Tennessee Updates Definition of Industrial Machinery for Sales Tax Exemption

Effective July 1, 2023, Tennessee has enacted legislation that amends the state’s definition of “industrial machinery” for purposes of the state’s industrial machinery exemption.

Texas Clarifies Manufacturing Exemptions Do Not Apply to Service Providers

In a memo released in the wake of its success in a court case addressing the issue earlier this year, Texas elaborated on its reasons for denying companies performing refurbishment services a manufacturing exemption on wrapping and packaging items.

Missouri Supreme Court Denies Carfax’s Use of Manufacturing Exemption For Their Computer Servers

The Supreme Court of Missouri has sided with the Department of Revenue and ruled that CarFax cannot claim manufacturing exemptions for their use of servers to generate vehicle information reports.

Vermont expands sales and use tax manufacturing exemption to include machinery and equipment in integrated production operation

Machinery used in or consumed as an integral or essential part of an integrated production operation is not subject to sales and use tax in the State of Vermont as of July 2022 following an amendment expanding the Manufacturing Tax Exemption.

North Carolina ruling on taxation of manufacturing machinery and equipment offers a reminder for taxpayers in all states

In a decision impacting manufacturers in North Carolina, the state’s Department of Revenue, Sales and Use Tax Division explained in a private letter ruling request that the purchasers of machinery and equipment for a manufacturing plant are not exempt from state sales and use tax.

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.