The State of Louisiana has issued a final rule under the authority of R.S. 47:301 and R.S. 47:511.
Idaho Exempts Property Used in Research and Development.
The State of Idaho has passed a law exempting property used for research and development from sales and use tax.
Categorizes Manufactured Signs as Tangible Personal Property.
Categorizes Manufactured Signs as Tangible Personal Property.
Florida Discusses Taxability of Fabrication and Retail Sales.
A Florida Taxpayer who purchased materials for fabrication into various functional shapes that are then permanently installed into real property was required to collect tax on the sale of the finished product.
California Ceases to Permit Manufacturing Equipment Exemption.
In two recent amendments to California regulations, the State Board of Equalization stated that the partial manufacturing equipment exemption as it relates to the purchase and lease of tangible personal property used in manufacturing is no longer in effect as…
Connecticut Deems Service Provider not Eligible to Take Manufacturing Exemption.
The Connecticut Department of Revenue Services issued a ruling stating that a company that provided goods as well as services was not entitled to take the benefit of the manufacturing exemption.
Tennessee Discusses Taxability of Steel Fabrication.
In a letter ruling, the Tennessee Department of Revenue stated that a business that fabricated iron and steel could accept a resale certificate from a dealer planning to resell the material rather than install it. The fabricator would have to…
Indiana Issues Letter of Findings in Regards to Manufacturing Exemption and Resale Exemption.
A taxpayer whose main business operation was the finishing of furniture products provided by its customers and then returning such items was not able to employ either the manufacturing exemption or the resale exemption under a recent audit.
Indiana products consumed in the production of electricity exempt.
An Indiana company is in the business of developing and manufacturing electricity using a new technology that is \”cleaner\” than methods traditionally used with emissions levels that fall below both current and anticipated future environmental standards.
Plant regulators exempt as pesticides in Florida.
Ethylene gas, used in Florida to process fruit, was exempt from taxation as a “plant regulator.” Under Florida regulation “Plant Regulators” are a subcategory of pesticides, which are tax exempt. Originally the taxpayer argued that the ethylene gas should be…
North Carolina refinishing and manufacturing company does not qualify for exemption.
A North Carolina company whose business is comprised of 80% resurfacing and 20% new fabrication of metal cylinders used in printing did not qualify for the exemption granted to manufacturers. The Assistant Secretary concluded that the resurfacing service did not…
Florida exemption of Pollution Control.
A Florida technical assistance advisement was recently published explaining the exemption of a manufacturer’s pollution control equipment. Typically a part of the manufacturing process, the brownstock washing and the oxygen delignification system are used as integral parts of the pulp…
Connecticut Rules Electricity Generation Is Not Exempt
The Connecticut Department of Revenue Services has changed its position on whether electricity generation qualifies as “processing.” They ruled that since electricity generation does not apply materials and labor to existing tangible personal property, it is not included under the…
Illinois Manufacturer’s Purchase Credit (MPC) reinstated as of September 1, 2004.
Purchases of machinery and equipment made on or after that date will earn a credit equal to 50% of the 6.25%, or 3.125%, of the state sales tax rate. Printers and newspaper companies will also be allowed to apply the…
Illinois Graphic arts machinery and equipment exemption reinstated as of September 1, 2004.
The prior exemption was eliminated on July 1, 2003 and the reinstated exemption will be a mirror of the prior exemption. The exemption will apply to machinery and equipment used for graphic arts and will include new and used machinery…
North Carolina change in electricity rate.
A 2.83% sales tax rate that applies to manufacturer’s purchases of qualified electricity replaces the current graduated rate and is now effective as of October 1, 2004. With this repeal of the 2001 provision on the reduction of tax rates…
Indiana automotive components exempt.
An automotive component manufacturer was entitled to an exemption from Indiana sales and use tax for equipment and supplies that were either consumed or used in the process of manufacturing.
Virginia changes manufacturing exemption for public utilities.
Along with many other changes in Virginia tax law, this change represents only a portion of changes instituted by the Tax Reform Compromise Act of 2004. The current exemption for industrial tools, machinery, materials and packaging will no longer apply…
Arizona provides incentives to aid forest health.
Two new Arizona transaction privilege (sales) and use tax incentives have been enacted and are available from July 1, 2004 until June 30, 2014 that aim to assist businesses primarily engaged in the maintenance and health of forest zones. The…
Oklahoma partial refund found for manufacturer.
A producer of saleable hydrocarbons filed for a refund of sales tax paid on the purchase of equipment and related items used in the processing of the hydrocarbons. The request covered purchases made between March 1, 1997 and February 29,…
Virginia change in utility exemption.
Effective on July 1, 2004, tangible personal property sold or leased to a public service corporation (1) engaged in business as a common carrier of property or passengers by motor, (2) subject to a state franchise or license tax upon…
Louisiana manufacturing form available.
Effective July 1, 2004, a new form has been published for Louisiana\’s new sales tax exclusion for manufacturing machinery and equipment.
Florida determines taxability of new-facility machinery and equipment.
Based on a petition submitted by a Florida taxpayer, a technical assistance advisement has been issued to explain how tax and exemptions apply to new manufacturing facilities.
Mississippi Motion Picture Exemption
Effective July 1, 2004, sales and use tax exemptions as well as corporate and personal income tax credits are allowed for motion picture production companies that produce nationally distributed motion pictures, television series, or commercials in the state.