Here you can read up on significant developments in the world of sales and use tax. Find the latest legislative updates and helpful tips to keep you in compliance across all 50 states. You can filter news items by topic and/or a jurisdiction of interest.
The Washington Department of Revenue has issued guidance regarding the tax treatment of items that are manufactured for a business’s own commercial or industrial use.
On September 6, 2023, the Tennessee Appeals Court at Nashville issued a majority ruling upholding the Chancery Court’s decision in the case Alsco, Inc. v. Tennessee Department of Revenue, number M2022-01019-COA-R3-CV.
In a private letter ruling issued on June 2, 2023, the Illinois Department of Revenue ruled that an Illinois company’s machinery was exempt from sales tax due to its role in preserving and maintaining food to be sold.
The Indiana Department of Revenue (DOR) determined that certain items purchased by an auto parts manufacturer qualified for the state’s manufacturing exemption.
Indiana has issued a revenue ruling stating that equipment used in a climate-controlled clean room qualified for the state’s manufacturing exemption.
Effective July 1, 2023, Tennessee has enacted legislation that amends the state’s definition of “industrial machinery” for purposes of the state’s industrial machinery exemption.
In a memo released in the wake of its success in a court case addressing the issue earlier this year, Texas elaborated on its reasons for denying companies performing refurbishment services a manufacturing exemption on wrapping and packaging items.
The Supreme Court of Missouri has sided with the Department of Revenue and ruled that CarFax cannot claim manufacturing exemptions for their use of servers to generate vehicle information reports.
Machinery used in or consumed as an integral or essential part of an integrated production operation is not subject to sales and use tax in the State of Vermont as of July 2022 following an amendment expanding the Manufacturing Tax Exemption.
In a decision impacting manufacturers in North Carolina, the state’s Department of Revenue, Sales and Use Tax Division explained in a private letter ruling request that the purchasers of machinery and equipment for a manufacturing plant are not exempt from state sales and use tax.
An Arkansas taxpayer protested the denials of sales tax refund claims resulting from audits.
The New Mexico Department of Revenue provided a new law allowing receipts from selling certain professional services to be deducted from New Mexico gross receipts for taxing purposes.
A Washington hardware provider was denied the state’s machine and equipment (M&E) sales tax exemption for their purchases of plastic injection molds used to house their hardware system.
An Alabama taxpayer that manufactures rockets requested a partial sales tax refund for tax paid on helium and nitrogen.
On July 1, 2021, the state of Kentucky enacted a new sales tax exemption for electricity that is used or consumed in the commercial mining of cryptocurrency.
The Arkansas Supreme Court affirmed that purchases of steel grit used by a company manufacturing pipes qualified for the sales and use tax manufacturing equipment exemption.
The Louisiana Board of Tax Appeals corrected the Louisiana Department of Revenue’s incorrect denial of a taxpayer’s refund claim for the purchase of sodium hydroxide.
The Texas Comptroller issued new guidance stating that exemptions for state sales and use tax apply to those who manufacture, fabricate, or process tangible personal property for sale.
Kentucky has stated that the state’s sales and use tax exemptions for traditional manufacturing do not apply to block chain production.
Michigan held that sales of container recycling machines qualify for the state’s sales and use tax exemption on machinery used in industrial processing.
The activities of a cement company did not qualify as “manufacturing” under the Nebraska Advantage Act but did constitute “processing\” for purposes of the Act’s sales and use tax incentives.
Effective August 19, 2020, Iowa has enacted legislation that narrows the limitation on persons eligible for the state’s manufacturing sales tax exemption.
A manufacturer’s sales of coffee and brewing equipment were subject to Alabama’s reduced sales and use tax rate since the products qualify as machines used to process tangible personal property.
New Jersey has enacted an exemption for energy and utility services provided to or by a recovered materials manufacturing facility.