Indiana refrigeration equipment.

The purchase of an ammonia refrigerator, intended for the use of refrigerating ready-to-bake dough, is exempt from sales and use tax when involved in the production process. During a 48-hour period, the equipment is used to maintain a proper temperature within the taxpayer’s storage area so that a certain air pressure and weight density can be reached within the individual dough containers, in turn completing production of the dough. The refrigerator’s involvement in the production process makes it exempt from sales and use tax. On the other hand, an identical refrigerator which is used not to produce, but rather to store finished dough, is not exempt from sales and use tax. (Indiana Letter Findings, No. 02-0057, February 1, 2003)

Posted on June 15, 2003