Read the full stored bill text
H. B. No. 4060 *HR26/R2576* ~ OFFICIAL ~ R3/5
26/HR26/R2576
PAGE 1 (BS\KW)
To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Representative Pigott
HOUSE BILL NO. 4060
AN ACT TO AMEND SECTION 27-65-103, MISSISSIPPI CODE OF 1972, 1
TO EXEMPT FROM SALES TAXATION RETAIL SALES OF LIME USED FOR 2
AGRICULTURAL PURPOSES; TO AMEND SECTION 27-65-17, MISSISSIPPI CODE 3
OF 1972, TO PROVIDE THAT RETAIL SALES OF FENCING MATERIALS FOR THE 4
CONTAINMENT OF LIVESTOCK SHALL BE TAXED AT THE RATE OF 1.5% WHEN 5
MADE TO COMMERCIAL FARMERS; AND FOR RELATED PURPOSES. 6
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 7
SECTION 1. Section 27-65-103, Mississippi Code of 1972, is 8
amended as follows: 9
27-65-103. The exemptions from the provisions of this 10
chapter which are of an agricultural nature or which are more 11
properly classified as agricultural exemptions than any other 12
exemption classification of this chapter shall be confined to 13
those persons or property exempted by this section or by 14
provisions of the Constitution of the United States or the State 15
of Mississippi. No agricultural exemption as now provided by any 16
other section shall be valid as against the tax herein levied. 17
Any subsequent agricultural exemption from the tax levied 18
hereunder shall be provided by amendment to this section. 19
H. B. No. 4060 *HR26/R2576* ~ OFFICIAL ~
26/HR26/R2576
PAGE 2 (BS\KW)
No exemption provided in this section shall apply to taxes 20
levied by Section 27-65-15 or 27-65-21, Mississippi Code of 1972. 21
The tax levied by this chapter shall not apply to the 22
following: 23
(a) The gross proceeds of sales of lint cotton, seed 24
cotton, baled cotton, whether compressed or not, and cottonseed 25
and soybeans in their original condition. Retail sales of seeds, 26
livestock feed, poultry feed, fish feed * * *, fertilizers, and 27
lime used for agricultural purposes. Sales of defoliants, 28
insecticides, fungicides, herbicides and baby chicks used in 29
growing agricultural products for market. Bagging and ties for 30
baling cotton, hay-baling wire and twine, boxes, bags and cans 31
used in growing or preparing agricultural products for market when 32
possession thereof will pass to the customer at the time of sale 33
of the product contained therein. Sales of ice to commercial 34
fishermen purchased for use in the preservation of seafood or to 35
producers for use in the refrigeration of vegetables for market. 36
(b) The sales by producers of livestock, poultry, fish, 37
honey bees or other products of farm, grove, apiary or garden when 38
such products are sold in the original state or condition of 39
preparation for sale before such products are subjected to any 40
other process within a class of business or sold by a producer 41
through an established store, as defined in the Privilege Tax Law. 42
However, except as otherwise provided in this paragraph (b), this 43
exemption shall not apply to ornamental plants which bear no fruit 44
H. B. No. 4060 *HR26/R2576* ~ OFFICIAL ~
26/HR26/R2576
PAGE 3 (BS\KW)
of commercial value. The exemption provided in this paragraph (b) 45
shall apply to Christmas trees, hay, straw, fresh cut flowers and 46
similar products when (i) grown in Mississippi and (ii) cut, 47
severed or otherwise removed from the farm, grove, garden or other 48
place of production and first sold from such place of production 49
in the original state or condition of preparation for sale. All 50
sales by agricultural cooperative associations organized under 51
Article 9, Chapter 7, Title 69, or under Chapter 17 or 19, Title 52
79, Mississippi Code of 1972, of agricultural products produced by 53
members for market before such products are subjected to any 54
manufacturing process. 55
(c) The gross proceeds of retail sales of mules, 56
horses, honey bees and other livestock. 57
(d) Income from grading, excavating, ditching, dredging 58
or landscaping activities performed for a farmer on a farm for 59
agricultural or soil erosion purposes. 60
(e) The gross proceeds of sales of all antibiotics, 61
hormones and hormone preparations, drugs, medicines and other 62
medications including serums and vaccines, vitamins, minerals or 63
other nutrients for use in the production and growing of fish, 64
livestock, honey bees and poultry by whomever sold. Such 65
exemption shall be in addition to the exemption provided in this 66
section for feed for fish, livestock, honey bees and poultry. 67
(f) Sales of food products and honey that are grown, 68
made or processed in Mississippi and sold from farmers' markets 69
H. B. No. 4060 *HR26/R2576* ~ OFFICIAL ~
26/HR26/R2576
PAGE 4 (BS\KW)
that have been certified by the Mississippi Department of 70
Agriculture and Commerce. 71
SECTION 2. Section 27-65-17, Mississippi Code of 1972, is 72
