- A manufacturer in Washington was denied an exemption for packaging machinery and equipment after relocating packaging activity to a separate location
- Manufacturers need to understand state-specific exemptions for machinery and equipment
- Aprio’s State and Local Tax team can help manufacturers maximize eligibility for exemptions and identify refund opportunities
- Washington Department of Revenue ruled that machinery and equipment used at a separate warehouse was subject to sales tax
- The case involved a manufacturer of vitamins who opened a separate warehouse for packaging and distribution
- Washington law exempts machinery and equipment used directly in a manufacturing operation, but activities must take place at the manufacturing site
- Storing and packaging goods that do not constitute manufacturing are not exempt unless they occur at the manufacturing site.
Source: aprio.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.
