Kentucky Statutes 139.486 – Sale, use, storage, or consumption of “industrial machinery” — Definitions for section
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(1) As used in this section:
(a) “Industrial machinery” means machinery manufactured in Kentucky directly used in manufacturing or processing which operations encompass all activities commencing with the receipt of the raw materials through the point at which the finished product is ready for sale and delivery to the purchaser.
(b) The term “processing” shall include: the processing and packaging of raw materials, in-process materials and finished products; the processing and packaging of farm and dairy products for sale; and the extraction of minerals, ores, coal, clay, stone, and natural gas.
(2) Any other provision of this section to the contrary notwithstanding, the terms “sale at retail,” “retail sale,” “use,” “storage,” and “consumption,” do not include the sale, use, storage, or other consumption of “industrial machinery,” when the “industrial machinery” is delivered to a manufacturer or processor, or their agent for use out of state.
(3) For purposes of the exemptions provided in subsection (2) of this section, “industrial machinery” will be presumed for sale, use, storage, or consumption outside the state if:
(a) Delivery is to a common carrier, whether chosen by the seller or by the purchaser, and whether F.O.B. seller’s shipping point or F.O.B. purchaser’s destination, provided the shipping document indicates delivery to a location outside the state; or
(b) Delivery is made by seller’s own transportation vehicles to a location outside the state.
Effective: August 1, 2008
History: Amended 2008 Ky. Acts ch. 95, sec. 11, effective August 1, 2008. — Created
1982 Ky. Acts ch. 431, sec. 2, effective July 15, 1982.
(a) “Industrial machinery” means machinery manufactured in Kentucky directly used in manufacturing or processing which operations encompass all activities commencing with the receipt of the raw materials through the point at which the finished product is ready for sale and delivery to the purchaser.
Terms Used In Kentucky Statutes 139.486
- consumption: as used in this chapter , shall not include the sale, use, storage, or other consumption of:
(1) Locomotives or rolling stock, including materials for the construction, repair, or modification thereof, or fuel or supplies for the direct operation of locomotives and trains, used or to be used in interstate commerce. See Kentucky Statutes 139.480 - Manufacturing: means any process through which material having little or no commercial value for its intended use before processing has appreciable commercial value for its intended use after processing by the machinery. See Kentucky Statutes 139.010
- Sale: includes but is not limited to:
1. See Kentucky Statutes 139.010 - Seller: includes every person engaged in the business of selling tangible personal property, digital property, or services of a kind, the gross receipts from the retail sale of which are required to be included in the measure of the sales tax, and every person engaged in making sales for resale. See Kentucky Statutes 139.010
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
- Storage: includes any keeping or retention in this state for any purpose except sale in the regular course of business or subsequent use solely outside this state of tangible personal property, digital property, or prewritten computer software access services purchased from a retailer. See Kentucky Statutes 139.010
- Use: includes the exercise of:
1. See Kentucky Statutes 139.010
(b) The term “processing” shall include: the processing and packaging of raw materials, in-process materials and finished products; the processing and packaging of farm and dairy products for sale; and the extraction of minerals, ores, coal, clay, stone, and natural gas.
(2) Any other provision of this section to the contrary notwithstanding, the terms “sale at retail,” “retail sale,” “use,” “storage,” and “consumption,” do not include the sale, use, storage, or other consumption of “industrial machinery,” when the “industrial machinery” is delivered to a manufacturer or processor, or their agent for use out of state.
(3) For purposes of the exemptions provided in subsection (2) of this section, “industrial machinery” will be presumed for sale, use, storage, or consumption outside the state if:
(a) Delivery is to a common carrier, whether chosen by the seller or by the purchaser, and whether F.O.B. seller’s shipping point or F.O.B. purchaser’s destination, provided the shipping document indicates delivery to a location outside the state; or
(b) Delivery is made by seller’s own transportation vehicles to a location outside the state.
Effective: August 1, 2008
History: Amended 2008 Ky. Acts ch. 95, sec. 11, effective August 1, 2008. — Created
1982 Ky. Acts ch. 431, sec. 2, effective July 15, 1982.