Raw Materials, Tools, and Wiring May Be Exempt In Fabrication

Tools acquired for use in the fabrication of tangible personal property are exempt from Indiana sales tax. An exemption is also extended for raw materials incorporated into manufactured, refined, or assembled tangible personal property for resale. Wiring and other parts serving as an electrical distribution system, also qualify for an exemption provided they are directly connected to equipment involved in production. (Revenue Ruling No. 2005-07ST, Indiana DOR)

Posted on April 7, 2006