Boyd Mason Act; create sales tax exemption for veterans having 100% permanent service-connected disability.

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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Fondren

HOUSE BILL NO. 870

AN ACT TO CREATE THE BOYD MASON ACT; TO AMEND SECTION 1
27-65-111, MISSISSIPPI CODE OF 1972, TO EXEMPT FROM SALES TAXATION 2
SALES OF TANGIBLE PERSONAL PROPERTY OR SERVICES TO INDIVIDUALS WHO 3
ARE RESIDENTS OF MISSISSIPPI AND HAVE BEEN HONORABLY DISCHARGED 4
FROM ACTIVE SERVICE IN ANY BRANCH OF THE ARMED FORCES OF THE 5
UNITED STATES OR THE MISSISSIPPI NATIONAL GUARD AND HAVE BEEN 6
CERTIFIED BY THE UNITED STATES DEPARTMENT OF VETERANS AFFAIRS OR 7
ITS SUCCESSOR AS HAVING 100% PERMANENT SERVICE-CONNECTED 8
DISABILITY, SALES TO THE SURVIVING SPOUSE OF SUCH AN INDIVIDUAL 9
AND SALES FOR THE BENEFIT OF SUCH AN INDIVIDUAL MADE TO A SPOUSE 10
OF THE INDIVIDUAL OR TO A MEMBER OF THE HOUSEHOLD IN WHICH THE 11
INDIVIDUAL RESIDES AND WHO IS AUTHORIZED TO MAKE PURCHASES ON THE 12
INDIVIDUAL'S BEHALF, WHEN SUCH INDIVIDUAL IS NOT PRESENT AT THE 13
SALE; TO LIMIT THE AMOUNT OF ANNUAL SALES TO WHICH THE EXEMPTION 14
MAY APPLY; AND FOR RELATED PURPOSES. 15
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 16
SECTION 1. This act shall be known and may be cited as the 17
"Boyd Mason Act". 18
SECTION 2. Section 27-65-111, Mississippi Code of 1972, 19
is amended as follows: 20
27-65-111. The exemptions from the provisions of this 21
chapter which are not industrial, agricultural or governmental, or 22
which do not relate to utilities or taxes, or which are not 23
properly classified as one (1) of the exemption classifications of 24
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this chapter, shall be confined to persons or property exempted by 25
this section or by the Constitution of the United States or the 26
State of Mississippi. No exemptions as now provided by any other 27
section, except the classified exemption sections of this chapter 28
set forth herein, shall be valid as against the tax herein levied. 29
Any subsequent exemption from the tax levied hereunder, except as 30
indicated above, shall be provided by amendments to this section. 31
No exemption provided in this section shall apply to taxes 32
levied by Section 27-65-15 or 27-65-21. 33
The tax levied by this chapter shall not apply to the 34
following: 35
(a) Sales of tangible personal property and services to 36
hospitals or infirmaries owned and operated by a corporation or 37
association in which no part of the net earnings inures to the 38
benefit of any private shareholder, group or individual, and which 39
are subject to and governed by Sections 41-7-123 through 41-7-127. 40
Only sales of tangible personal property or services which 41
are ordinary and necessary to the operation of such hospitals and 42
infirmaries are exempted from tax. 43
(b) Sales of daily or weekly newspapers, and 44
periodicals or publications of scientific, literary or educational 45
organizations exempt from federal income taxation under Section 46
501(c)(3) of the Internal Revenue Code of 1954, as it exists as of 47
March 31, 1975, and subscription sales of all magazines. 48
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(c) Sales of coffins, caskets and other materials used 49
in the preparation of human bodies for burial. 50
(d) Sales of tangible personal property for immediate 51
export to a foreign country. 52
(e) Sales of tangible personal property to an 53
orphanage, old men's or ladies' home, supported wholly or in part 54
by a religious denomination, fraternal nonprofit organization or 55
other nonprofit organization. 56
(f) Sales of tangible personal property, labor or 57
services taxable under Sections 27-65-17, 27-65-19 and 27-65-23, 58
to a YMCA, YWCA, a Boys' or Girls' Club owned and operated by a 59
corporation or association in which no part of the net earnings 60
inures to the benefit of any private shareholder, group or 61
individual. 62
(g) Sales to elementary and secondary grade schools, 63
junior and senior colleges owned and operated by a corporation or 64
association in which no part of the net earnings inures to the 65
benefit of any private shareholder, group or individual, and which 66
are exempt from state income taxation, provided that this 67
exemption does not apply to sales of property or services which 68
are not to be used in the ordinary operation of the school, or 69
which are to be resold to the students or the public. 70
(h) The gross proceeds of retail sales and the use or 71
consumption in this state of drugs and medicines: 72
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(i) Prescribed for the treatment of a human being 73
by a person authorized to prescribe the medicines, and dispensed 74
or prescription filled by a registered pharmacist in accordance 75
with law; or 76
(ii) Furnished by a licensed physician, surgeon, 77
