Mississippi Administrative Code
Title 35 - Department of Revenue
Part 4 - Sales and Use Tax
Subpart 10 - Construction and Oil Field
Chapter 02 - Drilling Contractors (Oil and Gas Wells)
Tax Rates and Activities Taxed
Section 35-4-10-02-300 - Tax Rates and Activities Taxed

A tax of 31/2% is levied on the "taxable compensation" received when the contract price exceeds $10,000 for drilling, redrilling, directional drilling or working over a gas well, oil well or salt water disposal well. This tax applies also to interest well contracts on the "taxable compensation" received from the other owners. Drilling, redrilling, directional drilling or working over a gas well, oil well or salt water disposal well performed as sub work for a prime contractor is not subject to tax when the prime contractor has paid the 31/2% tax on the total "taxable compensation".