Sales tax; exempt certain sales of fixed-wing aircraft.

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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Remak

HOUSE BILL NO. 490

AN ACT TO AMEND SECTION 27-65-101, MISSISSIPPI CODE OF 1972, 1
TO EXEMPT FROM SALES TAXATION SALES OF FIXED-WING AIRCRAFT IF 2
EXPORTED FROM THIS STATE WITHIN THIRTY DAYS AND REGISTERED AND 3
FIRST USED IN ANOTHER STATE; AND FOR RELATED PURPOSES. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 5
SECTION 1. Section 27-65-101, Mississippi Code of 1972, is 6
amended as follows: 7
27-65-101. (1) The exemptions from the provisions of this 8
chapter which are of an industrial nature or which are more 9
properly classified as industrial exemptions than any other 10
exemption classification of this chapter shall be confined to 11
those persons or property exempted by this section or by the 12
provisions of the Constitution of the United States or the State 13
of Mississippi. No industrial exemption as now provided by any 14
other section except Section 57-3-33 shall be valid as against the 15
tax herein levied. Any subsequent industrial exemption from the 16
tax levied hereunder shall be provided by amendment to this 17
section. No exemption provided in this section shall apply to 18
taxes levied by Section 27-65-15 or 27-65-21. 19
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The tax levied by this chapter shall not apply to the 20
following: 21
(a) Sales of boxes, crates, cartons, cans, bottles and 22
other packaging materials to manufacturers and wholesalers for use 23
as containers or shipping materials to accompany goods sold by 24
said manufacturers or wholesalers where possession thereof will 25
pass to the customer at the time of sale of the goods contained 26
therein and sales to anyone of containers or shipping materials 27
for use in ships engaged in international commerce. 28
(b) Sales of raw materials, catalysts, processing 29
chemicals, welding gases or other industrial processing gases 30
(except natural gas) to a manufacturer for use directly in 31
manufacturing or processing a product for sale or rental or 32
repairing or reconditioning vessels or barges of fifty (50) tons 33
load displacement and over. For the purposes of this exemption, 34
electricity used directly in the electrolysis process in the 35
production of sodium chlorate shall be considered a raw material. 36
This exemption shall not apply to any property used as fuel except 37
to the extent that such fuel comprises by-products which have no 38
market value. 39
(c) The gross proceeds of sales of dry docks, offshore 40
drilling equipment for use in oil or natural gas exploration or 41
production, vessels or barges of fifty (50) tons load displacement 42
and over, when the vessels or barges are sold by the manufacturer 43
or builder thereof. In addition to other types of equipment, 44
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offshore drilling equipment for use in oil or natural gas 45
exploration or production shall include aircraft used 46
predominately to transport passengers or property to or from 47
offshore oil or natural gas exploration or production platforms or 48
vessels, and engines, accessories and spare parts for such 49
aircraft. 50
(d) Sales to commercial fishermen of commercial fishing 51
boats of over five (5) tons load displacement and not more than 52
fifty (50) tons load displacement as registered with the United 53
States Coast Guard and licensed by the Mississippi Commission on 54
Marine Resources. 55
(e) The gross income from repairs to vessels and barges 56
engaged in foreign trade or interstate transportation. 57
(f) Sales of petroleum products to vessels or barges 58
for consumption in marine international commerce or interstate 59
transportation businesses. 60
(g) Sales and rentals of rail rolling stock (and 61
component parts thereof) for ultimate use in interstate commerce 62
and gross income from services with respect to manufacturing, 63
repairing, cleaning, altering, reconditioning or improving such 64
rail rolling stock (and component parts thereof). 65
(h) Sales of raw materials, catalysts, processing 66
chemicals, welding gases or other industrial processing gases 67
(except natural gas) used or consumed directly in manufacturing, 68
repairing, cleaning, altering, reconditioning or improving such 69
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rail rolling stock (and component parts thereof). This exemption 70
shall not apply to any property used as fuel. 71
(i) Sales of machinery or tools or repair parts 72
therefor or replacements thereof, fuel or supplies used directly 73
in manufacturing, converting or repairing ships, vessels or barges 74
of three thousand (3,000) tons load displacement and over, but not 75
to include office and plant supplies or other equipment not 76
