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 not required for the installation or construction of the equipment. However, the Department stated that lubricants used to operate material recovery processing machinery were exempt from tax. Material recovery processing machinery is machinery which is used primarily to convert materials into a different form or usable product which is then used to created a new product. (Letter Ruling No. LR3597, Missouri Department of Revenue, January 18, 2007)

Posted on April 26, 2007