Mississippi Sales and Use Taxes Reminder about wholesale purchases of alcoholic beverages in Mississippi

The Mississippi Department of Revenue has released a notice regarding L. 2022, S2844, effective 07/01/2022 (reported in State Tax Update , 04/26/2022), which removed the sales tax on the wholesale purchase of alcoholic beverages. The notice explains that all Mississippi licensed permittees purchasing items from the Mississippi Alcoholic Beverage Control Division will no longer pay sales tax on the cost of alcoholic beverages at the time of purchase. Credit will be given for the sales tax paid on wholesale purchases made prior to July 1, 2022 by reporting it on the sales tax return until all of the credit has been taken. Sales tax will not be charged on any wholesale sales of alcoholic beverages made on or after July 1, 2022. This will apply to all permit holders that make wholesale sales or purchases of alcoholic beverages. Permittees will be responsible for collecting and remitting sales tax on all retail sales at the regular rate of 7%. (Notice 72-22-05, Miss. Dept. Rev., 06/01/2022.)