MS HB1589

Adds new sales tax rate of 1.5% for retail sales of equipment and parts/labor used to maintain or repair equipment sold to licensed contractors for construction, reconstruction, repair, rehabilitation, or resurfacing of highways, roads, or bridges in Mississippi.

Current sales tax rate on most tangible personal property is 7%, so this provision reduces the tax burden on road construction contractors by 5.5 percentage points.

Applies only to equipment used solely by contractors for road and bridge work within the state.

Takes effect July 1, 2015.