35 Miss. Admin. Code Pt. IV, Subpt. 3, Ch. 07 — Exempt Organizations

100 Miss. Code Ann. Section 27 -65-111 provides an exemption from sales tax for sales of
tangible personal property and services to certain groups of organizations and for
specifically named organizations. The exemption from sales tax does not cover the
contractor's taxes levied under Miss. Code Ann. 27-65-21. To qualify for the exemption,
the sale of property or charge for services must be sold directly to, billed directly to and
paid for directly by the exempt entity.
101 The Department of Revenue will issue a letter ruling authorizing an entity's exemption
when requested to do so by the exempt entity. The entity should make its request in
writing. The Department may require the entity to furnish a copy of its charter, articles of
incorporation, letter from the Internal Revenue Service documenting its tax -exempt status
and any other information that may help in determining if the entity is eligible for sales tax
exempt status. The letter ruling may be used to provide to vendors who request such
documentation. The Department does not issue tax exempt numbers.
102 "Boys and girls clubs", found in Miss. Code Ann. Section 27 -65-111(f), means a
nonprofit youth organization. To be eligible for the sales tax exemption, the organization
must meet the following requirements:

# 1.

The organization must be registered with the Internal Revenue Service as a
501(c)(3) entity.

# 2.

The organizations sole purpose is to provide and manage youth activities.

# 3.

The organization must be active. The term "active" means that the organizations
principle activity must be continued for a total of at least 10 months out of a year.
(Example: A youth baseball club would be required to provide organized activities
for 10 months out of the year.)
This exemption will apply only to those purchases that remain the property of the
organization. The exemption would not apply to the purchase of uniforms that are
provided to the players through either the payment of a registration fee or a separate
charge.
103 "Old Men's or Ladies' Homes", found in Miss. Code Ann. Section 27 -65-111(e), means
a place that provides group living arrangements for elderly persons who are provided
food, shelter, personal and medical care. The elderly persons must be unrelated to the
operator unless approved in a letter ruling by the Department. This includes facilities
such as nursing homes, convalescent homes and assisted living facilities. Additionally,
the facility must be supported wholly or in part by a religious denomination, fraternal
nonprofit organization or other nonprofit organization.
104 "Orphanages", found in Miss. Code Ann. Section 27-65-111(e), means a place, facility or
home that receives children and provides for long -term or extended supervision, care,
lodging and maintenance of the child, with or without transfer of custody. Children must
not be related to the operators, and parents or guardians must not be residents of the same
facility unless approved in a letter ruling by the Department. Additionally, the facility
must be supported wholly or in part by a religious denomination, fraternal nonprofit
organization or other nonprofit organization.
105 Exempt organizations can be found in Miss. Code Ann. Sections 27 -65-101, 27-65-103,
27-65-105, 27-65-107 and 27-65-111.
106 (Reserved)
35.IV.03.07 revised effective September 1, 2018.