Section 35-3-08-06-203.05For the in-state activity to be immune, it must be limited solely to solicitation (except for that activity conducted by independent contractors in subsection 203.05 paragraph 3 below). If there is any other activity unrelated to solicitation, the immunity shall be lost. Examples of activities presently treated (unless otherwise stated as an exception or addition) as either non-immune or immune are as follows:
1. Non-immune Activities: The following in-state activities will cause otherwise immune sales to lose their immunity: a. Making repairs or providing maintenance.b. Collecting delinquent accounts.c. Investigating credit worthiness.d. Installation or supervision of installation.e. Conducting training courses, seminars or lectures.f. Providing engineering functions.g. Handling customer complaints.h. Approving or accepting orders.i. Repossessing property.j. Securing deposits on sales.k. Picking up or replacing damaged or returned property.l. Hiring, training, or supervising personnel.m. Providing shipping information and coordinating deliveries.n. Maintaining sample or display room in excess of two weeks (14 days) during the tax year.
o. Carrying samples for sale, exchange or distribution in any manner for consideration or other value.p. Owning, leasing, maintaining or otherwise using any of the following facilities or property in-state: vi. Meeting place for directors, officers or employees.viii. Telephone answering service.ix. Mobile stores, i.e., trucks with driver salesmen.x. Real property or fixtures of any kind.q. Consigning tangible personal property to any person, including an independent contractor.r. Maintaining, by either an in-state or an out-of-state resident employee, of an office or place of business (in-home or otherwise).s. Conducting any activity in addition to those described in paragraph II below which is not an integral part of the solicitation of orders.2.Immune Activities: The following in-state activities will not cause the loss of immunity for otherwise immune sales: a. Advertising campaigns incidental to missionary activities.b. Carrying samples only for display or for distribution without charge or other consideration.c. Owning or furnishing autos to salesmen.d. Passing inquiries and complaints on to home office.e. Incidental and minor advertising, i.e., notice in newspaper that a salesman will be in town at a certain time.f. Missionary sales activities.g. Checking of customers' inventories (for re-order, but not for other purposes).h. Maintaining sample or display room for two weeks (14 days) or less during the tax year.i. Soliciting of sales by an in-state resident employee of the taxpayer; provided the employee maintains no in-state sales office or place of business (in-home or otherwise).3.Independent Contractors:a. P.L..86-272 provides immunity to certain activities if conducted by an independent contractor that would not be afforded if performed by the taxpayer directly. Independent contractors may engage in the following limited activities in the state without the taxpayer's loss of immunity: iii. Maintaining a sales office.b. Sales representatives who represent a single principal are not considered to be independent contractors and are subject to the same limitations as employees.c. Maintenance of a stock of goods in the state by the independent contractor under consignment or any other type of arrangement with the principal shall remove the immunity.4. Miscellaneous Practices: a. Interstate Commerce: The only activity in the state must be in interstate commerce. If there is any other activity (except that described subsection 203.05 paragraph 2 or otherwise incidental to solicitation), then the immunity shall be lost. Requisites are: i. Approval of the sales must be made outside the state (except for sales by independent contractors).ii. Deliveries must be made from a point outside the state.b. Incorporated: The immunity afforded by P. L. 86-272 does not apply to any corporation incorporated within the taxing state.c. Service vs. Service: Sales of services are not immune under P. L. 86-272. If a sale consists of a mixture of tangible personal property and services, the immunity shall be lost. Examples of such mixture are: i. Photographic development.ii. Fabrication of customer's materials.iii. Installation of equipment.iv. Architectural and engineering services.35 Miss. Code. R. § 3-08-06-203.05