Sales tax; exempt sales of utilities to certain nonprofit organizations., the official text

MISSISSIPPI
LEGISLATURE

2026 Regular
Session

To: Ways and
Means

By:
Representative Bounds

House
Bill 1989

(As
Sent to Governor)

AN ACT TO AMEND SECTION 27-65-107,
MISSISSIPPI CODE OF 1972, TO EXEMPT FROM SALES TAXATION SALES TO CERTAIN
NONPROFIT ORGANIZATIONS OF UTILITIES THAT ARE UTILIZED ON PROPERTY THAT
IS PRIMARILY USED FOR AGRICULTURAL EXHIBITS, LIVESTOCK SHOWS, CARNIVAL RIDES,
HORSE RACING AND VARIOUS TYPES OF OTHER ENTERTAINMENT, AND ON WHICH ARE LOCATED
FACILITIES THAT PROVIDE FOR TEMPORARY LODGING ACCOMMODATIONS; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1.  Section 27-65-107,
Mississippi Code of 1972, is amended as follows:

27-65-107.  The exemptions
from the provisions of this chapter which relate to utilities or which are more
properly classified as utility exemptions than any other exemption
classification of this chapter shall be confined to those persons or property
exempted by this section or by provisions of the Constitutions of the United
States or the State of Mississippi.  No utility exemption as now provided by
any other section shall be valid as against the tax herein levied.  Any
subsequent utility exemption from the tax levied hereunder shall be provided by
amendment to this section.

No exemption provided in
this section shall apply to taxes levied by Section 27-65-15 or 27-65-21,
Mississippi Code of 1972.

The tax levied by this
chapter shall not apply to the following:

(a)  Sales and rentals
of locomotives, rail rolling stock and materials for their repair, locomotive
water, when made to a railroad whose rates are fixed by the Interstate Commerce
Commission or the Mississippi Public Service Commission.

(b)  Rentals of
manufacturing machinery to a manufacturer or custom processor where such
manufacturer or custom processor is engaged in, and such machinery is used in,
the manufacture of containers made from timber or wood for sale.  The tax,
likewise, shall not apply to replacement or repair parts of such machinery used
in such manufacture.

(c)  Sales of tangible
personal property and services to nonprofit water associations or corporations
in which no part of the net earnings inures to the benefit of any private
shareholder, group or individual.  Only sales of property or services which are
ordinary and necessary to the operation of such organizations are exempt from
tax.

(d)  Wholesale sales of
tangible personal property for resale under Section 27-65-19.

(e)  From and after
July 1, 2003, sales of fuel used to produce electric power by a company
primarily engaged in the business of producing, generating or distributing
electric power for sale.

(f)  Sales of
electricity, current, power, steam, coal, natural gas, liquefied petroleum gas
or other fuel to a manufacturer, custom processor, data center meeting the
criteria provided for in Section 57-113-21, technology intensive enterprise
meeting the criteria provided for in Section 27-65-17(1)(f), or public service
company for industrial purposes, which shall include that used to generate
electricity, to operate an electrical distribution or transmission system, to
operate pipeline compressor or pumping stations, or to operate railroad
locomotives.

(g)  Sales of
electricity, current, power, steam, coal, natural gas, liquefied petroleum gas
or other fuel to a producer or processor for use directly in the production of
poultry or poultry products, the production of livestock and livestock
products, the production of domesticated fish and domesticated fish products,
the production of marine aquaculture products, the production of plants or food
by commercial horticulturists, the processing of milk and milk products, the
processing of poultry and livestock feed, and the irrigation of farm crops.

(h)  Sales of
electricity, current, power, steam, coal, natural gas, liquefied petroleum gas
or other fuel to a commercial fisherman, shrimper or oysterman.

(i)  Sales exempt under
the Facilitating Business Rapid Response to State Declared Disasters Act of
2015 (Sections 27-113-1 through 27-113-9).

(j)  Sales of
electricity, current, power, steam, coal, natural gas, liquefied petroleum gas
or other fuel to a permanent enterprise that is eligible for the exemption
authorized in Section 27-65-101(1)(ww) upon completion of the expansion upon
which such exemption is based; however, in order to be eligible for the
exemption authorized by this paragraph, the expansion must:

(i)  Create at
least eighty-five (85) full-time jobs in this state with an average annual wage
of at least Sixty Thousand Dollars ($60,000.00); and

(ii)  Have at least
Eighty Million Dollars ($80,000,000.00) in new investment at the existing
facility.

(k)  Sales of
electricity, current, power, steam, coal, natural gas, liquefied petroleum gas
or other fuel to an enterprise or its affiliates operating a project certified
by the Mississippi Major Economic Impact Authority as a project as defined in
Section 57-75-5(f)(xxxii) or 57-75-5(f)(xxxiii).

(l)  Sales of electricity, current, power, natural gas,
liquified petroleum gas or other fuel for heating, lighting or other use, to a
nonprofit organization that is exempt from federal income taxation under 26
USCS Section 501(c)(3), and sales of potable water to such a nonprofit
organization, if the electricity, current, power, natural gas, liquified
petroleum gas or potable water is utilized on property (i) that is primarily
used for agricultural exhibits, livestock shows, carnival rides, harness horse
racing and various types of other entertainment and (ii) on which are located
facilities that provide for temporary lodging accommodations.

SECTION 2.
Nothing in this act shall affect or defeat any claim, assessment, appeal, suit,
right or cause of action for taxes due or accrued under the sales tax laws
before the date on which this act becomes effective, whether such claims,
assessments, appeals, suits or actions have been begun before the date on which
this act becomes effective or are begun thereafter; and the provisions of the
sales tax laws are expressly continued in full force, effect and operation for
the purpose of the assessment, collection and enrollment of liens for any taxes
due or accrued and the execution of any warrant under such laws before the date
on which this act becomes effective, and for the imposition of any penalties,
forfeitures or claims for failure to comply with such laws.

SECTION 3.  This act
shall take effect and be in force from and after its passage.