Arkansas Rules on Pollution Reduction Equipment Exemptions

An Arkansas taxpayer protested the denials of sales tax refund claims resulting from audits.

New Mexico Creates Gross Receipts Tax Deductions for Sales of Specific Services to Manufacturers

The New Mexico Department of Revenue provided a new law allowing receipts from selling certain professional services to be deducted from New Mexico gross receipts for taxing purposes.

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.

Alabama Manufacturer Requests Reduced Machine Rate

An Alabama taxpayer that manufactures rockets requested a partial sales tax refund for tax paid on helium and nitrogen.

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.

Kentucky Enacts Manufacturing Electricity Exemption for Mining of Cryptocurrency

On July 1, 2021, the state of Kentucky enacted a new sales tax exemption for electricity that is used or consumed in the commercial mining of cryptocurrency.

Arkansas Supreme Court Affirms Manufacturer’s Exemption for Steel Grit

The Arkansas Supreme Court affirmed that purchases of steel grit used by a company manufacturing pipes qualified for the sales and use tax manufacturing equipment exemption.

Louisiana Taxpayer’s Caustic Chemicals Qualify for Pollution Control Sales Tax Exemption

The Louisiana Board of Tax Appeals corrected the Louisiana Department of Revenue’s incorrect denial of a taxpayer’s refund claim for the purchase of sodium hydroxide.

Texas Provides Guidance Regarding Manufacturing Exemptions

The Texas Comptroller issued new guidance stating that exemptions for state sales and use tax apply to those who manufacture, fabricate, or process tangible personal property for sale.

Manufacturing Exemptions Do Not Apply to Block Chain in Kentucky

Kentucky has stated that the state’s sales and use tax exemptions for traditional manufacturing do not apply to block chain production.

Michigan Holds that Recycling Machines Qualify for Industrial Processing Exemption

Michigan held that sales of container recycling machines qualify for the state’s sales and use tax exemption on machinery used in industrial processing.

Cement Company Activities Qualify as Processing Activities Under Nebraska Advantage Act, Not Manufacturing

The activities of a cement company did not qualify as “manufacturing” under the Nebraska Advantage Act but did constitute “processing\” for purposes of the Act’s sales and use tax incentives.

Not-To-Be-Missed Sales Tax Updates out of the Midwest

When it comes to sales tax, there is no such thing as “fly over country.” If you have business operations in the Midwest or make sales into Midwestern states, you must stay on top of sales tax changes that impact…

Iowa Enacts Change to Persons Eligible for Manufacturing Exemption

Effective August 19, 2020, Iowa has enacted legislation that narrows the limitation on persons eligible for the state’s manufacturing sales tax exemption.

Sales of Coffee and Tea Brewing Equipment Qualify for Reduced Manufacturing Rate in Alabama

A manufacturer’s sales of coffee and brewing equipment were subject to Alabama’s reduced sales and use tax rate since the products qualify as machines used to process tangible personal property.

New Jersey Enacts Exemption for Energy and Utility Services Provided to Recovered Materials Manufacturing Facilities

New Jersey has enacted an exemption for energy and utility services provided to or by a recovered materials manufacturing facility.

Sales Tax Nuances of Trade Show Attendance

Trade show attendance in another state can create physical nexus and trigger sales tax obligations. Learn key nuances of trade show rules across the states.

Arkansas Discusses Application of Manufacturing Machinery and Equipment Exemption

Arkansas issued a legal opinion discussing the application of the state’s manufacturing machinery and equipment exemption.

Metallurgical Coke Did Not Qualify for Manufacturing Chemical Exemption in Illinois

A zinc refining facility was held liable for Illinois use tax on its out-of-state purchases of metallurgical coke for use in the refining process.

Taxpayer Allowed Minnesota Industrial Production Exemption on Natural Gas and Electricity Purchases

A taxpayer’s motion of summary judgement against the Minnesota Commissioner of Revenue’s denial of its refund claim for sales tax paid for natural gas and electricity was granted.

Illinois Expands Manufacturing Machinery and Equipment Exemption

Illinois has expanded the state’s manufacturing sales and use tax exemption to include production related tangible personal property, effective July 1, 2019.

Processor’s Purchase of Utilities Not Exempt in Indiana

An Indiana-based processor was not entitled to an exemption on utility purchases since they were used in processes that took place outside the production process.

Ohio Updates Manufacturing Sales Tax Rule

Ohio has expanded the definition of things transferred for use in a manufacturing operation.

Arkansas Administrative Decision Examines Taxability of Replacement Part Purchases

The Arkansas Department of Finance and Administration partially sustained the denial of a taxpayer\’s claim for refund of tax paid on purchases of tangible personal property and services.