Blast Freezing Equipment Exempt in Indiana

Thursday, December 21st, 2017

 
 
Indiana State House
Share
Link
Indiana
Manufacturing

The Indiana Supreme Court recently ruled that the state manufacturing exemption applies to equipment and electricity used to blast freeze food products.

The taxpayer operated a freezing and storage facility that provided slow and blast freezing services. Blast freezing extends the shelf life of frozen foods through a rapid freezing process. Slow freezing takes longer and results in lower food quality and shorter shelf life.

Indiana exempts equipment and electricity used in the direct production of tangible personal property. Indiana interprets "direct production" to include activities that are essential and integral to producing a distinct marketable product.

The court determined that equipment and electricity used to blast freeze food were exempt because they were essential and integral to the production of "blast-frozen food." The court determined that slow freezing is simply a means of storage, so equipment used in slow freezing did not qualify for the exemption.

https://www.ttrus.com/Blast Freezing Equipment Exempt in Indiana


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Vehicles Used to Transport Materials between Facilities...

Wednesday, August 15th, 2018 -The Arkansas Department of Finance and Administration recently ruled that a vehicle used to transport in-proce...

Economic Nexus in Washington

Monday, August 13th, 2018 -Effective October 1, 2018, certain out-of-state businesses will be required to collect and pay Washington sale...

Economic Nexus in Michigan

Thursday, August 9th, 2018 -Effective October 1, 2018, certain out-of-state sellers will be required to collect and pay Michigan sales or ...

Georgia Suspends Tax on Jet Fuel

Wednesday, August 8th, 2018 -Effective August 1, 2018, Georgia no longer collects state level sales and use tax on jet fuel. Georgia tax...

Employment Services Contracts for Permanent Employees Not...

Monday, August 6th, 2018 -The Ohio Board of Tax Appeals recently addressed whether contracts entered into by an employment services agen...

Alarm Systems and Monitoring Not Taxable in Missouri

Wednesday, August 1st, 2018 -The Missouri Department of Revenue recently released a ruling determining that (1) security, fire, tornado, an...