Ad valorem tax and sales tax; authorize certain exemptions.

H. B. No. 1849 *HR26/R2396* ~ OFFICIAL ~ R3/5
26/HR26/R2396
PAGE 1 (BS\KW)

To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Yates

HOUSE BILL NO. 1849

AN ACT TO AMEND SECTION 27-31-1, MISSISSIPPI CODE OF 1972, TO 1
EXEMPT FROM AD VALOREM TAXATION ANY LEASEHOLD INTEREST OR 2
SUB-LEASE THEREOF CONVEYED TO ANY NONPROFIT ORGANIZATION FOR THE 3
DEVELOPMENT, SUPPORT, IMPROVEMENT, ADMINISTRATION OR OPERATION OF 4
STATE PARK LANDS UNDER SECTION 55-3-47; TO AMEND SECTION 5
27-65-111, MISSISSIPPI CODE OF 1972, TO EXEMPT FROM SALES TAXATION 6
SALES OF TANGIBLE PERSONAL PROPERTY OR SERVICES TO ANY NONPROFIT 7
ORGANIZATION FOR PURPOSES OF MAKING IMPROVEMENTS OR REPAIRS TO 8
LANDS OR PROPERTIES SUBJECT TO A LEASE OR SUB-LEASE FOR THE 9
DEVELOPMENT, SUPPORT, IMPROVEMENT, ADMINISTRATION OR OPERATION OF 10
STATE PARK LANDS UNDER SECTION 55-3-47; TO BRING FORWARD SECTION 11
55-3-47, MISSISSIPPI CODE OF 1972, WHICH RELATES TO THE POWERS AND 12
DUTIES OF THE MISSISSIPPI DEPARTMENT OF WILDLIFE, FISHERIES AND 13
PARKS REGARDING STATE PARKS, FOR THE PURPOSES OF POSSIBLE 14
AMENDMENT; AND FOR RELATED PURPOSES. 15
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 16
SECTION 1. Section 27-31-1, Mississippi Code of 1972, is 17
amended as follows: 18
27-31-1. The following shall be exempt from taxation: 19
(a) All cemeteries used exclusively for burial 20
purposes. 21
(b) All property, real or personal, belonging to the 22
State of Mississippi or any of its political subdivisions, except 23
property of a municipality not being used for a proper municipal 24
H. B. No. 1849 *HR26/R2396* ~ OFFICIAL ~
26/HR26/R2396
PAGE 2 (BS\KW)

purpose and located outside the county or counties in which such 25
municipality is located. A proper municipal purpose within the 26
meaning of this section shall be any authorized governmental or 27
corporate function of a municipality. 28
(c) All property, real or personal, owned by units of 29
the Mississippi National Guard, or title to which is vested in 30
trustees for the benefit of any unit of the Mississippi National 31
Guard; provided such property is used exclusively for such unit, 32
or for public purposes, and not for profit. 33
(d) All property, real or personal, belonging to any 34
religious society, or ecclesiastical body, or any congregation 35
thereof, or to any charitable society, or to any historical or 36
patriotic association or society, or to any garden or pilgrimage 37
club or association and used exclusively for such society or 38
association and not for profit; not exceeding, however, the amount 39
of land which such association or society may own as provided in 40
Section 79-11-33. All property, real or personal, belonging to 41
any foundation organized as a nonprofit corporation that is exempt 42
from federal income taxation under Section 501(c)(3) of the 43
Internal Revenue Code and that receives, invests and administers 44
private support for a state-supported institution of higher 45
learning, a public community college or junior college located in 46
the State of Mississippi or a nonprofit private university or 47
college located in the State of Mississippi, as the case may be. 48
For the sole purpose of applying the preceding sentence, all 49
H. B. No. 1849 *HR26/R2396* ~ OFFICIAL ~
26/HR26/R2396
PAGE 3 (BS\KW)

property, real or personal, belonging to an entity that is wholly 50
owned by and controlled by such a foundation shall be treated as 51
belonging to the foundation, provided such property is not leased 52
or otherwise used to generate revenue that is not used exclusively 53
to benefit an institution described above. All property, real or 54
personal, belonging to any rural waterworks system or rural sewage 55
disposal system incorporated under the provisions of Section 56
79-11-1. All property, real or personal, belonging to any college 57
or institution for the education of youths, used directly and 58
exclusively for such purposes, provided that no such college or 59
institution for the education of youths shall have exempt from 60
taxation more than six hundred forty (640) acres of land; 61
provided, however, this exemption shall not apply to commercial 62
schools and colleges or trade institutions or schools where the 63
profits of same inure to individuals, associations or 64
corporations. All property, real or personal, belonging to an 65
individual, institution or corporation and used for the operation 66
of a grammar school, junior high school, high school or military 67
school. All property, real or personal, owned and occupied by a 68
fraternal and benevolent organization, when used by such 69
organization, and from which no rentals or other profits accrue to 70
the organization, but any part rented or from which revenue is 71
received shall be taxed. 72
(e) All property, real or personal, held and occupied 73
by trustees of public schools, and school lands of the respective 74
H. B. No. 1849 *HR26/R2396* ~ OFFICIAL ~
26/HR26/R2396
PAGE 4 (BS\KW)

