35 Miss. Admin. Code Pt. IV, Subpt. 2, Ch. 04 — Finance Charges and Bad Debts

100 Finance Charges
101 Sales tax is levied on the gross proceeds of sales or gross income as the case may be,
excluding charges on account of deferred payment by the purchaser, such as finance
charges and late payment penalties
102 Bad check charges as provided for in Miss. Code Ann. Section 97-19-57 are also to
be excluded from the gross proceeds of sales or gross income as the case may be.
103 (Reserved)
200 Bad Debts
201 Miss. Code Ann. Section 27 -65-33 provides that any taxpayer reporting credit sales
and paying the sales tax on such sales may take a credit on any subsequent return for
bad debts actually charged off as uncollectible accounts. A taxpayer may not be
allowed credit or refund for the sales tax associated with the uncollectible portion of a
credit sale unless the taxpayer remitted the tax on the initial sales and also extended the
credit used to finance the sale.
202 If any amount that has been written off as bad debt and has been taken as a credit
on a return is subsequently collected, the tax due on the collected amount must be paid
on the next return filed.
203 When credit is extended by a third party or when the credit instrument or account
receivable is sold to a third party, neither the third party nor the retailer is eligible for a
refund of sales tax associated with any bad debt charged off for uncollectible accounts.
204 (Reserved)
Sub Part 03 Taxability