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.
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