• Mississippi Supreme Court: This Cheeseburger Might Cause Heartburn Mobility Medical, Inc. and Mobility Medical of North Mississippi, LLC v. Mississippi Dep't of Revenue
  • June 10, 2013
  • Law Firm: Jones Walker LLP - New Orleans Office
  • Using the analogy of a $4.00 cheeseburger, the Mississippi Supreme Court has ruled that Mississippi retailers generally are not required to add sales tax to the purchase price of taxable goods sold in the state or to collect those taxes from their customers. The Court made this seemingly unprecedented ruling in order to uphold a sales tax assessment on sales of medical equipment paid directly by insurance carriers participating in the Federal Employees Health Benefits Plan ("FEHBP"), notwithstanding a federal law that purports to prohibit the assessment of any state taxes "directly or indirectly, on a carrier or an underwriting or plan administration subcontractor of an approved health benefits plan . . . with respect to any payment made from the [Employee Health Benefits] Fund." Mobility Medical, Inc. and Mobility Medical of North Mississippi, LLC v Mississippi Dep't of Revenue, No. 2011-CA-01780-SCT, June 6, 2013.