35 Miss. Admin. Code Pt. IV, Subpt. 13, Ch. 02 — Sales Made by and to Schools, Colleges and Universities

Junior Colleges, Community Colleges, Colleges and Universities
100 General
101 Miss. Code Ann. Section 27 -65-105(a) and (b) exempt sales of property and services
when sold to, billed to, and paid for directly by Mississippi's public colleges and
universities. Sales to nonprofit private colleges and universities are exempt pursuant to
Miss. Code Ann. Section 27 -65-111(g). The exemptions under 27-65-105(b) and 27 -65-
111(g) do not apply to items that are not used in the ordinary operation of the school and
do not apply to items resold to students.
102 Junior colleges, community colleges, colleges and universities undertake many activities
that require the school to collect and remit sales tax. Miss. Code Ann. Section 27 -65-9
provides that exempt organizations or political entities are in "business" for sales tax
purposes when any of the activities carried on by those organizations are in competition
with privately owned businesses that are subject to sales tax.
103 For the purposes of this rule, students are defined as persons receiving a course of
instruction at the school and will include those taking short specialized courses and those
attending camps.
104 In those instances where the school has contracted with a third party vendor to operate
facilities on campus, such as a bookstore or cafeteria, the vendor will be responsible for
collecting and remitting the tax. The school will remain liable for the tax when the vendor
is merely acting as an agent for and on behalf of the school.
105 Miss. Code Ann. Section 27 -65-75(1)(b) provides that eighteen and one -half percent
(18½%) of the tax collected from business activities on the campus of any state
institution of higher learning or community or junior college shall be paid to the school
when the business location is not located within the corporate limits of a municipality.
Such payments are made on or before the 15th of the month following the collection of
the tax by the Department of Revenue.
106 (Reserved)
200 Book Stores
201 Sales of school textbooks to students are exempt from tax pursuant to Miss. Code Ann.
Section 27 -65-105(c). A textbook is defined as a book with instructional content on a
particular subject matter required by the instructor of a class to be used by a student.
Textbooks must have an ISBN (International Standard Book Number), and does not
include page copies. The exemption also applies to a charge to access digital eBook
textbooks required by an instructor. A novel is not considered to be a textbook. All other
sales are taxable, including, but not limited to, items such as paper, notebooks, ink,
pencils, laboratory supplies, clothing, food or drink.
202 Interdepartmental sales, sales delivered out -of-state and sales to tax -exempt entities are
not taxable.
203 (Reserved)
300 Cafeterias, Dining Halls and Other On Campus Food Sales
301 Sales tax is due on all sales to students with the exception of regular on -campus meals
provided as a part of a prepaid student meal plan pursuant to Miss. Code Ann. Section
27-65-9(2)(a) and (c). Prepaid student meal plans are those plans that provide the student
with a specific number of meals or meals for a specific period of time, and also include
all meals paid for through the use of a prepaid declining balance account or similar
instrument or account issued by the school that may only be used to purchase on-campus
prepared meals. Eligible declining balance accounts may commonly be referred to as
flexible spending accounts, flex dollars, bonus bucks or dining dollars and are all
accounts in which money is deposited for the use of the student and the balance in the
account declines based upon the price of the food or drink purchased. Any declining
balance account that may be used to purchase books, apparel, supplies or other services
such as copying or laundering services may not be used to purchase prepared meals
exempt from sales tax.
302 Sales tax is due on all sales of meals to nonstudents such as faculty, employees, visitors
and the public. Sales tax is also due on purchases of all prepared meals paid for with
cash, checks, bank debit cards or credit cards, regardless of who is purchasing the meal.
303 Banquets and catering for student groups are exempt when the meal is paid for directly
by the exempt entity. Banquets and catering for nonstudent groups are taxable unless
billed to another department of the school. Sales rebilled by the school to a private
individual or organization are taxable.
304 Meals provided as a part of camp activities, such as summer athletic camps, are exempt
from tax when payment for such meals is a part of the charge made by the school for the
camp. This includes camps for students of the college and camps for students visiting
from other colleges, universities or grade schools.
305 Meals provided to employees of an exempt school at no cost are not taxable to the school
pursuant to Miss. Code Ann. Sections 27-65-105(a) or 27-65-111(g).
