35 Miss. Admin. Code Pt. IV, Subpt. 9, Ch. 01 — Soft Drinks

100 "Soft Drinks" and "Syrup" include:

# 1.

All beverages that are enclosed or sealed in glass, metal or any other type of
container, such as Coca Cola, Sprite, Dr. Pepper, 7 -Up, R C Cola, ginger ale,
Canada Dry, Shasta, soda water, carbonated water, Capri Sun, Gatorade, Hi C,
Hawaiian Punch, limeade, lemonade, orangeade, artificial fruit juice, tea,
chocolate drink and similar items.

# 2.

Syrup of Coca Cola, Pepsi Cola, Chocolate, Dr. Pepper, Tab and other syrup
preparations for use in making soft drinks by the seller.
101 Retail sales of canned or bottled beverages are taxable at the five percent (5%) rate
of sales tax, effective July 1, 2025. Items purchased with Supplemental Nutrition
Assistance Program (SNAP) benefits will continue to remain exempt from sales tax.
Items that are not eligible to be purchased with SNAP benefits include, but are not
limited to, fountain drinks, hot coffee, and other beverages for immediate
consumption, which will remain taxable at seven percent (7%). No tax is due on
bottle deposits.
102 Soft drinks and syrup withdrawn by a manufacturer for sale at retail and food and
drink withdrawn by a manufacturer or wholesaler to be sold through full -service
vending machines are defined as wholesale sales.
103 "Value" is determined by adding all costs, expenses and a reasonable profit of the
merchandise at the time the merchandise is withdrawn from inventory. Value must
include direct labor and energy, apportioned administrative expenses and any other
cost incurred in manufacturing the product for sale. In no instance shall value be less
than the least selling price of like merchandise.
104 As compensation for the timely filing of returns and payment of the tax, a 2% vendor
discount may be claimed on retail tax. No discount is authorized on any other
wholesale rates of tax.
105 The sale or rental of soft drink vending machines will not be taxed when an
offsetting sales or use tax has been paid on the cost of the property by the owner.
106 Sales of soft drinks through vending machines under a "full -service sales" agreement
are exempt from sales tax. "Full-service sales" are those that are made through
vending machines in which the vendor places the drinks, takes the money and pays
the location owner a space rental fee. Bottlers, wholesalers, distributors, etc.
withdrawing soft drinks and syrup from inventory for sale through full -service
vending machines must remit an eight percent (8%) wholesale tax on total value
when placed into the vendin g machine for sale. The gross proceeds of retail sales
made through such vending machines are exempt from sales tax. The tax liability
accrues to the wholesaler at the time of withdrawal and should be remitted to the
State with the same report and in the same manner as any other sales tax liability.
107 Purchases by bottlers of raw materials (carbon dioxide gas, syrups, acids, flavoring,
water softeners) that become components of drinks are exempt from sales or use tax.
Purchases of containers, packaging and shipping materials to accompany goods sold
(bottles, cans, crowns, cartons, cases) are likewise exempt from sales and use tax.
Electric power or other fuel, bottling machinery and machinery parts used directly in
the bottling process are taxable at the reduced one -and-one-half percent (1½%) rate
of tax. Purchases of cleaning materials and supplies (acid for cleaning soakers,
anhydrous ammonia and refrigerants, calcium chloride, caustic soda, soaps, sulfuric
acid, chlorine and disinfectants, stationery, etc.) are taxable at the regular retail rate
of tax. Purchases of all other equipment and supplies (advertising and sales
promotion materials, signs, case conveyors, coolers and parts, hand trucks, lift
trucks, skids, uniforms, vending machines etc.) are likewise taxable at the regular
retail rate of tax.
108 Adequate records must be maintained to substantiate tax classifications of sales and
purchases.
109 Rental or lease of tangible personal property to bottlers is taxed at the same rates as
sales of the same property.
110 Use tax is payable monthly directly to the Department of Revenue, if not collected
by the seller. In computing the use tax liability, freight charges must be added to the
cost of the property. The taxpayer discount applies for timely payments.
111 (Reserved)
35.IV.9.01 revised effective August 8, 2025