The Supreme Court of Mississippi recently held that separate freight fees are not included in Mississippi use tax base. The taxpayer, Tennessee Gas Pipeline Company, paid use tax on certain tangible personal property that it used in Mississippi. It later paid freight charges to a third-party company to ship these goods to Mississippi and did
Mississippi
Landmark state tax cases: A deep dive into Complete Auto Transit v. Brady
By Jeffrey Friedman & Jeremy Gove on
Posted in Podcast
This episode of the SALT Shaker Podcast, hosted by Eversheds Sutherland Associate Jeremy Gove, launches a new series in the history of the podcast – discussing landmark tax cases and analyzing their continued impact on state and local tax.
For the first episode of this series, Jeremy welcomes the series’ recurring guest, Partner Jeff…
Supreme Court of Mississippi holds digital images are not subject to sales tax
By Charles Capouet, David Jasphy & Jeremy Gove on
Posted in Digital Economy
On October 6, 2022, the Supreme Court of Mississippi held that digital images are not subject to sales tax as tangible personal property or specified digital products. The taxpayer was a digital wedding photographer that sold wedding photography services to customers and then transferred the digital images to the customers via DVDs or flash drives.
Mississippi Committee recommends sales and use tax exclusion for software and related services used as a business input
By Jeremy Gove, John Ormonde & Timothy Gustafson on
Posted in Digital Economy
The Taxation of Remote and Internet-Based Computer Software Products and Services Study Committee (the “Committee”) was empaneled by the Mississippi Legislature to examine and develop recommendations regarding the taxation of remote and internet-based computer software products and services following the Mississippi Department of Revenue’s (“DOR”) proposal in September 2021 to update its regulations. The proposed…
Income tax rate reduction legislation – watch list
By Nikki Dobay & Charlie Kearns on
Posted in Income Tax, Policy and Legislation
In just the first few months of the 2022 tax year, we have already seen several states introduce legislation that would decrease corporate and individual income tax rates. Idaho became the first state to pass such legislation this year, on February 4. The Eversheds Sutherland SALT team expects other states to follow and will provide…
Mississippi Department of Revenue withdraws proposed rule taxing cloud computing
By Jonathan Feldman, Jeremy Gove & Alla Raykin on
Posted in Digital Economy
The Mississippi Department of Revenue withdrew its proposed regulation which sought to expand the state’s sales tax to apply to cloud computing. The proposed regulation amendments defined taxable cloud computing to include software as a service, platform as a service, and infrastructure as a service. Despite the proposed regulation’s withdrawal, there may still be future…
Mississippi governor signs plan to study taxation of cloud computing
By Jonathan Feldman, Jeremy Gove & Alla Raykin on
Posted in Digital Economy, Policy and Legislation
On March 28, 2022, Mississippi’s governor signed S.B. 2831, creating the Taxation of Remote and Internet-based Computer Software Products and Services Study Committee, which is tasked with examining the taxation of remote and internet-based computer software products and services in Mississippi. By October 1, 2022, the Committee must report to the legislature its findings…
Mississippi justices to review sales tax on digital photos
By Jonathan Feldman, Jeremy Gove & Alla Raykin on
Posted in Digital Economy
On March 23, 2022, the Mississippi Supreme Court issued an order granting review of a trial court determination that sales of digital photographs are not subject to sales tax. The trial court struck down an assessment against a wedding photographer, concluding that taxable “tangible personal property” did not include digital photographs and photography is not…
Getting SaaSy: Mississippi proposed sales tax rule targets cloud computing
By Charlie Kearns & Dennis Jansen on
Posted in Digital Economy
The Mississippi Department of Revenue recently proposed a rule expanding the state’s sales tax to cloud computing.
The proposed amendments to the provisions regarding taxable computer equipment and services define “cloud computing” as “the delivery of computing resources, including software applications, development tools, storage, and servers over the Internet.” The term “cloud computing” includes the…
Mississippi proposes to amend rule for taxing digital photography
By Jonathan Feldman, Alla Raykin & Jeremy Gove on
Posted in Digital Economy
The Mississippi Department of Revenue proposes to amend its regulation for Photographers and Film Developers to specify that certain digital products would be subject to sales tax. Under the proposed regulation, photographs, pictures, videos, discs, other tangible personal property and “specified digital products” sold by photographers and videographers are taxable. The proposed amendments would be…