Tennessee Appellate Court Holds for Taxpayer that Manufacturing Exemption Does Not Require Production of New Product

In a case involving a taxpayer who rented hygienically clean textiles to its customers, a Tennessee Court of Appeals held for the taxpayer that it was entitled to Tennessee’s industrial machinery tax exemption, because its operations constituted manufacturing that was necessary for processing tangible personal property and, unlike some other states, Tennessee law does not require the production of a new or substantially different product to qualify.

Source Deloitte

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