Sales tax; reduce rate on retail sales of motorcycles.

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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Byrd

HOUSE BILL NO. 954

AN ACT TO AMEND SECTION 27-65-17, MISSISSIPPI CODE OF 1972, 1
TO REDUCE THE SALES TAX RATE ON RETAIL SALES OF MOTORCYCLES FROM 2
SEVEN PERCENT TO FIVE PERCENT; AND FOR RELATED PURPOSES. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 4
SECTION 1. Section 27-65-17, Mississippi Code of 1972, is 5
amended as follows: 6
27-65-17. (1) (a) Except as otherwise provided in this 7
section, upon every person engaging or continuing within this 8
state in the business of selling any tangible personal property 9
whatsoever there is hereby levied, assessed and shall be collected 10
a tax equal to seven percent (7%) of the gross proceeds of the 11
retail sales of the business. 12
(b) Retail sales of farm tractors and parts and labor 13
used to maintain and/or repair such tractors shall be taxed at the 14
rate of one and one-half percent (1-1/2%) when made to farmers for 15
agricultural purposes. 16
(c) (i) Retail sales of farm implements sold to 17
farmers and used directly in the production of poultry, ratite, 18
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domesticated fish as defined in Section 69-7-501, livestock, 19
livestock products, agricultural crops or ornamental plant crops 20
or used for other agricultural purposes, and parts and labor used 21
to maintain and/or repair such implements, shall be taxed at the 22
rate of one and one-half percent (1-1/2%) when used on the farm. 23
(ii) The one and one-half percent (1-1/2%) rate 24
shall also apply to all equipment used in logging, pulpwood 25
operations or tree farming, and parts and labor used to maintain 26
and/or repair such equipment, which is either: 27
1. Self-propelled, or 28
2. Mounted so that it is permanently attached 29
to other equipment which is self-propelled or attached to other 30
equipment drawn by a vehicle which is self-propelled. 31
In order to be eligible for the rate of tax provided for in 32
this subparagraph (ii), such sales must be made to a professional 33
logger. For the purposes of this subparagraph (ii), a 34
"professional logger" is a person, corporation, limited liability 35
company or other entity, or an agent thereof, who possesses a 36
professional logger's permit issued by the Department of Revenue 37
and who presents the permit to the seller at the time of purchase. 38
The department shall establish an application process for a 39
professional logger's permit to be issued, which shall include a 40
requirement that the applicant submit a copy of documentation 41
verifying that the applicant is certified according to Sustainable 42
Forestry Initiative guidelines. Upon a determination that an 43
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applicant is a professional logger, the department shall issue the 44
applicant a numbered professional logger's permit. 45
(d) Except as otherwise provided in subsection (3) of 46
this section, retail sales of aircraft, automobiles, trucks, 47
truck-tractors, semitrailers and manufactured or mobile homes 48
shall be taxed at the rate of three percent (3%). 49
(e) Sales of manufacturing machinery or manufacturing 50
machine parts when made to a manufacturer or custom processor for 51
plant use only when the machinery and machine parts will be used 52
exclusively and directly within this state in manufacturing a 53
commodity for sale, rental or in processing for a fee shall be 54
taxed at the rate of one and one-half percent (1-1/2%). 55
(f) Sales of machinery and machine parts when made to a 56
technology intensive enterprise for plant use only when the 57
machinery and machine parts will be used exclusively and directly 58
within this state for industrial purposes, including, but not 59
limited to, manufacturing or research and development activities, 60
shall be taxed at the rate of one and one-half percent (1-1/2%). 61
In order to be considered a technology intensive enterprise for 62
purposes of this paragraph: 63
(i) The enterprise shall meet minimum criteria 64
established by the Mississippi Development Authority; 65
(ii) The enterprise shall employ at least ten (10) 66
persons in full-time jobs; 67
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(iii) At least ten percent (10%) of the workforce 68
in the facility operated by the enterprise shall be scientists, 69
engineers or computer specialists; 70
(iv) The enterprise shall manufacture plastics, 71
chemicals, automobiles, aircraft, computers or electronics; or 72
shall be a research and development facility, a computer design or 73
related facility, or a software publishing facility or other 74
technology intensive facility or enterprise as determined by the 75
Mississippi Development Authority; 76
(v) The average wage of all workers employed by 77