306 All sales of food made through vending machines owned by the school are taxable at the
regular retail rate of tax. Vendors are liable for tax on sales made through "full service"
vending machine sales (see Title 35 Mississippi Administrative Code, Part IV, Subpart
04, Chapter 03).
307 Sales of food through concession stands at athletic events or entertainment events are
taxable.
308 (Reserved)
400 Athletics, Admissions Charges and Special Events
401 Miss. Code Ann. Section 27 -65-22 levies a tax on the gross income received from
charges for admission to any and all forms of entertainment, amusement, diversion, sport,
recreation, pastime, shows, exhibitions, contests, displays and games. The tax is levied at
the regular retail rate of tax; however, there is a special reduced rate that applies to
admission charges to publicly owned, enclosed coliseums and auditoriums, and there are
special exemptions that may apply. This special rate does not apply to admission charges
to athletic contests between colleges and universities.
402 Sales of tickets for all athletic games held at a location in Mississippi are taxable at the
regular retail rate of tax, except any games for university or community college
conference, state, regional or national playoffs or championships as provided for in Miss.
Code Ann. Section 27 -65-22(3)(h). Tickets sold by visiting teams for games in
Mississippi are also taxable even if the proceeds of those ticket sales are deducted from
the guaranty owed to the opposing team.
403 Sales of programs, t -shirts, hats, stadium cushions, etc., are taxable at the regular retail
rate of tax. Rentals are also taxable under Miss. Code Ann. Section 27-65-23.
404 Tickets to athletic events are not taxable when given away free of charge. Tickets given
in payment for services rendered, such as advertising, are taxable upon the customary
charge or face value for such admission.
405 Miss. Code Ann. Section 27 -65-22(3)(i) exempts admission charges or participation fees
to any county or municipally owned and operated swimming pool, golf course or tennis
court. This exemption applies to such facilities owned and operated by state -supported
colleges and universities.
406 Sales and rentals of tangible personal property, such as golf carts, concessions and
sporting equipment, are taxable at the regular retail rate of tax. Rentals of lockers are
taxable at the regular retail rate of tax when such fees are retained by the schools. Fees
for usage of lockers are not taxable when such fees are used as a damage deposit and are
returned to the student at the end of the term.
407 Entry or participation fees for tournaments, such as golf tournaments or tennis
tournaments, are taxable except for that portion of the charge which represents the normal
admission charge exempted by Miss. Code Ann. Section 27-65-22(3)(i).
408 Admission charges for temporary amusements or special events are taxable. The
promoter of the amusement or event is responsible for collecting and remitting the tax;
however, the school may be held liable for any tax due from amusements held at the
school should the promoter fail to remit the proper tax (Miss. Code Ann. Section 27 -65-
22(2)).
409 The gross income received from all charges made for parking at athletic and special
events is subject to tax at the regular retail rate of tax pursuant to Miss. Code Ann.
Section 27-65-23.
410 (Reserved)
500 Printing and Photocopying Services
501 All sales of printed materials and photocopies are taxable at the regular retail rate of tax
with the exception of interdepartmental sales, sales made to tax-exempt organizations and
sales for resale to a licensed retailer.
502 (Reserved)
600 Departmental Sales and Services
601 All sales of tangible personal property and taxable services sold by departments are
subject to tax at the regular retail rate of tax. Such services include, but are not limited to,
automobile repair, plumbing, heating and air, electrical work and custom meat
processing. For a complete list of taxable services, see Miss. Code Ann. Section 27 -65-
23.
602 (Reserved)
700 Miscellaneous Sales and Rentals
701 Income received from room rentals and property sales by alumni and/or visitor houses is
taxable at the regular retail rate of tax pursuant to Miss. Code Ann. Section 27-65-23.
702 Rentals of refrigerators and other dorm appliances and all other rentals of equipment are
subject to tax at the regular retail rate of tax pursuant to Miss. Code Ann. Section 27 -65-
23.
703 All sales of laundry services or dry cleaning services to students or nonstudents are
taxable at the regular retail rate of tax pursuant to Miss. Code Ann. Section 27-65-23.
704 Sales of annuals, awards, articles of clothing or jewelry given in recognition of
accomplishments and rentals of caps and gowns are exempt from tax when sold directly
to, billed directly to and paid for directly by the exempt entity. Sales of such merchandise
are taxable when the vendor sells to and receives payment directly from the individual
student.
