Tennessee Releases Guidance for Upcoming New Farm Equipment Exemption

The Tennessee Department of Revenue has released guidance on the application of the state\’s revised farm equipment sales and use tax exemption that will come into effect on January 1, 2023.

Virginia Discusses Exemptions for Food and Personal Hygiene Products

Virginia has issued a bulletin discussing the state’s exemption for food purchased for human consumption and essential personal hygiene products.

Sales Tax 101: Determining When Sales Tax Applies

This blog details key items in understanding when a sale is taxable or exempt and what you need to know to ensure that an exemption can be claimed.

California Enacts Sales and Use Tax Exemption for Qualified Hybrid and Zero-Emission Vehicles

Effective January 1, 2023, California has enacted a sales and use tax exemption for qualified motor vehicles (including designated hybrid and zero-emission vehicles) sold to qualified buyers.

Idaho Issues New Exemption Certificate for Real Property Contractors

Idaho has issued a new sales tax exemption certificate for real property contractors.

Colorado Enacts Exemption for Essential Hygiene Products, Effective January 1, 2023

Effective January 1, 2023, Colorado has enacted legislation creating a state-level sales and use tax exemption on the sale, storage, use or consumption of incontinence products, diapers, and period products.

Alabama Denies Exemption Certificate For Contractor After Completion of Government Project

An electrical subcontractor working on a project for the University of Alabama was denied their request for a sales and use exemption certificate by the Alabama Tax Tribunal.

Drugs Sold for Clinical Trials are Free from Sales and Use Tax in Tennessee

In a letter ruling approved by David Gerragano the Commissioner of Tennessee department of Revenue on June 16th, 2022, it was determined that drugs sold in relation to a clinical trial are exempt from sales and use tax.

Michigan Court of Appeals: Recycling machines do not qualify for Industrial Processing Exemption

A Michigan Court of Appeals on July 21, 2022 upheld a ruling that the seller of recycling machines did not qualify for the state’s industrial processing exemption.

Virginia Expands Sales Tax Exemption for Network Equipment

The Governor of Virginia, Glenn Youngkin, has signed H.B. 1155, which expands the sales and use tax exemption on equipment that is used to provide internet services.

Certain Large Data Centers’ Purchases Exempt from Sales Tax in Nebraska

The Governor of Nebraska, Pete Ricketts recently signed a bill that will exempt sales tax on certain purchases made by large data centers.

Certain Agricultural Products Exempt from Sales and Use Tax in Alabama

The governor of Alabama, Kav Ivey (R) recently signed various bills applying to tax relief, one including agricultural products being exempt from sales and use tax under certain circumstances.

Colorado Use Tax Exemption for Construction Materials Used for Public Schools

Colorado enacted a use tax exemption for construction materials used to build and renovate public schools across the state, including home rule cities.

Ohio Determines Electronic Accounting Transactions are Not Exempt Accounting Services

In Ohio, a financial institution claimed to be providing nontaxable services and software, but the Ohio Supreme Court affirmed that the financial institution failed to show the services and software were nontaxable.

Virginia Extends Sales Tax Exemption on Bullion

Virginia’s sales and use tax exemption for retail sales of gold, silver, and platinum bullion and legal tender coins that was set to expire June 30, 2022, has now been extended.

Ohio Explains New Rule Regarding Oil and Gas Production Exemption on Purchased Tangible Personal Property

Ohio has a new rule explaining the exemption on tangible personal property used for gas and oil production.

Colorado Extends Small Retailer Sourcing Rules Exemption

Colorado has extended their small retail sourcing rules exemption, stating that small retailers in Colorado may continue to source sales to their business location regardless of where the property or service is received.

Tennessee Exempts Industrial Machinery Used in Quarries from Sales Tax

The Tennessee Department of Revenue ruled that industry machinery used in quarries where raw materials are mined is exempt from sales and use taxes.

The District of Columbia Exempts At-Home COVID Tests from Sales Tax

Beginning on January 24, 2022, the D.C. Office of Tax and Revenue exempts at-home COVID-19 tests from the District’s sales and use tax.

Washington Taxpayer Denied M&E Exemption After Proving to Not be a Manufacturer

A Washington hardware provider was denied the state’s machine and equipment (M&E) sales tax exemption for their purchases of plastic injection molds used to house their hardware system.

County Fair Associations Exempt From Sales Tax in Texas

The Texas Comptroller of Public Accounts adopts amendments to §3.322 which covers exempt organizations in the state which includes county fair associations.

California Expands Sales Tax Exemption to Include Electric Power

The California Department of Tax and Fee Administration has amended their Code of Regulations to expand their partial sales and use tax exemption for research and development to include the production, storage, and distribution of electric power.

Tennessee Aircraft Repair Sales Tax Exemptions

The Tennessee Department of Revenue determined in a letter ruling that some aircraft repairs are exempt from sales tax in the state.

Manufacturing Sales Tax Exemptions: Making the Case

There are many opportunities to take advantage of sales tax exemptions in the manufacturing industry. Here are quick tips to uncover more and sometimes unexpected manufacturing exemptions for your company.