- Manufacturing sales tax exemptions vary by state.
- These exemptions can apply to purchases of raw materials, machinery, or equipment used in manufacturing.
- Understanding these exemptions can reduce tax liability, improve cash flow, and ensure compliance with state and local tax laws.
- Sales tax is an indirect tax applied to most purchases of tangible personal property and certain services.
- Manufacturing involves transforming raw materials into finished goods.
- Sales tax exemptions can significantly impact a manufacturing operation’s bottom line.
- Sales tax exemptions generally fall into several categories:
- Machinery and equipment exemptions
- Raw materials exemptions
- Manufacturing services exemptions
- Machinery and equipment exemptions often apply to machinery and equipment used directly in manufacturing, including pre
- and post-production tasks.
Source: taxjar.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
