(No County Income Tax)

(No Municipal Income Tax)

2nd $5,000 – 4%

Over $10,000 – 5%

• Broadband Technology Tax Credits
• Child/Dependent Care Income Tax Credit
• Equity Investment Tax Credits (New Markets)
• Existing Manufacturer’s Investment Tax Credit
• Jobs Tax Credit
• National or Regional Headquarters Jobs Credit
• Rural Economic Development Tax Credits on Industrial Revenue Bonds
• Skills Training Tax Credit
• Income Tax Exemption for Business Growth & Prosperity Areas (GAP)

2nd $5,000 – 4%

Over $10,000 – 5%

• Broadband Technology Tax Credits
• Franchise Tax Exemption for Businesses in Growth & Prosperity Areas (GAP)

(Highway use): $.18/gal

Non Hwy use: 5 ¾ cent/gal

6% in ground: Exempt

Mfg. includes: Real, Personal & Inventory

(No State Property Tax)

Residential – 10%

Utilities – 30%

Motor Vehicles – 30%

Fair Mkt. value

• May grant exemption on property taxes except school taxes for a period up to 10 years
• May levy a fee in lieu of taxes on projects more than $100 million
• Free Port Warehouse exempts inventory shipped outside the state
• May grant exemption on property taxes for Business in growth & Prosperity Areas (GAP)
• May grant exemption for in state inventory investment remaining in MS
• May grant exemption on property taxes for Industrial Revenue Bond Financing

(Employer makes contribution on each employee’s wages)

Min rate – .9%

Max rate – 5.4%

Vary year to year

(Employers with 5 or more employees must purchase or self-insure)

Does not include medical payments.

(General Retail Sales)

Sales to a Manufacturer:

• Raw materials (except sand & gravel, 5 cents/ton)  0.0%
• Catalysts, chemicals, or gases used directly in processing (except natural gas 1.5%) 0.0%
• Packaging and containers for sale with finished goods 0.0%
• Industrial electricity, natural gas, & fuels 1.5%
• Industrial water 7.0%
• Telephone & telegraph 7.0%
• All other equipment, furniture, fixtures, materials, supplies, and rentals not used in mfg. 7.0%

Pollution Control Equipment

• Exempt from this tax Sales by a mfg
• To a final consumer 7.0%
• To another mfg as a raw material for further processing 0.0%
• To a wholesaler or retailer for resale 0.0%
• To exempt customers  (gov’t agencies, educational institutions, etc.) 0.0%

• Full exemption to qualified businesses which finance building materials, machinery and equipment with bond proceeds

National or Regional Headquarters*

• Full exemption to qualified businesses transferring national or regional headquarters to MS and creating a minimum of thirty-five jobs

Tier 3 counties*

• Full exemption to mfg & processors on purchase of building materials used in construction of a building and on qualified machinery & equipment

Tier 2 & 1 counties*

• On-half exemption to mfg & processors on purchase of building materials used in construction of a building and on qualified machinery & equipment

*Exemption does not apply to contractor’s 3.5% tax