Mississippi Administrative Code
Title 35 - Department of Revenue
Part 4 - Sales and Use Tax
Subpart 01 - Administrative
Chapter 01 - Direct Payment of Sales or Use Tax to the State in Lieu of Payment to Seller
Section 35-4-01-01-404 - Growth and Prosperity (GAP) Area Exemption

The Commissioner requires any entity wishing to take advantage of the exemption from sales tax provided for under Miss. Code Ann. Section 57-80-1 et seq. to obtain a direct pay permit. The direct pay permit holder must present the permit to its vendors in order to purchase tangible personal property and services exempt from tax. The GAP exemption is for a period of 10 years; however, the sales and use tax component of a GAP exemption covers only purchases of component materials and purchases or leases of machinery and equipment used in the initial construction or expansion of the business in the GAP area. The holder of the permit is responsible for accruing and paying the correct rate of tax on all purchases made which are not exempt. The exemption does not apply to any contractor's tax levied under Miss. Code Ann. Section 27-65-21 or vehicles tagged for highway use. The direct pay permit for this exemption will stand rescinded when the project is complete and tax will once again be due to the vendor if the applicant is not a qualified industry.