1 Cent Sales Tax - MSNewsNow.com - Jackson, MS

Jackson will soon get first check from sales tax increase

JACKSON, MS (Mississippi News Now) -

For more than a month now, businesses in the capital city have been collecting a one cent sales tax, meant to fund repairs to the aging streets and sewer system.

Now it's the Department of Revenue's job to make sure all the money collected ends up in the right place.

On April 20th, businesses in Jackson will deposit their first months collection of the one percent sales tax to the state.

Items that are exempt from the tax include groceries, prescription drugs, food and drinks at restaurants, hotel and motel rooms, gas and also television and Internet subscription services.

With years of experience in tax collecting, state officials say from time to time, some goods can go un-taxed.

"They will charge 7% on everything the law does not prohibit that but what the law does say is if you collect a tax on an exempt item, you have to pay it," said Kathy Waterbury with the Mississippi Department of Revenue. "You're not allowed to keep that. They would have to pay that over with that refund."

The money unintentionally taxed on exempt goods will still be given to the city of Jackson.

If you believe you've been hit with the tax on an exempt good you can always ask for your money back from the retailer. State officials say it will all balance out when they look at the books.

"Our job would be in audit to make sure that any tax that is collected or the proper amount of tax is being collected from that particular retailer and that money is going to the city of Jackson or the state if it's a 7% tax," added Waterbury.

The city of Jackson will learn just how much they collected in the first weeks of May.

That's when the Department of Revenue will present them with their first month of tax collections.

Copyright 2014 MSNewsNow. All rights reserved.

Powered by Frankly