House Bill 1370

AN ACT TO AMEND SECTION 27-65-93, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT IF THE RATE OF TAX IS REDUCED BELOW SEVEN PERCENT ON RETAIL SALES OF FOOD FOR HUMAN CONSUMPTION NOT PURCHASED WITH FOOD STAMPS BUT WHICH WOULD BE EXEMPT FROM SALES TAX IF SUCH FOOD WERE PURCHASED WITH FOOD STAMPS, THEN THE CHAIRMAN OF THE STATE TAX COMMISSION SHALL PROMULGATE RULES AND REGULATIONS REQUIRING TAXPAYERS THAT MAKE SUCH RETAIL SALES OF FOOD TO PROVIDE RECEIPTS, TICKETS OR SIMILAR RECORDS IDENTIFYING WHICH SALES ARE OF FOOD AND WHICH SALES ARE NOT OF FOOD; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 27-65-93, Mississippi Code of 1972, is amended as follows:

27-65-93. (1) The commissioner shall, from time to time, promulgate rules and regulations, not inconsistent with the provisions of the sales tax law, for making returns and for the ascertainment, assessment and collection of the tax imposed by the sales tax law as he may deem necessary to enforce its provisions; and, upon request, he shall furnish any taxpayer with a copy of the rules and regulations.

(2) All forms, necessary for the enforcement of the sales tax law, shall be prescribed, printed and furnished by the commissioner.

(3) The commissioner may adopt rules and regulations providing for the issuance of permits to manufacturers, utilities, construction contractors, companies receiving bond financing through the Mississippi Business Finance Corporation or the Mississippi Development Authority, and other taxpayers as determined by the commissioner to purchase tangible personal property taxed under Section 27-65-17, items taxed under Section 27-65-18, items taxed under Section 27-65-19 and services taxed under Section 27-65-23 without the payment to the vendor of the tax imposed by the sales and use tax laws, and providing forpersons to report and pay the tax directly to the commissioner in instances where the commissioner determines that these provisions will facilitate and expedite the collection of the tax at the proper rates which may be due onpurchases by the permittee. Under the provisions of this chapter, the vendor is relieved of collecting and remitting the taxes specified hereunder and the person holding the permit shall become liable for such taxes instead of the seller. The full enforcement provisions of the sales tax law shall apply in the collection of the tax from the permittee.

(4) If the rate of tax is reduced below seven percent (7%) on retail sales of food for human consumption not purchased with food stamps issued by the United States Department of Agriculture, or other federal agency, but which would be exempt under Section 27-65-111(o) from the taxes imposed by this chapter if the food were purchased with food stamps, then the commissioner shall promulgate rules and regulations requiring taxpayers that make such retail sales of food to provide receipts, tickets or similar records identifying which sales are food and which sales are not food.

SECTION 2. This act shall take effect and be in force from and after July 1, 2007.