Mississippi Material Liability Agreement
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FAQ
Sales Tax Exemption: Farm equipment and machinery purchased for the exclusive and direct use in farming may be exempt for a reduced Sales Tax Rate of 1.5% in the State of Mississippi and is good for 7 years from June 26, 2018.
Some customers are exempt from paying sales tax under Mississippi law. Examples include government agencies, some nonprofit organizations, and merchants purchasing goods for resale. Sellers are required to collect a valid exemption or resale certificate from buyers to validate each exempt transaction.
How Much Does It Cost? A General Contractor Application fee is $200, plus $50 for each classification. Commercial Licensing fee: $400, and includes one classification. Residential Licensing fee: $50, and includes one classification.
Material Purchase Certificate (MPC) Prior to beginning work, the prime contractor(s) is required to apply for a MPC for the contract . You may apply for a MPC on TAP.
A residential contractor license is required for anyone working on residential construction totaling $50,000 or more, or residential remodeling or roofing over $10,000. Residential electrical, plumbing or HVAC work is regulated by the city or county where the work is done.
Some goods are exempt from sales tax under Mississippi law. Examples include most non-prepared food items purchased with food stamps, prescription drugs, and some medical supplies.
Mississippi sales tax law imposes a 3.5% contractor's tax on all non-residential construction activities when the total contract price or compensation exceeds $10,000. The tax is levied on the entire contract price even though most construction contracts will consist of both goods and services.
