35 Miss. Admin. Code Pt. IV, Subpt. 4, Ch. 11 — Medical Cannabis Establishments

100 Definitions
101 "Cannabis" means all parts of the plant of the genus cannabis, the flower, the seeds
thereof, the resin extracted from any part of the plant, and every compound, manufacture,
salt, derivative, mixture, or preparation of the plant, its seeds or its resin, including whole
plant extracts. It does not mean cannabis derived from drug products approved by the
federal Food and Drug Administration under Section 505 of the Food, Drug and
Cosmetic Act.
102 "Cannabis products" means cannabis flower, concentrated cannabis, cannabis extracts,
and products that are infused with cannabis or an extract thereof and are intended for use
or consumption by humans. The term includes, without limitation, edible cannabis
products, beverages, topical products, ointments, oils, tinctures and suppositories that
contain tetrahydrocannabinol (THC) and/or cannabidiol (CBD) except those products
excluded from control under Miss. Code Sections 41-29-113 and 41-29-136.
103 "Cardholder" is a registered qualifying patient or a registered designated caregiver who
has been issued and possesses a valid registry identification card.
104 "Dispensary" is an entity licensed and registered with the Department of Revenue that
acquires, possesses, stores, transfers, sells, supplies, or dispenses medical cannabis,
cannabis products, equipment used for medical cannabis, or related supplies and
educational materials to cardholders.
105 "Equipment used for medical cannabis" includes pipes, bongs, rolling machines, grinders
and similar products. Related supplies include rolling papers, bags, glass container jars,
rolling trays and similar products.
106 "Medical cannabis establishment" means a cannabis cultivation facility, cannabis
processing facility, cannabis testing facility, cannabis dispensary, cannabis transportation
entity, cannabis disposal entity or cannabis research facility licensed and registered by the
appropriate agency.
107 (Reserved)
200 Sales of Medical Cannabis
201 Medical cannabis cultivation facilities may only sell medical cannabis to medical
cannabis cultivators, processors or dispensaries registered with the appropriate agencies.
A valid resale number and ten -digit medical cannabis license number is required to
substantiate a wholesale sale.
202 Medical cannabis cultivators or medical cannabis processors who transfer medical
cannabis to a medical cannabis testing or research facility owe sales tax on the value or
cost of the product transferred. The tax liability accrues at the time of transfer and should
be remitted to the State with the same return and in the same manner as any other sales
tax liability.
203 Medical cannabis processing facilities may only sell medical cannabis to other registered
medical cannabis processors and dispensaries. A valid resale number and ten -digit
medical cannabis license number is required to substantiate a wholesale sale.
204 Medical cannabis dispensaries may only sell medical cannabis, equipment used for
medical cannabis, or related supplies and educational materials. Medical cannabis must
be obtained from a medical cannabis cultivation facility or processing facility licensed by
the Mississippi Department of Health or from another dispensary licensed by the
Department of Revenue. These items may only be sold to cardholders or another
dispensary licensed by the Department of Revenue. A valid resale number and ten -digit
dispensary license is required as documentation of a wholesale sale. All other sales are
taxable at the regular retail sales tax rate.
205 Items that are prohibited from being sold by dispensaries include, but are not limited to,
clothing, food that does not contain cannabis, beverages that do not contain cannabis,
propane, or vaping products that do not contain cannabis.
206 Medical cannabis is not subject to sales tax when transferred to a medical cannabis
disposal entity licensed by the Mississippi Department of Health.
207 (Reserved)
300 Record Keeping
301 Each medical cannabis dispensary is required to use the statewide seed -to-sale tracking
system maintained by the Mississippi Department of Health. Information entered in the
seed-to-sale tracking system shall include each day's beginning inventory, harvests,
acquisitions, sales, disbursements, remediations, disposals, transfers, ending inventory,
and any other data necessary for inventory control records in the statewide seed -to-sale
