school, or 57
which are to be resold to the students or the public. 58
(h) The gross proceeds of retail sales and the use or 59
consumption in this state of drugs and medicines: 60
(i) Prescribed for the treatment of a human being 61
by a person authorized to prescribe the medicines, and dispensed 62
or prescription filled by a registered pharmacist in accordance 63
with law; or 64
(ii) Furnished by a licensed physician, surgeon, 65
dentist or podiatrist to his own patient for treatment of the 66
patient; or 67
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(iii) Furnished by a hospital for treatment of any 68
person pursuant to the order of a licensed physician, surgeon, 69
dentist or podiatrist; or 70
(iv) Sold to a licensed physician, surgeon, 71
podiatrist, dentist or hospital for the treatment of a human 72
being; or 73
(v) Sold to this state or any political 74
subdivision or municipal corporation thereof, for use in the 75
treatment of a human being or furnished for the treatment of a 76
human being by a medical facility or clinic maintained by this 77
state or any political subdivision or municipal corporation 78
thereof. 79
"Medicines," as used in this paragraph (h), shall mean and 80
include any substance or preparation intended for use by external 81
or internal application to the human body in the diagnosis, cure, 82
mitigation, treatment or prevention of disease and which is 83
commonly recognized as a substance or preparation intended for 84
such use; "medicines" do not include any auditory, prosthetic, 85
ophthalmic or ocular device or appliance, any dentures or parts 86
thereof or any artificial limbs or their replacement parts, 87
articles which are in the nature of splints, bandages, pads, 88
compresses, supports, dressings, instruments, apparatus, 89
contrivances, appliances, devices or other mechanical, electronic, 90
optical or physical equipment or article or the component parts 91
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and accessories thereof, or any alcoholic beverage or any other 92
drug or medicine not commonly referred to as a prescription drug. 93
Notwithstanding the preceding sentence of this paragraph (h), 94
"medicines" as used in this paragraph (h), shall mean and include 95
sutures, whether or not permanently implanted, bone screws, bone 96
pins, pacemakers and other articles permanently implanted in the 97
human body to assist the functioning of any natural organ, artery, 98
vein or limb and which remain or dissolve in the body. 99
The exemption provided in this paragraph (h) shall not apply 100
to medical cannabis sold in accordance with the provisions of the 101
Mississippi Medical Cannabis Act and in compliance with rules and 102
regulations adopted thereunder. 103
"Hospital," as used in this paragraph (h), shall have the 104
meaning ascribed to it in Section 41-9-3. 105
Insulin furnished by a registered pharmacist to a person for 106
treatment of diabetes as directed by a physician shall be deemed 107
to be dispensed on prescription within the meaning of this 108
paragraph (h). 109
(i) Retail sales of automobiles, trucks and 110
truck-tractors if exported from this state within forty-eight (48) 111
hours and registered and first used in another state. 112
(j) Sales of tangible personal property or services to 113
the Salvation Army and the Muscular Dystrophy Association, Inc. 114
(k) From July 1, 1985, through December 31, 1992, 115
retail sales of "alcohol-blended fuel" as such term is defined in 116
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Section 75-55-5. The gasoline-alcohol blend or the straight 117
alcohol eligible for this exemption shall not contain alcohol 118
distilled outside the State of Mississippi. 119
(l) Sales of tangible personal property or services to 120
the Institute for Technology Development. 121
(m) The gross proceeds of retail sales of food and 122
drink for human consumption made through vending machines serviced 123
by full-line vendors from and not connected with other taxable 124
businesses. 125
(n) The gross proceeds of sales of motor fuel. 126
(o) Retail sales of food for human consumption 127
purchased with food stamps issued by the United States Department 128
of Agriculture, or other federal agency, from and after October 1, 129
1987, or from and after the expiration of any waiver granted 130
pursuant to federal law, the effect of which waiver is to permit 131
the collection by the state of tax on such retail sales of food 132
for human consumption purchased with food stamps. 133
(p) Sales of cookies for human consumption by the Girl 134
Scouts of America if no part of the net earnings from those sales 135
inures to the benefit of any private group or individual. 136
(q) Gifts or sales of tangible personal property or 137
