Sales and Use Tax Reduced Rates

Sales and Use Tax Reduced Rates. In addition to the Mississippi Motion Picture Incentive Program, Mississippi offers a sales and use tax reduction on eligible rentals/purchases to encourage film production in the state. Production equipment and machinery used directly in the filming and/or editing of a project may be taxed at the reduced rate of 1.5%, as stated in Miss. Code Ann. Section 27-65-11 and Section 27-65-17. The following production equipment is eligible for this reduced rate: A. Audio equipment B. Camera equipment C. Editing equipment D. Lighting equipment E. Projection equipment F. Sound equipment G. Computer equipment used for animation, editing, or special effects