Sales tax; exempt sales at auction by the National Wild Turkey Federation, a 501(c)(3) entity.

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To: Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Rhodes

SENATE BILL NO. 2859

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