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How can I calculate the 1.5% manufacturing rate in Mississippi?

Overview

You would like to know how you can set up your transaction to calculate the 1.5% manufacturing rate in MS instead of the full sales/use tax rate.

Environment

Avalara AvaTax

Mississippi

Resolution

  • The only two tax codes that are applicable to the 1.5% manufacturing rate are:
    • PM020700 - Manufacturing Machinery 
    • PM020704 - Repair or Replacement Parts for Manufacturing Machinery
  • These tax codes must be used on your applicable items in conjunction with a manufacturing exemption type to calculate the reduced rate.
    • Entity use code: I) Industrial production or manufacturers
    • CertCapture reasoning code: Industrial Prod/Manufacturers