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…

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.

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.

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.

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.

Arkansas Issues Legal Opinion Clarifying Manufacturing Machinery and Equipment Exemption

Arkansas has issued a legal opinion clarifying the state’s exemption for manufacturing machinery and equipment.

California Issues Guide for Manufacturing and Research & Development Partial Exemption

California issued an updated tax guide for the state’s expanded manufacturing, research, and development partial sales and use tax exemption.

Plasma Screening Equipment Not Eligible for Texas Manufacturing Exemption

A laboratory’s purchases of equipment and supplies to screen and test plasma for its clients did not qualify for Texas’s manufacturing exemption for sales and use tax.

Missouri Manufacturing Exemption Includes Certain Telecommunications Services

Missouri has enacted legislation clarifying that the state’s manufacturing exemption includes certain telecommunications services.

Iowa Enacts Changes to Definition of Manufacturer and Manufacturing

Iowa has enacted narrowing legislation that makes changes to the terms “Manufacturer” and “Manufacturing” for purposes of the state’s manufacturing exemption.

Separate Exemption Certificates Required for Multiple Locations in Tennessee

Manufacturers who wish to purchase electricity at a reduced rate or exempt from Tennessee sales and use tax must present a certificate of exemption for each manufacturing location.

Maryland Enacts Manufacturing Incentive Program

Maryland has enacted a manufacturing incentive program called the “More Jobs for Marylanders” program.

Kentucky Modifies Manufacturing Exemptions for Energy-Producing Fuels and Tangible Personal Property

Kentucky has enacted legislation that modifies the state’s sales and use tax manufacturing exemptions for energy-producing fuels and tangible personal property.

Purchase of Copier/Printer for Product Label Printing Exempt in Indiana

The purchase of a copier/printer used for printing product labels qualified for an Indiana sales and use tax exemption.

Illinois Issues Guidance on Applicability of Manufacturing Exemption to Commercial Printing

The Illinois Department of Revenue has issued a general information letter regarding whether commercial printing is considered “manufacturing” and if the state’s manufacturing exemption applies to electricity consumed to run printing machinery.

Liner Carts Subject to Partial Manufacturing Exemption in Indiana

The purchase of liner carts by a plastic parts manufacturer was determined to be partially exempt from Indiana use tax since the carts were an integral part of an integrated manufacturing process.