House Bill 1613 Summary

• Establishes a new tax on manufacturing/processing machinery sold for use at refineries (1.5% rate) and on construction services performed at refineries (3.5% of contract price).

• Allows refinery owners holding direct pay permits to furnish permits to sellers and contractors, relieving them of tax collection duties and making the refinery owner directly liable for tax payment.

• Exempts construction activities at refineries from the existing contractors' tax under Section 27-65-21, with the new Section 27-65-24 tax applying instead.

• Requires refinery owners applying for distinctive numbers to execute surety bonds guaranteeing payment of all applicable taxes to Mississippi.

• Excludes design and engineering compensation from taxation when a project's total contract price exceeds $100,000,000.

• Makes purchases financed by bond proceeds through state development authorities subject to the new refinery tax under Section 27-65-24(1)(b), effective July 1, 2010.