Mississippi Senate Bill SB2699

Mississippi 2023 Regular Session

• Introduced: 1/16/23
• Refer: 1/16/23
• Failed: 2/22/23

Caption

Sales tax; revise definition of "installation charges" to exclude labor services in connection with residential roofing.

Impact

The impact of SB2699 is expected to be significant for contractors and residents involved in roofing projects within Mississippi. By classifying labor services as exempt from sales tax, homeowners may see decreased costs for roofing repairs or installations, likely encouraging maintenance and upgrades. Contractors may benefit from simplified billing practices as they can clearly separate materials from labor in their invoices, which could enhance transparency and client trust. Additionally, this change aligns the taxation of residential roofing with other types of home improvement projects where labor is often not taxed.

Summary

Senate Bill 2699 proposes an amendment to Section 27-65-3 of the Mississippi Code of 1972 regarding the definition of 'installation charges' under the state's sales tax law. The key change introduced by this bill is the exclusion of labor service charges from the definition of installation charges related to the application or repair of residential roofing. This essentially means that charges for labor associated with roofing projects will not be subject to state sales tax, potentially reducing the overall tax burden on homeowners and roofing contractors.

Contention

Notable points of contention surrounding SB2699 may arise from the perspectives of state revenue implications as labor services for roofing will no longer contribute tax revenue. Critics may express concerns regarding the potential loss of revenue that could have supported public services. Supporters, however, assert that the ease of access to roofing services and reduced costs for consumers outweigh the potential concerns about revenue decreases. The discussion revolves around finding a balance between stimulating local economic growth through home improvement and sustaining state funding mechanisms.