This blog was last updated on November 27, 2024
The Supreme Court’s 2018 ruling on South Dakota v. Wayfair, Inc. had a ripple effect across the country on how out-of-state businesses must collect and remit sales tax. The Mississippi sales tax nexus is just one example of how remote sellers and marketplace facilitators need to ensure they remain compliant as regulations are updated. Below we have highlighted key points on Mississippi’s economic nexus requirements.
Enforcement Date:
- Remote sellers – September 1, 2018.
- Marketplace facilitators – July 1, 2020.
Sales/Transactions Threshold:
$250,000.
Measurement Period:
Threshold applies to the previous 12 months.
Included Transactions/Sales:
Retail sales of tangible personal property delivered into the state.
When You Need to Register Once You Exceed the Threshold:
Next transaction.
Summary: Sellers lacking physical presence in Mississippi that are deemed to have a substantial economic presence in the state must register with the Department of Revenue (DOR) to collect and remit use tax. Remote sellers are deemed to have a substantial economic presence in Mississippi if their sales into the state exceed $250,000 for the prior 12 months. This rule became effective December 1, 2017 but was not actively enforced. In response to the Wayfair decision, the DOR began enforcing this rule as of September 1, 2018.
House Bill 379 of the 2020 Regular Session of the Mississippi legislature, which was signed by Governor Tate Reeves on June 30, 2020, created the Mississippi Marketplace Facilitator Act of 2020. Under the Act, marketplace facilitators facilitating sales into Mississippi that exceed $250,000 in any consecutive 12-month period must register with the DOR and begin collecting and remitting use tax on sales of taxable services, tangible personal property and specified digital products. This change was effective July 1, 2020.
Remote sellers and marketplace facilitators selling within Mississippi should work with a partner that understands the intricacies of collecting and remitting sales tax. That way they can stay compliant without hindering normal business operations.
Mississippi Sales Tax Resources: Contact our team of experts for more information on Mississippi sales tax nexus changes. Our interactive sales tax nexus map also offers real-time updates on each state.