directly used on the ship, vessel or barge being built, converted 77
or repaired. For purposes of this exemption, "ships, vessels or 78
barges" shall not include floating structures described in Section 79
27-65-18. 80
(j) Sales of tangible personal property to persons 81
operating ships in international commerce for use or consumption 82
on board such ships. This exemption shall be limited to cases in 83
which procedures satisfactory to the commissioner, ensuring 84
against use in this state other than on such ships, are 85
established. 86
(k) Sales of materials used in the construction of a 87
building, or any addition or improvement thereon, and sales of any 88
machinery and equipment not later than three (3) months after the 89
completion of construction of the building, or any addition 90
thereon, to be used therein, to qualified businesses, as defined 91
in Section 57-51-5, which are located in a county or portion 92
thereof designated as an enterprise zone pursuant to Sections 93
57-51-1 through 57-51-15. 94
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(l) Sales of materials used in the construction of a 95
building, or any addition or improvement thereon, and sales of any 96
machinery and equipment not later than three (3) months after the 97
completion of construction of the building, or any addition 98
thereon, to be used therein, to qualified businesses, as defined 99
in Section 57-54-5. 100
(m) Income from storage and handling of perishable 101
goods by a public storage warehouse. 102
(n) The value of natural gas lawfully injected into the 103
earth for cycling, repressuring or lifting of oil, or lawfully 104
vented or flared in connection with the production of oil; 105
however, if any gas so injected into the earth is sold for such 106
purposes, then the gas so sold shall not be exempt. 107
(o) The gross collections from self-service commercial 108
laundering, drying, cleaning and pressing equipment. 109
(p) Sales of materials used in the construction of a 110
building, or any addition or improvement thereon, and sales of any 111
machinery and equipment not later than three (3) months after the 112
completion of construction of the building, or any addition 113
thereon, to be used therein, to qualified companies, certified as 114
such by the Mississippi Development Authority under Section 115
57-53-1. 116
(q) Sales of component materials used in the 117
construction of a building, or any addition or improvement 118
thereon, sales of machinery and equipment to be used therein, and 119
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sales of manufacturing or processing machinery and equipment which 120
is permanently attached to the ground or to a permanent foundation 121
and which is not by its nature intended to be housed within a 122
building structure, not later than three (3) months after the 123
initial start-up date, to permanent business enterprises engaging 124
in manufacturing or processing in Tier Three areas (as such term 125
is defined in Section 57-73-21), which businesses are certified by 126
the Department of Revenue as being eligible for the exemption 127
granted in this paragraph (q). The exemption provided in this 128
paragraph (q) shall not apply to sales to any business enterprise 129
that is a medical cannabis establishment as defined in the 130
Mississippi Medical Cannabis Act. 131
(r) (i) Sales of component materials used in the 132
construction of a building, or any addition or improvement 133
thereon, and sales of any machinery and equipment not later than 134
three (3) months after the completion of the building, addition or 135
improvement thereon, to be used therein, for any company 136
establishing or transferring its national or regional headquarters 137
from within or outside the State of Mississippi and creating a 138
minimum of twenty (20) jobs at the new headquarters in this state. 139
The exemption provided in this subparagraph (i) shall not apply to 140
sales for any company that is a medical cannabis establishment as 141
defined in the Mississippi Medical Cannabis Act. The Department 142
of Revenue shall establish criteria and prescribe procedures to 143
determine if a company qualifies as a national or regional 144
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headquarters for the purpose of receiving the exemption provided 145
in this subparagraph (i). 146
(ii) Sales of component materials used in the 147
construction of a building, or any addition or improvement 148
thereon, and sales of any machinery and equipment not later than 149
three (3) months after the completion of the building, addition or 150
improvement thereon, to be used therein, for any company expanding 151
or making additions after January 1, 2013, to its national or 152
regional headquarters within the State of Mississippi and creating 153
