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Southaven, MS Local Taxes & Fees: Business Tax Classification (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Issued by
The city tax collector
Three or fewer employees
$20.00 per year
Three to fewer than eleven employees
$30.00 per year
Eleven or more employees
$30.00 plus $3.00 per employee over ten, capped at $150.00
Manufacturer, eleven or more
$80.00 per year
Term and penalty
One year; tax plus penalty up to $500.00

Summary

In the City of Southaven, Mississippi, every business must buy an annual privilege license from the city tax collector before opening. The fee is set by headcount and business type: $20.00 for three or fewer employees, $30.00 up to eleven, a $150.00 cap for larger businesses, and $80.00 for a manufacturer with eleven or more employees.

Sec. 8-119. - Fee. The annual cost of a privilege license shall be as follows: (1)The sum of twenty dollars ($20.00) for businesses having three (3) or fewer employees.(2)The sum of thirty dollars ($30.00) for businesses having three (3) but fewer than eleven (11) employees.(3)The sum of thirty dollars ($30.00) together with an additional assessment of three dollars ($3.00) for each employee over ten (10) employees, which sum is not to exceed a maximum of one hundred fifty dollars ($150.00) for a business (excluding a manufacturer) having eleven (11) or more employees.(4)The sum of eighty dollars ($80.00) for a manufacturer who has eleven (11) or more employees. Those manufacturers who have ten (10) or fewer employees shall pay a privilege license in accordance with subsections (1) or (2) of this section.

Full Breakdown

The Southaven Privilege License Ordinance (Title VIII, Chapter 5, Ord. No. 47, 9-21-88) classifies businesses by number of employees, with a separate class for manufacturers. Section 8-117 requires each person who desires to engage in any business located within the corporate limits of the city to obtain a privilege license from the tax collector of the city before commencing the business.

Section 8-118 requires a written application on forms provided by the municipal tax collector, sworn to by the owner or an owner with an ownership interest, the officer who collects the privilege tax, or a duly authorized agent. It asks for the name of the person or corporation (each partner in a partnership), the business office address, the location the license applies to, the nature of the business, and the total number of employees for the twelve (12) months before the application.

The annual cost in § 8-119 is $20.00 for businesses having three (3) or fewer employees, $30.00 for three (3) but fewer than eleven (11) employees, and $30.00 plus $3.00 for each employee over ten (10), up to a maximum of $150.00, for a business other than a manufacturer with eleven (11) or more employees. A manufacturer with eleven or more employees pays $80.00, and a manufacturer with ten (10) or fewer employees pays under subsection (1) or (2). The code prints the number three in both of the first two tiers.

Each license expires one (1) year from issuance (§ 8-120). Home-based businesses use the same license: § 8-2 sends them to sections 8-117 and 8-119.

Violations & Fines

Under § 8-121, a person who willfully fails to secure a privilege license and pay the tax before commencing operation owes the tax plus a penalty not exceeding $500.00, and the same applies to failing to obtain a new or renewal license. A tax unpaid for thirty (30) days is delinquent, and the tax collector is empowered to collect the tax and penalties.

Frequently Asked Questions

How much is a Southaven business license?
Section 8-119 sets the annual privilege license at $20.00 for three or fewer employees and $30.00 for three but fewer than eleven employees. A business with eleven or more employees pays $30.00 plus $3.00 for each employee over ten, capped at $150.00, and a manufacturer with eleven or more employees pays $80.00.
Who issues the privilege license in Southaven?
The tax collector of the City of Southaven. Section 8-117 requires each person who desires to engage in any business located within the corporate limits to obtain the license from the tax collector before commencing business, and § 8-118 says the application goes on forms provided by the municipal tax collector.
What does the license application ask for?
Section 8-118 asks for the name of the applicant (each partner in a partnership), the business office address, the location of the place of business, the nature of the business, and the total number of employees for the twelve (12) months before the application. The application must be sworn to and subscribed.
What is the penalty for operating without a Southaven license?
Under § 8-121, a person who willfully fails to secure a license and pay the tax before commencing operation is liable for the tax plus a penalty not exceeding $500.00. Tax unpaid for thirty (30) days is deemed delinquent and the tax collector can begin collection.

Sources & Official References

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