One of the few states in the union without a state-level sales tax on freight costs is Mississippi. If freight charges are separately included on the invoice and are not included in the sales price of the items being sent, they are not liable to sales tax, according to the Mississippi Department of Revenue. This means that if a vendor charges a different fee for shipping, Mississippi does not apply sales tax to that fee.
The entire sum, however, is liable to sales tax if the vendor adds the cost of shipping to the sales price of the items being shipped. For instance, if a seller sells a product for $100 and adds $10 for shipping, as long as the two amounts are shown separately on the invoice, neither the $100 nor the $10 is liable to sales tax. However, if the same item is sold for $110 and delivery is included in the price, the full $110 is liable to sales tax. Does Mississippi require me to collect sales tax?
If you sell tangible personal property in Mississippi, you must collect sales tax unless the transaction is expressly exempt. A few examples of tangible personal property are furniture, clothing, and technology. Mississippi’s state-mandated sales tax rate is 7%, but local governments have the option to increase it by up to 3%, for a potential overall sales tax rate of 10%.
Oregon, which has no state-level sales tax, now boasts the lowest sales tax rate. It is crucial to remember that local governments in Oregon have the authority to impose a local sales tax of up to 3%, bringing the overall sales tax rate to 3%.
Mississippi may impose fines and interest if you don’t file and pay your sales tax on time. Up to a maximum of 25%, there is a late filing penalty of 5% of the tax due per month. A late payment fee of 1% of the tax owed per month, up to a maximum of 25%, is assessed. Both the tax and the penalties are subject to interest at a rate of 1% per month.
Yes, Mississippi levies a sales tax online. In South Dakota v. Wayfair, which was decided in 2018, the Supreme Court of the United States found that states can force out-of-state retailers to collect and remit sales tax on sales made to clients in their state, even if the company has no physical presence there. Immediately after this decision, Mississippi implemented a law requiring the collection and remittance of sales tax on any sales made to residents of Mississippi that over $250,000.