Regarding tools purchased to fix machinery in manufacturing food products: is this sales tax exempt?


Every state’s sales tax laws are particular to that state. As a general rule, items purchased for internal use, such as tools that your organization use, are subject to sales and use tax. Raw materials purchased for use in manufacturing a product and inventory purchased for resale are exempt; equipment used in the manufacturing process are typically exempt, but the tools used to repair that equipment are less often included in any exemption.

You will need to check with the specific state in which you are operating.  See TAPN’s State Tax Agencies for contact information to state departments of revenue.

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