Effective July 1, 2004, Louisiana will exclude 5% of the price of machinery and equipment from state sales tax.
Arizona exempts materials integral to the manufacturing process.
The Arizona Supreme Court held that the silica sand, chemical binders, exothermic sleeves, mold cores, mold wash, and hot topping were exempt from use tax because they “were used directly in and were an integral part of a qualifying process.”…
South Carolina provides guidance on the manufacturing exemption.
The South Carolina Department of Revenue outlines the department’s opinion on what items are considered exempt from sales and use tax for purposes of manufacturing in Revenue Ruling 04-7 by referencing a few cases and providing specific examples. This advisory…
Wyoming enacts exemption for machinery used in manufacturing.
The manufacturing process is considered to begin at the point when raw material is moved from plant inventory and to end at the point at which manufacturing has altered the material to its completed form. The ending point includes the…
Minnesota Refund Claims Must Be Filed By The Purchaser
A Minnesota sales and use tax statute identifies that a purchaser that qualifies for the capital equipment exemption must pay the tax and then submit a request for refund.
New York exempts equipment used by a retailer for purposes of production.
In this case, the taxpayer is a retail home improvement company whose primary customers are “do-it-yourselfers.” The equipment under debate was used to cut and size products in the manner requested by customers. Contrary to the Divisions of Taxation’s argument…
Catalysts not considered exempt for manufacturing in Tennessee.
The Tennessee use tax exemption for industrial machinery does not cover the catalysts used by a chemical manufacturer in its manufacturing process. In a recent case, a manufacturer paid use tax from 1995 – 1997 and sought a refund for…
Alabama oil rollers and toner cartridges not taxable.
In Alabama, the purchase of oil rollers and toner cartridges was exempt from sales tax. It was determined that the oil from the oil rollers and the toner from the toner cartridges were exempt component parts of printed material produced…
California manufacturing exemption to expire.
Recently passed laws in California include a provision for the removal of the partial exemption from the state portion of the sales and use tax for property used in manufacturing. The law pertaining to this exemption, for sales dated on…
Launderer’s chemicals taxable in New Jersey.
A linen supply company that provides laundry services to many hotels, casinos, restaurants, and nursing homes in Atlantic City contested that the chemicals and detergents they use in providing their services should be exempt.
North Carolina reduced manufacturing rate not applicable.
A North Carolina retailer was operating business under the assumption that the work his company did was considered manufacturing and was therefore allowed the 1% reduced sales tax rate. However, since this equipment was purchased for the rebuilding of race…
Kansas chemical production exempt under manufacturing.
Certain equipment used by manufacturers is exempt from Kansas retailers\’ sales tax because they cause or effect a physical change on tangible personal property.
Eyeglass equipment considered manufacturing in Texas.
Equipment purchased by a physician for use in manufacturing lenses for eyeglasses is considered exempt under the Texas manufacturing exemption.
Nebraska exemption on equipment purchases in other states.
The gross receipts on the purchases of industrial machinery or equipment, including parts for repairs,purchases made by Nebraska or its political subdivisions from another state shall not be taxable if the other state provides a similar reciprocal exemption.. The gross…
Illinois Manufacturer’s Purchase Credit repealed.
The tax credit program for manufacturers will cease for purchases of manufacturing machinery and equipment or graphic arts machinery and equipment made after June 30, 2003.
Washington aerospace industry benefits.
H.B. 2294 was approved by the Washington legislature on June 11, 2003. The bill, which includes various tax incentives aimed at the aerospace industry, is meant to improve the overall business climate of the state and improve the odds of…
Rhode Island brewpub not exempt manufacturer.
Materials and equipment used to brew beer in a Rhode Island bar/restaurant were not exempt from sales and use tax as manufacturing equipment. It was decided that the brewpub, which sold beer only to its patrons, was one economic unit…
Indiana refrigeration equipment.
The purchase of an ammonia refrigerator, intended for the use of refrigerating ready-to-bake dough, is exempt from sales and use tax when involved in the production process.
Washington machinery and equipment exemption.
A tax advisory has been issued regarding the manufacturing exemption for computer hardware and peripherals. These items qualify for the exemption if they are used directly in a “qualifying” manufacturing operation. The advisory has a definition for “qualifying” operations that…
Utah semiconductor exemption.
Legislation was passed in Utah providing an exemption for sales or leases of semiconductor processing materials, from July 1, 2001 through June 30, 2004. The tax will be phased out completely after June 30, 2004. There are three stages of…
Michigan Container Exemption
The use of reusable containers in a manufacturer\’s assembly line that improved the efficiency of the line are exempt from Michigan use tax.
Revised manufacturing exemption certificate for California explained.
Beginning December 3, 2002, the manufacturer’s exemption certificate and manufacturer’s use tax declaration will show both the beginning and expiration date of a partial exemption for the leasing of qualified property. Prior to December 3rd, the certificate and declaration were…
Oklahoma manufacturing process eligible for exemption.
In a recent case, a company that manufactured “crushed stone and blended sand” was found to be exempt from state sales and use tax on their purchases of any goods, machinery, or equipment used in this particular manufacturing process. The…
South Carolina machine exemption.
Because a statute only requires a taxpayer’s use of items in its manufacturing process, regardless whether or not it is directly used in the production line, various machines were found exempt. These machines included cleaners, chemicals, buffing machines, lifts, print…