35 Miss. Admin. Code Pt. III, Subpt. 10, Ch. 05 — Exempt Organizations

100 The following organizations are exempt from taxation under the provisions of the act:

# 1.

Fraternal beneficiary societies, orders or associations.

# 2.

Mutual saving banks, domestic or foreign and farm loan associations when
organized and operated on a nonprofit basis and for public purposes.

# 3.

Cemetery corporations; religious, charitable, educational or scientific associations
or institutions, including any community chest, funds or foundations, organized and
operated exclusively for religious, charitable, scientific or educational purposes or
for the prevention of cruelty to children or animals, no part of the net earnings of
which inures to the benefit of any private stockholder or individual.

# 4.

Business leagues, labor organizations, agricultural or horticultural associations,
chambers of commerce, or boards of trade not organized for profit, and no part of
the net earnings of which inures to the benefit of any private stockholder or
individual.

# 5.

Civic leagues and social clubs or organizations not organized for profit, but
operated exclusively for the promotion of social welfare.

# 6.

Clubs organized and operated exclusively for pleasure, recreation and other non -
profitable purposes, no part of the net earnings of which inures to the benefit of any
private stockholder or member.

# 7.

Farmers and fruit growers cooperatives or other like organizations organized and
operated as sales agents for the purpose of marketing the products of members and
turning back to them the proceeds of sales, less the necessary selling expenses and
on the basis of the quantity of produce furnished by them, and other nonprofit
agricultural associations organized and operated under the provisions of the
cooperative marketing laws of this state.

# 8.

Nonprofit cooperative electric power associations or corporations , or like
associations, when organized and operated for public purposes and when no part of
the income inures to the benefit of any private stockholder or individual.
101 Corporations and organizations claiming exemption from taxation under the foregoing
provisions shall be required to provide good and sufficient evidence to the Commissioner
showing their right to exemption as claimed. The burden is upon the corporation or
organization claiming exemption to establish same without request by the Commissioner.
In no event shall corporations be exempt from providing information at source as to
compensation or other items of value paid by them to employees and others, as required by
Section 27-7-39.
102 An application shall be made in behalf of the corporation or association claiming
exemption, by the president, secretary or other governing officers thereof, requesting such
exemption under Section 27-7-29 and must contain the following information:
1. The character of the organization.
2. The purpose for which it was organized.
3. The actual activities.
4. The sources of income and its disposition.
5. Whether or not any of the net income is credited to surplus or may inure to the
benefit of any private individual or stockholder, and if so, in what manner and to
what extent.
6. Whether or not exemption from filing federal income tax returns has been granted
by the Federal Internal Revenue Service. If not, state reason.
7. If exemption is claimed under paragraph (7) of this regulation, the following data
must be furnished:
a. The value of products marketed during the year for members, and the value
of products marketed for nonmembers.
b. The value of purchases made during the year for members, and the value of
purchases for nonmembers.
c. The value of purchases made during the year for persons, who are neither
members nor producers.
d. If the organization deals with nonmember patrons, whether or not they are
treated the same as members insofar as the charges made for service or the
distribution of patronage dividends are concerned.
8. In general, all facts relating to the operation of the business which affect the right to
exemption.
103 There must be attached to the application; a certified copy of the articles of incorporation, a
certified copy of the by-laws, and a copy of the latest financial statement, showing assets,
liabilities, receipts and disbursements of the organization. Also, the statements supporting
the claim for exemptions must be sworn to.
104 When an organization has established its right to exemption, thereafter it shall file annually
an affidavit stating the changes, if any, in the character of its organization or operations and
shall furnish such additional information as the Commissioner may request.
105 Corporations and organizations coming within the scope and purview of the exemption
authorized by Section 27 -7-29, may, in lieu of the application required, file with the
Commissioner a copy of the Internal Revenue Service exemption application and
determination letter. To the extent that the corporation or organization has been classified
by the Internal Revenue Service as exempt under the provisions of Federal Code Section
501 and regulations relating thereto and to the extent that such corporation or organization
is not otherwise disqualified for the exemption authorized by the provisions of Section
27-7-29, the Commissioner shall determine such organization as exempt from the filing of
income tax returns. Any change made by the Internal Revenue Service in the exempt status
of the corporation will automatically and simultaneously cancel the exemption for
Mississippi tax purposes. If the corporation whose, exempt status has been changed by the
IRS, has reason to believe that its exempt status for Mississippi tax purposes remains
unchanged, such corporation, by application may apply to the Commissioner for
exemption. The Commissioner may require such additional information or documentation
as he may deem necessary and pertinent in determining the exempt status of a corporation
or organization making application for exemption on the basis of IRS exemption
application and determination letter.
106 (Reserved)
107 (Reserved)
Subpart 11 Withholding