services to public or private nonprofit museums of art. 138
(r) Sales of tangible personal property or services to 139
alumni associations of state-supported colleges or universities. 140
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(s) Sales of tangible personal property or services to 141
National Association of Junior Auxiliaries, Inc., and chapters of 142
the National Association of Junior Auxiliaries, Inc. 143
(t) Sales of tangible personal property or services to 144
domestic violence shelters which qualify for state funding under 145
Sections 93-21-101 through 93-21-113. 146
(u) Sales of tangible personal property or services to 147
the National Multiple Sclerosis Society, Mississippi Chapter. 148
(v) Retail sales of food for human consumption 149
purchased with food instruments issued the Mississippi Band of 150
Choctaw Indians under the Women, Infants and Children Program 151
(WIC) funded by the United States Department of Agriculture. 152
(w) Sales of tangible personal property or services to 153
a private company, as defined in Section 57-61-5, which is making 154
such purchases with proceeds of bonds issued under Section 57-61-1 155
et seq., the Mississippi Business Investment Act. 156
(x) The gross collections from the operation of 157
self-service, coin-operated car washing equipment and sales of the 158
service of washing motor vehicles with portable high-pressure 159
washing equipment on the premises of the customer. 160
(y) Sales of tangible personal property or services to 161
the Mississippi Technology Alliance. 162
(z) Sales of tangible personal property to nonprofit 163
organizations that provide foster care, adoption services and 164
temporary housing for unwed mothers and their children if the 165
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organization is exempt from federal income taxation under Section 166
501(c)(3) of the Internal Revenue Code. 167
(aa) Sales of tangible personal property to nonprofit 168
organizations that provide residential rehabilitation for persons 169
with alcohol and drug dependencies if the organization is exempt 170
from federal income taxation under Section 501(c)(3) of the 171
Internal Revenue Code. 172
(ab) (i) Retail sales of an article of clothing or 173
footwear designed to be worn on or about the human body and retail 174
sales of school supplies if the sales price of the article of 175
clothing or footwear or school supply is less than One Hundred 176
Dollars ($100.00) and the sale takes place during a period 177
beginning at 12:01 a.m. on the second Friday in July and ending at 178
12:00 midnight the following Sunday. This paragraph (ab) shall 179
not apply to: 180
1. Accessories including jewelry, handbags, 181
luggage, umbrellas, wallets, watches, briefcases, garment bags and 182
similar items carried on or about the human body, without regard 183
to whether worn on the body in a manner characteristic of 184
clothing; 185
2. The rental of clothing or footwear; and 186
3. Skis, swim fins, roller blades, skates and 187
similar items worn on the foot. 188
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(ii) For purposes of this paragraph (ab), "school 189
supplies" means items that are commonly used by a student in a 190
course of study. The following is an all-inclusive list: 191
1. Backpacks; 192
2. Binder pockets; 193
3. Binders; 194
4. Blackboard chalk; 195
5. Book bags; 196
6. Calculators; 197
7. Cellophane tape; 198
8. Clays and glazes; 199
9. Compasses; 200
10. Composition books; 201
11. Crayons; 202
12. Dictionaries and thesauruses; 203
13. Dividers; 204
14. Erasers; 205
15. Folders: expandable, pocket, plastic and 206
manila; 207
16. Glue, paste and paste sticks; 208
17. Highlighters; 209
18. Index card boxes; 210
19. Index cards; 211
20. Legal pads; 212
21. Lunch boxes; 213
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22. Markers; 214
23. Notebooks; 215
24. Paintbrushes for artwork; 216
25. Paints: acrylic, tempera and oil; 217
26. Paper: loose-leaf ruled notebook paper, 218
copy paper, graph paper, tracing paper, manila paper, colored 219
paper, poster board and construction paper; 220
27. Pencil boxes and other school supply 221
boxes; 222
28. Pencil sharpeners; 223
29. Pencils; 224
30. Pens; 225
31. Protractors; 226
32. Reference books; 227
33. Reference maps and globes; 228
34. Rulers; 229
35. Scissors; 230
36. Sheet music; 231
37. Sketch and drawing pads; 232
38. Textbooks; 233
39. Watercolors; 234
40. Workbooks; and 235
41. Writing tablets. 236
(iii) From and after January 1, 2010, the 237
governing authorities of a municipality, for retail sales 238
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occurring within the corporate limits of the municipality, may 239
