Mississippi Tells Justices Pipeline Owes Use Tax on Freight Fees

Tennessee Gas Pipeline Co. owes Mississippi more than $85,000 in use taxes on freight charges for purchases it made in the state, the department of revenue told the Mississippi Supreme Court Tuesday.

The department wants the high court to overturn a 2023 chancery court ruling that the company doesn’t owe use tax on the shipping charges because they were part of a separate transaction with a third party, not the seller.

State law is clear that the definition of “purchase or sales price” in the use tax statute includes the freight charges at issue, the department said on direct appeal ...