Senate Bill 3119 Summary

• Levies a 1.5% tax on manufacturing or processing machinery installed at refineries and a 3.5% tax on construction activities performed at refineries in Mississippi.

• Allows refinery owners holding a direct pay permit to furnish the permit to sellers or contractors, relieving them of tax collection duties, with the refinery owner paying the tax directly to the Department of Revenue.

• Requires refinery owners applying for a distinctive number to execute and file a surety bond with the commissioner guaranteeing payment of all accrued taxes.

• Exempts construction activities performed at refineries from the existing 3.5% contractor's tax under Section 27-65-21, consolidating refinery taxation under the new Section 27-65-24.

• Applies the use tax to equipment used at refinery operations at the rates specified in Section 27-65-24 and excludes bond-financed refinery purchases from tax exemptions granted to certain industrial development projects.

• Effective July 1, 2010.