Mississippi Administrative Code
Title 35 - Department of Revenue
Part 4 - Sales and Use Tax
Subpart 08 - Agriculture
Chapter 02 - Agricultural
Section 35-4-08-02-110 - Cotton Gins
Current through September 24, 2024
1. Sales and Barter. The exchange of cottonseed meal and hulls for cottonseed is considered an exempt sale of livestock feed. Sales of any other property, unless specifically exempt, are taxable at the regular retail rate of tax.
2. Purchases. Sales or purchases of machinery and machine parts which are to be used directly in the ginning process are taxable at the special 1 1/2 % rate of tax. Forklift trucks used directly in the ginning process are considered to be manufacturing machinery. Charges for electric power or other fuels for operation of cotton gins are taxable at the special industrial rate of 1 1/2 %. Bagging and ties for baling cotton are exempt from sales or use tax. Other purchases of materials and services are taxable at the regular retail rate of tax.
