The new City of Jackson 1 percent sales tax goes into effect March 1 and applies to activities subject to the 7 percent (or more) retail sales tax with certain exceptions, including most groceries.
The Mississippi Department of Revenue advises that it is important for all businesses to be aware that if they perform a service, deliver a product, or install a product for their customer at a Jackson location, that business is subject to the 1 percent tax even if that business is physically located outside Jackson.
As example, if a plumber from Tupelo performs his services at a location inside Jackson, that plumber must collect the 1 percent sales tax. Likewise, if a furniture store in Jackson should deliver that furniture to a customer at a Gulfport location, the business does not collect the 1 percent tax on that sale.
The 1 percent tax does not apply to sales currently exempt from the regular sales tax. Also exempt are sales of food and beverages made by restaurants, income of hotels and motels from the sale of hotel and motel rooms for lodging purposes, and retail sales of food for human consumption. “Food for human consumption” includes only those items that could be purchased with food stamps.
The gross income of TV cable systems, subscription TV services, and cable internet services are exempt. However, telecommunications and commercial utilities are subject to the 1 percent tax.
For more information, review the notice posted on the Department of Revenue’s website www.dor.ms.gov. Businesses in Hinds, Warren, Rankin, Madison and Copiah counties should watch their mail for notices from the DOR concerning this tax. All sales taxpayers, regardless of their location, who utilize the DOR’s online system (TAP), will receive an email about this tax change.