Sales & Use Tax Directive 05-1

This Directive sets out information on the imposition of a “Machinery, Equipment, and Manufacturing Fuel” privilege tax effective January 1, 2006 on the purchase of the following: (1) mill machinery or mill machinery parts and accessories by manufacturing industries and plants and contractors and subcontractors for use in the performance of a contract with a manufacturing industry or plant, (2) manufacturing fuel by manufacturing industries and plants, and (3) recycling equipment by a major recycling facility.