Virginia (Nov. 2014)
Manufacturing Exemption. The Department of Taxation ruled that various items, including transformers and electrical distribution equipment, purchased by a taxpayer to upgrade its manufacturing plant were exempt from Virginia sales and use tax. Pursuant to Va. Code §58.1-609.3(2), “machinery, tools, equipment or repair parts or replacements thereof, shall be exempt if the preponderance of their use is directly in processing, manufacturing, refining, mining or converting products for sale or resale.” Under this test, the Department also ruled that the foundation on which the equipment is located also qualified for the manufacturing exemption because it was directly used in quality control.
Va. P.D. 14-172
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