Mississippi Administrative Code
Title 35 - Department of Revenue
Part 3 - Income and Franchise
Subpart 10 - Other Entities and Miscellaneous
Chapter 04 - Allocations by Cooperative Associations
Section 35-3-10-04-103

Section 27-7-29(a)(7) provides that there shall be exempt from the tax imposed by this article "farmers and fruit growers cooperatives or other like organizations organized and operated as sales agents for the purpose of marketing the products of members and turning back to them the proceeds of sales, less the necessary selling expenses and on the basis of the quantity of produce furnished by them, and other nonprofit agricultural associations organized and operated under the provisions of the cooperative marketing association is organized and operated as a nonprofit association within the provisions of the cooperative marketing laws of this state", such cooperative is exempt from income taxation under the Mississippi Income Tax Law. Mississippi Law does not conform with Section 1381, IRC, with respect to the levy of an income tax on nonprofit farmers cooperatives.