Effective July 1, 2017, Utah has enacted a sales and use tax exemption on purchases or leases of certain machinery, equipment, and repair or replacement parts by qualifying automobile manufacturing facilities located in the state. The machinery, equipment or repair or replacement parts must be used to manufacture an item sold as tangible personal property.
Effective July 1, 2017, a sales and use tax exemption has been enacted for purchases or leases of equipment or repair or replacement parts with an economic life of less than three years by industrial gas manufacturing facilities located in Utah. In order to qualify, the equipment or repair or replacement parts must be used to manufacture hydrogen.
The bill also requires the Revenue and Taxation Interim Committee to study annually the exemptions created by this bill for a purchase or lease of machinery, equipment, and parts; requires purchasers that receive the exemptions created by this bill to report information about the purchases to the Governor’s Office of Economic Development; and requires the Governor’s Office of Economic Development to report the information regarding sales-tax exempt purchases to the Revenue and Taxation Interim Committee. (S.B. 132, Laws 2017)