If you are a gun owner in Mississippi, you’re in luck. The state has issued a sales tax exemption on the purchase of firearms, ammunition, archery, and other types of hunting and shooting equipment this weekend.
According to news reports, the tax exemption will go into effect starting on midnight Friday, Sept. 4 and will run through midnight Sunday.
This is the second year that Mississippi imposes what is known as the “Second Amendment Sales Tax Holiday.” The event offers similar tax breaks to those offered for back-to-school item, except it applies specifically to gun-related purchases.
Residents will enjoy tax-free shopping on items such as shotguns, rifles, pistols, ammo, gun cases, and other similar artillery items.
Last year, the tax break appeared to be a success. According to Brian Smith, who owns six USA Pawn stores in central Mississippi, there was an increase in sales due to the tax, but he expects a larger profit this year now that more people are aware of the tax exemption.
“Once more people know about it I think it will pick up steam,” explained Smith.
So how did this gun tax exemption even come about?
Apparently, it’s all thanks to one man, state Sen. Philip Moran, R-Kiln. Moran, with the support of the National Rifle Association, enacted the tax break to help :the everyday, working family who wants to get out and enjoy hunting.”
Unfortunately, the final bill did not include all the specifics Moran initially cited, which he was disappointed about. Items such as fishing gear and hunting clothes are not exempt from taxation.
Aside from benefitting locals, the tax break has also caught the attention of non-residents, with several tourists flocking to Mississippi to take advantage of the gun tax exemption.
However, not everyone is keen on the tax holiday. Similar weaponry tax breaks have been proposed in states like Alabama and Texas, but have not been approved. Legislators in these states argue that the tax break would end up costing the state hundreds of thousands in revenue.
Yet, in Mississippi, things run a little differently. According to state tax holiday laws, there’s no mechanism in place that allows for calculating revenue costs. Businesses are not required to report sales from tax exemptions, so there’s no way to accurately determine whether or not the tax holidays are benefitting the state or causing it to lose revenue.
Still, those who are in favor of the tax breaks argue that even if there is a negative impact on state revenue, it will be a small one. The fact that the tax holidays attract tourists from neighboring states should balance out any costs.
Yet, while some might be celebrating the money they will be saving with the tax exemption, others are busy struggling with issues related to their own tax problems. Around this time of year, many locals turn to a Mississippi tax lawyer for help with their personal or business tax matters. Tax extensions only extend until October, which means many Mississippi residents will be scrambling to complete their filings so as to avoid any penalties.
Anyone in Mississippi who needs help with any tax-related matter can turn to a tax attorney for assistance. Filing mistakes can end up costing thousands, but a skilled lawyer can catch any errors before they are submitted to the IRS, saving taxpayers money and the headache of dealing with an IRS audit.