townships for the use of public schools, and all property kept in 75
storage for the convenience and benefit of the State of 76
Mississippi in warehouses owned or leased by the State of 77
Mississippi, wherein said property is to be sold by the Alcoholic 78
Beverage Control Division of the Department of Revenue. 79
(f) All property, real or personal, whether belonging 80
to religious or charitable or benevolent organizations, which is 81
used for hospital purposes, and nurses' homes where a part 82
thereof, and which maintain one or more charity wards that are for 83
charity patients, and where all the income from said hospitals and 84
nurses' homes is used entirely for the purposes thereof and no 85
part of the same for profit. All property, real or personal, 86
belonging to a federally qualified health center where all the 87
income from such center is used entirely for the purposes thereof 88
and no part of the same for profit. 89
(g) The wearing apparel of every person; and also 90
jewelry and watches kept by the owner for personal use to the 91
extent of One Hundred Dollars ($100.00) in value for each owner. 92
(h) Provisions on hand for family consumption. 93
(i) All farm products grown in this state for a period 94
of two (2) years after they are harvested, when in the possession 95
of or the title to which is in the producer, except the tax of 96
one-fifth of one percent (1/5 of 1%) per pound on lint cotton now 97
levied by the Board of Commissioners of the Mississippi Levee 98
District; and lint cotton for five (5) years, and cottonseed, 99
H. B. No. 1849 *HR26/R2396* ~ OFFICIAL ~
26/HR26/R2396
PAGE 5 (BS\KW)

soybeans, oats, rice and wheat for one (1) year regardless of 100
ownership. 101
(j) All guns and pistols kept by the owner for private 102
use. 103
(k) All poultry in the hands of the producer. 104
(l) Household furniture, including all articles kept in 105
the home by the owner for his own personal or family use; but this 106
shall not apply to hotels, rooming houses or rented or leased 107
apartments. 108
(m) All cattle and oxen. 109
(n) All sheep, goats and hogs. 110
(o) All horses, mules and asses. 111
(p) Farming tools, implements and machinery, when used 112
exclusively in the cultivation or harvesting of crops or timber. 113
(q) All property of agricultural and mechanical 114
associations and fairs used for promoting their objects, and where 115
no part of the proceeds is used for profit. 116
(r) The libraries of all persons. 117
(s) All pictures and works of art, not kept for or 118
offered for sale as merchandise. 119
(t) The tools of any mechanic necessary for carrying on 120
his trade. 121
(u) All state, county, municipal, levee, drainage and 122
all school bonds or other governmental obligations, and all bonds 123
and/or evidences of debts issued by any church or church 124
H. B. No. 1849 *HR26/R2396* ~ OFFICIAL ~
26/HR26/R2396
PAGE 6 (BS\KW)

organization in this state, and all notes and evidences of 125
indebtedness which bear a rate of interest not greater than the 126
maximum rate per annum applicable under the law; and all money 127
loaned at a rate of interest not exceeding the maximum rate per 128
annum applicable under the law; and all stock in or bonds of 129
foreign corporations or associations shall be exempt from all ad 130
valorem taxes. 131
(v) All lands and other property situated or located 132
between the Mississippi River and the levee shall be exempt from 133
the payment of any and all road taxes levied or assessed under any 134
road laws of this state. 135
(w) Any and all money on deposit in either national 136
banks, state banks or trust companies, on open account, savings 137
account or time deposit. 138
(x) All wagons, carts, drays, carriages and other 139
horse-drawn vehicles, kept for the use of the owner. 140
(y) (i) Boats, seines and fishing equipment used in 141
fishing and shrimping operations and in the taking or catching of 142
oysters. 143
(ii) All towboats, tugboats and barges documented 144
under the laws of the United States, except watercraft of every 145
kind and character used in connection with gaming operations. 146
(z) (i) All materials used in the construction and/or 147
conversion of vessels in this state; 148
H. B. No. 1849 *HR26/R2396* ~ OFFICIAL ~
26/HR26/R2396
PAGE 7 (BS\KW)

(ii) Vessels while under construction and/or 149
conversion; 150
(iii) Vessels while in the possession of the 151
manufacturer, builder or converter, for a period of twelve (12) 152
months after completion of construction and/or conversion; 153
however, the twelve-month limitation shall not apply to: 154
1. Vessels used for the exploration for, or 155
production of, oil, gas and other minerals offshore outside the 156
boundaries of this state; or 157
2. Vessels that were used for the exploration 158
for, or production of, oil, gas and other minerals that are 159
converted to a new service for use outside the boundaries of this 160
state; 161
(iv) 1. In order for a vessel described in 162
subparagraph (iii) of this paragraph (z) to be exempt for a period 163
of more than twelve (12) months, the vessel must: 164
a. Be operating or operable, generating 165
or capable of generating its own power or connected to some other 166
power source, and not removed from the service or use for which 167
manufactured or to which converted; and 168
b. The manufacturer, builder, converter 169
or other entity possessing the vessel must be in compliance with 170
any lease or other agreement with any applicable port authority or 171
other entity regarding the vessel and in compliance with all 172
applicable tax laws of this state and applicable federal tax laws. 173
H. B. No. 1849 *HR26/R2396* ~ OFFICIAL ~
26/HR26/R2396
PAGE 8 (BS\KW)

2. A vessel exempt from taxation under 174
subparagraph (iii) of this paragraph (z) may not be exempt for a 175
period of more than three (3) years unless the board of 176
supervisors of the county and/or governing authorities of the 177
municipality, as the case may be, in which the vessel would 178
otherwise be taxable adopts a resolution or ordinance authorizing 179
the extension of the exemption and setting a maximum period for 180
the exemption. 181
(v) As used in this paragraph (z), the term 182
"vessel" includes ships, offshore drilling equipment, dry docks, 183
boats and barges, except watercraft of every kind and character 184
used in connection with gaming operations. 185
(aa) Sixty-six and two-thirds percent (66-2/3%) of 186
nuclear fuel and reprocessed, recycled or residual nuclear fuel 187
by-products, fissionable or otherwise, used or to be used in 188
generation of electricity by persons defined as public utilities 189
in Section 77-3-3. 190
(bb) All growing nursery stock. 191
(cc) A semitrailer used in interstate commerce. 192
(dd) All property, real or personal, used exclusively 193
for the housing of and provision of services to elderly persons, 194
disabled persons, mentally impaired persons or as a nursing home, 195
which is owned, operated and managed by a not-for-profit 196
corporation, qualified under Section 501(c)(3) of the Internal 197
Revenue Code, whose membership or governing body is appointed or 198
H. B. No. 1849 *HR26/R2396* ~ OFFICIAL ~
26/HR26/R2396
PAGE 9 (BS\KW)

