Tax News

CCH (cch.taxgroup.com) reports:

  Mississippi Governor Haley Barbour has approved a law authorizing a sales tax holiday period in late July each year during which sales tax will not apply to retail sales of certain articles of clothing and footwear.

  The exemption covers clothing or footwear designed to be worn on or about the human body if the sales price of the article is less than $100 and the sale takes place during the period beginning at 12:01 a.m. on the last Friday in July and ending at 12:00 midnight the following Saturday.

  The exemption does not apply to (1) accessories, including jewelry, handbags, luggage, umbrellas, wallets, watches, backpacks, briefcases, garment bags, and similar items carried on or about the human body, without regard to whether the items are worn on the body in a manner characteristic of clothing; (2) rentals of clothing or footwear; and (3) skis, swim fins, roller blades, skates, and similar items worn on the foot.

  Beginning January 1, 2010, a municipality may suspend the application of the exemption to retail sales occurring within the municipality. A certified copy of a resolution suspending the exemption must be furnished to the Mississippi State Tax Commission at least 90 days prior to the suspension date.

  Subscribers can view the law.
 
H.B. 348, Laws 2009, effective March 31, 2009, and as noted