2005 Regular Session
To: Ways and Means
By: Representative Watson
AN ACT TO AMEND SECTION 27-65-103, MISSISSIPPI CODE OF 1972, TO REMOVE THE EXEMPTION FOR SALES OF CERTAIN AGRICULTURAL PRODUCTS TO THOSE OTHER THAN BONA FIDE FARMERS; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-65-103, Mississippi Code of 1972, is amended as follows:
27-65-103. The exemptions from the provisions of this chapter which are of an agricultural nature or which are more properly classified as agricultural exemptions than any other exemption classification of this chapter shall be confined to those persons or property exempted by this section or by provisions of the Constitution of the United States or the State of Mississippi. No agricultural exemption as now provided by any other section shall be valid as against the tax herein levied. Any subsequent agricultural exemption from the tax levied hereunder shall be provided by amendment to this section.
No exemption provided in this section shall apply to taxes levied by Section 27-65-15 or 27-65-21, Mississippi Code of 1972.
The tax levied by this chapter shall not apply to the following:
(a) (i) The gross proceeds of sales to a bona fide farmer of lint cotton, seed cotton, baled cotton, whether compressed or not, * * * cottonseed and soybeans in their original condition, seeds, livestock feed, poultry feed, fish feed, fertilizers, defoliants, insecticides, fungicides, herbicides and baby chicks used in growing agricultural products for market.
(ii) For all sales tax purposes, a "bona fide farmer" is a purchaser who possesses a farmer's permit issued by the Mississippi Cooperative Extension Service and who presents the permit to the seller at the time of purchase. The Mississippi Cooperative Extension Service, hereinafter referred to as MCES, shall establish an application process for a farmer's permit to be issued. The MCES may require an applicant to submit proof that the applicant is a farmer. Proof that the applicant is a farmer may be made in any form required by the MCES, and may include a copy of the farmer's Schedule F (Schedule of Farm Income) filed as a part of the applicant's federal tax return for the prior year. Farm Service Agency farm number and paid tax receipt on farm number shall be sufficient proof to receive a permit. Upon a determination that an applicant is a bona fide farmer, the MCES shall issue the applicant a numbered farmer's permit.
(b) The gross proceeds of sales of bagging and ties for baling cotton, hay baling wire and twine, boxes, bags and cans used in growing or preparing agricultural products for market when possession thereof will pass to the customer at the time of sale of the product contained therein; ice to commercial fishermen purchased for use in the preservation of seafood or to producers for use in the refrigeration of vegetables for market.
(c) The gross proceeds of sales by producers of livestock, poultry, fish or other products of farm, grove or garden when the products are sold in the original state or condition of preparation for sale before the products are subjected to any other process within a class of business or sold by a producer through an established store, as defined in the Privilege Tax Law, except that this exemption shall not apply to ornamental plants which bear no fruit of commercial value; sales by agricultural cooperative associations organized under Article 9 of Chapter 7 of Title 69, or under Chapters 17 or 19 of Title 79, Mississippi Code of 1972, of agricultural products produced by members for market before such products are subjected to any manufacturing process.
(d) The gross proceeds of * * * sales of mules, horses and other livestock.
(e) The gross proceeds of sales or income derived from grading, excavating, ditching, dredging or landscaping activities performed for a farmer on a farm for agricultural or soil erosion purposes.
(f) The gross proceeds of sales of all antibiotics, hormones and hormone preparations, drugs, medicines and other medications including serums and vaccines, vitamins, minerals or other nutrients for use in the production and growing of fish, livestock and poultry by whomever sold. Such exemption shall be in addition to the exemption provided in this section for feed for fish, livestock and poultry.
SECTION 2. Nothing in this act shall affect or defeat any claim, assessment, appeal, suit, right or cause of action for taxes due or accrued under the sales tax laws before the date on which this act becomes effective, whether such claims, assessments, appeals, suits or actions have been begun before the date on which this act becomes effective or are begun thereafter; and the provisions of the sales tax laws are expressly continued in full force, effect and operation for the purpose of the assessment, collection and enrollment of liens for any taxes due or accrued and the execution of any warrant under such laws before the date on which this act becomes effective, and for the imposition of any penalties, forfeitures or claims for failure to comply with such laws.
SECTION 3. This act shall take effect and be in force from and after July 1, 2005.