Pursuant to Miss. Code Ann. Section 27-65-107(f), sales of fuel to a manufacturer, custom processor, public service company or technology intensive enterprise meeting the criteria established by the Mississippi Development Authority provided for in Section 27-65-17(1)(f) when used for industrial purposes are exempt from the tax levy.
303.01 A manufacturer holding a valid direct pay permit must provide their direct pay permit to its utility providers. The manufacturer will not be charged any tax by the utility provider but will be responsible for remitting the correct retail rate of tax for any non-industrial usage directly to the Department of Revenue on their Use Tax return. The direct pay permit should be used for all utility purchases including electricity, gas, and water. Any business eligible for the exemption that does not hold a direct pay permit must complete the Affidavit for Utility Exemption found on the Department's website and provide a copy to the utility company. Utility companies must keep their customers direct pay permit or affidavit as documentation in order to sell fuel for non-residential purposes exempt.303.02 The exemption is applicable to certain businesses, such as a manufacturer, but is also applicable to certain specific uses, such as cotton ginning. The following provides some examples of the types of businesses or the types of special usage that qualify for the exemption.4. Poultry brooders, incubators and hatcheries5. Cold storage processors6. Commercial horticulturists and greenhouses7. Pipeline compressor or pumping stations8. Cotton compresses and gins9. Creosoting and treating plants11. Electricity generating plants12. Electric power sub-stations13. Feed mixers and processors14. Agricultural irrigation16. Concrete and asphalt plants17. Laundries and dry cleaners18. Custom meat processors35 Miss. Code. R. 4-06-01-303