tracking system.
302 Adequate records must be maintained to substantiate tax classifications of sales.
Adequate records shall include, but is not limited to, itemized invoices for cannabis
products purchased, bank statements and cancelled checks, and any/all other sales and/or
accounting records. Itemized purchase invoices and tickets shall bear the items
purchased, the date of purchase, name of the seller and purchaser. Cash register tapes
may not be used in lieu of itemized invoices for record purposes; however, all sales
records shall be maintained.
303 (Reserved)
400 Payment
401 Electronic filing of returns will be required through use of the Department's TAP system.
Electronic payment of sales tax will be required unless the medical cannabis
establishment has written approval from the Department of Revenue to use another
payment method.
402 (Reserved)
35.IV.04.11 effective June 16, 2022
Subpart 5 Services
Chapter 01 Hotels, Motels, and Mobile Home and Trailer Parks
100 Levy
101 Miss. Code Ann. Section 27-65-23 levies a tax on the gross income of hotels, motels,
tourist courts or camps and trailer parks. Tax is due at the regular retail rate.
102 (Reserved)
200 Definitions
201 "Hotel" or "motel" is defined as any entity or individual engaged in the business of
furnishing one or more rooms, cottages, or cabins designed for dwelling, lodging, or
sleeping purposes to transient persons and that is known to the trade as such. The
terms "hotel" or "motel" also include all buildings, including single family dwellings
or other structures, kept, used, maintained or advertised as, or held out to the public
to be a place where sleeping accommodations are supplied for pay or other
consideration regardless of the number of rooms, units, suites, or cabins available.
Advertising for rent to the general public, whether by the owner of the property or a
third party, qualifies as being "known to the trade as such." It is immaterial that
cooking facilities may or may not be furnished. "Hotel" or "motel" includes any
entity or individual furnishing bed and breakfast accommodations to transient
persons. "Hotel" also includes third -party entities that facilitate, arrange, or broker
transactions by listing or advertising the availability of accommodations for transient
persons and, either directly or indirectly through agreements with third parties,
collect payment from the customer and transmit such payment to the property owner
or manager. It is immaterial whether the property owner or manager would have
been required to collect and remit the taxes had the sale not been made through the
third-party entity.
202 "Condominium" or "hotel condominium" is defined as a multi -unit facility where
each unit is individually owned. Condominium owners may rent out the units when
not in use by the owner. The units may be rented out by the owner or placed with a
management company for rental. Rentals of condominiums or hotel condominiums
are taxable when such rentals are to transient persons.
203 "Trailer park" is defined as a park established for the purpose of accommodating
travel trailers pulled either by automobiles or other vehicles or self -propelled, which
are in a travel or transient status and where utilities are connected in a temporary
manner. For tax purposes, a trailer park is any one location where trailers, campers
or other mobile units may be parked for a fee, either permanently or temporarily and
irrespective of whether utility facilities are available.
204 "Mobile home park" is defined as a park established for the primary purpose of
accommodating mobile homes that are permanently located, registered with the
County Tax Assessor as provided by Miss. Code Ann. Section 27-53-5, hooked up to
water, sewer, gas, or electric utilities with permanent meter connections that are not
easily disconnected, and tied down according to regulations and other requirements.
Such facilities are considered a home and place of permanent residence. Since Miss.
Code Ann. Section 27 -65-23 specifically denotes "hotels, motels, tourist courts or
camps and trailer parks," the tax is applicable specifically to travel or transient
accommodations and not to residents of mobile homes. Sales to mobile home
residents of potable water, electricity, gas or other fuel for residential use are exempt
from sales tax.
205 (Reserved)
300 Gross Income
301 Taxable gross income includes (but is not limited to) receipts from:

