35 Miss. Admin. Code Pt. IV, Subpt. 7, Ch. 02 — Custom Creosoting and Treating, Planing and Sawing and Custom Meat Processing

Processing
100 Gross income received from custom creosoting and treating, custom planing, custom
sawing and custom meat processing is taxable at the regular retail rate of sales tax. Gross
taxable income includes all charges connected with the service. Services performed for a
licensed retailer upon merchandise for resale in the regular line of his business are
exempt from sales tax. Charges for custom creosoting and treating of track materials and
the sale of track materials to a railroad whose rates are fixed by the I.C.C. are taxable at
the 3% special rate of tax.
101 Purchases of raw materials which will become a component part of the product being
processed are exempt. Purchases of electric power or other fuels used directly in custom
processing are taxable at a 1 ½% special rate of sales or use tax. Purchases of
manufacturing machinery or machine parts to be used directly and exclusively in custom
processing are taxable at the 1 ½% special rate. All other purchases are subject to regular
retail sales or use taxes.
102 Rental or lease of machinery and other tangible personal property is taxed at the same
rates as sales of the same property.
103 Adequate records must be maintained to substantiate tax classifications of sales and
purchases.
104 (Reserved)