amended as follows: 73
27-65-17. (1) (a) Except as otherwise provided in this 74
section, upon every person engaging or continuing within this 75
state in the business of selling any tangible personal property 76
whatsoever there is hereby levied, assessed and shall be collected 77
a tax equal to seven percent (7%) of the gross proceeds of the 78
retail sales of the business. 79
(b) (i) Retail sales of farm tractors and parts and 80
labor used to maintain and/or repair such tractors shall be taxed 81
at the rate of one and one-half percent (1-1/2%) when made to 82
farmers for agricultural purposes. 83
(ii) Retail sales of gates and fencing materials 84
for the containment of livestock shall be taxed at the rate of one 85
and one-half percent (1-1/2%) when made to commercial farmers for 86
agricultural purposes. 87
(c) (i) Retail sales of farm implements sold to 88
farmers and used directly in the production of poultry, ratite, 89
domesticated fish as defined in Section 69-7-501, livestock, 90
livestock products, agricultural crops or ornamental plant crops 91
or used for other agricultural purposes, and parts and labor used 92
to maintain and/or repair such implements, shall be taxed at the 93
rate of one and one-half percent (1-1/2%) when used on the farm. 94
H. B. No. 4060 *HR26/R2576* ~ OFFICIAL ~
26/HR26/R2576
PAGE 5 (BS\KW)
(ii) The one and one-half percent (1-1/2%) rate 95
shall also apply to all equipment used in logging, pulpwood 96
operations or tree farming, and parts and labor used to maintain 97
and/or repair such equipment, which is either: 98
1. Self-propelled, or 99
2. Mounted so that it is permanently attached 100
to other equipment which is self-propelled or attached to other 101
equipment drawn by a vehicle which is self-propelled. 102
In order to be eligible for the rate of tax provided for in 103
this subparagraph (ii), such sales must be made to a professional 104
logger. For the purposes of this subparagraph (ii), a 105
"professional logger" is a person, corporation, limited liability 106
company or other entity, or an agent thereof, who possesses a 107
professional logger's permit issued by the Department of Revenue 108
and who presents the permit to the seller at the time of purchase. 109
The department shall establish an application process for a 110
professional logger's permit to be issued, which shall include a 111
requirement that the applicant submit a copy of documentation 112
verifying that the applicant is certified according to Sustainable 113
Forestry Initiative guidelines. Upon a determination that an 114
applicant is a professional logger, the department shall issue the 115
applicant a numbered professional logger's permit. 116
(d) Except as otherwise provided in subsection (3) of 117
this section, retail sales of aircraft, automobiles, trucks, 118
H. B. No. 4060 *HR26/R2576* ~ OFFICIAL ~
26/HR26/R2576
PAGE 6 (BS\KW)
truck-tractors, semitrailers and manufactured or mobile homes 119
shall be taxed at the rate of three percent (3%). 120
(e) Sales of manufacturing machinery or manufacturing 121
machine parts when made to a manufacturer or custom processor for 122
plant use only when the machinery and machine parts will be used 123
exclusively and directly within this state in manufacturing a 124
commodity for sale, rental or in processing for a fee shall be 125
taxed at the rate of one and one-half percent (1-1/2%). 126
(f) Sales of machinery and machine parts when made to a 127
technology intensive enterprise for plant use only when the 128
machinery and machine parts will be used exclusively and directly 129
within this state for industrial purposes, including, but not 130
limited to, manufacturing or research and development activities, 131
shall be taxed at the rate of one and one-half percent (1-1/2%). 132
In order to be considered a technology intensive enterprise for 133
purposes of this paragraph: 134
(i) The enterprise shall meet minimum criteria 135
established by the Mississippi Development Authority; 136
(ii) The enterprise shall employ at least ten (10) 137
persons in full-time jobs; 138
(iii) At least ten percent (10%) of the workforce 139
in the facility operated by the enterprise shall be scientists, 140
engineers or computer specialists; 141
(iv) The enterprise shall manufacture plastics, 142
chemicals, automobiles, aircraft, computers or electronics; or 143
H. B. No. 4060 *HR26/R2576* ~ OFFICIAL ~
26/HR26/R2576
PAGE 7 (BS\KW)
shall be a research and development facility, a computer design or 144
related facility, or a software publishing facility or other 145
technology intensive facility or enterprise as determined by the 146
Mississippi Development Authority; 147
(v) The average wage of all workers employed by 148
the enterprise at the facility shall be at least one hundred fifty 149
percent (150%) of the state average annual wage; and 150