705 Sales of invitations, class rings, pins and pictures for the benefit of individual students or
student organizations are taxable at the regular retail rate of tax when sold to the student
even if billed to an exempt school.
706 Sales to public and nonprofit private schools for resale, rather than use by the school, are
taxable at the regular retail rate of tax unless the school is registered for sales tax
purposes. This includes fundraising materials.
707 (Reserved)
800 Utilities
801 Sales of telephone, cable or subscription television services for the private use of
students, faculty members or any other persons enrolled or domiciled at an "exempt"
school, college or university are taxable at the regular retail rate of tax. The school will be
considered the seller of these services when separate charges are made and will be
responsible for remitting the tax on all private use of such services pursuant to Miss.
Code Ann. Section 27 -65-19. No tax will be due on these services when the charge for
such services is included in the cost for registration, tuition or dormitory. Charges for
such services used in common areas such as student union buildings, media centers,
libraries, etc., are exempt when sold directly to, billed directly to and paid for directly by
the school.
802 Charges for internet access are not subject to sales tax.
803 (Reserved)
Elementary and Secondary Grade Schools
900 General
901 Miss. Code Ann. Section 27 -65-105(a) and (b) exempt sales of property and services
when sold to, billed to, and paid for directly by Mississippi's public schools and school
districts. Sales to nonprofit schools are exempt pursuant to Miss. Code Ann. Section 27 -
65-111(g). The exemptions under 27-65-105(b) and 27 -65-111(g) do not apply to items
that are not used in the ordinary operation of the school and do not apply to items resold
to students or the public, unless considered to be fundraising materials.
902 Sales of student meals are exempt from sales tax pursuant to Miss. Code Ann. Section
27-65-9(2)(b). This exemption also applies to third party vendors who operate a cafeteria
at an exempt school or who provide regular student meals at an exempt school. The
exemption does not apply to those vendors who may sell additional food items at a school
where the student may choose to purchase such food in lieu of the regular meals provided
by the school. The tax on such sales is due regardless of whether the vendor collects the
money directly from the students or is paid by the school from money the school has
collected from the students.
903 Parent Teacher Associations (PTAs), Parent Teacher Organizations (PTOs), athletic and
band boosters and other similar support organizations are not exempt from sales tax even
on purchases that will be given to the school. However, purchases for resale that are for
the sole purpose of raising funds for the school or an affiliated organization are exempt.
The Affidavit for Purchase of Fundraising Materials should be provided to their supplier
in association with that purchase.
904 Admission charges for athletic games and contests between elementary and secondary
schools are exempt from sales tax pursuant to Miss. Code Ann. Section 27-65-22(3)(c).
905 Sales of annuals, awards, articles of clothing or jewelry given in recognition of
accomplishments and rentals of caps and gowns are exempt from tax when sold directly
to, billed directly to and paid for directly by the exempt entity. Sales of such merchandise
are taxable when the vendor sells to and receives payment directly from the individual
student.
906 Sales of invitations, class rings, pins and pictures for the benefit of individual students or
student organizations are taxable at the regular retail rate of tax when sold to the student
even if billed to an exempt school.
907 (Reserved)
1000 Fundraising
1001 An exemption from Sales and Use Tax is provided under Miss. Code Ann. Section 27-65-
111 (cc) for purchases made for the sole purpose of raising funds for a school or
organization affiliated with a school.
1002 When purchasing tangible personal property used solely for raising funds it is the
responsibility of the purchaser to sign The Affidavit for Purchase of Fundraising Materials.
Upon signing the affidavit the purchaser attests that they meet the requirements for
exemption under Miss. Code Ann. Section 27-65-111(cc) and that they assume responsibility
for payment of the tax if the requirements for exemption are not met. A representative of the
school or affiliated organization must also sign the affidavit attesting that they are to be the
beneficiary of any funds raised. This affidavit can be found on the Department of Revenue
website.
1005 (Reserved)
35.IV.13.02 revised effective April 1, 2008
35.IV.13.02 revised effective July 1, 2009
35.IV.13.02 revised effective July 13, 2012
35.IV.13.02 revised effective April 27, 2017