a minimum of twenty (20) new jobs at the headquarters as a result 154
of the expansion or additions. The exemption provided in this 155
subparagraph (ii) shall not apply to sales for any company that is 156
a medical cannabis establishment as defined in the Mississippi 157
Medical Cannabis Act. The Department of Revenue shall establish 158
criteria and prescribe procedures to determine if a company 159
qualifies as a national or regional headquarters for the purpose 160
of receiving the exemption provided in this subparagraph (ii). 161
(s) The gross proceeds from the sale of semitrailers, 162
trailers, boats, travel trailers, motorcycles, all-terrain cycles 163
and rotary-wing aircraft if exported from this state within 164
forty-eight (48) hours and registered and first used in another 165
state. 166
(t) Gross income from the storage and handling of 167
natural gas in underground salt domes and in other underground 168
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reservoirs, caverns, structures and formations suitable for such 169
storage. 170
(u) Sales of machinery and equipment to nonprofit 171
organizations if the organization: 172
(i) Is tax exempt pursuant to Section 501(c)(4) of 173
the Internal Revenue Code of 1986, as amended; 174
(ii) Assists in the implementation of the 175
contingency plan or area contingency plan, and which is created in 176
response to the requirements of Title IV, Subtitle B of the Oil 177
Pollution Act of 1990, Public Law 101-380; and 178
(iii) Engages primarily in programs to contain, 179
clean up and otherwise mitigate spills of oil or other substances 180
occurring in the United States coastal and tidal waters. 181
For purposes of this exemption, "machinery and equipment" 182
means any ocean-going vessels, barges, booms, skimmers and other 183
capital equipment used primarily in the operations of nonprofit 184
organizations referred to herein. 185
(v) Sales or leases of materials and equipment to 186
approved business enterprises as provided under the Growth and 187
Prosperity Act. 188
(w) From and after July 1, 2001, sales of pollution 189
control equipment to manufacturers or custom processors for 190
industrial use. For the purposes of this exemption, "pollution 191
control equipment" means equipment, devices, machinery or systems 192
used or acquired to prevent, control, monitor or reduce air, water 193
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or groundwater pollution, or solid or hazardous waste as required 194
by federal or state law or regulation. 195
(x) Sales or leases to a manufacturer of motor vehicles 196
or powertrain components operating a project that has been 197
certified by the Mississippi Major Economic Impact Authority as a 198
project as defined in Section 57-75-5(f)(iv)1, Section 199
57-75-5(f)(xxi) or Section 57-75-5(f)(xxii) of machinery and 200
equipment; special tooling such as dies, molds, jigs and similar 201
items treated as special tooling for federal income tax purposes; 202
or repair parts therefor or replacements thereof; repair services 203
thereon; fuel, supplies, electricity, coal and natural gas used 204
directly in the manufacture of motor vehicles or motor vehicle 205
parts or used to provide climate control for manufacturing areas. 206
(y) Sales or leases of component materials, machinery 207
and equipment used in the construction of a building, or any 208
addition or improvement thereon to an enterprise operating a 209
project that has been certified by the Mississippi Major Economic 210
Impact Authority as a project as defined in Section 211
57-75-5(f)(iv)1, Section 57-75-5(f)(xxi), Section 57-75-5(f)(xxii) 212
or Section 57-75-5(f)(xxviii) and any other sales or leases 213
required to establish or operate such project. 214
(z) Sales of component materials and equipment to a 215
business enterprise as provided under Section 57-64-33. 216
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(aa) The gross income from the stripping and painting 217
of commercial aircraft engaged in foreign or interstate 218
transportation business. 219
(bb) [Repealed] 220
(cc) Sales or leases to an enterprise owning or 221
operating a project that has been designated by the Mississippi 222
Major Economic Impact Authority as a project as defined in Section 223
57-75-5(f)(xviii) of machinery and equipment; special tooling such 224
as dies, molds, jigs and similar items treated as special tooling 225
for federal income tax purposes; or repair parts therefor or 226
replacements thereof; repair services thereon; fuel, supplies, 227
electricity, coal and natural gas used directly in the 228
manufacturing/production operations of the project or used to 229
provide climate control for manufacturing/production areas. 230
(dd) Sales or leases of component materials, machinery 231
and equipment used in the construction of a building, or any 232
