We are a manufacturer in Kentucky and purchase filters for our incinerator (pollution equipment). Are these exempt from sales tax?


APP2P has a matrix entitled Sales & Use Tax: What's Taxable, State by State. Once you are there you can scroll down to Kentucky and go to "click here," and you will be directed to the state Web site where you can find complete sales and use tax information. (To the left of "click here", exemptions are summarized for you by cursoring over "Exemptions.")

We realize that specific information can be difficult to find by going to the state site, so we have extracted the following information for you fromhttp://www.lrc.state.ky.us/KRS/139-00/470.PDF: Tangible personal property which is directly used in manufacturing or industrial processing, if the property has a useful life of less than one year, is exempt. Specifically these items are categorized as follows: a) Materials -This refers to the raw materials which become an ingredient or component part of supplies or exempt industrial tools. b) Supplies -This category includes supplies such as lubricating and compounding oils, grease, machine waste, abrasives, chemicals, solvents, fluxes, anodes, filtering materials, fire brick, catalysts, dyes, refrigerants, explosives, etc. The supplies indicated above need not come in direct contact with a manufactured product to be exempt. "Supplies" does not include repair, replacement, or spare parts of any kind. We suggest that you contact a Kentucky tax service center to verify that this information is correct. Go to http://revenue.ky.gov/servicecenter.htm and find the center for your area.

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