The Georgia Department of Revenue has ruled that a provider of dismantling and demolition services did not qualify for the state’s sales and use tax exemption for manufacturers. The taxpayer removes obsolete scrap from customers’ sites and prepares the removed scrap metal for sale to steel mills or local scrap yards. The taxpayer does not receive monetary compensation for the demolition services. The taxpayer’s only income is generated by the sale of the recovered scrap metal. In Georgia, “manufacturer” means a person or business that is engaged in the manufacture of tangible personal property for sale or further manufacturing. To be considered a manufacturer, the person or business must be: classified as a manufacturer under the 2007 North American Industrial Classification System Sectors 21, 31, 32, or 33, or North American Industrial Classification System industry code 22111 or specific code 511110; or generally regarded as being a manufacturer. The taxpayer has an NAICS code of 423930 and is therefore not classified as a manufacturer under the 2007 North American Industrial Classification System. Since the majority of the taxpayer’s income comes from the sale of scrap metal and waste, it would not generally be regarded as a manufacturer. As a result, the taxpayer does not meet the statutory definition of a manufacturer and does not qualify for the state’s manufacturing exemption. (Letter Ruling LR SUT-2016-20, Georgia Department of Revenue, October 11, 2016, released January 4, 2017)