Monday, July 7, 2014

Presley: Agricultural Exemption from Utility Sales Tax in Effect as of July 1st

JACKSON, MISSISSIPPI (July 2, 2014) – Public Service Commissioner Brandon Presley today notified agricultural businesses in Mississippi of a change in tax law which may lower their utility bills. The change, which went into effect July 1, exempts certain agricultural business from being charged state sales tax on their energy bills, particularly bills for electric and natural gas service.

The new exemption applies where energy is purchased from a utility to be used directly in the production of poultry or poultry products, livestock and livestock products, domesticated fish and domesticated fish products, marine aquaculture products, plants or food by commercial horticulturists, the processing of milk and milk products, the processing of poultry and livestock feed, or the irrigation of farm crops.

The legislation which created the exemptions, House Bill 844, was passed in 2013. Presley notes that the Public Service Commission has been developing similar proposals to lower utility costs for Mississippi’s agricultural industry.

If you believe you may qualify for the exemption, you should contact your utility provider to ensure that you receive the proper tax treatment. Customers are also encouraged to contact Presley’s office at 1-800-356-6428 for more information or direction.