dentist or podiatrist to his own patient for treatment of the 78
patient; or 79
(iii) Furnished by a hospital for treatment of any 80
person pursuant to the order of a licensed physician, surgeon, 81
dentist or podiatrist; or 82
(iv) Sold to a licensed physician, surgeon, 83
podiatrist, dentist or hospital for the treatment of a human 84
being; or 85
(v) Sold to this state or any political 86
subdivision or municipal corporation thereof, for use in the 87
treatment of a human being or furnished for the treatment of a 88
human being by a medical facility or clinic maintained by this 89
state or any political subdivision or municipal corporation 90
thereof. 91
"Medicines," as used in this paragraph (h), shall mean and 92
include any substance or preparation intended for use by external 93
or internal application to the human body in the diagnosis, cure, 94
mitigation, treatment or prevention of disease and which is 95
commonly recognized as a substance or preparation intended for 96
such use; "medicines" do not include any auditory, prosthetic, 97
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ophthalmic or ocular device or appliance, any dentures or parts 98
thereof or any artificial limbs or their replacement parts, 99
articles which are in the nature of splints, bandages, pads, 100
compresses, supports, dressings, instruments, apparatus, 101
contrivances, appliances, devices or other mechanical, electronic, 102
optical or physical equipment or article or the component parts 103
and accessories thereof, or any alcoholic beverage or any other 104
drug or medicine not commonly referred to as a prescription drug. 105
Notwithstanding the preceding sentence of this paragraph (h), 106
"medicines" as used in this paragraph (h), shall mean and include 107
sutures, whether or not permanently implanted, bone screws, bone 108
pins, pacemakers and other articles permanently implanted in the 109
human body to assist the functioning of any natural organ, artery, 110
vein or limb and which remain or dissolve in the body. 111
The exemption provided in this paragraph (h) shall not apply 112
to medical cannabis sold in accordance with the provisions of the 113
Mississippi Medical Cannabis Act and in compliance with rules and 114
regulations adopted thereunder. 115
"Hospital," as used in this paragraph (h), shall have the 116
meaning ascribed to it in Section 41-9-3. 117
Insulin furnished by a registered pharmacist to a person for 118
treatment of diabetes as directed by a physician shall be deemed 119
to be dispensed on prescription within the meaning of this 120
paragraph (h). 121
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(i) Retail sales of automobiles, trucks and 122
truck-tractors if exported from this state within forty-eight (48) 123
hours and registered and first used in another state. 124
(j) Sales of tangible personal property or services to 125
the Salvation Army and the Muscular Dystrophy Association, Inc. 126
(k) From July 1, 1985, through December 31, 1992, 127
retail sales of "alcohol-blended fuel" as such term is defined in 128
Section 75-55-5. The gasoline-alcohol blend or the straight 129
alcohol eligible for this exemption shall not contain alcohol 130
distilled outside the State of Mississippi. 131
(l) Sales of tangible personal property or services to 132
the Institute for Technology Development. 133
(m) The gross proceeds of retail sales of food and 134
drink for human consumption made through vending machines serviced 135
by full-line vendors from and not connected with other taxable 136
businesses. 137
(n) The gross proceeds of sales of motor fuel. 138
(o) Retail sales of food for human consumption 139
purchased with food stamps issued by the United States Department 140
of Agriculture, or other federal agency, from and after October 1, 141
1987, or from and after the expiration of any waiver granted 142
pursuant to federal law, the effect of which waiver is to permit 143
the collection by the state of tax on such retail sales of food 144
for human consumption purchased with food stamps. 145
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(p) Sales of cookies for human consumption by the Girl 146
Scouts of America if no part of the net earnings from those sales 147
inures to the benefit of any private group or individual. 148
(q) Gifts or sales of tangible personal property or 149
services to public or private nonprofit museums of art. 150
(r) Sales of tangible personal property or services to 151
alumni associations of state-supported colleges or universities. 152
(s) Sales of tangible personal property or services to 153
National Association of Junior Auxiliaries, Inc., and chapters of 154
the National Association of Junior Auxiliaries, Inc. 155
(t) Sales of tangible personal property or services to 156
domestic violence shelters which qualify for state funding under 157
Sections 93-21-101 through 93-21-113. 158
