The Delaware Supreme Court found that the wholesalers\’ gross receipts tax applied on an out-of-state auto manufacturer\’s receipts resulting from vehicles delivered in Delaware did not violate the Commerce Clause of the U.S. Constitution.
Taxability of Farm Trailers Discussed in Tennessee
The Tennessee Attorney General has issued an opinion concerning the taxability of farm trailers. Trailers purchased by famers may be exempt from sales and use tax if used on a farm more than 50% of the time for the purpose…
Arkansas Manufacturing Exemption Amended
Arkansas has amended its sales and use tax exemption to clarify that a partial replacement of manufacturing machinery and equipment which improves manufacturing efficiency is exempt. Machinery and equipment used directly in the manufacturing process include: molds, frames, cavities, and…
Kentucky Manufacturer’s Purchase of Machinery Meets Requirements for Tax Exemption
The Kentucky Board of Tax Appeals has determined that machinery purchased to be used directly in the manufacturing process by a manufacturer and retailer of German meats and sausages in order to expand its operations to include wholesale production is…
Missouri Cement Manufacturing Equipment Taxable
A Missouri Letter Ruling issued by the Director of Revenue did not exempt a cement manufacturer’s barge, pneumatic equipment, and dome cement storage structure from sales or use tax. The items did not qualify for the exemption under Section 144.030.2(5),…
Iowa Spectrographic Color-Matching Machine Tax Exempt
The Iowa Court of Appeals upheld a decision made by a district court that exempted a spectrographic color-matching machine from Iowa\’s sales and use taxes.
Missouri Deer Feed Sales Taxable; Fencing Supplies for Agricultural Purposes
Sales of feed and seed mixes to customers who feed whitetail deer used for breeding and hunting are not exempt from Missouri sales tax. Sales of feed for livestock are exempt from sales tax, but whitetail deer do not meet…
Michigan Agricultural Equipment Exemption Enacted
Effective January 6, 2009, the sale of machinery that is capable of simultaneously harvesting grain or other crops and biomass and machinery used for the purpose of harvesting biomass is exempt from Michigan sales tax.
Illinois Exemption for Equipment Used in Graphic Arts Manufacturing Set to Expire
The Illinois Retailer\’s Occupation Tax (ROT) exemption for graphic arts machinery and equipment expires on July 29, 2009.
Wind Turbine Electricity Production Qualifies As Exempt Manufacturing in Pennsylvania
The generation of electricity through the use of wind turbines qualifies as manufacturing under the Pennsylvania tax law. In addition, machinery, equipment, parts, and foundations that are predominantly and directly used in the production or generation of electricity are exempt.…
Missouri Manufacturing Safety Equipment Exemptions
In a letter ruling issued in July 2008, the Missouri Director of Revenue explained that the sales of safety equipment, such as steel-toed boots or safety glasses, to a manufacturer or to a manufacturer’s employee are exempt from state sales…
Missouri Purchases of Power Sources to Expand Manufacturing Facility Exempt
The Missouri Department of Revenue ruled that a taxpayer’s purchases of power transformers, switchgears, and other supporting utilities were exempt from sales tax as machinery and equipment used to expand an existing manufacturing plant. The taxpayer’s purchases will be used…
Virginia Taxability of Software Used in Manufacturing and Pollution Control Equipment Discussed
A manufacturer of coffee products was liable for Virginia use tax when it purchased computer software to enhance its production. Since the software was not directly used in the production of the final product, but rather to help plan and…
Ohio Exempts Items Used in Warehouses and Distribution Centers
Effective June 24, 2008, Ohio enacted a budget bill that exempts some items from state sales tax. Sales of machinery, equipment, and software to a “qualified direct selling entity” for use in a warehouse or distribution center used primarily in…
Missouri Electricity Used in a Meat Processing Plant is Subject to Tax
Electricity used in a meat processing facility is subject to sales and use taxes because it has been deemed more comparable to a butcher’s shop than a processing plant. The meat processing facility receives cuts of meat and packages them…
Missouri Installation Equipment is Subject to Tax
A corporation’s rentals of cranes and forklifts used to manufacture and install materials for other manufacturers are taxable in Missouri. The cranes and forklifts are not considered to be materials and supplies; and therefore, are not exempt under Paragraphs (4)…
Offshore Oil and Gas Exploration Equipment Exempt from Sales and Use Tax in Texas
In a recent Letter Ruling, the Texas Comptroller of Public Accounts stated that the purchase of materials by an offshore geological surveying company used to assemble seismic nodes qualify for the exemption from sales and use tax for tangible personal…
Missouri Aircraft Exemption Enacted
Effective January 1, 2009, any aircraft materials, parts, or equipment bought to use (directly or indirectly) for the maintenance, repair, or replacement of any aircraft or aircraft power plants are exempt from Missouri sales and use taxes. This exemption will…
Wrapping and Packaging Goods Not Tax Exempt for Retailers in Texas
Retailers are not tax exempt when purchasing point of sale wrapping and packaging goods from manufacturers. Since the manufacturing process is complete when items are packaged or wrapped up for the purpose of selling those items, the retailer cannot be…
Louisiana Supreme Court Rules Bleaching Chemicals Exempt
The Supreme Court of Louisiana reversed the decision of the appellate court and reinstated the Board of Tax Appeals decision that a Louisiana manufacturer’s purchases of sodium chlorate, hydrogen peroxide, and elemental oxygen for use in the bleaching of white…
Georgia Supreme Court Reverses Replacement and Repair Parts Ruling
The Supreme Court of Georgia reversed a 2007 Georgia Court of Appeals ruling that the 1997 version of an exemption statute created an exemption for manufacturing machinery replacement and repair parts.
North Carolina Phases Out Some Taxes Imposed On Manufacturers and Farmers
The North Carolina sales and use tax of 2.6% on sales of electricity to manufacturing industries and plants, and 2.83% on sales to farmers will be gradually phased out beginning October 1, 2007, and eventually eliminated effective July 1, 2010.…
Georgia Amends Manufacturing Exemption Language
Georgia has expanded its manufacturing sales and use tax exemption to include all machinery, equipment, and replacement parts which are \”necessary and integral to\” the manufacture of tangible personal property.
Missouri Determines Priming Service Included in Steel Fabrication Taxable
According to a recent Missouri Letter Ruling, a steel fabricator who primes residential steel products prior to sale must collect sales tax on the entire selling price, even if the priming service is stated separately from the fabrication process on…