MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Finance

By: Senator(s) Huggins, Minor, Canon, Dearing, Johnson (19th), Gordon, Frazier, Horhn, Smith

TO AMEND SECTION 27-65-17, MISSISSIPPI CODE OF 1972, TO TAX AT THE RATE OF 1-1/2% SALES MADE PRIOR TO JANUARY 1, 2002, OF DIGITAL BROADCAST EQUIPMENT TO FEDERALLY LICENSED COMMERCIAL OR PUBLIC RADIO AND TELEVISION BROADCAST STATIONS PURCHASED FOR THE PURPOSE OF ENABLING SUCH STATIONS TO COMPLY WITH THE TELECOMMUNICATIONS ACT OF 1996; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 27-65-17, Mississippi Code of 1972, is amended as follows:

27-65-17. (1) Upon every person engaging or continuing within this state in the business of selling any tangible personal property whatsoever there is hereby levied, assessed and shall be collected a tax equal to seven percent (7%) of the gross proceeds of the retail sales of the business, except as otherwise provided herein.

Retail sales of farm tractors shall be taxed at the rate of one percent (1%) when made to farmers for agricultural purposes.

Retail sales of farm implements sold to farmers and used directly in the production of poultry, ratite, domesticated fish as defined in Section 69-7-501, livestock, livestock products, agricultural crops or ornamental plant crops or used for other agricultural purposes shall be taxed at the rate of three percent (3%) when used on the farm. The three percent (3%) rate shall also apply to all equipment used in logging, pulpwood operations or tree farming which is either (a) self-propelled or which is (b) mounted so that it is (i) permanently attached to other equipment which is self-propelled or (ii) permanently attached to other equipment drawn by a vehicle which is self-propelled.

Retail sales of aircraft, automobiles, trucks, truck-tractors, semitrailers and mobile homes shall be taxed at the rate of three percent (3%).

Sales of manufacturing machinery or manufacturing machine parts when made to a manufacturer or custom processor for plant use only when said machinery and machine parts will be used exclusively and directly within this state in manufacturing a commodity for sale, rental or in processing for a fee shall be taxed at the rate of one and one-half percent (1-1/2%).

Sales of materials for use in track and track structures to a railroad whose rates are fixed by the Interstate Commerce Commission or the Mississippi Public Service Commission shall be taxed at the rate of three percent (3%).

Sales of tangible personal property to electric power associations for use in the ordinary and necessary operation of their generating or distribution systems shall be taxed at the rate of one percent (1%).

Sales made prior to January 1, 2002, of digital broadcast equipment to a federally licensed commercial or public radio broadcast station or television broadcast station for the purpose of enabling such station to comply with the Telecommunications Act of 1996, Public Law 104-104, as required by the Federal Communications Commission, shall be taxed at the rate of one and one-half percent (1-1/2%). For the purposes of this paragraph "digital broadcast equipment" means equipment purchased by a radio broadcast station or television broadcast station for the origination or integration of program materials for broadcast over the airwaves which uses or produces an electronic signal where the signal carries data generated, stored and processed as strings of binary data. The term "federally licensed commercial or public radio broadcast station or television broadcast station" means any entity or enterprise, whether commercial or noncommercial, which operates under a license granted by the Federal Communications Commission for the purpose of free distribution of audio or video services, or both, when the distribution occurs by means of transmission over the public airwaves. This paragraph shall stand repealed from and after January 1, 2002.

Wholesale sales of beer shall be taxed at the rate of seven percent (7%), and the retailer shall file a return and compute the retail tax on retail sales but may take credit for the amount of the tax paid to the wholesaler on said return covering the subsequent sales of same property, provided adequate invoices and records are maintained to substantiate the credit.

Wholesale sales of food and drink for human consumption to full service vending machine operators to be sold through vending machines located apart from and not connected with other taxable businesses shall be taxed at the rate of eight percent (8%).

A manufacturer selling at retail in this state shall be required to make returns of the gross proceeds of such sales and pay the tax imposed in this section.

Any person exercising any privilege taxable under Section 27-65-15 and selling his natural resource products at wholesale or to exempt persons shall pay the tax levied by said section in lieu of the tax levied by this section.

(2) From and after January 1, 1995, retail sales of private carriers of passengers and light carriers of property, as defined in Section 27-51-101, shall be taxed an additional two percent (2%).

SECTION 2. This act shall take effect and be in force from and after July 1, 1999.