MS SB3016

Exempts equipment used in short-term rental agreements (365 days or less) from ad valorem taxation for persons engaged in equipment rental businesses classified under NAICS codes 532310, 532412, and 532490

Levies a 2% tax on gross proceeds from equipment rental business activities in lieu of ad valorem taxes, with exemptions for motor vehicle rentals, rent-to-own agreements, video rental content, and rentals between affiliated persons with common ownership exceeding 5%

Applies all Mississippi Sales Tax Law administrative provisions, penalties, and enforcement procedures to the new rental equipment tax

Requires the Department of Revenue to distribute tax proceeds to counties by February 15 annually, with counties distributing funds within 7 days to municipalities and school districts based on the situs of rental transactions using the same proportions as ad valorem tax distribution

Takes effect July 1, 2011