2014 Kentucky Revised Statutes CHAPTER 139 - SALES AND USE TAXES 139.486 Sale, use, storage, or consumption of "industrial machinery" -- Definitions for section.
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139.486 Sale, use, storage, or consumption of "industrial machinery" -Definitions for section.
(1)
(2)
(3)
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.
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.
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.
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