Mississippi imposes a 7% usage tax in addition to its 7% sales tax. However, in addition to the state sales tax, certain municipal governments may also impose their own sales tax. The Mississippi Department of Revenue oversees the administration of the sales and use tax.
Nexus is a significant consideration in relation to Mississippi Tax Code 92. Nexus is the association that results in a tax liability between a taxpayer and a state. Nexus can be formed in Mississippi in a number of ways, including by establishing a physical presence there, hiring employees or independent contractors there, owning land or stock there, or making more than $250,000 in sales there.
A company must apply for a sales tax permit, collect the necessary sales and use taxes, and submit them if they have nexus in Mississippi. Penalties and interest charges may be assessed for failure to comply.
It’s crucial for companies doing business in Mississippi to comprehend and abide with Mississippi Tax Code 92. They can avoid fines and continue to abide by state tax regulations by doing this. Businesses should also keep an eye on their nexus in Mississippi to make sure they are paying their taxes.
The state’s sales and use tax statute, Mississippi Tax Code 92, mandates that both private citizens and commercial entities collect and submit sales tax on retail transactions of tangible personal property and specific services. Purchases made outside of Mississippi that would have been subject to sales tax there are covered by the use tax. To make sure they are adhering to state tax regulations, businesses operating in Mississippi must understand nexus. Businesses can avoid fines and keep up a good reputation with the Mississippi Department of Revenue by adhering to Mississippi Tax Code 92.