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.
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.
Arkansas issued a legal opinion discussing the application of the state’s manufacturing machinery and equipment exemption.
A zinc refining facility was held liable for Illinois use tax on its out-of-state purchases of metallurgical coke for use in the refining process.
A taxpayer’s motion of summary judgement against the Minnesota Commissioner of Revenue’s denial of its refund claim for sales tax paid for natural gas and electricity was granted.
Illinois has expanded the state’s manufacturing sales and use tax exemption to include production related tangible personal property, effective July 1, 2019.
An Indiana-based processor was not entitled to an exemption on utility purchases since they were used in processes that took place outside the production process.
Ohio has expanded the definition of things transferred for use in a manufacturing operation.
The Arkansas Department of Finance and Administration partially sustained the denial of a taxpayer\’s claim for refund of tax paid on purchases of tangible personal property and services.
Arkansas has issued a legal opinion clarifying the state’s exemption for manufacturing machinery and equipment.