Thomson Reuters Adds Guidance on Sales And Use Tax Exemptions

The latest topic added to Thomson Reuters Checkpoint Catalyst provides accounting professionals with a state-by-state analysis of the sales and use tax exemptions available for manufacturing-related purchases.

The new topic, Sales and Use Tax: Manufacturing, examines the exemptions for machinery and equipment, ingredients and component parts, and materials that are consumed or destroyed in production. Exemption documentation requirements and other issues are also discussed. The content includes practical insights and many detailed examples designed for tax practitioners who advise manufacturers or producers.

“Manufacturers face many challenges in managing their sales and use tax liabilities. Determining whether their purchases of machinery and equipment are taxable is one of their biggest difficulties,” said David A. Hughes, partner in Horwood Marcus & Berk’s State and Local Tax Group and author of the new content. “While most states provide some sort of exemption for machinery and equipment, the details vary greatly from state to state. This new Checkpoint Catalyst content is an invaluable tool for practitioners who navigate the many manufacturing exemption rules for themselves or their clients.”