Mississippi Administrative Code
Title 35 - Department of Revenue
Part 4 - Sales and Use Tax
Subpart 06 - Utilities
Chapter 04 - Water
Levy
Section 35-4-06-04-100 - Levy
Section 35-4-06-04-103

Sales of potable water and services related thereto are exempt when sold for residential, noncommercial or non-agricultural use. In order to qualify for the residential exemption, the water must be sold to, billed to, and paid for by the homeowner or resident of the facility. Water included in rent will be considered residential. A vacant apartment will not be considered residential. Residential customers may include, but are not limited to, privately owned hunting and fishing camps, summer homes, cabins, or apartments. Charges billed to a homeowner's association for use in areas such as, but not limited to, swimming pools, clubhouses, sprinkler systems are taxable at the regular retail rate of 7¢. Hunting or fishing camps that provide hunts and/or accommodations for a fee are not allowed the residential exemption and are subject to the regular retail rate of 7¢. Vacant apartments with water being billed to the apartment complex or manager are not eligible for the residential exemption. Private homes or residences owned by a business or corporation that are used for commercial purposes and that may be used to provide overnight stay on a temporary or transient basis are subject to the regular 7¢ rate of tax. Such common establishments include bed & breakfast facilities. Any apartment or home that may have mixed usage (residential/commercial) must be taxed at the higher 7¢ rate unless there is a separate meter for the business (ex. Business shop, poultry farm, commercial barn, repair garage, etc.). This does not include individuals who maintain a home office. The regular retail rate of tax applies to all other sales. The industrial rate does not apply to water sales as in sales of electricity and natural gas.