Mississippi Sales Tax

[MarvBear]

Information from NADA Title & Registration Textbook 2004

 

Mississippi Sales and Use Tax Applicable to Registration

 

Automobiles and trucks under 10,000 lbs., 5%; semi-trailers and trucks over 10,000 lbs., 3%. Tax must be paid on the full purchase price (between dealer and person). CREDIT is allowed for TRADE-INS. RESIDENTS pay tax in Mississippi on vehicles purchased from out-of-state dealers with NO CREDIT allowed for tax paid to another state. NON-RESIDENTS pay sales tax unless exported within 48 hours and registered in another state. Sales or use tax is due on purchases from dealers or individuals. NEW-RESIDENT moving into Mississippi with vehicle registered in another state is EXEMPT tax. MILITARY PERSONNEL ARE NOT EXEMPT from Mississippi tax. If they purchase a vehicle in another state or use it in another state, they can put Mississippi license plates on the automobile and not pay the Mississippi use tax. Licensed dealer collects sales tax; casual sale between individuals, sales tax paid upon purchase of license tag and title (maximum 7-working days). TRAILERS of all types are 7%, except semi-trailers are 3%. 48 hours drive out exemption on semi-trailers. Tax due on the full purchase price with credit allowed for trade-ins. Residents pay tax on purchases outside the state with no credit allowed for tax properly paid to another state. Casual sales tax is 3% of true value.

 

Isolated, Casual, or Occasional Sales-The 3% casual tax rate of sales or use tax is due on motor vehicles purchased by any person, firm or corporation from another person, firm or corporation, which is not a licensed dealer. “Motor vehicle” includes private carriers of passengers, school buses, church buses, taxicabs, ambulances, hearses, motorcycles, private carriers of property, and private commercial carriers of property and drays of a gross weight of ten thousand (10,000) pounds or less. Sales or use taxes on such motor vehicles or property are not taxable when purchased as isolated, casual or occasional sales. When a customer receives more than one vehicle in an even trade, and no money changes hands, trade-in allowance is based on the assessed value as calculated by State. If transaction results in even trade, no taxes due. If transaction results in uneven trade, tax is due on the difference. The Road and Bridge Privilege Tax is due regardless.