35 Miss. Admin. Code Pt. IV, Subpt. 4, Ch. 03 — Coin Operated and Vending Machines

100 Definitions
101 A "vending machine" is a coin, currency or credit card operated device that is used to sell
tangible personal property without requiring the vendor's attendance at the time of the
sale.
102 "Full service vending machine operators" or "full line vendors" are persons in the
business of placing vending machines and selling tangible personal property through the
machines. A space rental fee is paid to the business owner of the property where the
machine is placed. A person placing a vending machine on their own property is not a
full line vendor.
103 (Reserved)
200 Business Owners
201 Sales of tangible personal property made through vending machines, owned by the
business where the machines are located are taxable at the regular retail rate of tax on the
gross proceeds of sales when the business owner controls the collection of receipts.
202 Persons in the business of selling tangible personal property through vending machines
may make purchases of merchandise exempt from sales tax.
203 The owner of the premises shall keep records showing the gross receipts of each machine
located on the premises.
204 (Reserved)
300 Full Line Vendors
301 Sales of merchandise, excluding sales of food or drink for human consumption, through
vending machines serviced by full line vendors are subject to the seven percent (7%)
regular retail rate of tax based on the gross proceeds of such sales.
302 Sales of food and drink for human consumption made through vending machines that
only contain food and drink, and are serviced by full line vendors, are not taxable. Food
and drink for human consumption withdrawn from inventory by full line vendors to be
placed in full service vending machines is taxable at the 8% wholesale rate of tax based
on the cost. The tax liability accrues to the full line vendor at the time of withdrawal and
should be remitted to the State in the same manner as any other sales tax collected by the
full line vendor on taxable sales.
303 The receipts from machines containing only food and drink for human consumption
provided by full line vendors are exempt from the seven percent (7%) retail tax.
304 Sales of food or drink for human consumption and other merchandise when sold from the
same vending machine are subject to the seven percent (7%) regular retail rate of tax
based on the gross proceeds of such sales. The eight percent (8%) wholesale rate based
on the cost of withdrawal of inventory of food and drink for human consumption does not
apply.
305 All full line vendors must obtain a sales tax permit to engage in business. This permit is
sufficient for all machines operated by one owner, regardless of location. This sales tax
license or permit is in addition to all other city, county and state privilege licenses or
permits that may be required.
306 Complete records must be kept by the full line vendor showing the location of each
machine, date of installation, and date of removal from any location, and also the
purchases and inventories of merchandise bought for all vending machines and gross
receipts derived from the operations at each location.
307 (Reserved)
400 Amusement and Music Machines
401 Income received from the operations of amusement and music machines is exempt from
sales tax. However, clear and adequate records must be maintained by the owner of the
machines to substantiate their claims for exemption.
402 (Reserved)
500 Purchases of Equipment and Supplies
501 The owners of vending machines whether for vending, amusement or music are the users
of such property and as such are required to pay the regular retail rate of sales or use tax
on all purchases of machines, machine parts, phonograph records, needles and other
accessories or supplies.
502 (Reserved)
35.IV.4.03 revised effective December 1, 2019