35 Miss. Admin. Code Pt. IV, Subpt. 10, Ch. 03 — Construction Equipment - Dealers

Tax Rates
100 Tax Rates. Sales of all construction equipment, attachments, parts, labor and services are
taxable at the regular retail rate of sales tax.
101 Sales under a warranty agreement with the manufacturer are not taxable on that part
charged to the factory. Any part of the charge made to the customer is taxable at the
regular retail rate.
102 Internal sales of parts and labor that are necessary to repair construction equipment in
inventory of the dealers are not taxable because the tax will apply on the sale of the
repaired equipment.
103 "Sales price" or "purchase price" means the full amount received from the sale of
property, including carrying charges when a dealer carries his own paper, delivery
charges, manufacturers excise tax and any other additions to the selling price. No
distinction is made between sales of new, used or trade -in equipment for tax purposes, all
being taxed on the differences in the sales price and the amount allowed for a trade-in.
104 (Reserved)
Repossessions
200 Repossessions. Repossessions shall be treated as returned merchandise and credit will be
allowed only for the uncollected part of the selling price previously reported. The
subsequent sale of the repossessed item will be taxable on the same basis as the sale of
new merchandise.
201 (Reserved)
Rentals
300 Rentals. Income from renting or leasing tangible personal property is taxed at the same
rates as sales of the same property.
301 Licensed dealers owe no tax on the cost of property withdrawn from inventory for lease
or rental. Subsequent sales of property that has been rented or leased are taxed on the full
sales price with no deduction allowed as a result of tax paid on rental or lease income.
302 (Reserved)
Out of State Sales
400 Out-of-state-sales. All sales of equipment by Mississippi dealers are presumed to have
been made in this State unless the dealer can provide factual evidence that the equipment
was delivered to the customer outside of this State for first use in another state.
401 (Reserved)
Use Tax
500 Use Tax. Persons who buy equipment in other states are liable for the payment of a use
tax at the same rate and on the same basis as the sales tax, with proper credit allowed for
another state's tax.
501 Purchases of property for resale are wholesale sales and exempt from sales or use tax
502 (Reserved)