Colorado Issues Letter Ruling on Contract Manufacturing Services

Friday, May 1st, 2015

 
 
Manufacturing machinery.
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The Colorado Department of Revenue ruled that manufacturing services provided on raw materials owned by the customer were not subject to tax.

Manufacturing services are not designated as taxable, and the services provided by the manufacturer were not provided as part of the sale of tangible personal property. As a result, the services were not taxable.

The ruling also determined that the manufacturer's machinery and equipment qualified for the manufacturing exemption because the manufacturer predominantly used the machinery and equipment to produce tangible personal property for sale. This exemption did not require manufacturing machinery and equipment to be used exclusively in producing property for sale.

https://www.colorado.gov/pacific/sites/default/files/Contract%20Manufacturing%20General%20Infomration%20Letter%20GIL%2015-004.pdf


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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.

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