confirmed by a religious society or ecclesiastical body or any 199
congregation thereof. 200
(ee) All vessels while in the hands of bona fide 201
dealers as merchandise and which are not being operated upon the 202
waters of this state shall be exempt from ad valorem taxes. As 203
used in this paragraph, the terms "vessel" and "waters of this 204
state" shall have the meaning ascribed to such terms in Section 205
59-21-3. 206
(ff) All property, real or personal, owned by a 207
nonprofit organization that: (i) is qualified as tax exempt under 208
Section 501(c)(4) of the Internal Revenue Code of 1986, as 209
amended; (ii) assists in the implementation of the national 210
contingency plan or area contingency plan, and which is created in 211
response to the requirements of Title IV, Subtitle B of the Oil 212
Pollution Act of 1990, Public Law 101-380; (iii) engages primarily 213
in programs to contain, clean up and otherwise mitigate spills of 214
oil or other substances occurring in the United States coastal or 215
tidal waters; and (iv) is used for the purposes of the 216
organization. 217
(gg) If a municipality changes its boundaries so as to 218
include within the boundaries of such municipality the project 219
site of any project as defined in Section 57-75-5(f)(iv)1, Section 220
57-75-5(f)(xxi) or Section 57-75-5(f)(xxviii) or Section 221
57-75-5(f)(xxix), all real and personal property located on the 222
project site within the boundaries of such municipality that is 223
H. B. No. 1849 *HR26/R2396* ~ OFFICIAL ~
26/HR26/R2396
PAGE 10 (BS\KW)

owned by a business enterprise operating such project, shall be 224
exempt from ad valorem taxation for a period of time not to exceed 225
thirty (30) years upon receiving approval for such exemption by 226
the Mississippi Major Economic Impact Authority. The provisions 227
of this paragraph shall not be construed to authorize a breach of 228
any agreement entered into pursuant to Section 21-1-59. 229
(hh) All leases, lease contracts or lease agreements 230
(including, but not limited to, subleases, sublease contracts and 231
sublease agreements), and leaseholds or leasehold interests 232
(including, but not limited to, subleaseholds and subleasehold 233
interests), of or with respect to any and all property (real, 234
personal or mixed) constituting all or any part of a facility for 235
the manufacture, production, generation, transmission and/or 236
distribution of electricity, and any real property related 237
thereto, shall be exempt from ad valorem taxation during the 238
period as the United States is both the title owner of the 239
property and a sublessee of or with respect to the property; 240
however, the exemption authorized by this paragraph (hh) shall not 241
apply to any entity to whom the United States sub-subleases its 242
interest in the property nor to any entity to whom the United 243
States assigns its sublease interest in the property. As used in 244
this paragraph, the term "United States" includes an agency or 245
instrumentality of the United States of America. This paragraph 246
(hh) shall apply to all assessments for ad valorem taxation for 247
the 2003 calendar year and each calendar year thereafter. 248
H. B. No. 1849 *HR26/R2396* ~ OFFICIAL ~
26/HR26/R2396
PAGE 11 (BS\KW)

(ii) All property, real, personal or mixed, including 249
fixtures and leaseholds, used by Mississippi nonprofit entities 250
qualified, on or before January 1, 2005, under Section 501(c)(3) 251
of the Internal Revenue Code to provide support and operate 252
technology incubators for research and development start-up 253
companies, telecommunication startup companies and/or other 254
technology startup companies, utilizing technology spun-off from 255
research and development activities of the public colleges and 256
universities of this state, State of Mississippi governmental 257
research or development activities resulting therefrom located 258
within the State of Mississippi. 259
(jj) All property, real, personal or mixed, including 260
fixtures and leaseholds, of start-up companies (as described in 261
paragraph (ii) of this section) for the period of time, not to 262
exceed five (5) years, that the startup company remains a tenant 263
of a technology incubator (as described in paragraph (ii) of this 264
section). 265
(kk) All leases, lease contracts or lease agreements 266
(including, but not limited to, subleases, sublease contracts and 267
sublease agreements), and leaseholds or leasehold interests, of or 268
with respect to any and all property (real, personal or mixed) 269
constituting all or any part of an auxiliary facility, and any 270
real property related thereto, constructed or renovated pursuant 271
to Section 37-101-41. 272
H. B. No. 1849 *HR26/R2396* ~ OFFICIAL ~
26/HR26/R2396
PAGE 12 (BS\KW)

(ll) Equipment brought into the state temporarily for 273
use during a disaster response period as provided in Sections 274
27-113-1 through 27-113-9 and subsequently removed from the state 275
on or before the end of the disaster response period as defined in 276
Section 27-113-5. 277
(mm) For any lease or contractual arrangement to which 278
the Department of Finance and Administration and a nonprofit 279
corporation are a party to as provided in Section 39-25-1(5), the 280
nonprofit corporation shall, along with the possessory and 281
leasehold interests and/or real and personal property of the 282
corporation, be exempt from all ad valorem taxation, including, 283
but not limited to, school, city and county ad valorem taxes, for 284
the term or period of time stated in the lease or contractual 285
arrangement. 286
(nn) All property, real or personal, that is owned, 287
operated and managed by a not-for-profit corporation qualified under 288
Section 501(c)(3) of the Internal Revenue Code, and used to provide, 289
free of charge, (i) a practice facility for a public school district 290
swim team, and (ii) a facility for another not-for-profit 291
organization as defined under Section 501(c)(3) of the Internal 292
Revenue Code to conduct water safety and lifeguard training programs. 293
This section shall not apply to real or personal property owned by a 294
country club, tennis club with a pool, or any club requiring stock 295
ownership for membership. 296
H. B. No. 1849 *HR26/R2396* ~ OFFICIAL ~
26/HR26/R2396
PAGE 13 (BS\KW)

