Mississippi Meal Plans Now Tax Exempt

Mississippi Gov. Haley Barbour has signed a bill that will exclude retail sales tax on prepaid meal plans sold on the campus of state colleges and universities. Mississippi State traditionally had not assessed taxes on meal plan and flex dollar sales in the mistaken belief that they didn’t have to. It began charging the seven percent tax last October after discovering otherwise, while lobbying the state legislature to change the law. Now, the bill signed by Barbour will exempt sales tax from declining balance meal plans like flex dollars. The exemption only applies to students.