(u) Sales of tangible personal property or services to 159
the National Multiple Sclerosis Society, Mississippi Chapter. 160
(v) Retail sales of food for human consumption 161
purchased with food instruments issued the Mississippi Band of 162
Choctaw Indians under the Women, Infants and Children Program 163
(WIC) funded by the United States Department of Agriculture. 164
(w) Sales of tangible personal property or services to 165
a private company, as defined in Section 57-61-5, which is making 166
such purchases with proceeds of bonds issued under Section 57-61-1 167
et seq., the Mississippi Business Investment Act. 168
(x) The gross collections from the operation of 169
self-service, coin-operated car washing equipment and sales of the 170
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service of washing motor vehicles with portable high-pressure 171
washing equipment on the premises of the customer. 172
(y) Sales of tangible personal property or services to 173
the Mississippi Technology Alliance. 174
(z) Sales of tangible personal property to nonprofit 175
organizations that provide foster care, adoption services and 176
temporary housing for unwed mothers and their children if the 177
organization is exempt from federal income taxation under Section 178
501(c)(3) of the Internal Revenue Code. 179
(aa) Sales of tangible personal property to nonprofit 180
organizations that provide residential rehabilitation for persons 181
with alcohol and drug dependencies if the organization is exempt 182
from federal income taxation under Section 501(c)(3) of the 183
Internal Revenue Code. 184
(ab) (i) Retail sales of an article of clothing or 185
footwear designed to be worn on or about the human body and retail 186
sales of school supplies if the sales price of the article of 187
clothing or footwear or school supply is less than One Hundred 188
Dollars ($100.00) and the sale takes place during a period 189
beginning at 12:01 a.m. on the second Friday in July and ending at 190
12:00 midnight the following Sunday. This paragraph (ab) shall 191
not apply to: 192
1. Accessories including jewelry, handbags, 193
luggage, umbrellas, wallets, watches, briefcases, garment bags and 194
similar items carried on or about the human body, without regard 195
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to whether worn on the body in a manner characteristic of 196
clothing; 197
2. The rental of clothing or footwear; and 198
3. Skis, swim fins, roller blades, skates and 199
similar items worn on the foot. 200
(ii) For purposes of this paragraph (ab), "school 201
supplies" means items that are commonly used by a student in a 202
course of study. The following is an all-inclusive list: 203
1. Backpacks; 204
2. Binder pockets; 205
3. Binders; 206
4. Blackboard chalk; 207
5. Book bags; 208
6. Calculators; 209
7. Cellophane tape; 210
8. Clays and glazes; 211
9. Compasses; 212
10. Composition books; 213
11. Crayons; 214
12. Dictionaries and thesauruses; 215
13. Dividers; 216
14. Erasers; 217
15. Folders: expandable, pocket, plastic and 218
manila; 219
16. Glue, paste and paste sticks; 220
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17. Highlighters; 221
18. Index card boxes; 222
19. Index cards; 223
20. Legal pads; 224
21. Lunch boxes; 225
22. Markers; 226
23. Notebooks; 227
24. Paintbrushes for artwork; 228
25. Paints: acrylic, tempera and oil; 229
26. Paper: loose-leaf ruled notebook paper, 230
copy paper, graph paper, tracing paper, manila paper, colored 231
paper, poster board and construction paper; 232
27. Pencil boxes and other school supply 233
boxes; 234
28. Pencil sharpeners; 235
29. Pencils; 236
30. Pens; 237
31. Protractors; 238
32. Reference books; 239
33. Reference maps and globes; 240
34. Rulers; 241
35. Scissors; 242
36. Sheet music; 243
37. Sketch and drawing pads; 244
38. Textbooks; 245
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39. Watercolors; 246
40. Workbooks; and 247
41. Writing tablets. 248
(iii) From and after January 1, 2010, the 249
governing authorities of a municipality, for retail sales 250
occurring within the corporate limits of the municipality, may 251
suspend the application of the exemption provided for in this 252
paragraph (ab) by adoption of a resolution to that effect stating 253
the date upon which the suspension shall take effect. A certified 254
copy of the resolution shall be furnished to the Department of 255
Revenue at least ninety (90) days prior to the date upon which the 256
municipality desires such suspension to take effect. 257
(ac) The gross proceeds of sales of tangible personal 258
property made for the sole purpose of raising funds for a school 259
or an organization affiliated with a school. 260
As used in this paragraph (ac), "school" means any public or 261
private school that teaches courses of instruction to students in 262
any grade from kindergarten through Grade 12. 263
