A new use tax collection rule applies to sellers who lack a physical presence in Mississippi. Remote sellers must collect Mississippi use tax if they:
- “purposefully or systematically exploit the Mississippi market;” and
- their sales into the state exceed $250,000 for the prior 12 months.
The rule applies to transactions occurring on or after December 1, 2017.
Under the rule, remote sellers are:
- deemed to have a substantial economic presence in the state; and
- must register with the Department of Revenue to collect and remit use tax.
The tax must be stated separately on invoices and accounted for separately on the seller’s records.
Mississippi Remote Seller Rule: Exploiting the Market
Purposefully or systematically exploiting the Mississippi market includes:
- Television or radio advertising on a Mississippi station;
- Telemarketing to Mississippi customers;
- Advertising on billboards, wallscapes, bus benches, interiors and exteriors of buses, or other signage located in Mississippi;
- Advertising in Mississippi newspapers, magazines, or other print media;
- Emails, texts, tweets and any form of messaging directed to a Mississippi customer;
- Online banner, text, or pop up advertising directed toward Mississippi customers;
- Advertising to Mississippi customers through applications (“apps”) or other electronic means on customer’s phones or other devices; or
- Direct mail marketing to Mississippi customers.
Rule 35.IV.3.09, Mississippi Department of Revenue, effective December 1, 2017