Sales and Use Tax Exemption for Industrial Revenue Bond Financing

Mississippi Business Finance Corporation

Program Type:

Tax Incentive

Eligible Geography:

Mississippi

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; High 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 Connectivity; Anchor Institution Connectivity; Building Connectivity; Broadband Enabled Devices (Education); Broadband Enables Devices (Healthcare); Broadband Enabled Devices (General)

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 propety tax exemptions for participating in Industrial Bond Finanincg 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.

Funding Match/Terms:

X