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 35-3-10-04-105

The patronage dividend received in cash by the patron must be included in the gross income of such patron. The patron may, however, exclude from Mississippi gross income the value of qualified written notices of allocation and qualified per-unit retain certificates to the extent that they represent non-cash items received. Dividends paid by the corporation based on stock ownership rather than patronage are not deductible by the corporation and are included in the gross income of the resident recipient.