Motor Grader Was Exempt Manufacturing Machinery in Nebraska

Monday, March 24th, 2014


The Nebraska Supreme Court recently ruled that a taxpayer's purchase of a motor grader was exempt even if the grader was not used more than 50% of the time in manufacturing.

The taxpayer was a manufacturer. It used a motor grader to maintain haul roads and to maintain the inventory stockpile areas.

Nebraska exempts sales of machinery to manufacturers for use in manufacturing. The Department of Revenue's policy was that machinery was exempt only if more than 50% of the machinery's use was in manufacturing.

The Court ruled that the machinery did not have to be used in manufacturing more than 50% of the time. The statute exempts machinery used in manufacturing. It does not specify a percentage of time the machinery must be used for manufacturing. Any amount of use in manufacturing is therefore enough. Because maintaining inventory stockpile areas was a use in manufacturing, the motor grader was exempt.

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 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...