suspend the application of the exemption provided for in this 240
paragraph (ab) by adoption of a resolution to that effect stating 241
the date upon which the suspension shall take effect. A certified 242
copy of the resolution shall be furnished to the Department of 243
Revenue at least ninety (90) days prior to the date upon which the 244
municipality desires such suspension to take effect. 245
(ac) The gross proceeds of sales of tangible personal 246
property made for the sole purpose of raising funds for a school 247
or an organization affiliated with a school. 248
As used in this paragraph (ac), "school" means any public or 249
private school that teaches courses of instruction to students in 250
any grade from kindergarten through Grade 12. 251
(ad) Sales of durable medical equipment and home 252
medical supplies when ordered or prescribed by a licensed 253
physician for medical purposes of a patient. As used in this 254
paragraph (ad), "durable medical equipment" and "home medical 255
supplies" mean equipment, including repair and replacement parts 256
for the equipment or supplies listed under Title XVIII of the 257
Social Security Act or under the state plan for medical assistance 258
under Title XIX of the Social Security Act, prosthetics, 259
orthotics, hearing aids, hearing devices, prescription eyeglasses, 260
oxygen and oxygen equipment. Payment does not have to be made, in 261
whole or in part, by any particular person to be eligible for this 262
exemption. Purchases of home medical equipment and supplies by a 263
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provider of home health services or a provider of hospice services 264
are eligible for this exemption if the purchases otherwise meet 265
the requirements of this paragraph. 266
(ae) Sales of tangible personal property or services to 267
Mississippi Blood Services. 268
(af) (i) Subject to the provisions of this paragraph 269
(af), retail sales of firearms, ammunition and hunting supplies if 270
sold during the annual Mississippi Second Amendment Weekend 271
holiday beginning at 12:01 a.m. on the last Friday in August and 272
ending at 12:00 midnight the following Sunday. For the purposes 273
of this paragraph (af), "hunting supplies" means tangible personal 274
property used for hunting, including, and limited to, archery 275
equipment, firearm and archery cases, firearm and archery 276
accessories, hearing protection, holsters, belts and slings. 277
Hunting supplies does not include animals used for hunting. 278
(ii) This paragraph (af) shall apply only if one 279
or more of the following occur: 280
1. Title to and/or possession of an eligible 281
item is transferred from a seller to a purchaser; and/or 282
2. A purchaser orders and pays for an 283
eligible item and the seller accepts the order for immediate 284
shipment, even if delivery is made after the time period provided 285
in subparagraph (i) of this paragraph (af), provided that the 286
purchaser has not requested or caused the delay in shipment. 287
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(ag) Sales of nonperishable food items to charitable 288
organizations that are exempt from federal income taxation under 289
Section 501(c)(3) of the Internal Revenue Code and operate a food 290
bank or food pantry or food lines. 291
(ah) Sales of tangible personal property or services to 292
the United Way of the Pine Belt Region, Inc. 293
(ai) Sales of tangible personal property or services to 294
the Mississippi Children's Museum or any subsidiary or affiliate 295
thereof operating a satellite or branch museum within this state. 296
(aj) Sales of tangible personal property or services to 297
the Jackson Zoological Park. 298
(ak) Sales of tangible personal property or services to 299
the Hattiesburg Zoo. 300
(al) Gross proceeds from sales of food, merchandise or 301
other concessions at an event held solely for religious or 302
charitable purposes at livestock facilities, agriculture 303
facilities or other facilities constructed, renovated or expanded 304
with funds for the grant program authorized under Section 18, 305
Chapter 530, Laws of 1995. 306
(am) Sales of tangible personal property and services 307
to the Diabetes Foundation of Mississippi and the Mississippi 308
Chapter of the Juvenile Diabetes Research Foundation. 309
(an) Sales of potting soil, mulch, or other soil 310
amendments used in growing ornamental plants which bear no fruit 311
of commercial value when sold to commercial plant nurseries that 312
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operate exclusively at wholesale and where no retail sales can be 313
made. 314
(ao) Sales of tangible personal property or services to 315
the University of Mississippi Medical Center Research Development 316