(oo) Any all-terrain vehicle, as defined in Section 297
63-21-5, when held by a retailer on a consignment or floor plan 298
basis. 299
(pp) Any leasehold interest or sub-lease thereof 300
conveyed to any nonprofit organization for the development, 301
support, improvement, administration and/or operation of any state 302
park lands under Section 55-3-47. 303
SECTION 2. Section 27-65-111, Mississippi Code of 1972, is 304
amended as follows: 305
27-65-111. The exemptions from the provisions of this 306
chapter which are not industrial, agricultural or governmental, or 307
which do not relate to utilities or taxes, or which are not 308
properly classified as one (1) of the exemption classifications of 309
this chapter, shall be confined to persons or property exempted by 310
this section or by the Constitution of the United States or the 311
State of Mississippi. No exemptions as now provided by any other 312
section, except the classified exemption sections of this chapter 313
set forth herein, shall be valid as against the tax herein levied. 314
Any subsequent exemption from the tax levied hereunder, except as 315
indicated above, shall be provided by amendments to this section. 316
No exemption provided in this section shall apply to taxes 317
levied by Section 27-65-15 or 27-65-21. 318
The tax levied by this chapter shall not apply to the 319
following: 320
H. B. No. 1849 *HR26/R2396* ~ OFFICIAL ~
26/HR26/R2396
PAGE 14 (BS\KW)

(a) Sales of tangible personal property and services to 321
hospitals or infirmaries owned and operated by a corporation or 322
association in which no part of the net earnings inures to the 323
benefit of any private shareholder, group or individual, and which 324
are subject to and governed by Sections 41-7-123 through 41-7-127. 325
Only sales of tangible personal property or services which 326
are ordinary and necessary to the operation of such hospitals and 327
infirmaries are exempted from tax. 328
(b) Sales of daily or weekly newspapers, and 329
periodicals or publications of scientific, literary or educational 330
organizations exempt from federal income taxation under Section 331
501(c)(3) of the Internal Revenue Code of 1954, as it exists as of 332
March 31, 1975, and subscription sales of all magazines. 333
(c) Sales of coffins, caskets and other materials used 334
in the preparation of human bodies for burial. 335
(d) Sales of tangible personal property for immediate 336
export to a foreign country. 337
(e) Sales of tangible personal property to an 338
orphanage, old men's or ladies' home, supported wholly or in part 339
by a religious denomination, fraternal nonprofit organization or 340
other nonprofit organization. 341
(f) Sales of tangible personal property, labor or 342
services taxable under Sections 27-65-17, 27-65-19 and 27-65-23, 343
to a YMCA, YWCA, a Boys' or Girls' Club owned and operated by a 344
corporation or association in which no part of the net earnings 345
H. B. No. 1849 *HR26/R2396* ~ OFFICIAL ~
26/HR26/R2396
PAGE 15 (BS\KW)

inures to the benefit of any private shareholder, group or 346
individual. 347
(g) Sales to elementary and secondary grade schools, 348
junior and senior colleges owned and operated by a corporation or 349
association in which no part of the net earnings inures to the 350
benefit of any private shareholder, group or individual, and which 351
are exempt from state income taxation, provided that this 352
exemption does not apply to sales of property or services which 353
are not to be used in the ordinary operation of the school, or 354
which are to be resold to the students or the public. 355
(h) The gross proceeds of retail sales and the use or 356
consumption in this state of drugs and medicines: 357
(i) Prescribed for the treatment of a human being 358
by a person authorized to prescribe the medicines, and dispensed 359
or prescription filled by a registered pharmacist in accordance 360
with law; or 361
(ii) Furnished by a licensed physician, surgeon, 362
dentist or podiatrist to his own patient for treatment of the 363
patient; or 364
(iii) Furnished by a hospital for treatment of any 365
person pursuant to the order of a licensed physician, surgeon, 366
dentist or podiatrist; or 367
(iv) Sold to a licensed physician, surgeon, 368
podiatrist, dentist or hospital for the treatment of a human 369
being; or 370
H. B. No. 1849 *HR26/R2396* ~ OFFICIAL ~
26/HR26/R2396
PAGE 16 (BS\KW)

(v) Sold to this state or any political 371
subdivision or municipal corporation thereof, for use in the 372
treatment of a human being or furnished for the treatment of a 373
human being by a medical facility or clinic maintained by this 374
state or any political subdivision or municipal corporation 375
thereof. 376
"Medicines," as used in this paragraph (h), shall mean and 377
include any substance or preparation intended for use by external 378
or internal application to the human body in the diagnosis, cure, 379
mitigation, treatment or prevention of disease and which is 380
commonly recognized as a substance or preparation intended for 381
such use; "medicines" do not include any auditory, prosthetic, 382
ophthalmic or ocular device or appliance, any dentures or parts 383
thereof or any artificial limbs or their replacement parts, 384
articles which are in the nature of splints, bandages, pads, 385
compresses, supports, dressings, instruments, apparatus, 386
contrivances, appliances, devices or other mechanical, electronic, 387
optical or physical equipment or article or the component parts 388
and accessories thereof, or any alcoholic beverage or any other 389
drug or medicine not commonly referred to as a prescription drug. 390
Notwithstanding the preceding sentence of this paragraph (h), 391
"medicines" as used in this paragraph (h), shall mean and include 392
sutures, whether or not permanently implanted, bone screws, bone 393
pins, pacemakers and other articles permanently implanted in the 394
H. B. No. 1849 *HR26/R2396* ~ OFFICIAL ~
26/HR26/R2396
PAGE 17 (BS\KW)

