A recent opinion has been issued by the New York Department of Taxation and Finance regarding how to treat tools, equipment, materials, supplies and services used in producing master recordings of movies, TV shows, and music on compact disc. The…
Utah exemption denied to recycler.
A Utah scrap recycling business’s purchase of equipment was not exempt from Utah sales and use tax as qualifying for the state’s manufacturing exemption because their SIC code in the year in question did not match the true business they…
Rhode Island manufacturing for government not exempt.
Overhead expenses and indirect costs associated with property purchased for a U.S. government work contract were considered taxable because the manufacturer was the purchaser. It was argued that because the title of the indirect materials transferred directly to the government…
Illinois rolling stock exemption.
Rolling stock sold to owners, lessors or shippers are not liable for sales and use tax.
North Carolina states that rebuilding engines does not qualify for manufacturing exemption.
The repair parts were purchased by the taxpayer exempt from sales tax, since the engine was for resale. However, the taxpayer was not a manufacturer because he did not manufacture new and different products for sale. Therefore, the taxpayer was…
Virginia spaceport exemption.
Manufacturing and launching services are only exempt in Virginia if NASA’s facility is owned, leased, or operated by on behalf of the Virginia Commercial Space Flight Authority (VCSFA). Since NASA’s facility did not heed the rule of the VCSFA’s involvement,…
Nebraska previous manufacturing exemption now taxable.
Along with many other Nebraska taxability changes, the sales of lime, synthetic slag, refractory materials, mill rolls, and guides for use in manufacturing steel or cement are now subject to sales and use tax effective October 1, 2002. (L.B. 1085,…
Texas dispensers taxable.
Scales and dispensers used in the processing of french fries were not included in the exemption for manufacturing allowed in Texas. They were considered to be used prior to the manufacturing process and did not cause a chemical or physical…
Ohio exemption for saw sharpening.
An Ohio manufacturer of hardwood lumber was granted an exemption for saw sharpening equipment because it was considered to remanufacture useable blades from old dull blades. Because the machinery was necessary for the functioning of the machinery that completed the…
California’s timber partial-exemption rule promulgated.
As of September 1, 2001, the sale, storage, use, or other consumption of off-road commercial timber harvesting equipment and machinery is exempt from California sales and use tax. As of January 1, 2002, the exemption applies to the 5% state…
Missouri telephone manufacturing exemption.
Purchases of various machinery and equipment used to produce telephone services were found exempt under a Missouri sales and use tax manufacturing exemption. This request for exemption was originally denied because telephone communication was previously viewed as a service, and…
Rhode Island zoning exemption.
A Rhode Island exemption was allowed for materials purchased in connection with an Economic Development Corporation (EDC) project. As a lessee of the EDC, the company was entitled to the same sales and use tax exemptions that the EDC has.…
Connecticut aircraft exemption.
A court case decided that a manufacturer did not have to use purchases directly in the manufacturing process in order to be allowed for exemption.
Kansas integrated parts exempt.
A ruling has been issued that ingredient and component parts that become a part of the finished product are exempt from tax.
Louisiana re-covering not considered manufacturing.
The taxpayer believed that their manufacturing of covers to be applied to their customer\’s rolls of paper constituted manufacturing and should therefore be exempt.
Texas contractor’s purchase exempt.
Because a contractor purchases a security service to monitor a job site during the construction of a university’s student housing, the purchase is considered exempt. Although the exempt status a university carries does not pass through to the contractor, Texas…
Pizza equipment not included in Arizona exemption.
Pizza-making equipment did not qualify for the Arizona transaction privilege and use tax manufacturing exemption. To qualify for the exemption, the equipment must be used directly in a manufacturing or processing operation. Although the manufacturing of the pizza may have…
Crane exemption in Ohio.
A sales and use tax exemption was granted for an Ohio manufacturer for a boom crane, even though it handles raw material before it is committed to manufacturing. It was found that even though the initial breakdown of the raw…
Multiple Mississippi exemptions.
Businesses that operate a project in a Mississippi county that is a member of a Regional Development Business Alliance are allowed an exemption from Mississippi corporate income, franchise, local county and possibly municipal real property taxes. Along with these exemptions,…
Illinois credit clarification.
Regulations on the Illinois Manufacturer’s Purchase Credit have been amended for clarification. A supplier or serviceman must now report the use of the Manufacturers Purchase Credit on sales or purchases on the IL Form ST-1 as a credit, not as…
Equipment regarded as taxable in Pennsylvania.
A Pennsylvania manufacturer contested that their equipment, used at their distribution facility, was essential in the production of its product and that the equipment met the criteria for classes of equipment to which the exemption applies, so therefore should qualify…
Incentive program in Tennessee.
Tennessee allowed an exemption for a manufacturing incentive program through which the manufacturer allows customers to earn points to purchase or obtain merchandise. The merchandise shipped to out-of-state customers was not taxable because title to and possession of the tangible…
Tennessee broadcasting exemption.
The industrial machinery exemption includes certain broadcasting equipment if used by broadcasting companies to process and fabricate tangible personal property such as broadcast signals. This machinery includes but is not limited to: receivers, controllers, field recorders, decoders, transmitters, towers, and…
Environmental control equipment exemption in Massachusetts.
If machinery and equipment is used directly and exclusively in the manufacturing process of medical and pharmaceutical devices such that they are used to maintain a clean air environment for the manufacturing process, then they are exempt from sales tax.…