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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Representative Bounds
HOUSE BILL NO. 1989
(As Sent to Governor)
AN ACT TO AMEND SECTION 27-65-107, MISSISSIPPI CODE OF 1972, 1
TO EXEMPT FROM SALES TAXATION SALES TO CERTAIN NONPROFIT 2
ORGANIZATIONS OF UTILITIES THAT ARE UTILIZED ON PROPERTY THAT IS 3
PRIMARILY USED FOR AGRICULTURAL EXHIBITS, LIVESTOCK SHOWS, 4
CARNIVAL RIDES, HORSE RACING AND VARIOUS TYPES OF OTHER 5
ENTERTAINMENT, AND ON WHICH ARE LOCATED FACILITIES THAT PROVIDE 6
FOR TEMPORARY LODGING ACCOMMODATIONS; AND FOR RELATED PURPOSES. 7
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 8
SECTION 1. Section 27-65-107, Mississippi Code of 1972, is 9
amended as follows: 10
27-65-107. The exemptions from the provisions of this 11
chapter which relate to utilities or which are more properly 12
classified as utility exemptions than any other exemption 13
classification of this chapter shall be confined to those persons 14
or property exempted by this section or by provisions of the 15
Constitutions of the United States or the State of Mississippi. 16
No utility exemption as now provided by any other section shall be 17
valid as against the tax herein levied. Any subsequent utility 18
exemption from the tax levied hereunder shall be provided by 19
amendment to this section. 20
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No exemption provided in this section shall apply to taxes 21
levied by Section 27-65-15 or 27-65-21, Mississippi Code of 1972. 22
The tax levied by this chapter shall not apply to the 23
following: 24
(a) Sales and rentals of locomotives, rail rolling 25
stock and materials for their repair, locomotive water, when made 26
to a railroad whose rates are fixed by the Interstate Commerce 27
Commission or the Mississippi Public Service Commission. 28
(b) Rentals of manufacturing machinery to a 29
manufacturer or custom processor where such manufacturer or custom 30
processor is engaged in, and such machinery is used in, the 31
manufacture of containers made from timber or wood for sale. The 32
tax, likewise, shall not apply to replacement or repair parts of 33
such machinery used in such manufacture. 34
(c) Sales of tangible personal property and services to 35
nonprofit water associations or corporations in which no part of 36
the net earnings inures to the benefit of any private shareholder, 37
group or individual. Only sales of property or services which are 38
ordinary and necessary to the operation of such organizations are 39
exempt from tax. 40
(d) Wholesale sales of tangible personal property for 41
resale under Section 27-65-19. 42
(e) From and after July 1, 2003, sales of fuel used to 43
produce electric power by a company primarily engaged in the 44
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business of producing, generating or distributing electric power 45
for sale. 46
(f) Sales of electricity, current, power, steam, coal, 47
natural gas, liquefied petroleum gas or other fuel to a 48
manufacturer, custom processor, data center meeting the criteria 49
provided for in Section 57-113-21, technology intensive enterprise 50
meeting the criteria provided for in Section 27-65-17(1)(f), or 51
public service company for industrial purposes, which shall 52
include that used to generate electricity, to operate an 53
electrical distribution or transmission system, to operate 54
pipeline compressor or pumping stations, or to operate railroad 55
locomotives. 56
(g) Sales of electricity, current, power, steam, coal, 57
natural gas, liquefied petroleum gas or other fuel to a producer 58
or processor for use directly in the production of poultry or 59
poultry products, the production of livestock and livestock 60
products, the production of domesticated fish and domesticated 61
fish products, the production of marine aquaculture products, the 62
production of plants or food by commercial horticulturists, the 63
processing of milk and milk products, the processing of poultry 64
and livestock feed, and the irrigation of farm crops. 65
(h) Sales of electricity, current, power, steam, coal, 66
natural gas, liquefied petroleum gas or other fuel to a commercial 67
fisherman, shrimper or oysterman. 68
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(i) Sales exempt under the Facilitating Business Rapid 69
Response to State Declared Disasters Act of 2015 (Sections 70
27-113-1 through 27-113-9). 71
(j) Sales of electricity, current, power, steam, coal, 72
natural gas, liquefied petroleum gas or other fuel to a permanent 73
enterprise that is eligible for the exemption authorized in 74
Section 27-65-101(1)(ww) upon completion of the expansion upon 75
which such exemption is based; however, in order to be eligible 76
for the exemption authorized by this paragraph, the expansion 77
must: 78
(i) Create at least eighty-five (85) full-time 79
jobs in this state with an average annual wage of at least Sixty 80
Thousand Dollars ($60,000.00); and 81
(ii) Have at least Eighty Million Dollars 82
($80,000,000.00) in new investment at the existing facility. 83
(k) Sales of electricity, current, power, steam, coal, 84
natural gas, liquefied petroleum gas or other fuel to an 85
enterprise or its affiliates operating a project certified by the 86
Mississippi Major Economic Impact Authority as a project as 87
defined in Section 57-75-5(f)(xxxii) or 57-75-5(f)(xxxiii). 88
(l) Sales of electricity, current, power, natural gas, 89
liquified petroleum gas or other fuel for heating, lighting or 90
other use, to a nonprofit organization that is exempt from federal 91
income taxation under 26 USCS Section 501(c)(3), and sales of 92
potable water to such a nonprofit organization, if the 93
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ST: Sales tax; exempt sales of utilities to
certain nonprofit organizations.
electricity, current, power, natural gas, liquified petroleum gas 94
or potable water is utilized on property (i) that is primarily 95
used for agricultural exhibits, livestock shows, carnival rides, 96
harness horse racing and various types of other entertainment and 97
(ii) on which are located facilities that provide for temporary 98
lodging accommodations. 99
SECTION 2. Nothing in this act shall affect or defeat any 100
claim, assessment, appeal, suit, right or cause of action for 101
taxes due or accrued under the sales tax laws before the date on 102
which this act becomes effective, whether such claims, 103
assessments, appeals, suits or actions have been begun before the 104
date on which this act becomes effective or are begun thereafter; 105
and the provisions of the sales tax laws are expressly continued 106
in full force, effect and operation for the purpose of the 107
assessment, collection and enrollment of liens for any taxes due 108
or accrued and the execution of any warrant under such laws before 109
the date on which this act becomes effective, and for the 110
imposition of any penalties, forfeitures or claims for failure to 111
comply with such laws. 112
SECTION 3. This act shall take effect and be in force from 113
and after its passage. 114