human body to assist the functioning of any natural organ, artery, 395
vein or limb and which remain or dissolve in the body. 396
The exemption provided in this paragraph (h) shall not apply 397
to medical cannabis sold in accordance with the provisions of the 398
Mississippi Medical Cannabis Act and in compliance with rules and 399
regulations adopted thereunder. 400
"Hospital," as used in this paragraph (h), shall have the 401
meaning ascribed to it in Section 41-9-3. 402
Insulin furnished by a registered pharmacist to a person for 403
treatment of diabetes as directed by a physician shall be deemed 404
to be dispensed on prescription within the meaning of this 405
paragraph (h). 406
(i) Retail sales of automobiles, trucks and 407
truck-tractors if exported from this state within forty-eight (48) 408
hours and registered and first used in another state. 409
(j) Sales of tangible personal property or services to 410
the Salvation Army and the Muscular Dystrophy Association, Inc. 411
(k) From July 1, 1985, through December 31, 1992, 412
retail sales of "alcohol-blended fuel" as such term is defined in 413
Section 75-55-5. The gasoline-alcohol blend or the straight 414
alcohol eligible for this exemption shall not contain alcohol 415
distilled outside the State of Mississippi. 416
(l) Sales of tangible personal property or services to 417
the Institute for Technology Development. 418
H. B. No. 1849 *HR26/R2396* ~ OFFICIAL ~
26/HR26/R2396
PAGE 18 (BS\KW)

(m) The gross proceeds of retail sales of food and 419
drink for human consumption made through vending machines serviced 420
by full-line vendors from and not connected with other taxable 421
businesses. 422
(n) The gross proceeds of sales of motor fuel. 423
(o) Retail sales of food for human consumption 424
purchased with food stamps issued by the United States Department 425
of Agriculture, or other federal agency, from and after October 1, 426
1987, or from and after the expiration of any waiver granted 427
pursuant to federal law, the effect of which waiver is to permit 428
the collection by the state of tax on such retail sales of food 429
for human consumption purchased with food stamps. 430
(p) Sales of cookies for human consumption by the Girl 431
Scouts of America if no part of the net earnings from those sales 432
inures to the benefit of any private group or individual. 433
(q) Gifts or sales of tangible personal property or 434
services to public or private nonprofit museums of art. 435
(r) Sales of tangible personal property or services to 436
alumni associations of state-supported colleges or universities. 437
(s) Sales of tangible personal property or services to 438
National Association of Junior Auxiliaries, Inc., and chapters of 439
the National Association of Junior Auxiliaries, Inc. 440
(t) Sales of tangible personal property or services to 441
domestic violence shelters which qualify for state funding under 442
Sections 93-21-101 through 93-21-113. 443
H. B. No. 1849 *HR26/R2396* ~ OFFICIAL ~
26/HR26/R2396
PAGE 19 (BS\KW)

(u) Sales of tangible personal property or services to 444
the National Multiple Sclerosis Society, Mississippi Chapter. 445
(v) Retail sales of food for human consumption 446
purchased with food instruments issued the Mississippi Band of 447
Choctaw Indians under the Women, Infants and Children Program 448
(WIC) funded by the United States Department of Agriculture. 449
(w) Sales of tangible personal property or services to 450
a private company, as defined in Section 57-61-5, which is making 451
such purchases with proceeds of bonds issued under Section 57-61-1 452
et seq., the Mississippi Business Investment Act. 453
(x) The gross collections from the operation of 454
self-service, coin-operated car washing equipment and sales of the 455
service of washing motor vehicles with portable high-pressure 456
washing equipment on the premises of the customer. 457
(y) Sales of tangible personal property or services to 458
the Mississippi Technology Alliance. 459
(z) Sales of tangible personal property to nonprofit 460
organizations that provide foster care, adoption services and 461
temporary housing for unwed mothers and their children if the 462
organization is exempt from federal income taxation under Section 463
501(c)(3) of the Internal Revenue Code. 464
(aa) Sales of tangible personal property to nonprofit 465
organizations that provide residential rehabilitation for persons 466
with alcohol and drug dependencies if the organization is exempt 467
H. B. No. 1849 *HR26/R2396* ~ OFFICIAL ~
26/HR26/R2396
PAGE 20 (BS\KW)

from federal income taxation under Section 501(c)(3) of the 468
Internal Revenue Code. 469
(ab) (i) Retail sales of an article of clothing or 470
footwear designed to be worn on or about the human body and retail 471
sales of school supplies if the sales price of the article of 472
clothing or footwear or school supply is less than One Hundred 473
Dollars ($100.00) and the sale takes place during a period 474
beginning at 12:01 a.m. on the second Friday in July and ending at 475
12:00 midnight the following Sunday. This paragraph (ab) shall 476
not apply to: 477
1. Accessories including jewelry, handbags, 478
luggage, umbrellas, wallets, watches, briefcases, garment bags and 479
similar items carried on or about the human body, without regard 480
to whether worn on the body in a manner characteristic of 481
clothing; 482
2. The rental of clothing or footwear; and 483
3. Skis, swim fins, roller blades, skates and 484
similar items worn on the foot. 485
(ii) For purposes of this paragraph (ab), "school 486
supplies" means items that are commonly used by a student in a 487
course of study. The following is an all-inclusive list: 488
1. Backpacks; 489
2. Binder pockets; 490
3. Binders; 491
4. Blackboard chalk; 492
H. B. No. 1849 *HR26/R2396* ~ OFFICIAL ~
26/HR26/R2396
PAGE 21 (BS\KW)