the enterprise at the facility shall be at least one hundred fifty 78
percent (150%) of the state average annual wage; and 79
(vi) The enterprise must provide a basic health 80
care plan to all employees at the facility. 81
A medical cannabis establishment, as defined in the 82
Mississippi Medical Cannabis Act, shall not be considered to be a 83
technology intensive enterprise for the purposes of this paragraph 84
(f). 85
(g) Sales of materials for use in track and track 86
structures to a railroad whose rates are fixed by the Interstate 87
Commerce Commission or the Mississippi Public Service Commission 88
shall be taxed at the rate of three percent (3%). 89
(h) Sales of tangible personal property to electric 90
power associations for use in the ordinary and necessary operation 91
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of their generating or distribution systems shall be taxed at the 92
rate of one percent (1%). 93
(i) Wholesale sales of food and drink for human 94
consumption to full-service vending machine operators to be sold 95
through vending machines located apart from and not connected with 96
other taxable businesses shall be taxed at the rate of eight 97
percent (8%). 98
(j) Sales of equipment used or designed for the purpose 99
of assisting disabled persons, such as wheelchair equipment and 100
lifts, that is mounted or attached to or installed on a private 101
carrier of passengers or light carrier of property, as defined in 102
Section 27-51-101, at the time when the private carrier of 103
passengers or light carrier of property is sold shall be taxed at 104
the same rate as the sale of such vehicles under this section. 105
(k) Sales of the factory-built components of modular 106
homes, panelized homes and precut homes, and panel constructed 107
homes consisting of structural insulated panels, shall be taxed at 108
the rate of three percent (3%). 109
(l) Sales of materials used in the repair, renovation, 110
addition to, expansion and/or improvement of buildings and related 111
facilities used by a dairy producer shall be taxed at the rate of 112
three and one-half percent (3-1/2%). For the purposes of this 113
paragraph (l), "dairy producer" means any person engaged in the 114
production of milk for commercial use. 115
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(m) Sales of equipment and materials used in connection 116
with geophysical surveying, exploring, developing, drilling, 117
redrilling, completing, working over, producing, distributing, or 118
testing of oil, gas and other mineral resources shall be taxed at 119
the rate of four and one-half percent (4-1/2%). Operators that 120
rebill sales of equipment and materials to nonoperating working 121
interest owners on behalf of a joint account through the joint 122
interest billing (JIB), where the sales tax has been paid or 123
accrued by the operator shall not be charged a sales tax on the 124
JIB as services income. 125
(n) Retail sales of food or drink for human consumption 126
not purchased with food stamps issued by the United States 127
Department of Agriculture or other federal agency, but which would 128
be exempt under Section 27-65-111(o) from the taxes imposed by 129
this chapter if the food items were purchased with food stamps, 130
shall be taxed at the rate of five percent (5%) from and after 131
July 1, 2025. 132
(o) Retail sales of motorcycles, as defined in Section 133
27-19-3, shall be taxed at the rate of five percent (5%). 134
(2) From and after January 1, 1995, retail sales of private 135
carriers of passengers and light carriers of property, as defined 136
in Section 27-51-101, shall be taxed an additional two percent 137
(2%). 138
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ST: Sales tax; reduce rate on retail sales of
motorcycles.
(3) A manufacturer selling at retail in this state shall be 139
required to make returns of the gross proceeds of such sales and 140
pay the tax imposed in this section. 141
SECTION 2. Nothing in this act shall affect or defeat any 142
claim, assessment, appeal, suit, right or cause of action for 143
taxes due or accrued under the sales tax laws before the date on 144
which this act becomes effective, whether such claims, 145
assessments, appeals, suits or actions have been begun before the 146
date on which this act becomes effective or are begun thereafter; 147
and the provisions of the sales tax laws are expressly continued 148
in full force, effect and operation for the purpose of the 149
assessment, collection and enrollment of liens for any taxes due 150
or accrued and the execution of any warrant under such laws before 151
the date on which this act becomes effective, and for the 152
imposition of any penalties, forfeitures or claims for failure to 153
comply with such laws. 154
SECTION 3. This act shall take effect and be in force from 155
and after July 1, 2026. 156