The Tennessee Department of Revenue ruled that industry machinery used in quarries where raw materials are mined is exempt from sales and use taxes. Generally, industrial machinery is defined as “machinery . . . that is necessary to, and primarily for, the fabrication or processing of tangible personal property for resale and consumption off the premises … where the use of such machinery, equipment or facilities is by one who engages in such fabrication or processing as one’s principal business.” Additionally, manufacturing is considered one’s primary business if “more than fifty percent of its revenue at a given location is derived from fabricating or processing tangible personal property for resale.” To claim the exemption, taxpayers must submit an Application for Industrial Machinery, Energy Fuels and Water Sales and Use Tax Exemption form for review by the Department. It is important to note that each location of the taxpayer within the state must register with Tennessee Department of Revenue and each location must separately apply for the industrial machinery exemption as that is authorized on a location basis. Revenue Rulings such as these are advisory but not binding. (Tennessee Department of Revenue, Revenue Ruling #21-12, January 31, 2022)