addition or improvement thereon to an enterprise owning or 233
operating a project that has been designated by the Mississippi 234
Major Economic Impact Authority as a project as defined in Section 235
57-75-5(f)(xviii) and any other sales or leases required to 236
establish or operate such project. 237
(ee) Sales of parts used in the repair and servicing of 238
aircraft not registered in Mississippi engaged exclusively in the 239
business of foreign or interstate transportation to businesses 240
engaged in aircraft repair and maintenance. 241
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(ff) Sales of component materials used in the 242
construction of a facility, or any addition or improvement 243
thereon, and sales or leases of machinery and equipment not later 244
than three (3) months after the completion of construction of the 245
facility, or any addition or improvement thereto, to be used in 246
the building or any addition or improvement thereto, to a 247
permanent business enterprise operating a data/information 248
enterprise in Tier Three areas (as such areas are designated in 249
accordance with Section 57-73-21), meeting minimum criteria 250
established by the Mississippi Development Authority. The 251
exemption provided in this paragraph (ff) shall not apply to sales 252
to any business enterprise that is a medical cannabis 253
establishment as defined in the Mississippi Medical Cannabis Act. 254
(gg) Sales of component materials used in the 255
construction of a facility, or any addition or improvement 256
thereto, and sales of machinery and equipment not later than three 257
(3) months after the completion of construction of the facility, 258
or any addition or improvement thereto, to be used in the facility 259
or any addition or improvement thereto, to technology intensive 260
enterprises for industrial purposes in Tier Three areas (as such 261
areas are designated in accordance with Section 57-73-21), as 262
certified by the Department of Revenue. For purposes of this 263
paragraph, an enterprise must meet the criteria provided for in 264
Section 27-65-17(1)(f) in order to be considered a technology 265
intensive enterprise. 266
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(hh) Sales of component materials used in the 267
replacement, reconstruction or repair of a building or facility 268
that has been destroyed or sustained extensive damage as a result 269
of a disaster declared by the Governor, sales of machinery and 270
equipment to be used therein to replace machinery or equipment 271
damaged or destroyed as a result of such disaster, including, but 272
not limited to, manufacturing or processing machinery and 273
equipment which is permanently attached to the ground or to a 274
permanent foundation and which is not by its nature intended to be 275
housed within a building structure, to enterprises or companies 276
that were eligible for the exemptions authorized in paragraph (q), 277
(r), (ff) or (gg) of this subsection during initial construction 278
of the building that was destroyed or damaged, which enterprises 279
or companies are certified by the Department of Revenue as being 280
eligible for the exemption granted in this paragraph. 281
(ii) Sales of software or software services transmitted 282
by the Internet to a destination outside the State of Mississippi 283
where the first use of such software or software services by the 284
purchaser occurs outside the State of Mississippi. 285
(jj) Gross income of public storage warehouses derived 286
from the temporary storage of raw materials that are to be used in 287
an eligible facility as defined in Section 27-7-22.35. 288
(kk) Sales of component building materials and 289
equipment for initial construction of facilities or expansion of 290
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facilities as authorized under Sections 57-113-1 through 57-113-7 291
and Sections 57-113-21 through 57-113-27. 292
(ll) Sales and leases of machinery and equipment 293
acquired in the initial construction to establish facilities as 294
authorized in Sections 57-113-1 through 57-113-7. 295
(mm) Sales and leases of replacement hardware, software 296
or other necessary technology to operate a data center as 297
authorized under Sections 57-113-21 through 57-113-27. 298
(nn) Sales of component materials used in the 299
construction of a building, or any addition or improvement 300
thereon, and sales or leases of machinery and equipment not later 301
than three (3) months after the completion of the construction of 302
the facility, to be used in the facility, to permanent business 303
enterprises operating a facility producing renewable crude oil 304
from biomass harvested or produced, in whole or in part, in 305
Mississippi, which businesses meet minimum criteria established by 306