5. Book bags; 493
6. Calculators; 494
7. Cellophane tape; 495
8. Clays and glazes; 496
9. Compasses; 497
10. Composition books; 498
11. Crayons; 499
12. Dictionaries and thesauruses; 500
13. Dividers; 501
14. Erasers; 502
15. Folders: expandable, pocket, plastic and 503
manila; 504
16. Glue, paste and paste sticks; 505
17. Highlighters; 506
18. Index card boxes; 507
19. Index cards; 508
20. Legal pads; 509
21. Lunch boxes; 510
22. Markers; 511
23. Notebooks; 512
24. Paintbrushes for artwork; 513
25. Paints: acrylic, tempera and oil; 514
26. Paper: loose-leaf ruled notebook paper, 515
copy paper, graph paper, tracing paper, manila paper, colored 516
paper, poster board and construction paper; 517
H. B. No. 1849 *HR26/R2396* ~ OFFICIAL ~
26/HR26/R2396
PAGE 22 (BS\KW)

27. Pencil boxes and other school supply 518
boxes; 519
28. Pencil sharpeners; 520
29. Pencils; 521
30. Pens; 522
31. Protractors; 523
32. Reference books; 524
33. Reference maps and globes; 525
34. Rulers; 526
35. Scissors; 527
36. Sheet music; 528
37. Sketch and drawing pads; 529
38. Textbooks; 530
39. Watercolors; 531
40. Workbooks; and 532
41. Writing tablets. 533
(iii) From and after January 1, 2010, the 534
governing authorities of a municipality, for retail sales 535
occurring within the corporate limits of the municipality, may 536
suspend the application of the exemption provided for in this 537
paragraph (ab) by adoption of a resolution to that effect stating 538
the date upon which the suspension shall take effect. A certified 539
copy of the resolution shall be furnished to the Department of 540
Revenue at least ninety (90) days prior to the date upon which the 541
municipality desires such suspension to take effect. 542
H. B. No. 1849 *HR26/R2396* ~ OFFICIAL ~
26/HR26/R2396
PAGE 23 (BS\KW)

(ac) The gross proceeds of sales of tangible personal 543
property made for the sole purpose of raising funds for a school 544
or an organization affiliated with a school. 545
As used in this paragraph (ac), "school" means any public or 546
private school that teaches courses of instruction to students in 547
any grade from kindergarten through Grade 12. 548
(ad) Sales of durable medical equipment and home 549
medical supplies when ordered or prescribed by a licensed 550
physician for medical purposes of a patient. As used in this 551
paragraph (ad), "durable medical equipment" and "home medical 552
supplies" mean equipment, including repair and replacement parts 553
for the equipment or supplies listed under Title XVIII of the 554
Social Security Act or under the state plan for medical assistance 555
under Title XIX of the Social Security Act, prosthetics, 556
orthotics, hearing aids, hearing devices, prescription eyeglasses, 557
oxygen and oxygen equipment. Payment does not have to be made, in 558
whole or in part, by any particular person to be eligible for this 559
exemption. Purchases of home medical equipment and supplies by a 560
provider of home health services or a provider of hospice services 561
are eligible for this exemption if the purchases otherwise meet 562
the requirements of this paragraph. 563
(ae) Sales of tangible personal property or services to 564
Mississippi Blood Services. 565
(af) (i) Subject to the provisions of this paragraph 566
(af), retail sales of firearms, ammunition and hunting supplies if 567
H. B. No. 1849 *HR26/R2396* ~ OFFICIAL ~
26/HR26/R2396
PAGE 24 (BS\KW)

sold during the annual Mississippi Second Amendment Weekend 568
holiday beginning at 12:01 a.m. on the last Friday in August and 569
ending at 12:00 midnight the following Sunday. For the purposes 570
of this paragraph (af), "hunting supplies" means tangible personal 571
property used for hunting, including, and limited to, archery 572
equipment, firearm and archery cases, firearm and archery 573
accessories, hearing protection, holsters, belts and slings. 574
Hunting supplies does not include animals used for hunting. 575
(ii) This paragraph (af) shall apply only if one 576
or more of the following occur: 577
1. Title to and/or possession of an eligible 578
item is transferred from a seller to a purchaser; and/or 579
2. A purchaser orders and pays for an 580
eligible item and the seller accepts the order for immediate 581
shipment, even if delivery is made after the time period provided 582
in subparagraph (i) of this paragraph (af), provided that the 583
purchaser has not requested or caused the delay in shipment. 584
(ag) Sales of nonperishable food items to charitable 585
organizations that are exempt from federal income taxation under 586
Section 501(c)(3) of the Internal Revenue Code and operate a food 587
bank or food pantry or food lines. 588
(ah) Sales of tangible personal property or services to 589
the United Way of the Pine Belt Region, Inc. 590
H. B. No. 1849 *HR26/R2396* ~ OFFICIAL ~
26/HR26/R2396
PAGE 25 (BS\KW)