(ad) Sales of durable medical equipment and home 264
medical supplies when ordered or prescribed by a licensed 265
physician for medical purposes of a patient. As used in this 266
paragraph (ad), "durable medical equipment" and "home medical 267
supplies" mean equipment, including repair and replacement parts 268
for the equipment or supplies listed under Title XVIII of the 269
Social Security Act or under the state plan for medical assistance 270
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under Title XIX of the Social Security Act, prosthetics, 271
orthotics, hearing aids, hearing devices, prescription eyeglasses, 272
oxygen and oxygen equipment. Payment does not have to be made, in 273
whole or in part, by any particular person to be eligible for this 274
exemption. Purchases of home medical equipment and supplies by a 275
provider of home health services or a provider of hospice services 276
are eligible for this exemption if the purchases otherwise meet 277
the requirements of this paragraph. 278
(ae) Sales of tangible personal property or services to 279
Mississippi Blood Services. 280
(af) (i) Subject to the provisions of this paragraph 281
(af), retail sales of firearms, ammunition and hunting supplies if 282
sold during the annual Mississippi Second Amendment Weekend 283
holiday beginning at 12:01 a.m. on the last Friday in August and 284
ending at 12:00 midnight the following Sunday. For the purposes 285
of this paragraph (af), "hunting supplies" means tangible personal 286
property used for hunting, including, and limited to, archery 287
equipment, firearm and archery cases, firearm and archery 288
accessories, hearing protection, holsters, belts and slings. 289
Hunting supplies does not include animals used for hunting. 290
(ii) This paragraph (af) shall apply only if one 291
or more of the following occur: 292
1. Title to and/or possession of an eligible 293
item is transferred from a seller to a purchaser; and/or 294
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2. A purchaser orders and pays for an 295
eligible item and the seller accepts the order for immediate 296
shipment, even if delivery is made after the time period provided 297
in subparagraph (i) of this paragraph (af), provided that the 298
purchaser has not requested or caused the delay in shipment. 299
(ag) Sales of nonperishable food items to charitable 300
organizations that are exempt from federal income taxation under 301
Section 501(c)(3) of the Internal Revenue Code and operate a food 302
bank or food pantry or food lines. 303
(ah) Sales of tangible personal property or services to 304
the United Way of the Pine Belt Region, Inc. 305
(ai) Sales of tangible personal property or services to 306
the Mississippi Children's Museum or any subsidiary or affiliate 307
thereof operating a satellite or branch museum within this state. 308
(aj) Sales of tangible personal property or services to 309
the Jackson Zoological Park. 310
(ak) Sales of tangible personal property or services to 311
the Hattiesburg Zoo. 312
(al) Gross proceeds from sales of food, merchandise or 313
other concessions at an event held solely for religious or 314
charitable purposes at livestock facilities, agriculture 315
facilities or other facilities constructed, renovated or expanded 316
with funds for the grant program authorized under Section 18, 317
Chapter 530, Laws of 1995. 318
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(am) Sales of tangible personal property and services 319
to the Diabetes Foundation of Mississippi and the Mississippi 320
Chapter of the Juvenile Diabetes Research Foundation. 321
(an) Sales of potting soil, mulch, or other soil 322
amendments used in growing ornamental plants which bear no fruit 323
of commercial value when sold to commercial plant nurseries that 324
operate exclusively at wholesale and where no retail sales can be 325
made. 326
(ao) Sales of tangible personal property or services to 327
the University of Mississippi Medical Center Research Development 328
Foundation. 329
(ap) Sales of tangible personal property or services to 330
Keep Mississippi Beautiful, Inc., and all affiliates of Keep 331
Mississippi Beautiful, Inc. 332
(aq) Sales of tangible personal property or services to 333
the Friends of Children's Hospital. 334
(ar) Sales of tangible personal property or services to 335
the Pinecrest Weekend Snackpacks for Kids located in Corinth, 336
Mississippi. 337
(as) Sales of hearing aids when ordered or prescribed 338
by a licensed physician, audiologist or hearing aid specialist for 339
the medical purposes of a patient. 340
(at) Sales exempt under the Facilitating Business Rapid 341
Response to State Declared Disasters Act of 2015 (Sections 342
27-113-1 through 27-113-9). 343
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(au) Sales of tangible personal property or services to 344
the Junior League of Jackson. 345
