35 Miss. Code. R. 10-11-502
Bond financing exemptions do not apply to the three and one-half percent (31/2%) or the one and one-half (11/2%) contractor's tax levied in Miss. Code Ann. Section 27-65-21. The contractor's tax is levied directly on the contractor for the privilege of performing contracts exceeding $10,000 for the construction, repair or renovation of non-residential real property. The contractor's tax is levied on the contractor's gross receipts from the construction contract regardless of any exemptions the project owner may have. Purchases of component materials for a construction project made by the contractor and reimbursed by the project owner are considered part of the contractor's gross receipts subject to the three and one-half percent (31/2%) contractor's tax. Miss. Code Ann. Section 27-65-21(1)(a) ii provides that amounts included in commercial construction contracts with manufacturers representing the sale of manufacturing machinery shall be taxed at the 11/2% reduced rate of tax in lieu of the 31/2% contractors' sales tax. However, the owner's exemption will apply on the sale by the construction contractor to the project owner of manufacturing machinery that retains its identity as tangible personal property.
35 Miss. Code. R. 10-11-502