The Kentucky Supreme Court recently reversed the lower courts ruling that certain supplies consumed in manufacturing qualify for exemption from sales and use tax. The Court held that supplies such as industrial gases, anode stubs, inductotherm lining, welding wire, and thermocouples purchased by an aluminum manufacturer qualify for exemption because the supplies are consumed within the manufacturing process, have a useful life of less than one year, and are frequently purchased to maintain the manufacturing process. Manufacturers that purchase a high volume of consumable supplies should take advantage of this ruling.
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