Mississippi Administrative Code
Title 35 - Department of Revenue
Part 4 - Sales and Use Tax
Subpart 10 - Construction and Oil Field
Chapter 01 - Construction Contractors
Section 35-4-10-01-302

The tax is levied on contracts with the United States Government, the State of Mississippi and its political subdivisions and any other exempt agency, without any deduction for amounts paid to subcontractors, architects, engineers, landscapers or for any other costs or expenses (including the 31/2% contractor's tax) incurred by the contractor. Liquidated damages that are withheld by the owner are not to be included in taxable contract receipts.