35 Miss. Admin. Code Pt. IV, Subpt. 11, Ch. 04 — Boats, Barges, Vessels and Marine Commerce

100 Sales of vessels or barges of fifty (50) tons load displacement and over by the
manufacturer or builder are exempt. The gross proceeds of sales of dry docks and
offshore drilling equipment for use in oil ex ploitation or production are exempt. The
Federal Luxury Tax, effec tive January 1, 1991, is in the form of a Federal Retailers
Excise Tax, and is therefore excluded from taxable gross proceeds of sales when
computing the Mississippi sales or use tax due on sales of boats with a sales price over
$100,000.00. Sales of equipment subsequent to original sale and not otherwise exempt
are taxable at the regular retail rate.
101 Sales to commercial fishermen of commercial fishing boats of over five (5) tons load
displacement and not more than (50) tons load displacement as registered with the United
States Coast Guard and licensed by the Mississippi Marine Conservation Commission are
exempt. Fishing gear with which the boat is permanently equipped is considered part of
the boat.
102 1. Charter boats which have been licensed and authorized as such by the United States
Coast Guard pursuant to 46 CFR 24-26 and 46 CFR 175-187 or
2. Seafood boats licensed by the Mississippi Marine Conserva tion Commission for use
within and without the territorial waters of Mississippi and:
a. subject to the regulations, jurisdiction and authority of the Mississippi Marine
Conservation Commission,
b. subject to a license or fee imposed by the Mississippi Marine Conservation
Commission,
c. used in waters of other states and required by such other states to pay a license or
fee shall, upon issuance of such license, be deemed to be in the business of
interstate transportation (Section 49-15-15(o)).
103 Sales of ice to commercial fishermen purchased for use in the preser vation of seafood are
exempt from tax.
104 Sales of motor fuel are exempt from sales tax. Motor fuel means gasoline, butane, diesel
or any other fuel used to propel or power motor vehicles, vessels, barges or stationary
engines.
105 The gross income from repairs to vessels and barges engaged in foreign trade or interstate
transportation are exempt. "Gross income from repairs" means income from the sale of
repair or replacement parts as well as income from repair services. Additional equipment
and the installation thereof are taxable at the regular retail rate. Repairs to other vessels
are taxable.
106 Machinery or tools or repair parts therefore or replacements thereof, fuel or supplies used
directly in manufacturing, converting or repairing ships of three thousand (3,000) tons
load displacement and over are exempt from sales or use tax. Office and plant supplies
or other equipment not directly used on the ship being built, converted or repaired are
subject to the regular retail rate of tax.
107 Sales of petroleum products to vessels or barges for consumption in marine international
commerce or interstate transportation businesses are exempt. Geophysical vessels used in
the collection of data and/or information while operating in international waters are
considered to be in international commerce. Sales of petroleum products, other than
motor fuel, to vessels and barges performing seismographic work and operations other
than that of a transportation business, such as dredges, oil rig supply boats and pleasure
boats, are taxed at the regular retail rate of tax.
108 Sales of tangible personal property to persons operating ships in international commerce
for use or consumption on board such ships are exempt from sales tax. This exemption
shall be limited to cases in which procedures satisfactory to the Commissioner, insuring
against use in this State other than on such ships, are established. This ex emption does
not apply to the purchase of property to be resold within this state.
109 Sales of lumber, dunnage, strapping, packing containers and other shipping material sold
to ship owners, stevedoring companies or any other person for use in ships engaged in
international commerce are exempt from sales tax.
110 Sales of property delivered by the seller to the dock side for im mediate export to a
foreign country are exempt. Copies of purchase orders from or for overseas customers,
marine bills of lading or other documentation must be retained by the seller with the sales
invoice in support of this exemption.
111 Income received from storage and handling of perishable goods by a public storage
warehouse is exempt from tax. "Perishable goods" means frozen goods or goods that
require refrigeration while stored in a public storage warehouse (example: meat, fish,
poultry, vegetables, fruits, etc.). Perishable goods shall also include grain products which
require aeration while stored in a public warehouse (example: soybeans, wheat, rice, oats,
milo, etc.)
112 When the export exemption is claimed for merchandise purchased for a ship's crew, the
chandler must have a purchase order from the ship's captain for each item of property and
delivered the property to the ship in the same manner as the other supplies. All sales of
personal property to ship's personnel who buy and accept its delivery in person from the
seller are taxable at the regular retail rate of tax.
113 Stevedoring charges for loading or unloading vessels engaged in foreign or interstate
commerce are exempt.
114 Sales of machinery, machine parts and/or equipment to an operator or lessee of any
structures, facilities and lands acquired and operated or leased pursuant to any of the
provisions of Chapter 9, Title 59, Mississip pi Code of 1972, which machinery, machine
parts and/or equipment is to be located on and used exclusively and directly in the
operation of such structures, facilities and lands are taxable at the 11/2% rate of tax.
115 Sales of equipment and supplies (hardware, canvas, lines, sheets, paint, clothing, linens,
lumber, cleaning materials, etc.) to any boat are taxable at the regular retail rate of tax,
unless otherwise exempt.
116 (Reserved)
Sub Part 12 Medical