Foundation. 317
(ap) Sales of tangible personal property or services to 318
Keep Mississippi Beautiful, Inc., and all affiliates of Keep 319
Mississippi Beautiful, Inc. 320
(aq) Sales of tangible personal property or services to 321
the Friends of Children's Hospital. 322
(ar) Sales of tangible personal property or services to 323
the Pinecrest Weekend Snackpacks for Kids located in Corinth, 324
Mississippi. 325
(as) Sales of hearing aids when ordered or prescribed 326
by a licensed physician, audiologist or hearing aid specialist for 327
the medical purposes of a patient. 328
(at) Sales exempt under the Facilitating Business Rapid 329
Response to State Declared Disasters Act of 2015 (Sections 330
27-113-1 through 27-113-9). 331
(au) Sales of tangible personal property or services to 332
the Junior League of Jackson. 333
(av) Sales of tangible personal property or services to 334
the Mississippi's Toughest Kids Foundation for use in the 335
construction, furnishing and equipping of buildings and related 336
facilities and infrastructure at Camp Kamassa in Copiah County, 337
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Mississippi. This paragraph (av) shall stand repealed on July 1, 338
2028. 339
(aw) Sales of tangible personal property or services to 340
MS Gulf Coast Buddy Sports, Inc. 341
(ax) Sales of tangible personal property or services to 342
Biloxi Lions, Inc. 343
(ay) Sales of tangible personal property or services to 344
Lions Sight Foundation of Mississippi, Inc. 345
(az) Sales of tangible personal property and services 346
to the Goldring/Woldenberg Institute of Southern Jewish Life 347
(ISJL). 348
(ba) Sales of coins, currency, and bullion. For the 349
purposes of this paragraph (ba), the following words and phrases 350
shall have the meanings ascribed in this paragraph (ba) unless the 351
context clearly indicates otherwise: 352
(i) "Bullion" means a bar, ingot, or coin: 353
1. Manufactured, in whole or in part, of 354
gold, silver, platinum, or palladium; 355
2. That was or is used solely as a medium of 356
exchange, security, or commodity by any state, the United States 357
Government, or a foreign nation; and 358
3. Sold based on the intrinsic value of the 359
bar, ingot, or coin as a precious metal or collectible item rather 360
than its form or representative value as a medium of exchange. 361
(ii) "Coin or currency" means a coin or currency: 362
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1. Manufactured, in whole or in part, of 363
gold, silver, other metal, or paper; 364
2. That was or is used solely as a medium of 365
exchange, security, or commodity by any state, the United States 366
Government, or a foreign nation; and 367
3. Sold based on the intrinsic value of the 368
coin or currency as a precious metal or collectible item rather 369
than its form or representative value as a medium of exchange. 370
"Coin or currency" does not include a coin or currency that has 371
been incorporated into jewelry. 372
(bb) Retail sales of computers, printers and printer 373
supplies, and educational software, if the sales price is One 374
Thousand Five Hundred Dollars ($1,500.00) or less per item and the 375
sale takes place during a period beginning at 12:01 a.m. on the 376
last Friday in July and ending at 12:00 midnight the following 377
Saturday. For purposes of this paragraph (bb), the term 378
"computer" means a central processing unit for personal use and 379
any peripherals sold with it and any computer software installed 380
at the time of purchase. 381
(bc) Retail sales of feminine hygiene products, 382
including, but not limited to, sanitary napkins and tampons. 383
SECTION 2. Nothing in this act shall affect or defeat any 384
claim, assessment, appeal, suit, right or cause of action for 385
taxes due or accrued under the sales tax laws before the date on 386
which this act becomes effective, whether such claims, 387
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ST: Sales tax; exempt certain retail sales of
electronic devices/educational software and
sales of feminine hygiene products.
assessments, appeals, suits or actions have been begun before the 388
date on which this act becomes effective or are begun thereafter; 389
and the provisions of the sales tax laws are expressly continued 390
in full force, effect and operation for the purpose of the 391
assessment, collection and enrollment of liens for any taxes due 392
or accrued and the execution of any warrant under such laws before 393
the date on which this act becomes effective, and for the 394
imposition of any penalties, forfeitures or claims for failure to 395
comply with such laws. 396
SECTION 3. This act shall take effect and be in force from 397
and after July 1, 2026. 398