Privilege Licenses
The City of Canton defers to the laws of the State of Mississippi in regard to legally operating a business within the city limits. According to State Code 27-17-9, in order to lawfully operate a business, a tax shall be paid to the municipality within which the business shall operate and a license obtained for the privilege of engaging, or continuing, in business within the municipality. Business owners must apply for a privilege license, pay the associated tax, and obtain the license prior to operating a business within the City of Canton.

Amount of Tax
The amount of a privilege license tax depends upon the number of employees and the type of business. Service businesses included non-manufacturing and manufacturing types of business and retail / wholesale businesses include those operating a store for the sale of goods, wares, and merchandise.

Tax Rates

• For any service business having 3 or fewer employees, the annual tax is $20.

• For any service business having more than 3 but fewer than 11 employees, the annual tax is $30.

• For a non-manufacturing business, the annual tax is $30, plus an additional assessment of $3 for each employee over 10 employees. The tax will not exceed $150.

• For a manufacturer having 11 or more employees, the annual tax is $80.

• For a wholesale or retail business, the amount of tax depends on the value of the store’s stock. For example, if the value of the stock is $7,000 or below, the annual privilege tax is $20.

For your store’s exact tax amount, please contact the city’s Privilege License Office.

For more information and to obtain a license to operate a business in the City of Canton, please contact Kevin Harris at 601-859-4331.