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.
California Extends Partial Manufacturing Exemption
California has extended the end date for the state’s partial sales and use tax exemption for manufacturing from July 1, 2022 to July 1, 2030 and expanded the exemption’s coverage.
Graphic Arts Machinery and Equipment Included in Illinois Manufacturing Exemption
Effective July 1, 2017, graphic arts machinery and equipment are included in the Illinois manufacturing and assembling machinery and equipment exemption. Graphic arts equipment was previously included in a different exemption.
Arkansas to Phase-In Full Exemption for Certain Manufacturing Purchases
Arkansas amended its use tax refund for partial replacement and repair of certain machinery and equipment. Beginning July 1, 2022, purchases qualifying for the tax refund will be 100% exempt.
Utah Enacts Exemptions for Auto Manufacturers and Industrial Gas Manufacturers
Effective July 1, 2017, Utah enacted a sales and use tax exemption on purchases or leases of certain machinery, equipment, and repair or replacement parts by qualifying automobile manufacturing facilities in the state.
Dismantling and Demolition Service Do Not Qualify for Georgia Manufacturing Exemption
A dismantling and demolition services provider did not qualify for Georgia’s sale and use tax exemption for manufacturers as it was not classified nor generally regarded as a manufacturer
Ventilation System Does Not Qualify for Manufacturing Exemption in Wyoming
A ventilation system purchased by a beet processing plant was denied a manufacturing equipment exemption from Wyoming sales and use tax because it did not qualify as machinery that operated directly and predominantly in manufacturing.
Iowa Adopts Amendments to Regulations for Manufacturing Exemption
Effective November 16, 2016, the Iowa Department of Revenue adopted amendments to its regulations concerning the state’s manufacturing exemption, which was expanded to include replacement parts and supplies earlier in the year.