State revenue agents are on the lookout for property owners and operators renting beach lots to cruisers.
The Mississippi Department of Revenue wants its 7 percent sales tax on the income from the rentals. Mississippi charges sales tax for transient cars, trucks, trailers and recreational vehicles parked for a fee. Paid parking lots and garages also are subject to the sales tax, said Kathy Waterbury of DOR.
It doesn’t matter that Cruisin’ The Coast is a once-a-year deal. It doesn’t matter that you pay property taxes on the beach lot already. State law requires the property owner or operator collecting income from the lot to register their business with the DOR and pay sales tax.
Cruisers on Biloxi and Gulfport lots reported that state revenue agents are making rounds to inquire about the taxes. Some cruisers said they are staying free on beach lots so no tax is owed; others reported spots are going for $200 to $500 per week.