For Immediate Release
November 10, 2003
Mississippi - New Exemptions Enacted for Broadband Infrastructure Investments
In
an attempt to entice telecommunications companies to the state, the
Mississippi State Tax Commission is offering sales and use tax exemptions
and corporate income and franchise tax credits to those who invest in the
infrastructure necessary to provide broadband technology throughout the
state.
Exemptions and credits are
available from July 1, 2003 through June 30, 2013. For sales and use
tax purposes, 50% of the sales and use tax on equipment sold to
telecommunications companies for use in broadband technology in Tier 1
areas is exempt. Equipment installed in Tier 2 and Tier 3 areas that
is used for broadband technology is 100% exempt. Tier 1 is defined
as developed areas; Tier 2 is defined as moderately developed areas;
and Tier 3 is defined as less developed areas.
The equipment purchased is
also exempt from property tax for a 10-year period. The equipment
must be placed in service after June 30, 2003, and before July 1, 2013.
Corporate income and
franchise tax credits are available as follows:
Tier 1 areas
5% of cost of equipment
Tier 2 areas
10% of cost of equipment
Tier 3 areas
15% of cost of equipment
If you would like additional information on this topic or have any questions, please contact Don Behel, Regional Vice President - Sales & Use Tax Group at (615) 851-5555. E-mail dbehel@thesaltgroup.com
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