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Video Guide on Mississippi Construction Contracts management

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Commonly Asked Questions about Mississippi Construction Contracts

The sales of accessories, equipment, labor, parts and services are taxable at the regular retail rate of tax when sold to a consumer and exempt when sold to other licensed retail dealers for resale.
Employers generally must withhold federal income tax from employees wages. To figure out how much tax to withhold, use the employees Form W-4, Employees Withholding Certificate, the appropriate method and the appropriate withholding table described in Publication 15-T, Federal Income Tax Withholding Methods.
Lump sum contracts, also called fixed price contracts, establish a fixed price for all of the materials and labor required to complete a job. This is the most basic and common type of construction contract.
Sales tax does not apply to purchases by the federal government, the state of Mississippi, counties, and municipalities, public schools, chartered non-profit hospitals, and certain tax-exempt organizations.
Mississippi requires that both commercial and residential contractors, including roofers, obtain a license from the Mississippi State Board of Contractors. The licensing process involves an application, examination, and other documents like reference letters and proof of employment.
Material Purchase Certificate (MPC) Prior to beginning work, the prime contractor(s) is required to apply for a MPC for the contract . You may apply for a MPC on TAP.
Mississippi sales tax law imposes a 3.5% contractors tax on all non-residential construction activities when the total contract price or compensation exceeds $10,000. The tax is levied on the entire contract price even though most construction contracts will consist of both goods and services.
Certain types of labor performed in connection with the sale and installation of tangible personal property are taxable. Other miscellaneous services​ are taxable (see Miss. Code Ann.