20231120 Tax Exempt Letter.pdf

Letter Ruling

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[!] -� THE DEPARTMENT OF THE AIR FORCE

.... 310 M ST BLDG 4605

BILOXI MS 39534-2701

Reference: Sales Tax Exemption Letter Ruling Number: 23-0431

-DEPARTMENT OF-

REV EN U E

STATE OF MISSISSIPPI

Date: November 14, 2023 Letter ID: L1330461728

This is in response to your letter dated November 07, 2023, requesting that the Mississippi Department of Revenue provide a ruling regarding whether the Department of the Air Force is exempt from Mississippi sales and use tax. Your request has been assigned the letter ruling number listed above. Please use this number in any further correspondence with the DOR concerning this request.

This office has determined that the exemptions provided under Miss. Code Ann. Sections 27-65-105(a) are applicable to sales of tangible personal property and taxable services that are used in the ordinary operation of the Organization and not to be resold to the public. The question at hand relates to purchases made by the entity under the GSA SmartPay Card program. In order to exempt a purchase made using a government agency credit card, we ask that the director of the agency or equivalent provide a written confirmation that the indMdual credit card used is being "paid for" by the exempt entity. The last four digits of the credit card being used should be referenced on their written confirmation and should match the credit card being used. The sale of property or charge for services must be sold directly to, biUed directly to and paid for directly by the exempt entity as a prerequisite to the exemption. This letter is our further attempt to assist the taxpayer and the customer in maldng sure that purchases made through the use of a GSA SmartPay Card are being BOTH billed to and paid for directly by the exempt entity .

This exemption does not apply to sales of tangible personal property or services to contractors purchased in the performance of contracts with the exempt entity, even if the contractor or employee is reimbursed for the expense by the exempt entity. Furthermore, this exemption does not apply to Contractor's Tax levied by Miss. Code Ann. Section 27-65-21.

I trust that this is the information you were requesting. Should you have any additional questions, feel. free to contact this office at (601) 923-7015.

Under Miss. Code Ann. Section 27-65-85(a), it shall be unlawful for any person to use an exemption authorized under the Sales Tax taws for the purpose of avoiding the payment of tax the person is required to pay by law. Any person violating this provision shall be guilty of a misdemeanor and, on conviction thereof, shall be fined not more than Five Hundred Dollars ($500.00), or imprisoned not exceeding six (6) months in the county jail, or punished by both such fine and imprisonment, at the discretion of the court.

This letter ruing is based on the specific facts and circumstances that you communicated to the DOR. This ruling Is not binding on the DOR if these facts and circumstances are inaccurate, contain a material omission of a relevant fact or facts to the issue(s) presented or if such facts and circumstances change. This letter ruling is also only valld for seven (7) years f,'� from the date of this letter. At the end of this seven (7) year period, you are free to update your information and request � another letter ruling if you wish. This ruling is only appllcable to you or to your client if you are requesting this ruling on

P.O. Box 1033 Jackson, MS 39215 Phone: (601) 923-7700 Fax: (601) 923-7714 Form iJmL0004Y. V10

Visit www.dor.ms.gov for tax information and online filing. If you call, please have this letter with you.

ID Number: 64-0316984