Southaven, MS Local Taxes & Fees: Business Tax Classification (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
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Sources & Official References
Other rules in Southaven
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