Machinery and Equipment Used to Blend Hog Feed Exempt in Missouri

Wednesday, July 29th, 2015

 
 
Farm machinery.
Share
Link
Missouri
Manufacturing

The Missouri Department of Revenue recently ruled that the manufacturing exemption applies to a contractor's purchases of machinery and equipment used to blend hog feed.

The hog feed mill takes various unusable ingredients from a single customer and blends them into useable hog feed (which will then be used by the customer). This process constitutes manufacturing because it consists of altering the ingredients in such a way that a product with a different use, identity, and value is produced from the original ingredients.

This ruling also determined that the farm machinery and equipment exemption does not apply to this machinery and equipment because it is not being used for agricultural purposes.

Additionally, this ruling decided that the contractor's purchases of building materials used in building the hog feed mill are taxable. These items do not qualify as manufacturing or farm machinery or equipment because they are used by the contractor in making real property improvements. As a result, the contractor is considered to be the end user and should pay tax on these materials.

http://dor.mo.gov/rulings/show.php?num=7586


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.

Washington Announces Imported Goods Will Now Be Taxed

Thursday, March 21st, 2019 -The Washington Department of Revenue recently announced that effective March 14, 2019, a retail sales exemptio...

Marketplace Facilitators of Software Products to be...

Friday, March 15th, 2019 -The Commissioner of Taxation and Finance in New York released an advisory opinion that determined third partie...

Arkansas Rules on Taxability of Repairs and Labor Related...

Wednesday, March 13th, 2019 -The Arkansas Department of Finance and Administration recently released an administrative decision addressing ...

Studio Room Rental for Photography Sessions is Subject to...

Wednesday, March 6th, 2019 -The Missouri Department of Revenue (DOR) has released a letter ruling addressing the taxability of studio room...

Unprocessed Sand Not Taxable in Texas

Monday, March 4th, 2019 -The Texas Comptroller recently released a private letter ruling that found the mining and selling of unprocess...

California to Require Additional Registration and...

Friday, March 1st, 2019 -California recently released a special notice for out-of-state retailers who are required to register with the...