Kerford Limestone Co. v. Neb. Dep’t of RevenueAnnotate this Case
Kerford Limestone Co. purchased a motor grader for use in its manufacturing business and claimed an exemption from sales and use tax on the purchase. The State Tax Commissioner concluded that Kerford had failed to prove the motor grader was exempt manufacturing machinery and equipment. The district court (1) reversed the Commissioner’s determination that to qualify for an exemption, Kerford was required to show that the motor grader was used in manufacturing at least fifty percent of the time; (2) affirmed the Commissioner’s determination that Kerford’s use of the motor grader to maintain “haul roads” was not an exempt use; and (3) remanded for a determination of whether use of the motor grader to maintain inventory stockpile areas qualified Kerford for an exemption. The Supreme Court reversed the portion of the district court’s order that remanded the cause for further proceedings, holding (1) Kerford’s use of the motor grader to maintain inventory stockpile areas was a use in manufacturing; and (2) therefore, Kerford was entitled to an exemption from sales and use tax on its purchase of the motor grader. Remanded to the district court with direction to enter an order granting Kerford the exemption.