Louisiana re-covering not considered manufacturing.

The taxpayer believed that their manufacturing of covers to be applied to their customer’s rolls of paper constituted manufacturing and should therefore be exempt. However, it was ruled that the re-covering of rolls used in the paper manufacturing was viewed more as a repair of tangible personal property and hence was considered a taxable transaction. (Louisiana Court of Appeal, Second Circuit, No. 36,100-CA, June 14, 2002)

Posted on October 15, 2002