Summary:

Sales and Use Tax Exemption for Industrial Revenue Bond Financing: Eligible purchases made with MBFC-issued industrial revenue bonds may be exempted from sales and use tax in Mississippi. In Mississippi, there is a contractor’s tax of 3.5 percent of the contractor’s gross receipts from construction that is assessed on the construction of commercial real property. While contractor’s tax has no exemptions, the contractor is allowed to purchase all component building materials exempt from sales tax. Under the sales and use tax exemption for businesses utilizing industrial revenue bonds, however, if component building materials are not part of the construction contract and are purchased directly by the bondholder using bond proceeds, they are not subject to contractor’s tax and sales tax is not due on those materials. Contractor’s tax still applies to the labor portion of the construction contract.

Eligible Recipients:

For-Profit Business; Non-Profit Organization; Higher Education Institution; Anchor Institution

Eligible Recipients Detail:

Qualified manufacturing facilities, non-profit 501(c)(3) facilities and solid waste disposal facilities. utilizing industrial revenue bonds

Eligible Purpose:

Last Mile Infrastructure; Anchor Institution Infrastructure; Building Infrastructure; Broadband Enabled Devices

Eligible Purpose Detail:

To qualify for the exemption, the materials must be purchased by, billed to and paid for directly by the eligible business.

Businesses can receive tax credits and property tax exemptions for participating in Industrial Bond Financing related to the following activities:

Acquisition, rehabilitation or construction and Acquisition of new equipment for: Educational Facilities; Healthcare Facilities; Charitable Organizations; Small Issue Manufacturing Facilities; Solid Waste Disposal Facilities.