35 Miss. Admin. Code Pt. IV, Subpt. 4, Ch. 08 — Sales and Installations of Personal Property

100 General
101 Any person selling and installing personal property as a business activity is taxed by Miss.
Code Ann. Section 27-65-17 on gross proceeds of sales, which include installation charges as
defined by Miss. Code Ann. Section27 -65-3. Persons not in the business of selling who only
install the owner's personal property are not subject to tax on labor charged to the owner
unless taxed as a service provided by Miss. Code Ann. Section 27-65-23.
102 (Reserved)
200 Definitions
201 "Business activity" includes any activity or act engaged in (personal or corporate) for benefit
or advantage, either direct or indirect and does not require that an inventory of goods be
maintained.
202 "Installation" means the application of tangible personal property to real or personal property
regardless of whether it becomes a part of the real property or retains its personal property
classification. Examples of installed sales, or sales of property set in place are:

# 1.

Aluminum and plastic siding;

# 2.

Appliances;

# 3.

Awnings;

# 4.

Carpets;

# 5.

Carports;

# 6.

Drapes;

# 7.

Fences;

# 8.

Floor coverings;

# 9.

Gasoline pumps;

# 10.

Glass;

# 11.

Machinery;

# 12.

Office and business equipment

# 13.

Pipe organs

# 14.

Roofing;

# 15.

Store fixtures;

# 16.

Tile

# 17.

Tombstones;

# 18.

Window air conditioning units;

# 19.

Window guards; and

# 20.

Similar property
203 "Installation" does not include general construction work and carpentry when the majority of
the activity is the erection of the structure of a building or other real property.
204 (Reserved)
300 Tax Rates
301 Commercial contracts over $10,000 for the installation of personal property which qualify as
an activity under Miss. Code Ann. Section 27 -65-21 will be taxed at 3 ½% (see Title 35,
Miss. Admin. Code, Part IV, Subpart 10, Chapter 1). Activities which may qualify under this
section are roofing, siding, tile setting, glass, floor covering and fence installation.
302 Suppliers who contract for less than $ 10,000 primarily for the sale and installation of
property listed in this regulation, which may include some incidental construction or
carpentry services, are taxed on the full installed sales price of the job, to include labor and
materials, at the regular retail rate of tax (for example, the sale and installation of roofing,
tile, carpets, etc.)
303 Similar contracts for a noncommercial structure, in any amount, are also taxable on the full
installed sales price, to include labor and materials, of the job at the regular retail rate of tax.
Such noncommercial contracts do not qualify for the reduced rate of contractor's tax
provided by Miss. Code Ann. Section 27 -65-21. No sales tax is due when sold for resale to
and installed for another dealer in such property.
304 (Reserved)
400 Burglar and Fire Alarm Systems
401 When as the result of signing a monitoring contract, the alarm company provides and installs
the alarm system for free or at reduced cost, the equipment is not taxed for use tax or treated
as a withdrawal from inventory. Sales tax is due on the amount received from the customer.
The monitoring service is taxable regardless of where the monitoring is taking place.
402 (Reserved)
500 Sales of Concrete and Asphalt
501 All sales of concrete and asphalt are taxable at the regular retail rate of tax unless the
purchaser provides a valid exemption. A valid exemption means that the purchaser is an
entity exempt from sales tax under Miss. Code Ann. Section 27 -65-101 through 27 -65-111;
or that the purchaser holds an MPC number or direct pay permit issued under Miss. Code
Ann. Section 27-65-21 or 27-65-93, respectively. Additional information on the treatment of
concrete and asphalt sales may be found in Title 35, Mississippi Administrative Code, Part
IV, Subpart 10, Chapter 01.
502 (Reserved)
35.IV.04.08 revised effective June 1, 2007