# 1.

Admissions, minimum and cover charges for entertainment

# 2.

Attrition fees

# 3.

Auto storage - parking lots

# 4.

Banquet meeting room revenue with or without meals

# 5.

Cancellation fees

# 6.

Coin lockers

# 7.

Early departure or late departure fees

# 8.

Guaranteed no show revenue

# 9.

Laundry and valet services

# 10.

Local telephone charges, including per call charges

# 11.

Long distance telephone mark-ups or up-charges, or any excess charges over and
above the carrier charge

# 12.

Marina services

# 13.

Packages (example: golf, honeymoon, casino)

# 14.

Pet charges

# 15.

Radios, televisions, and movies, including pay per view services

# 16.

Refrigerator or safe charges

# 17.

Roll away bed charges

# 18.

Sales and rentals of tangible personal property

# 19.

Service charges

# 20.

Transient room revenue

# 21.

Vending machine sales (except full-service vending machines)

# 22.

Video game rentals
302 Non-taxable gross income includes receipts from:
1. Childcare charges (does not include admissions to areas of amusements where
children are kept)
2. Coin operated amusement and music machines
3. Commissions included in gross income of other taxpayers
4. Re-billed carrier long distance telephone charges that have been taxed by the
service provider
5. Rentals of stores, offices, or other commercial property to non-transient guests
303 Any hotel, motel, condominium, or trailer park may exclude the gross income
from charges for non-transient guests.
304 For purposes of defining "non -transient guest," the guest must enter into a written
contract or lease at the beginning of the stay for a period of at least three (3)
consecutive complete months or for a minimum of ninety (90) consecutive days.
Guests who do not enter into a written contract or other written agreement at the
beginning of the stay but whose stay ends up exceeding ninety consecutive days are
still considered transient guests because there is no agreement concerning the length
of stay. Any guest who begins to rent a hotel, motel, condominium, or trailer park
space on a daily or weekly basis after the expiration of a written contract or other
written agreement and which has not been extended will become a transient guest
and the gross income received from the daily or weekly rental will be taxable.
305 Hotel or motel guests qualify as non -transient guests only when they stay in a
building(s) held exclusively for long -term rental that is owned by the hotel or motel
and is set separate and apart from buildings used to accommodate transient guests.
The building set aside for long -term rental must contain rooms with kitchen
facilities.
306 (Reserved)
307 (Reserved)
400 Exempt Sales
401 As a prerequisite to claiming the governmental exemption, the sales of property or
service must be sold to, billed directly to, and payment therefore made directly by
the governmental entity and not to or through some contractor or quasi-governmental
agency, and the title to the property or benefit from the service must pass to the
government rather than to some beneficiary. Sales to government employees are
taxable regardless of the fact that the employees may be reimbursed by the
government for the expenses incurred.
402 (Reserved)
500 Purchases
501 Hotels, motels, condominiums, or condominium hotels must pay tax on purchases
that are provided in a guest room as a part of the service of providing lodging. These
purchases include items such as shampoo, soap, toilet paper, laundry bags, coffee,
food, candy, or other amenities. Tax is also due on purchases of linens, towels, and
in-room appliances. Purchases of food or beverage sold by the facility may be made
exempt from tax as a wholesale sale. This also includes food or beverage provided to
guests in common areas of the hotel that are provided to guests at no additional
charge.
502 Purchases or rentals of supplies and equipment used in the operation of the facility,
such as furniture, televisions, radios, signs, janitor's supplies, office supplies, etc.,
are subject to the regular retail rate of sales or use tax.
503 (Reserved)
504 (Reserved)
600 Reporting Requirements
601 Adequate records must be maintained to substantiate tax classifications of sales and
purchases.
602 (Reserved)
700 Local and Private Levies
701 Additional local levies may be applicable to hotels and motels depending upon
where they are located in this state. The local tax must be invoiced and collected as a
separate levy and should be reported on a return using the appropriate rate code. Rate
codes are assigned based on the percentage of tax due.
702 The local levy may be due on the same basis as the sales tax, or the basis may
exclude specific items that are subject to the regular sales tax such as food, beverage,
telephone, laundry, and room rentals for day meetings.
703 (Reserved)
35.IV.5.01 revised effective August 8, 2025