the Mississippi Development Authority. As used in this paragraph, 307
the term "biomass" shall have the meaning ascribed to such term in 308
Section 57-113-1. 309
(oo) Sales of supplies, equipment and other personal 310
property to an organization that is exempt from taxation under 311
Section 501(c)(3) of the Internal Revenue Code and is the host 312
organization coordinating a professional golf tournament played or 313
to be played in this state and the supplies, equipment or other 314
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personal property will be used for purposes related to the golf 315
tournament and related activities. 316
(pp) Sales of materials used in the construction of a 317
health care industry facility, as defined in Section 57-117-3, or 318
any addition or improvement thereon, and sales of any machinery 319
and equipment not later than three (3) months after the completion 320
of construction of the facility, or any addition thereon, to be 321
used therein, to qualified businesses, as defined in Section 322
57-117-3. This paragraph shall be repealed from and after July 1, 323
2026. 324
(qq) Sales or leases to a manufacturer of automotive 325
parts operating a project that has been certified by the 326
Mississippi Major Economic Impact Authority as a project as 327
defined in Section 57-75-5(f)(xxviii) of machinery and equipment; 328
or repair parts therefor or replacements thereof; repair services 329
thereon; fuel, supplies, electricity, coal, nitrogen and natural 330
gas used directly in the manufacture of automotive parts or used 331
to provide climate control for manufacturing areas. 332
(rr) Gross collections derived from guided tours on any 333
navigable waters of this state, which include providing 334
accommodations, guide services and/or related equipment operated 335
by or under the direction of the person providing the tour, for 336
the purposes of outdoor tourism. The exemption provided in this 337
paragraph (rr) does not apply to the sale of tangible personal 338
property by a person providing such tours. 339
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(ss) Retail sales of truck-tractors and semitrailers 340
used in interstate commerce and registered under the International 341
Registration Plan (IRP) or any similar reciprocity agreement or 342
compact relating to the proportional registration of commercial 343
vehicles entered into as provided for in Section 27-19-143. 344
(tt) Sales exempt under the Facilitating Business Rapid 345
Response to State Declared Disasters Act of 2015 (Sections 346
27-113-1 through 27-113-9). 347
(uu) Sales or leases to an enterprise and its 348
affiliates operating a project that has been certified by the 349
Mississippi Major Economic Impact Authority as a project as 350
defined in Section 57-75-5(f)(xxix) of: 351
(i) All personal property and fixtures, including 352
without limitation, sales or leases to the enterprise and its 353
affiliates of: 354
1. Manufacturing machinery and equipment; 355
2. Special tooling such as dies, molds, jigs 356
and similar items treated as special tooling for federal income 357
tax purposes; 358
3. Component building materials, machinery 359
and equipment used in the construction of buildings, and any other 360
additions or improvements to the project site for the project; 361
4. Nonmanufacturing furniture, fixtures and 362
equipment (inclusive of all communications, computer, server, 363
software and other hardware equipment); and 364
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5. Fuel, supplies (other than 365
nonmanufacturing consumable supplies and water), electricity, 366
nitrogen gas and natural gas used directly in the 367
manufacturing/production operations of such project or used to 368
provide climate control for manufacturing/production areas of such 369
project; 370
(ii) All replacements of, repair parts for or 371
services to repair items described in subparagraph (i)1, 2 and 3 372
of this paragraph; and 373
(iii) All services taxable pursuant to Section 374
27-65-23 required to establish, support, operate, repair and/or 375
maintain such project. 376
(vv) Sales or leases to an enterprise operating a 377
project that has been certified by the Mississippi Major Economic 378
Impact Authority as a project as defined in Section 379
57-75-5(f)(xxx) of: 380
(i) Purchases required to establish and operate 381
the project, including, but not limited to, sales of component 382
building materials, machinery and equipment required to establish 383
the project facility and any additions or improvements thereon; 384
and 385
(ii) Machinery, special tools (such as dies, 386
molds, and jigs) or repair parts thereof, or replacements and 387
lease thereof, repair services thereon, fuel, supplies and 388
electricity, coal and natural gas used in the manufacturing 389
