Mississippi: The Magnolia State

Mississippi is one of the southern states and lies east of the river of the same name on its lower course. To the south, the 125,000 kmĀ² “Magnolia State” has a narrow coastline on the Gulf of Mexico. The state borders Tennessee to the north and Alabama to the east. West of the Mississippi it has Arkansas and Louisiana as neighboring states. According to ehuacom, Mississippi has almost three million inhabitants and the capital Jackson is the most populous with a good 170,000 inhabitants.

Mississippi has a proven track record of attracting world-class companies and providing a favorable business environment that fosters the continued success of the industry. The premier business climate combined with commercial advantages make Mississippi the perfect location for today’s growing industries. Area Development magazine ranked Mississippi 10th in the Best State for Doing Business category in 2018.

The state offers an abundant supply of a skilled and productive workforce, exceptional educational opportunities, and research universities with a strong reputation for working with industry. Production ideas are converted here from concept to reality.

Mississippi Location Map

BUILT IN MISSISSIPPI

Huntington Ingalls built more than two-thirds of the entire Navy fleet of warships. The company is also headquartered in Mississippi, as is Howard Industries. They are the largest transformer manufacturer in the United States. Hybrid Plastics Inc. is also based here and has grown into one of the top ten nanotechnology companies in the US.

Mississippi has played a central role in the space industry since the early days of NASA’s Apollo program. Over time, some of the world’s best-known names in the industry have been drawn to the Magnolia State, including Airbus.

All companies can rely on the skilled and productive workforce as well as the extensive education and training of the workforce, the supportive business environment, the strategic location, the low start-up and operating costs, the state-of-the-art research and development. The rule here is: Driven by intelligence. Built in Mississippi.

IMPORTANCE OF FDI

432 international companies operate and grow in the state of Mississippi. Among other things, the investments made by these companies have resulted in the creation of around 40,000 jobs. Almost 40 percent of these workers are employed in the manufacturing sector. Companies from Japan, France and the UK have provided the largest job growth. In terms of investment volume in projects in Mississippi, German companies rank second after Japan and ahead of Israel.

In the period from 2013 to 2018, employment resulting from FDIs increased by 16 percent. In contrast, total government employment in the private sector increased by only five percent.

For the President of Yokohama Tire Manufacturing Mississippi LLC, Tadaharu Yamamoto, there is no question that choosing Mississippi as the location and bringing the project here was the right decision.

NISSAN INVESTS IN EDUCATION

A good education for young talents in the region is of great importance for all companies. Nissan not only relies on the work of the state, but has also been donating to the seven Historically Black Colleges and Universities (BSCUs) in Mississippi for the past six years. The fields of science, technology, engineering and mathematics (STEM) are supported.

Keri Kelly, Director (Diversity & Inclusion) Nissan America, says students who earn a STEM-related degree have a wide range of career opportunities and can change the world for the better.

Vice President (Manufacturing) Nissan Canton Vehicle Assembly Plant, Tim Fallon, affirmed that Nissan itself will also benefit from the donations as the HBCU graduates who work at Nissan are well prepared for the challenges of designing and manufacturing Nissan vehicles and thus helping the company’s development.

MISSISSIPPI INCOME TAX

Mississippi charges an income tax of 3-5% depending on income. In addition, federal income taxes are payable.

CORPORATE INCOME TAX IN MISSISSIPPI

Mississippi has a 5% corporate income tax. In addition, federal corporation tax is payable.

MISSISSIPPI SALES TAX

There is no sales tax or Value Added Tax (VAT) in the USA based on the European model. Instead, in the United States, states, counties, and municipalities levy a local sales tax on the sale of products (but not services).

Sales Tax Rate in Mississippi

The sales tax in Mississippi is 7% at the state level. Municipalities or districts charge an average of 0.07% sales tax. Combined, an average of 7.07% is due.

Mississippi Nexus Laws & Sales Tax

Learn more about the Economic Nexus Laws in the context of Sales Tax here.

Effective Date

September 1, 2018

Transactions included:

Total sales in the US state from remote sellers who make targeted or systematic use of the market in the state. Benefits are included in the threshold.

Treatment of tax-exempt transactions:

Exempt Sales and Exempt Services are included in the threshold

Reason:

Sale only

Sales/Transactions Threshold:

$250,000

Evaluation period:

The threshold applies to all transactions in the last 12 months

Extra information:

  • Registration Requirements: Mississippi did not specify how quickly a remote business must register once it crosses the Economic Nexus Threshold. This could already happen with the next transaction.
  • Remote Seller Guide

Mississippi Marketplace Sellers & Sales Tax

Learn more about Marketplace seller registration requirements

Effective date by the marketplace broker:

July 1, 2020

Economic Nexus Threshold:

More than $250,000 in state sales for a consecutive 12-month period. When calculating the threshold:

Remote sellers should include direct sales, but not sales through an aggregate marketplace

Marketplace intermediaries should include all sales through the marketplace

Registration requirements:

  • Remote Multichannel Sellers: You must register with the Minnesota Department of Revenue (DOR) and collect Minnesota sales tax on sales not taxed by a Marketplace Agent once you have crossed the Economic Nexus Threshold.
  • Remote Marketplace Sellers: You don’t have to register and collect Minnesota sales tax even if you cross the Economic Nexus threshold.
  • In-State Multichannel Sellers: You must register with the Minnesota DOR and collect taxes on sales that are not taxed by a marketplace facilitator.
  • State Marketplace Sellers: You must register. Contact the Minnesota DOR for more information.