(av) Sales of tangible personal property or services to 346
the Mississippi's Toughest Kids Foundation for use in the 347
construction, furnishing and equipping of buildings and related 348
facilities and infrastructure at Camp Kamassa in Copiah County, 349
Mississippi. This paragraph (av) shall stand repealed on July 1, 350
2028. 351
(aw) Sales of tangible personal property or services to 352
MS Gulf Coast Buddy Sports, Inc. 353
(ax) Sales of tangible personal property or services to 354
Biloxi Lions, Inc. 355
(ay) Sales of tangible personal property or services to 356
Lions Sight Foundation of Mississippi, Inc. 357
(az) Sales of tangible personal property and services 358
to the Goldring/Woldenberg Institute of Southern Jewish Life 359
(ISJL). 360
(ba) Sales of coins, currency, and bullion. For the 361
purposes of this paragraph (ba), the following words and phrases 362
shall have the meanings ascribed in this paragraph (ba) unless the 363
context clearly indicates otherwise: 364
(i) "Bullion" means a bar, ingot, or coin: 365
1. Manufactured, in whole or in part, of 366
gold, silver, platinum, or palladium; 367
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2. That was or is used solely as a medium of 368
exchange, security, or commodity by any state, the United States 369
Government, or a foreign nation; and 370
3. Sold based on the intrinsic value of the 371
bar, ingot, or coin as a precious metal or collectible item rather 372
than its form or representative value as a medium of exchange. 373
(ii) "Coin or currency" means a coin or currency: 374
1. Manufactured, in whole or in part, of 375
gold, silver, other metal, or paper; 376
2. That was or is used solely as a medium of 377
exchange, security, or commodity by any state, the United States 378
Government, or a foreign nation; and 379
3. Sold based on the intrinsic value of the 380
coin or currency as a precious metal or collectible item rather 381
than its form or representative value as a medium of exchange. 382
"Coin or currency" does not include a coin or currency that has 383
been incorporated into jewelry. 384
(bb) (i) Sales of tangible personal property or 385
services to: 386
1. Individuals who are residents of 387
Mississippi and have been honorably discharged from active service 388
in any branch of the Armed Forces of the United States or the 389
Mississippi National Guard and who have been certified by the 390
United States Department of Veterans Affairs or its successor as 391
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having one hundred percent (100%) permanent service-connected 392
disability; and 393
2. The surviving spouse of an individual 394
described in item 1 of this subparagraph (i) if the individual is 395
deceased and the spouse has not remarried. 396
Sales for the benefit of an eligible individual described in 397
item 1 of this subparagraph (i) made to a spouse of the individual 398
or to a member of the household in which the individual resides 399
and who is authorized to make purchases on the eligible 400
individual's behalf, when such individual is not present at the 401
sale, shall also be exempt for purposes of this paragraph (bb). 402
(ii) Sales qualifying for the exemption authorized 403
by this paragraph (bb) shall not exceed Twenty-five Thousand 404
Dollars ($25,000.00) per year while the disabled veteran is 405
living. Sales qualifying for the exemption authorized by this 406
paragraph (bb) shall not exceed One Thousand Dollars ($1,000.00) 407
per year for an unremarried surviving spouse. 408
(iii) In order to utilize an exemption under this 409
paragraph (bb), the individual to whom the sale is made shall be 410
required to furnish the vendor proof of eligibility for the 411
exemption in the form of an exemption card issued by the 412
department. 413
SECTION 3. Nothing in this act shall affect or defeat any 414
claim, assessment, appeal, suit, right or cause of action for 415
taxes due or accrued under the sales tax laws before the date on 416
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ST: Boyd Mason Act; create sales tax exemption
for veterans having 100% permanent service-
connected disability.
which this act becomes effective, whether such claims, 417
assessments, appeals, suits or actions have been begun before the 418
date on which this act becomes effective or are begun thereafter; 419
and the provisions of the sales tax laws are expressly continued 420
in full force, effect and operation for the purpose of the 421
assessment, collection and enrollment of liens for any taxes due 422
or accrued and the execution of any warrant under such laws before 423
the date on which this act becomes effective, and for the 424
imposition of any penalties, forfeitures or claims for failure to 425
comply with such laws. 426
SECTION 4. This act shall take effect and be in force from 427
and after July 1, 2026. 428