Materials that were used by a Wyoming refinery to construct foundations for manufacturing equipment did not qualify for a sales and use tax exemption on manufacturing machinery.
Divergent Use of Manufacturing Equipment in Texas Discussed.
If a manufacturer uses tax exempt manufacturing equipment to make repairs on a product under the terms of its warranty…
Incentives for Aircraft Repair Stations, Clean Fuel Vehicles, Certain Manufacturing Facilities Extended in Washington
Washington has extended the 0.2904% business and occupation tax rate for Federal Aviation Regulation part 145 certified repair stations from July 1, 2011 to July 1, 2024. The legislation also extends, through December 31, 2015, the sales and use tax…
Ohio Manufacturer Qualified for Direct Marketing Exemption
An Ohio automobile manufacturer’s business activities qualified for the direct marketing exemption and were, therefore, exempt from sales and use tax on items used in the storing, handling, transporting, and mailing of inventory. The manufacturer’s activities qualified as direct marketing…
Michigan Steel Manufacturer’s Conveyor System Exempt
A Michigan steel manufacturer’s material handling conveyor system qualified for the industrial processing exemption from Michigan use tax. The exemption applied to production material handling because once the transportation of raw materials was initialized by the preliminary movement of the…
Publisher Not Eligible for Refund of Florida Sales and Use Tax
A newspaper publisher and commercial printer failed to demonstrate eligibility for a sales and use tax exemption for industrial machinery and equipment used in expanding manufacturing facilities to increase productive output by at least 10%. To reach the 10% requirement,…
Texas Exempts Aircraft if Used for Agricultural Services
Effective September 1, 2009, Texas legislation exempts aircraft from Texas sales and use tax if sold to a person for use exclusively in connection with an agricultural use. To qualify for the exemption the aircraft must be used 95% of…
Nebraska Retail Sales of Wood and Corn Used as Fuel are Exempt
The Nebraska Department of Revenue has released a revenue ruling confirming that the sale or purchase of wood or corn for use as an energy source are exempt from sales and use taxes. The following conditions must be met to…
Gas and Electricity Used in Container Leasing Business Did Not Qualify for Texas Agricultural Exemption
A taxpayer\’s purchase of gas and electricity used to power equipment related to cleaning, sanitizing, and wrapping plastic containers were not exempt from Texas sales and use tax under the agricultural exemption.
Restaurant Equipment Does Not Qualify for Manufacturing Exemption in Missouri
A Missouri restaurant’s purchases of equipment used in the restaurant’s operations were not exempt from Missouri state sales and use tax as manufacturing equipment under Section 144.054, RSMo. To qualify for the manufacturing exemption, equipment must be used or consumed…
Wyoming Manufacturing Exemption Extended
The Wyoming sales and use tax exemption for the sale or lease of machinery used directly and predominantly in manufacturing tangible personal property has been extended from its original discontinuance date of December 31, 2010 to December 31, 2011 (Ch.…
Texas Denies Exemptions to Oil and Gas Producer
A petroleum and natural gas producer was denied an exemption for its purchase of down-hole equipment because it is considered taxable transportation equipment. Since this equipment is not exempt manufacturing equipment, the taxpayer could not receive a credit for tax…
Bar Code Verifiers Not Use in Exempt Quality Control Process in Texas
A manufacturer of shampoos, conditioners, and other cosmetics was denied a manufacturing exemption on its purchases of bar code verifiers. The manufacturer contended that they were used in used in an exempt quality control process to ensure that bar codes…
Indiana Rules on Taxability of Equipment Used in Handling and Blending of Products
An Indiana taxpayer selling fuels, animal feed and fertilizer was found to owe tax on equipment used in their fertilizer and petroleum bulk plant.
Recycling Activity Not Eligible for Manufacturing Exemption in Indiana
The Indiana Department of Revenue found a taxpayer’s purchases of tangible personal property did not qualify for the manufacturing activity. The taxpayer disassembles articles for the scrap components to sell them to scrap buyers. The state found that the taxpayer…
Georgia Adopts a New Manufacturing Machinery and Equipment Rule
The Georgia Department of Revenue has adopted a sales and use tax rule that relates to exemptions for manufacturing machinery and equipment.
Mississippi Discussed the Reduced Rate for Farm Tractors and Implements
The Mississippi State Tax Commission has issued a notice concerning the 1.5% reduced state sales tax rate on purchases of farm tractors, farm implements and parts and labor for agricultural purposes beginning July 1, 2009.
Purchases of Packaging Used to Secure Yarn is Exempt in North Carolina
A yarn manufacturer’s purchase of packaging material used to deliver yarn to its customers was found exempt from North Carolina sales and use tax. To ship its cones of yarn to customers, the taxpayer uses a “yarn pak” which is…
Testing and Recertification Activity Did Not Qualify for Manufacturing in Indiana
Recently, the Indiana Department of Revenue determined that a taxpayer’s testing and recertification activities did not qualify for a manufacturing exemption. The taxpayer, who tests and recertifies used gas cylinders for its customers pursuant to federal regulatory requirements, contended that…
Texas Aircraft used for Agricultural Operations Exempt
Texas has clarified changes relating to exemptions from sales and use tax for certain aircraft, including related machinery and equipment. Effective September 1, 2009, machinery and equipment exclusively used in an agricultural aircraft operation, as defined by 14 C.F.R. Section…
Indiana Finds That Farm’s Forklift Was Taxable
The Indiana Department of Revenue has found that a farmer\’s use of a forklift did not qualify it for the agricultural exemption.
Texas Decides Charges for Manufacturer’s Solid Waste Disposal Were Taxable
The Texas Court of Appeals has upheld a District Court’s decision that a plastic closure manufacturer was not entitled to a refund of sales tax paid on charges for removal and disposal of waste from its plant. The manufacturer paid…
Kansas Court of Appeals Denies Judgment in Integrated Plant Theory Case
The Kansas State Court of Tax Appeals has denied the Kansas Department of Revenue\’s request for summary judgment in response to a cement manufacturer\’s appeal of the Department\’s final written determination denying…
Illinois Extends Graphic Arts Exemption and Manufacturer’s Purchase Credit
The Illinois retailer\’s occupation (sales) tax, service occupation tax, use tax, and service use tax exemption for graphic arts machinery and equipment, including…