House Bill 968 Summary

• Defines "computer software," "computer software service," and "computer service" under Mississippi sales and use tax law, clarifying that computer software is tangible personal property and taxing software services and technical services at 7% of gross income.

• Allows taxpayers to claim a credit against Mississippi sales or use tax for taxes paid on computer software/services in other states, up to the amount paid and limited by the rate differential between states.

• Permits taxpayers using computer software/services in multiple states to apportion sales and use tax based on Mississippi usage versus total usage across all states.

• Enables taxpayers to request refunds from the Department of Revenue for excess taxes collected by vendors, provided the refund exceeds $2,500 and the taxpayer made at least two refund requests to the vendor.

• Establishes that bundled transactions including taxable computer software/services and nontaxable items require sellers to allocate pricing to identify taxable and nontaxable portions, with allocation based on books and records or department-approved methodology.