MS Sales Tax Updates for Contractors

During the 2021 Mississippi Regular Legislative Session, Senate Bill 2874 was passed.  Although any contractor that has a permanent place of business in Mississippi or is licensed by the Mississippi State Board of Contractors is exempt, the new bill requires all residential and commercial contractors, including out-of-state contractors, to obtain a sales tax permit from the Department of Revenue before obtaining a building permit in the state of Mississippi effective April 22, 2021. The new law aims to reduce the number of out-of-state contractors not paying the proper sales, use, withholding, or income taxes.

Also during the Legislative Session, House Bill 1139 was approved and no longer requires taxpayers to submit accelerated payments for sales, use and withholding tax.   Businesses with an average monthly withholding tax liability of at least $50,000 for the preceding calendar year will no longer have to pay 75% of their estimated June withholding tax liability due on or before June 25.

To ensure you are paying the correct amounts, check out our Sales and Use Tax Infographic for Contractors or contact our Construction State and Local Tax Manager, Emily Carpenter.

Subscribe to the Construction Newsletter