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process and purchased by the enterprise owning or operating the 390
project for the benefit of the project. 391
(ww) Sales of component materials used in the 392
construction of a building, or any expansion or improvement 393
thereon, sales of machinery and/or equipment to be used therein, 394
and sales of processing machinery and equipment which is 395
permanently attached to the ground or to a permanent foundation 396
which is not by its nature intended to be housed in a building 397
structure, no later than three (3) months after initial startup, 398
expansion or improvement of a permanent enterprise solely engaged 399
in the conversion of natural sand into proppants used in oil and 400
gas exploration and development with at least ninety-five percent 401
(95%) of such proppants used in the production of oil and/or gas 402
from horizontally drilled wells and/or horizontally drilled 403
recompletion wells as defined in Sections 27-25-501 and 27-25-701. 404
(xx) (i) Sales or leases to an enterprise operating a 405
project that has been certified by the Mississippi Major Economic 406
Impact Authority as a project as defined in Section 407
57-75-5(f)(xxxi), for a period ending no later than one (1) year 408
following completion of the construction of the facility or 409
facilities comprising such project of all personal property and 410
fixtures, including without limitation, sales or leases to the 411
enterprise and its affiliates of: 412
1. Manufacturing machinery and equipment; 413
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2. Special tooling such as dies, molds, jigs 414
and similar items treated as special tooling for federal income 415
tax purposes; 416
3. Component building materials, machinery 417
and equipment used in the construction of buildings, and any other 418
additions or improvements to the project site for the project; 419
4. Nonmanufacturing furniture, fixtures and 420
equipment (inclusive of all communications, computer, server, 421
software and other hardware equipment); 422
5. Replacements of, repair parts for or 423
services to repair items described in this subparagraph (i)1, 2 424
and 3; and 425
6. All services taxable pursuant to Section 426
27-65-23 required to establish, support, operate, repair and/or 427
maintain such project; and 428
(ii) Sales or leases to an enterprise operating a 429
project that has been certified by the Mississippi Major Economic 430
Impact Authority as a project as defined in Section 431
57-75-5(f)(xxxi) of electricity, current, power, steam, coal, 432
natural gas, liquefied petroleum gas or other fuel, biomass, 433
nitrogen or other atmospheric or other industrial gases used 434
directly by the enterprise in the manufacturing/production 435
operations of its project or used to provide climate control for 436
manufacturing/production areas (which manufacturing/production 437
areas shall be apportioned based on square footage). As used in 438
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this paragraph, the term "biomass" shall have the meaning ascribed 439
to such term in Section 57-113-1. 440
(yy) The gross proceeds from the sale of any item of 441
tangible personal property by the manufacturer or custom processor 442
thereof if such item is shipped, transported or exported from this 443
state and first used in another state, whether such shipment, 444
transportation or exportation is made by the seller, purchaser, or 445
any third party acting on behalf of such party. For the purposes 446
of this paragraph (yy), any instruction to, training of or 447
inspection by the purchaser with respect to the item prior to 448
shipment, transportation or exportation of the item shall not 449
constitute a first use of such item within this state. 450
(zz) (i) Sales or leases to an enterprise operating a 451
project that has been certified by the Mississippi Major Economic 452
Impact Authority as a project as defined in Section 453
57-75-5(f)(xxxii), for a period ending no later than one (1) year 454
following completion of the construction of the facility or 455
facilities comprising such project of all personal property and 456
fixtures, including, without limitation, sales or leases to the 457
enterprise and its affiliates of: 458
1. Manufacturing machinery and equipment; 459
2. Special tooling such as dies, molds, jigs 460
and similar items treated as special tooling for federal income 461
tax purposes; 462
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3. Component building materials, machinery 463
and equipment used in the construction of buildings, and any other 464
additions or improvements to the project site for the project; 465
4. Nonmanufacturing furniture, fixtures and 466
equipment (inclusive of all communications, computer, server, 467
software and other hardware equipment); 468