(ai) Sales of tangible personal property or services to 591
the Mississippi Children's Museum or any subsidiary or affiliate 592
thereof operating a satellite or branch museum within this state. 593
(aj) Sales of tangible personal property or services to 594
the Jackson Zoological Park. 595
(ak) Sales of tangible personal property or services to 596
the Hattiesburg Zoo. 597
(al) Gross proceeds from sales of food, merchandise or 598
other concessions at an event held solely for religious or 599
charitable purposes at livestock facilities, agriculture 600
facilities or other facilities constructed, renovated or expanded 601
with funds for the grant program authorized under Section 18, 602
Chapter 530, Laws of 1995. 603
(am) Sales of tangible personal property and services 604
to the Diabetes Foundation of Mississippi and the Mississippi 605
Chapter of the Juvenile Diabetes Research Foundation. 606
(an) Sales of potting soil, mulch, or other soil 607
amendments used in growing ornamental plants which bear no fruit 608
of commercial value when sold to commercial plant nurseries that 609
operate exclusively at wholesale and where no retail sales can be 610
made. 611
(ao) Sales of tangible personal property or services to 612
the University of Mississippi Medical Center Research Development 613
Foundation. 614
H. B. No. 1849 *HR26/R2396* ~ OFFICIAL ~
26/HR26/R2396
PAGE 26 (BS\KW)

(ap) Sales of tangible personal property or services to 615
Keep Mississippi Beautiful, Inc., and all affiliates of Keep 616
Mississippi Beautiful, Inc. 617
(aq) Sales of tangible personal property or services to 618
the Friends of Children's Hospital. 619
(ar) Sales of tangible personal property or services to 620
the Pinecrest Weekend Snackpacks for Kids located in Corinth, 621
Mississippi. 622
(as) Sales of hearing aids when ordered or prescribed 623
by a licensed physician, audiologist or hearing aid specialist for 624
the medical purposes of a patient. 625
(at) Sales exempt under the Facilitating Business Rapid 626
Response to State Declared Disasters Act of 2015 (Sections 627
27-113-1 through 27-113-9). 628
(au) Sales of tangible personal property or services to 629
the Junior League of Jackson. 630
(av) Sales of tangible personal property or services to 631
the Mississippi's Toughest Kids Foundation for use in the 632
construction, furnishing and equipping of buildings and related 633
facilities and infrastructure at Camp Kamassa in Copiah County, 634
Mississippi. This paragraph (av) shall stand repealed on July 1, 635
2028. 636
(aw) Sales of tangible personal property or services to 637
MS Gulf Coast Buddy Sports, Inc. 638
H. B. No. 1849 *HR26/R2396* ~ OFFICIAL ~
26/HR26/R2396
PAGE 27 (BS\KW)

(ax) Sales of tangible personal property or services to 639
Biloxi Lions, Inc. 640
(ay) Sales of tangible personal property or services to 641
Lions Sight Foundation of Mississippi, Inc. 642
(az) Sales of tangible personal property and services 643
to the Goldring/Woldenberg Institute of Southern Jewish Life 644
(ISJL). 645
(ba) Sales of coins, currency, and bullion. For the 646
purposes of this paragraph (ba), the following words and phrases 647
shall have the meanings ascribed in this paragraph (ba) unless the 648
context clearly indicates otherwise: 649
(i) "Bullion" means a bar, ingot, or coin: 650
1. Manufactured, in whole or in part, of 651
gold, silver, platinum, or palladium; 652
2. That was or is used solely as a medium of 653
exchange, security, or commodity by any state, the United States 654
Government, or a foreign nation; and 655
3. Sold based on the intrinsic value of the 656
bar, ingot, or coin as a precious metal or collectible item rather 657
than its form or representative value as a medium of exchange. 658
(ii) "Coin or currency" means a coin or currency: 659
1. Manufactured, in whole or in part, of 660
gold, silver, other metal, or paper; 661
H. B. No. 1849 *HR26/R2396* ~ OFFICIAL ~
26/HR26/R2396
PAGE 28 (BS\KW)

2. That was or is used solely as a medium of 662
exchange, security, or commodity by any state, the United States 663
Government, or a foreign nation; and 664
3. Sold based on the intrinsic value of the 665
coin or currency as a precious metal or collectible item rather 666
than its form or representative value as a medium of exchange. 667
"Coin or currency" does not include a coin or currency that has 668
been incorporated into jewelry. 669
(bb) Sales of tangible personal property or services to 670
any nonprofit organization for purposes of making improvements or 671
repairs to lands or properties subject to a lease or sub-lease 672
under Section 55-3-47. 673
SECTION 3. Section 55-3-47, Mississippi Code of 1972, is 674
brought forward as follows: 675
55-3-47. (1) In order to carry out its management 676
responsibilities over all state park lands which are now or which 677
may hereafter come under its jurisdiction, the Mississippi 678
Department of Wildlife, Fisheries and Parks is hereby authorized 679
to lease, and to grant easements and rights-of-way over and 680
across, any part of such state park lands. Such leases, easements 681
and rights-of-way may be granted for such consideration, and upon 682
such terms and conditions, as the department may deem to be in the 683
best interest of the state, consistent with the use of said lands 684
for recreational purposes, and subject to the following 685
limitations: The department shall lease such lands for a term not 686
H. B. No. 1849 *HR26/R2396* ~ OFFICIAL ~
26/HR26/R2396
PAGE 29 (BS\KW)

