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For Immediate Release
April 7, 2008
Kansas – Manufacturing 101 – DOR Discusses Certain Exemptions
The Kansas Department of Revenue has issued a release
that discusses the sales tax treatment of sales of heating, ventilation,
and air conditioning (“HVAC”) equipment for use in manufacturing
facilities to control the environment. The release also discusses
pollution control equipment.
Environment control equipment that is used in
regulating the environment in certain “special and limited” areas of
manufacturing facilities are exempt for sales and use tax purposes. An
example of special and limited areas is a clean room. Also included is
HVAC equipment that is designed for the special and limited area. The
area must be serviced by environmental control equipment that is:
Pollution control equipment that is used to control
pollution generated from the manufacturing process is exempt provided the
equipment is not part of the plant’s regular HVAC systems, not part of the
plant’s plumbing, is hooded or has an intake register adjacent to the
pollution source, and is operated simultaneously when gas, dust, or other
airborne or waterborne pollution is generated.
If you would like additional
information on this topic or have any questions,
please contact the taxdesk@thesaltgroup.com
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