5. Replacements of, repair parts for or 469
services to repair items described in this subparagraph (i)1, 2 470
and 3; and 471
6. All services taxable pursuant to Section 472
27-65-23 required to establish, support, operate, repair and/or 473
maintain such project; and 474
(ii) Sales or leases to an enterprise operating a 475
project that has been certified by the Mississippi Major Economic 476
Impact Authority as a project as defined in Section 477
57-75-5(f)(xxxii) of electricity, current, power, steam, coal, 478
natural gas, liquefied petroleum gas or other fuel, biomass, 479
nitrogen or other atmospheric or other industrial gases used 480
directly by the enterprise in the manufacturing/production 481
operations of its project or used to provide climate control for 482
manufacturing/production areas (which manufacturing/production 483
areas shall be apportioned based on square footage). As used in 484
this paragraph, the term "biomass" shall have the meaning ascribed 485
to such term in Section 57-113-1. 486
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(aaa) Sales or leases to an enterprise and/or any 487
affiliates thereof operating a project that has been certified by 488
the Mississippi Major Economic Impact Authority as a project as 489
defined in Section 57-75-5(f)(xxxiii) of: 490
(i) Component building materials, fixtures, 491
machinery and equipment used in the construction of a data 492
processing facility or other buildings comprising all or part of a 493
project, for a period ending no later than one (1) year following 494
completion of the construction of the data processing facility or 495
such other building; and 496
(ii) All equipment and other personal property 497
needed to establish and operate the project and any expansions 498
thereof or additions thereto, including, but not limited to: 499
1. Communications, computer, server, 500
software, connectivity materials and equipment, emergency power 501
generation equipment, other hardware equipment and any other 502
technology; 503
2. All replacements of, and repair parts for, 504
such equipment or other personal property; and 505
3. All services taxable pursuant to Section 506
27-65-23 required to install, support, operate, repair and/or 507
maintain the foregoing equipment and other personal property 508
described in this subparagraph (ii). 509
(bbb) Sales, leases or other retail transfers of 510
fixed-wing aircraft to, or to be used by, certified common 511
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carriers in the transport of persons or property in interstate, 512
intrastate or foreign commerce, and engines, accessories and spare 513
parts for such fixed-wing aircraft. 514
(ccc) The gross proceeds from the sale of fixed-wing 515
aircraft if exported from this state within thirty (30) days and 516
registered and first used in another state. 517
(2) Sales of component materials used in the construction of 518
a building, or any addition or improvement thereon, sales of 519
machinery and equipment to be used therein, and sales of 520
manufacturing or processing machinery and equipment which is 521
permanently attached to the ground or to a permanent foundation 522
and which is not by its nature intended to be housed within a 523
building structure, not later than three (3) months after the 524
initial start-up date, to permanent business enterprises engaging 525
in manufacturing or processing in Tier Two areas and Tier One 526
areas (as such areas are designated in accordance with Section 527
57-73-21), which businesses are certified by the Department of 528
Revenue as being eligible for the exemption granted in this 529
subsection, shall be exempt from one-half (1/2) of the taxes 530
imposed on such transactions under this chapter. The exemption 531
provided in this subsection (2) shall not apply to sales to any 532
business enterprise that is a medical cannabis establishment as 533
defined in the Mississippi Medical Cannabis Act. 534
(3) Sales of component materials used in the construction of 535
a facility, or any addition or improvement thereon, and sales or 536
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leases of machinery and equipment not later than three (3) months 537
after the completion of construction of the facility, or any 538
addition or improvement thereto, to be used in the building or any 539
addition or improvement thereto, to a permanent business 540
enterprise operating a data/information enterprise in Tier Two 541
areas and Tier One areas (as such areas are designated in 542
accordance with Section 57-73-21), which businesses meet minimum 543
criteria established by the Mississippi Development Authority, 544
shall be exempt from one-half (1/2) of the taxes imposed on such 545
transactions under this chapter. The exemption provided in this 546
subsection (3) shall not apply to sales to any business enterprise 547
