A Missouri Letter Ruling determined that a metal fabrication and precision machining firm’s purchases of printing supplies that are directly used in the firm’s manufacturing process are included in the exemption from state sales and use tax and local use…
Illinois Manufacturing Machinery and Equipment Regulation Updated
An Illinois sales and use tax statute has been amended to include production-related tangible personal property in an exemption covering manufacturing and assembling machinery and equipment.
Georgia Enacts Temporary Fuel and Electricity Exemption for Manufacturers
Georgia has enacted a temporary, partial exemption from state sales and use tax with respect to the sale or use of natural or artificial gas, certain fuel oil, propane, petroleum coke, and coal used directly or indirectly in the manufacture or processing of tangible personal property primarily for resale.
Returnable Pallets Taxable in Minnesota
The Minnesota Department of Revenue issued a Revenue Notice concerning the taxability of returnable skids and pallets used for the storage and transport of food and beverage products. The Department ruled that skids and pallets are used primarily for storage…
Florida Exemption Qualify for Replacement Industrial Machinery and Equipment
Replacement industrial machinery and equipment qualify for a Florida sales and use tax exemption as repairs, with the exception of the electrical substation.
Carbon Dioxide Used in Alabama Chicken Processing Plant Taxable
Alabama sales tax was due on carbon dioxide used in a chicken processing plant to cool the chicken immediately after it was cooked, so that it could be efficiently cut into pieces. Despite the fact that the carbon dioxide remained…
New York Exemption Applies to Conveyor Used to Move Concrete Aggregate
In New York, a conveyor system used by a company to transport concrete aggregate products to stockpiles qualifies for the state’s sales and use tax exemption for equipment used directly and predominately in the production process under section ยง 1115(a)…
Louisiana Manufacturing Phase-Out Tax Accelerated
The current manufacturing phase-out of Louisiana sales and use tax on certain manufacturing machinery and equipment has been accelerated to exclude 100% of the purchase, lease, or rental of qualifying manufacturing machinery.
Tennessee Crates Not Exempt As Packaging Materials
The Tennessee Department of Revenue issued Revenue Ruling No. 08-19, in response to a taxpayer’s inquiry as to whether or not leases or rentals of crates used for transporting packaged food products are subject to sales and use tax. The…
Tax Applies to Chemical Used in Paper Manufacturing Process in Virginia
In a recent ruling, the use of Immunol, a chemical used to clean the calendar stacks that smooth the paper by compressing it between two large metal rollers, was deemed taxable since it was used on calendar stack rollers prior…
Colorado Expansion of Manufacturing Equipment Exemption Discussed
Effective May 23, 2007, the exemption on manufacturing equipment was expanded to include machinery and machine tools, or parts for such machinery, used in the production of electricity from a renewable energy source, including, but not limited to, wind. This…
Materials Consumed in Treatment of By-Products Exempt in Kansas
Purchases of tangible property consumed in the treatment of by-products or wastes during the production, manufacturing, processing, mining, drilling, refining or compounding of tangible personal property are exempt from sales tax. The exemption is provided regardless if the production process…
Florida Sale of Property Used to Make Finished Product Taxable
A Technical Assistance Advisement (TAA) was issued concerning Florida sales tax stating that a Florida dealer must collect and remit Florida sales tax on the sale of tangible personal property to a nonresident customer when the property is shipped to…
Expanded Exemptions for Farmers announced in Wisconsin
Silviculture, defined as the business of raising trees for timber, lumber and other wood products, including the logging of timber when it is performed, now qualifies for tax exemption because of a new expanded definition of farming. Tractors, machines, other…
Oklahoma Exemptions for Manufacturing for Persons Engaged in Extraction and Manufacturing of Crushed Stone and Sand
Persons involved in extraction and manufacturing of crushed stone and sand can be issued manufacturer exemption permits which allow tax exempt purchases of tangible personal property and services to be used in all phases of manufacturing of crushed stone and…
Missouri Establishes Manufacturing Exemptions
Effective August 28, 2007, Senate Bill 30 provides Missouri manufacturers an exemption from state tax and local use tax (but not local sales tax) on electrical energy, gas (natural or artificial), water, coal, energy sources, chemicals, machinery, equipment and materials…
Colorado Exemption for Cleanroom Machinery Enacted
All sales, storage, and use of machinery, in excess of $500, that comprises a cleanroom used to produce tangible property are exempt from tax.
Minnesota Exempts Fuel and Electricity Used for Agricultural Production
Minnesota provides a sales tax exemption for fuels, electricity, gas, and steam used in the agricultural production process,
Florida Company Whose Output Increases by at Lease 10% Eligible for Exemption
A project being conducted at a company qualified for the expanding business exemption from Florida sales/use tax.
Arkansas Reduces Tax on Utilities Used in Manufacturing
Arkansas has implemented an emergency rule which reduces the sales and use tax rate on natural gas and electricity. Effective July 1, 2007, the tax rate for utilities used directly in the actual manufacturing process is reduced from 6% to…
Electricity Used in Agriculture Exempt in Florida If Separately Metered
Florida amended its statutes regarding the exemption of electricity consumed directly or indirectly in the production or processing of agricultural products.
Utah Manufacturing Exemption Includes Printing Presses
A response letter to a taxpayer’s inquiry stated that the purchase of new printing presses for use in a new facility (as upgrades to the printer’s operations) qualified for the manufacturing exemption from Utah sales and use tax under both…
Equipment Used in Construction Debris Removal May Qualify for NY Exemption
A recent petition from a taxpayer to the New York Commissioner of Taxation and Finance inquired whether or not any of the equipment or trucks used to remove debris from railroad construction sites qualified as…
Missouri Discusses Taxability of Lubricants
The Missouri Department of Revenue issued a letter ruling addressing the taxability of lubricants used in manufacturing machinery and equipment. In this ruling, the Department stated that lubricants used in the operation of manufacturing equipment were taxable as they were…