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Mississippi law does not conform with section 1381 et seq., i.r.c. with respect to the tax treatment of corporations operating on a cooperative basis. patronage dividends, based solely on patronage and not stock ownership, actually paid or distributed to a patron by a corporation operating on a cooperative basis may be deducted by such corporation in determining mississippi taxable income. patronage dividends which are retained by the corporation in the form of "per-unit retain allocations" and identified on the books of the corporation as "qualified allocation margins" are not deductible by the corporation and must be included as an element of taxable income for mississippi income tax purposes, regardless of whether or not the patron signs his or her written notice of allocation as defined in 26 u.s.c. 1388 ; . such "per-unit retain allocations, " taxable to the corporation, are not taxable to the patron until such allocations are, by vote of the stockholders, actually distributed, in whole or in part, to the patron. corporations operating on a cooperative basis are not, therefore, treated as "tax-option corporations" under mississippi law and no authority for such presently exists. section 27-7-29 a ; 7 ; provides that there shall be exempt from the tax imposed by this article "farmers and fruit growers cooperatives or other like organizations organized and operated as sales agents for the purpose of marketing the products of members and turning back to them the proceeds of sales, less the necessary selling expenses and on the basis of the quantity of produce furnished by them, and other nonprofit agricultural associations organized and operated under the provisions of the cooperative marketing association is organized and operated as a nonprofit association within the provisions of the cooperative marketing laws of this state", such cooperative is exempt from income taxation under the mississippi income tax law. mississippi law does not conform with section 1381, irc, with respect to the levy of an income tax on nonprofit farmers cooperatives. a corporation or other taxable entity not organized as a nonprofit cooperative marketing association within the scope of the cooperative marketing laws of this state is subject to taxation under the provisions of the mississippi income tax law in the same manner of any other corporation doing business within the state. mississippi law does not conform with subchapter t of the internal revenue code with respect to the taxation of corporations operating on a cooperative basis. the entire net income of the corporation derived from sources in mississippi, with the exception of amounts paid in money as patronage dividends to patrons on the basis of the business done with or for such patrons, is subject to the measure of the mississippi income tax levy. the net income of the corporation operating on a cooperative basis ; shall not be reduced by amount representing qualified written notices of allocation, nonqualified written notices of allocations, per-unit retain allocations, qualified or nonqualified per-unit retain certificates, dividends or other property. only patronage dividends paid in cash money ; by the corporation to the patron and based solely on business done with or for such patron may be deducted in determining. 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