(vi) The enterprise must provide a basic health 151
care plan to all employees at the facility. 152
A medical cannabis establishment, as defined in the 153
Mississippi Medical Cannabis Act, shall not be considered to be a 154
technology intensive enterprise for the purposes of this paragraph 155
(f). 156
(g) Sales of materials for use in track and track 157
structures to a railroad whose rates are fixed by the Interstate 158
Commerce Commission or the Mississippi Public Service Commission 159
shall be taxed at the rate of three percent (3%). 160
(h) Sales of tangible personal property to electric 161
power associations for use in the ordinary and necessary operation 162
of their generating or distribution systems shall be taxed at the 163
rate of one percent (1%). 164
(i) Wholesale sales of food and drink for human 165
consumption to full-service vending machine operators to be sold 166
through vending machines located apart from and not connected with 167
H. B. No. 4060 *HR26/R2576* ~ OFFICIAL ~
26/HR26/R2576
PAGE 8 (BS\KW)
other taxable businesses shall be taxed at the rate of eight 168
percent (8%). 169
(j) Sales of equipment used or designed for the purpose 170
of assisting disabled persons, such as wheelchair equipment and 171
lifts, that is mounted or attached to or installed on a private 172
carrier of passengers or light carrier of property, as defined in 173
Section 27-51-101, at the time when the private carrier of 174
passengers or light carrier of property is sold shall be taxed at 175
the same rate as the sale of such vehicles under this section. 176
(k) Sales of the factory-built components of modular 177
homes, panelized homes and precut homes, and panel constructed 178
homes consisting of structural insulated panels, shall be taxed at 179
the rate of three percent (3%). 180
(l) Sales of materials used in the repair, renovation, 181
addition to, expansion and/or improvement of buildings and related 182
facilities used by a dairy producer shall be taxed at the rate of 183
three and one-half percent (3-1/2%). For the purposes of this 184
paragraph (l), "dairy producer" means any person engaged in the 185
production of milk for commercial use. 186
(m) Sales of equipment and materials used in connection 187
with geophysical surveying, exploring, developing, drilling, 188
redrilling, completing, working over, producing, distributing, or 189
testing of oil, gas and other mineral resources shall be taxed at 190
the rate of four and one-half percent (4-1/2%). Operators that 191
rebill sales of equipment and materials to nonoperating working 192
H. B. No. 4060 *HR26/R2576* ~ OFFICIAL ~
26/HR26/R2576
PAGE 9 (BS\KW)
interest owners on behalf of a joint account through the joint 193
interest billing (JIB), where the sales tax has been paid or 194
accrued by the operator shall not be charged a sales tax on the 195
JIB as services income. 196
(n) Retail sales of food or drink for human consumption 197
not purchased with food stamps issued by the United States 198
Department of Agriculture or other federal agency, but which would 199
be exempt under Section 27-65-111(o) from the taxes imposed by 200
this chapter if the food items were purchased with food stamps, 201
shall be taxed at the rate of five percent (5%) from and after 202
July 1, 2025. 203
(2) From and after January 1, 1995, retail sales of private 204
carriers of passengers and light carriers of property, as defined 205
in Section 27-51-101, shall be taxed an additional two percent 206
(2%). 207
(3) A manufacturer selling at retail in this state shall be 208
required to make returns of the gross proceeds of such sales and 209
pay the tax imposed in this section. 210
SECTION 3. Nothing in this act shall affect or defeat any 211
claim, assessment, appeal, suit, right or cause of action for 212
taxes due or accrued under the sales tax laws before the date on 213
which this act becomes effective, whether such claims, 214
assessments, appeals, suits or actions have been begun before the 215
date on which this act becomes effective or are begun thereafter; 216
and the provisions of the sales tax laws are expressly continued 217
H. B. No. 4060 *HR26/R2576* ~ OFFICIAL ~
26/HR26/R2576
PAGE 10 (BS\KW)
ST: Sales tax; exempt sales of lime for
agricultural purposes, reduce rate on retail
sales of fencing materials for containment of
livestock.
in full force, effect and operation for the purpose of the 218
assessment, collection and enrollment of liens for any taxes due 219
or accrued and the execution of any warrant under such laws before 220
the date on which this act becomes effective, and for the 221
imposition of any penalties, forfeitures or claims for failure to 222
comply with such laws. 223
SECTION 4. This act shall take effect and be in force from 224
and after July 1, 2026. 225