Electricity and Equipment Used to Provide Freezing Services Taxable in Indiana

Tuesday, January 17th, 2017

 
 
The inside of a walk-in freezer.
Share
Link
Indiana
Food

The Indiana Tax Court ruled that electricity and equipment used to freeze customers' food was taxable.

A taxpayer provided freezing services to its customers. The customers were food manufacturers. The taxpayer purchased electricity and equipment to freeze food for prolonged shelf-life. The taxpayer claimed these purchases were exempt because they were used in a food production process.

Indiana exempts purchases of electricity or equipment used in an "integrated production process" to produce tangible personal property. The process must create a new product.

The Tax Court ruled that freezing the food was not a production process. Freezing the food, by itself, did not create a new product. As a result, the electricity and freezer equipment were taxable.

http://www.in.gov/judiciary/opinions/pdf/011117mbw.pdf


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...