Oil and grease did not qualify as components of machinery and equipment used directly in mining and metallurgical operations in Arizona.
Tennessee Expands Industrial Machinery Exemption
Effective July 1, 2014, Tennessee’s sales and use tax exemption for industrial machinery is expanded to include machinery necessary for and primarily used for the manufacture of firearms equipped with integral devices that allow a user to program the firearm…
Consumable Supplies Added to Georgia Manufacturing Exemption
Georgia has enacted new legislation pertaining to the sales and use tax exemption that applies to the sale, use, or storage of machinery or equipment necessary and integral to the manufacture of tangible personal property…
Indiana Discusses Exemption for Nonreturnable Packaging Materials
A company that provided industrial processing services to customers but was not a retail merchant was liable for Indiana use tax on purchases of nonreturnable packaging materials.
California Enacts Manufacturing and R&D Equipment Exemption
California Gov. Jerry Brown has enacted a state sales and use tax exemption for purchases of manufacturing and research and development (R&D) equipment by biotechnology and manufacturing companies. Effective July 1, 2014 through July 1, 2022, the sale, storage, use,…
Florida Revises Exemption on Machinery and Equipment Used to Increase Productive Output
Florida has issued an amendment to the sales and use tax exemption for machinery and equipment used to increase productive output.
Oklahoma Amends Rules Affecting Manufacturers
Oklahoma has made changes to sales and use tax rules affecting manufacturers. An amended rule states that a contractor or a subcontractor can purchase tangible personal property or services exempt from sales and use tax pursuant to a contract with…
Natural Gas Used in Ovens Qualifies for Manufacturing Exemption in Tennessee
Natural gas that is used in metered ovens at a food production facility producing food for resale qualifies for the sales and use tax manufacturing exemption on gas used in a manufacturing process in Tennessee. The natural gas is used…
Labor to Repair Baking Pans Exempt in Florida
The purchase of repair labor to re-glaze and straighten baking pans used by bakeries, as well as the purchase of replacement baking pans with a three-year depreciable life, is exempt from Florida sales and use tax as repairs to an…
Kentucky Manufacturer Denied Partial Energy Exemptions
A Kentucky court ruling was upheld that denied a manufacturer refunds of sales and use tax and utilities gross receipts license tax that the manufacturer sought based on energy-related partial exemptions. The exemptions were the partial exemption from sales and…
Equipment Used to Produce Energy Star Windows Exempt in Maryland
Effective July 1, 2012, machinery or equipment used directly and predominately to produce Energy Star windows or entry doors for residential real property are exempt from Maryland sales and use tax. The exemption also applies to electricity, fuel, and other…
Wind Turbine Not Subject to Tax in Massachusetts
A wind turbine used to provide electricity to a plant that produces semiconductor processing equipment is exempt from Massachusetts sales and use tax since it is machinery used directly and exclusively in furnishing power to an industrial manufacturing plant. Sales…
Freezer Racks Exempt as Industrial Machinery in Tennessee
Freezer racks used at a food production facility qualify as industrial machinery and are therefore exempt from Tennessee sales and use tax. The freezer racks qualify as equipment necessary to the taxpayer’s processing operation because they allow the taxpayer to…
Sign Manufacturer Treated as Contractor on Installed Signs in Texas
A taxpayer that manufactured signs was held to be a contractor for Texas sales tax purposes and as a result, was not eligible to claim a manufacturing exemption on its purchase of utilities, equipment, and materials used in manufacturing the…
Containers Qualify for Machinery Exemption in Tennessee
The Tennessee Department of Revenue ruled that reusable specialty containers used to transport parts that are component parts of the item being manufactured from a storage facility to an assembly line are exempt from sales and use tax as industrial machinery.
New Mexico Expands Deductions for Manufacturing Consumables
New Mexico has enacted legislation that expands deductions for manufacturing consumables. Receipts from selling tangible personal property consumed in the manufacturing of a product to a person engaged in the business of manufacturing that product and who delivers a nontaxable…
Arkansas Reduces Tax Rate on Utilities Sold to Manufacturers and Electric Power Generators
Arkansas has reduced the sales and use tax rates on natural gas and electricity sold to manufacturers and to specified electric power generators. Effective July 1, 2011, the sales and use tax rate on natural gas and electricity sold to…
Utilities Used to Prepare Food at Missouri Retail Establishment Not Exempt
The Missouri Supreme Court, reversing a decision of the Administrative Hearing Commission, held that a convenience store is not exempt from sales and use tax on electricity purchased for its food preparation operations. Missouri tax law provides a tax exemption…
Washington Clarifies Manufacturing Exemption
The Washington Department of Revenue issued a notice clarifying the sales and use tax exemption for manufacturing machinery and equipment. Recently enacted legislation made several clarifications for the purposes of the exemption: state agencies are not manufacturers; public service businesses…
Kansas Manufacturer Entitled to Integrated Plant Theory Exemption
The Kansas Supreme Court upheld a decision made in favor of a taxpayer seeking a refund of sales tax paid under the integrated plant theory exemption.
Brain Scanning Device Prototype Subject to Sales and Use Tax
A Missouri company that contracted with a third-party manufacturer to produce a prototype of a brain scanning device must pay Missouri sales and use tax on the transaction. Missouri tax law exempts from state sales and use tax “machinery, equipment,…
Missouri Discusses Qualification Requirements for Material Recovery Processing Plant
In a letter ruling, the Missouri Department of Revenue discussed the requirements for machinery and equipment used in a qualifying material recovery processing plant. A taxpayer who recovers sawdust and converts it into wood pellets qualifies as a material recovery…
Illinois Graphic Arts Machinery and Equipment Exemption Regulation Updated
An Illinois sales tax regulation exempting graphic arts machinery and equipment from the Retailers\’ Occupation Tax was updated to include the new sunset date of the exemption.
Washington Manufacturer Liable for Tax On Chemicals Used in Etching Process
A Washington Manufacturer of Electronic Products was liable for use tax on chemicals utilized in the etching of patterns on wafers used in the manufacturing process. In order to qualify for the tax exemption, the primary purpose of the chemical…