exceeding twenty-five (25) years and shall grant in the original 687
lease contract a nonnegotiable option to renew such lease for an 688
additional term not to exceed twenty-five (25) years. Both the 689
original lease contract and the option to renew such lease shall 690
be transferable contracts. Further, the department shall not 691
lease such lands for purposes which are incompatible with 692
recreational use and may place such terms, limitations, 693
restrictions and conditions in such leases as are deemed necessary 694
to ensure the proper utilization of such lands. Any easement for 695
a utility line shall be granted for that period of time which the 696
department deems to be in the best interest of a state park. 697
(2) The department is further authorized to enter into such 698
agreements as may be required, upon such terms as may be found to 699
be in the best interest of the state, in settlement of disputes or 700
litigation regarding the title to or boundaries of any state park 701
lands within the jurisdiction of the department, provided such 702
settlement agreements shall be negotiated and drafted with the 703
advice, counsel and assistance of the Attorney General and shall 704
be approved by the Department of Finance and Administration. 705
(3) In case any of the real estate within any state park 706
under the jurisdiction of the department shall cease to be used or 707
useful for state park purposes, or becomes the subject of boundary 708
or title disputes or litigation, the department may sell and 709
convey the same, with the approval of the Department of Finance 710
and Administration, upon such terms as the Department of Finance 711
H. B. No. 1849 *HR26/R2396* ~ OFFICIAL ~
26/HR26/R2396
PAGE 30 (BS\KW)

and Administration may elect and may, in addition, exchange the 712
same, with the approval of the department, for real estate 713
belonging to any other political subdivision or state, county or 714
local governmental agency or department. The department is 715
authorized to sell and convey or otherwise transfer any state park 716
or historical site as described in subsection (2) of Section 717
55-3-33. Before any such sale or transfer, except as may occur in 718
settlement of title or boundary disputes or litigation, the 719
department shall publish notice of its intention to sell the park 720
land by public sale to the highest and best bidder at least once 721
each week for three (3) consecutive weeks in at least one (1) 722
public newspaper of general circulation in the county where such 723
land is located and also in at least one (1) newspaper of general 724
circulation throughout the state. Prior to any such sale, the 725
department shall obtain at least two (2) separate and independent 726
appraisals of the land to be sold and may not accept any bid lower 727
than the average of all appraisals made. The department may 728
reject any and all bids. The owner or any co-owner of record next 729
preceding the state in title to any lands sold hereunder by public 730
bid, excluding any entity which may have exercised the power of 731
eminent domain to assist the state in acquiring said lands, shall 732
have the opportunity to reacquire such lands by matching the 733
successful bid therefor. If the owner or any co-owner of record 734
next preceding the state in title, or the heirs or estate of such 735
owner or co-owner, acquires said lands, then the department shall 736
H. B. No. 1849 *HR26/R2396* ~ OFFICIAL ~
26/HR26/R2396
PAGE 31 (BS\KW)

not reserve unto the state any minerals owned by the state 737
underlying the conveyed lands. However, if anyone other than such 738
owner or co-owner, or his heirs or estate, acquires said lands, 739
then the department shall reserve unto the state one-half (1/2) of 740
the minerals owned by the state underlying the conveyed lands, 741
except for lands sold in settlement of title or boundary disputes 742
or litigation, in which case the department may, in its 743
discretion, reserve said minerals. Appraisal fees shall be shared 744
equally by the department and purchaser. 745
(4) In exercising the authority granted in this section, the 746
department may act by and through its executive director in the 747
execution of any document or instrument prepared hereunder. Any 748
lease, deed or settlement agreement executed under the provisions 749
of this section shall bear the seal and attest of the Secretary of 750
State, with whom said instrument or document shall be filed and 751
recorded in addition to any other recording requirements of state 752
law. 753
This section shall not apply to sixteenth section school 754
lands or lieu lands included within any state park, except as may 755
be necessary or appropriate for the department to ratify or 756
confirm any action taken by the agency or department having 757
jurisdiction over such school or lieu lands. 758
All revenues collected by the department by virtue of any 759
transaction consummated under the provisions of this section shall 760
be deposited in the Mississippi Park Fund created by Section 761
H. B. No. 1849 *HR26/R2396* ~ OFFICIAL ~
26/HR26/R2396
PAGE 32 (BS\KW)

55-3-41, from which funds shall be expended only as authorized by 762
the legislative appropriations process. 763
(5) This section shall not apply to the donation and 764
conveyance of the Nanih Waiya State Park to the Mississippi Band 765
of Choctaw Indians. 766
SECTION 4. Nothing in this act shall affect or defeat any 767
claim, assessment, appeal, suit, right or cause of action for 768
taxes due or accrued under the ad valorem tax laws before the date 769
on which this act becomes effective, whether such claims, 770
assessments, appeals, suits or actions have been begun before the 771
date on which this act becomes effective or are begun thereafter; 772
and the provisions of the ad valorem tax laws are expressly 773
continued in full force, effect and operation for the purpose of 774
the assessment, collection and enrollment of liens for any taxes 775
due or accrued and the execution of any warrant under such laws 776
before the date on which this act becomes effective, and for the 777
imposition of any penalties, forfeitures or claims for failure to 778
comply with such laws. 779
SECTION 5. Nothing in this act shall affect or defeat any 780
claim, assessment, appeal, suit, right or cause of action for 781
taxes due or accrued under the sales tax laws before the date on 782
which this act becomes effective, whether such claims, 783
assessments, appeals, suits or actions have been begun before the 784
date on which this act becomes effective or are begun thereafter; 785
and the provisions of the sales tax laws are expressly continued 786
H. B. No. 1849 *HR26/R2396* ~ OFFICIAL ~
26/HR26/R2396
PAGE 33 (BS\KW)
ST: Ad valorem tax and sales tax; authorize
certain exemptions.
in full force, effect and operation for the purpose of the 787
assessment, collection and enrollment of liens for any taxes due 788
or accrued and the execution of any warrant under such laws before 789
the date on which this act becomes effective, and for the 790
imposition of any penalties, forfeitures or claims for failure to 791
comply with such laws. 792
SECTION 6. Section 1 and 4 of this act shall take effect and 793
be in force from and after January 1, 2026, and the remaining 794
sections of this act shall take effect and be in force from and 795
after July 1, 2026. 796