that is a medical cannabis establishment as defined in the 548
Mississippi Medical Cannabis Act. 549
(4) Sales of component materials used in the construction of 550
a facility, or any addition or improvement thereto, and sales of 551
machinery and equipment not later than three (3) months after the 552
completion of construction of the facility, or any addition or 553
improvement thereto, to be used in the building or any addition or 554
improvement thereto, to technology intensive enterprises for 555
industrial purposes in Tier Two areas and Tier One areas (as such 556
areas are designated in accordance with Section 57-73-21), which 557
businesses are certified by the Department of Revenue as being 558
eligible for the exemption granted in this subsection, shall be 559
exempt from one-half (1/2) of the taxes imposed on such 560
transactions under this chapter. For purposes of this subsection, 561
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an enterprise must meet the criteria provided for in Section 562
27-65-17(1)(f) in order to be considered a technology intensive 563
enterprise. 564
(5) (a) For purposes of this subsection: 565
(i) "Telecommunications enterprises" shall have 566
the meaning ascribed to such term in Section 57-73-21; 567
(ii) "Tier One areas" mean counties designated as 568
Tier One areas pursuant to Section 57-73-21; 569
(iii) "Tier Two areas" mean counties designated as 570
Tier Two areas pursuant to Section 57-73-21; 571
(iv) "Tier Three areas" mean counties designated 572
as Tier Three areas pursuant to Section 57-73-21; and 573
(v) "Equipment used in the deployment of broadband 574
technologies" means any equipment capable of being used for or in 575
connection with the transmission of information at a rate, prior 576
to taking into account the effects of any signal degradation, that 577
is not less than thirty-five (35) megabits per second downlink and 578
three (3) megabits per second uplink for mobile broadband or that 579
is capable of providing fixed broadband service as defined by 580
Section 77-19-3. 581
(b) Sales of equipment to telecommunications 582
enterprises after June 30, 2003, and before July 1, 2030, that is 583
installed in Tier One areas and used in the deployment of 584
broadband technologies shall be exempt from one-half (1/2) of the 585
taxes imposed on such transactions under this chapter. 586
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(c) Sales of equipment to telecommunications 587
enterprises after June 30, 2003, and before July 1, 2030, that is 588
installed in Tier Two and Tier Three areas and used in the 589
deployment of broadband technologies shall be exempt from the 590
taxes imposed on such transactions under this chapter. 591
(6) Sales of component materials used in the replacement, 592
reconstruction or repair of a building that has been destroyed or 593
sustained extensive damage as a result of a disaster declared by 594
the Governor, sales of machinery and equipment to be used therein 595
to replace machinery or equipment damaged or destroyed as a result 596
of such disaster, including, but not limited to, manufacturing or 597
processing machinery and equipment which is permanently attached 598
to the ground or to a permanent foundation and which is not by its 599
nature intended to be housed within a building structure, to 600
enterprises that were eligible for the partial exemptions provided 601
for in subsections (2), (3) and (4) of this section during initial 602
construction of the building that was destroyed or damaged, which 603
enterprises are certified by the Department of Revenue as being 604
eligible for the partial exemption granted in this subsection, 605
shall be exempt from one-half (1/2) of the taxes imposed on such 606
transactions under this chapter. 607
SECTION 2. Nothing in this act shall affect or defeat any 608
claim, assessment, appeal, suit, right or cause of action for 609
taxes due or accrued under the sales tax laws before the date on 610
which this act becomes effective, whether such claims, 611
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ST: Sales tax; exempt certain sales of fixed-
wing aircraft.
assessments, appeals, suits or actions have been begun before the 612
date on which this act becomes effective or are begun thereafter; 613
and the provisions of the sales tax laws are expressly continued 614
in full force, effect and operation for the purpose of the 615
assessment, collection and enrollment of liens for any taxes due 616
or accrued and the execution of any warrant under such laws before 617
the date on which this act becomes effective, and for the 618
imposition of any penalties, forfeitures or claims for failure to 619
comply with such laws. 620
SECTION 3. This act shall take effect and be in force from 621
and after July 1, 2026. 622